Touchable Incorporated.. Fs

Sales sales discount Net Sales Cost of Sales Gross Profit Operating Expenses Selling Administrative Operating Income Provision for Income Tax Net Income After Tax Add: Retained Earnings, Beg. Total Earnings Less: Appropriations Contigencies Plant Expansion Retained Earnings, End Earnings Per Share:

Touchable Incorporated Projected Income Statement and Retained Earnings For the year 2008-2012 Note 2008 2009 2010 1 11,694,063 12,863,469 14,149,816 350,822 385,904 424,494 11,343,241 12,477,565 13,725,321 2 6,041,291 7,879,678 8,601,479 5,301,949 4,597,886 5,123,842 3 4

2011 15,564,797 466,944 15,097,853 9,080,221 6,017,632

2012 17,121,277 513,638 16,607,639 9,521,734 7,085,905

1,077,717 2,056,820 2,167,413 758,594 1,408,818

1,125,564 2,110,788 1,361,534 408,460 953,074

1,218,859 2,207,398 1,697,585 509,276 1,188,310

1,315,055 2,308,108 2,394,469 718,341 1,676,128

1,428,401 2,414,074 3,243,430 973,029 2,270,401

1,408,818

1,408,818 2,361,892

2,361,892 3,550,202

2,485,141 4,161,270

2,080,635 4,351,036

1,065,061

1,248,381 832,254 2,080,635

1,305,311 870,207 2,175,518

1,408,818

2,361,892

9.39

6.35

103

2,485,141 7.92

11.17

15.14

Notes to the Income Statement Note 1 – Sales Cash Sales Credit Sales Total Sales

2008 9,355,250 2,338,813 11,694,063

2009 10,290,775 2,572,694 12,863,469

2010 11,319,853 2,829,963 14,149,816

2011 12,451,838 3,112,959 15,564,797

2012 13,697,022 3,424,255 17,121,277

2008 2,782,929 2,428,320 1,854,589 7,065,838

2009 3,617,807 2,549,736 1,988,579 8,156,122 706,584 8,862,706 886,271 7,976,436 317,963 8,294,398 414,720 7,879,678

2010 3,972,631 2,677,223 2,063,286 8,713,139 886,271 9,599,410 959,941 8,639,469 414,720 9,054,189 452,709 8,601,479

2011 4,214,745 2,811,084 2,131,361 9,157,190 959,941 10,117,131 1,011,713 9,105,418 452,709 9,558,127 477,906 9,080,221

2012 4,436,353 2,951,638 2,205,819 9,593,811 1,011,713 10,605,524 1,060,552 9,544,972 477,906 10,022,878 501,144 9,521,734

Note 2 – Cost of Sales Materials Used Labor Overhead Total Manufacturing Costs Work in Process Beginning Total Goods In Process Work in Process End Cost of Goods Manufactured Finished Goods Beg Total Goods Available for Sale Finished Goods End Cost of Sales

7,065,838 706,584 6,359,254 6,359,254 317,963 6,041,291

104

Note 3 – Selling Expenses Salaries Advertising and Promotions Gasoline Depreciation - Truck Employer's Contribution Selling Expenses

2008 645,888 157,500 110,400 100,000 63,929 1,077,717

2009 678,182 162,225 113,712 100,000 71,444 1,125,564

2010 746,001 178,448 119,398 100,000 75,013 1,218,859

2011 820,601 196,292 125,367 100,000 72,794 1,315,055

2012 902,661 215,921 131,636 100,000 78,182 1,428,401

2008 1,588,944 116,896 22,829 158,612 9,745 152,579 7,215 2,056,820

2009 1,668,391 123,059 22,829 158,612 10,720 117,943 9,235 2,110,788

2010 1,751,811 125,804 22,829 158,612 11,792 126,587 9,963 2,207,398

2011 1,839,401 127,825 22,829 158,612 12,971 136,095 10,375 2,308,108

2012 1,931,371 129,725 22,829 158,612 14,268 146,555 10,714 2,414,074

Note 4 – Administrative Expenses Salaries Employer's Contribution Depreciation - Furnitures and Fixtures Depreciation - Building Doubtful Accounts Expense Taxes and Licenses Office Supplies Adminstrative Expenses

105

Touchable Furniture Corporation Projected Statement of Cash Flow For the year 2008-2012 2008 2009 Cash Flow from Operating Activities Net Income Add back - Depreciation Doubtful Accounts Increase in Accounts Receivable Increase Office Supplies Increase in Factory Supplies Increase in Inventories Increase (Decrease) in Liabilities Net Cash Flow from Operating Activities

1,408,818 547,206 9,745 (194,901) (2,405) (30,270) (1,952,189) 396,406 182,409

Cash Flow from Investing Activies Purchase of Machine Furnitures and Fixtures Land Truck Building Net Cash Flow from Investing Activies

(2,657,646) (159,806) (5,000,000) (1,000,000) (2,379,173) (11,196,625)

Cash Flow from Financing Activities Investment of the Shareholders Payment of Dividends Net Cash flow from Financing Activies Net Cash Inflow(Outflow) Add: Cash Beginning Cash as Recorded in Balance Sheet

2010

2011

2012

953,074 547,206 10,720 (19,490) (673) (6,962) (554,737) 30,501 959,638

1,188,310 547,206 11,792 (21,439) (243) (2,328) (229,934) 53,728 1,547,091

1,676,128 547,206 12,971 (23,583) (137) (1,429) (157,674) 81,838 2,135,319

2,270,401 547,206 14,268 (25,941) (113) (1,278) (145,946) 96,362 2,754,958

(1,600,000)

(1,600,000)

(1,600,000)

(1,600,000)

(1,600,000)

(1,600,000)

(1,600,000)

(1,600,000)

(640,362) 3,985,785 3,345,422

(52,909) 3,345,422 3,292,513

535,319 3,292,513 3,827,832

1,154,958 3,827,832 4,982,789

15,000,000 15,000,000 3,985,785 3,985,785

106

Note Currents Assets Cash Trade and Other Receivables Inventories Prepayments Total Current Assets Non-Current Assets Property, Plant, and Equipment

Total Equity

2010

2011

2012

1 2 3

3,985,785 185,156 1,952,189 32,675 6,155,805

3,345,422 193,927 2,506,926 40,311 6,086,586

3,292,513 203,574 2,736,861 42,881 6,275,829

3,827,832 214,186 2,894,535 44,447 6,981,000

4,982,789 225,860 3,040,481 45,838 8,294,969

4

17,049,419

16,502,213

15,955,008

15,407,802

14,860,597

23,205,224

22,588,799

22,230,837

22,388,802

23,155,566

396,406 6,400,000 15,000,000

426,907 4,800,000 15,000,000 2,361,892

562,472 1,600,000 15,000,000 3,145,695 2,080,635

658,834

1,408,818

480,635 3,200,000 15,000,000 1,065,061 2,485,141

15,000,000 5,321,213 2,175,518

23,205,224

22,588,799

22,230,837

22,388,802

23,155,566

Total Assets Current Liabilities Long Term Debt Shareholder's Capital Reserves Retained Earnings

Touchable Furniture Corporation Balance Sheet 2008-2012 2008 2009

5

6

107

Note to the Balance Sheet Note 1 – Trade and Other Receivables 2008 Accounts Receivable, Beg. Credit Sales Total Receivables Collections Accounts Receivable, End Less: Allowance for Doubtful Accounts Accounts Receivable at NRV

2,338,813 2,338,813 2,143,911 194,901 9,745 185,156

2009 185,156 2,572,694 2,757,850 2,543,459 214,391 20,465 193,927

2010 193,927 2,829,963 3,023,890 2,788,059 235,830 32,256 203,574

2011 203,574 3,112,959 3,316,534 3,057,120 259,413 45,227 214,186

2012 214,186 3,424,255 3,638,442 3,353,087 285,355 59,495 225,860

Note 2 – Inventories Raw Materials Work in Process Finished Goods Total Inventories

2008 927,643 706,584 317,963 1,952,189

2009 1,205,936 886,271 414,720 2,506,926

2010 1,324,210 959,941 452,709 2,736,861

2011 1,404,915 1,011,713 477,906 2,894,535

2012 1,478,784 1,060,552 501,144 3,040,481

2008 2,405 30,270 32,675

2009 3,078 37,232 40,311

2010 3,321 39,560 42,881

2011 3,458 40,989 44,447

2012 3,571 42,267 45,838

Note 3 – Prepayments Office Supplies Factory Supplies Total Prepayment

108

Note 4 – Property, Plant and Equipment Machineries Furnitures and Fixtures Land Truck Building Total PPE Less: Accumulated Depreciation Carrying Amount

2008 2,657,646 159,806 11,400,000 1,000,000 2,379,173 17,596,625 547,206 17,049,419

2009 2,657,646 159,806 11,400,000 1,000,000 2,379,173 17,596,625 1,094,411 16,502,213

2010 2,657,646 159,806 11,400,000 1,000,000 2,379,173 17,596,625 1,641,617 15,955,008

2011 2,657,646 159,806 11,400,000 1,000,000 2,379,173 17,596,625 2,188,822 15,407,802

2012 2,657,646 159,806 11,400,000 1,000,000 2,379,173 17,596,625 2,736,028 14,860,597

Note 5 – Current Liabilities SSS Payable Philhealth HDMF Witholding Tax VAT Payable Business Tax Payable Income Tax Total Liabilities

2,008 47,121 12,700 9,200 55,893 75,712 86,228 288,862

2,009 53,976 13,100 9,200 76,153 83,283 80,680 318,401

2,010 56,264 14,250 9,200 82,255 91,612 88,748 40,191 384,530

2,011 57,955 14,500 9,200 88,905 100,773 97,622 38,573 409,539

2,012 60,216 15,575 9,200 95,079 110,850 107,385 73,816 474,133

Note 6 – Reserves 2008

2009

Appropriation, Beginning Contingencies Plant Expansion Total Appropriation, End

2010 1,065,061 1,065,061

109

2011 1,065,061 1,248,381 832,254 3,145,695

2012 3,145,695 1,305,311 870,207 5,321,213

Supporting Schedules for the Financial Statements Materials Schedule Materials, Beginning Materials Purchased Total Materials Available for Use Materials Used Materials, End

2008 3,710,571 3,710,571 (2,782,929) 927,643

2009 927,643 3,896,100 4,823,743 (3,617,807) 1,205,936

2010 1,205,936 4,090,905 5,296,841 (3,972,631) 1,324,210

2011 1,324,210 4,295,450 5,619,660 (4,214,745) 1,404,915

2012 1,404,915 4,510,223 5,915,138 (4,436,353) 1,478,784

2,008 292,944 121,080 650,796 206,240 265,765 317,765 1,854,589

2,009 307,591 148,928 670,320 216,552 265,765 379,423 1,988,579

2,010 322,971 158,239 690,429 227,380 265,765 398,502 2,063,286

2,011 339,119 163,955 711,142 238,749 265,765 412,631 2,131,361

2,012 356,075 169,068 732,477 250,686 265,765 431,749 2,205,819

2008

2009 189,649 408,460 598,109 495,994 102,115

2010 102,115 509,276 611,391 484,072 127,319

2011 127,319 718,341 845,660 666,074 179,585

2012 179,585 973,029 1,152,614 909,357 243,257

Factory Overhead Schedule Indirect Labor Cost Factory Supplies Employee Benefits Utilities Depreciation - Machine Employer's Contribution Factory Overhead

Income Tax Schedule

Income Tax Beg. Income Tax Total Taxes to be Paid Paid Income Tax Income Tax End

758,594 758,594 568,946 189,649

110

Sales Discount Schedule Sales Provision for Sales Discount (3%) Sales Discount

2008 11,694,063 3% 350,822

2009 12,863,469 3% 385,904

2010 14,149,816 3% 424,494

2011 15,564,797 3% 466,944

2012 17,121,277 3% 513,638

2008 13,097,350 (1,403,288) 11,694,063

2009 14,407,085 (1,543,616) 12,863,469

2010 15,847,794 (1,697,978) 14,149,816

2011 17,432,573 (1,867,776) 15,564,797

2012 19,175,830 (2,054,553) 17,121,277

2008 4,155,840 (445,269) 3,710,571

2009 4,363,632 (467,532) 3,896,100

2010 4,581,814 (490,909) 4,090,905

2011 4,810,904 (515,454) 4,295,450

2012 5,051,449 (541,227) 4,510,223

2008 1,403,288 445,269 958,019 878,184 79,835

2009 1,543,616 467,532 1,076,084 986,411 89,674

2010 1,697,978 490,909 1,207,069 1,106,480 100,589

2011 1,867,776 515,454 1,352,322 1,239,628 112,693

2012 2,054,553 541,227 1,513,326 1,387,216 126,111

VAT Payable Schedule Output Tax Gross Receipts Output Tax Sales, net of Output Tax

Input Tax

Materials Purchased Input Tax Materials Purchased, net

VAT Payable VAT Schedules Output Tax Input Tax VAT Payable VAT Paid VAT Payable @ Year end

111

Taxes and Licenses Schedule SEC Registration BIR Community Tax SSS Documentary Stamp Tax Sanitary Mayor Utilities Business Permit Environmental Fee Barangay Clearance Business Tax Total Amount

2008 31,280 500 9,799 500 75,000 500 30,000 3,500 500 500 500 152,579

2009

2010

2011

2012

5,763

6,339

6,973

7,670

500 30,000

500 30,000

500 30,000

500 30,000

500 500

500 500

500 500

500 500

80,680 117,943

88,748 126,587

97,622 136,095

107,385 146,555

Prepayment Schedules Office Supplies Factory Supplies Total Prepayment

Factory Supplies Beg. Factory Supplies Purchases Total Factory Supplies Used Factory Supplies End

2008 2,405 30,270 32,675

2009 3,078 37,232 40,311

2010 3,321 39,560 42,881

2011 3,458 40,989 44,447

2012 3,571 42,267 45,838

2008

2009 30,270 155,891 186,161 148,928 37,232

2010 37,232 160,567 197,799 158,239 39,560

2011 39,560 165,384 204,944 163,955 40,989

2012 40,989 170,346 211,335 169,068 42,267

151,350 151,350 121,080 30,270

112

Bad Debts Schedule 2008 Allowance for Doubtful Accounts, beg Doubtful Accounts Total Allowance for Doubful Accts Allowance for Doubtful Accounts, end

9,745 9,745

2009 9,745 10,720 20,465

2010 20,465 11,792 32,256

2011 32,256 12,971 45,227

2012 45,227 14,268 59,495

9,745

20,465

32,256

45,227

59,495

Utilities Schedule Electricity Water Telephone Total

2008 201,480 3,490 1,270 206,240

2009 211,554 3,665 1,334 216,552

113

2010 222,132 3,848 1,400 227,380

2011 233,238 4,040 1,470 238,749

2012 244,900 4,242 1,544 250,686

Payroll Schedule for 2008-2012

114

Initial Investment Cost Machineries Furnitures and Fixtures Land Truck Building Fixed Investment Cost Organization Cost Initial Investment Cost

2,657,646 159,806 11,400,000 1,000,000 2,379,173 17,596,625 152,579 17,749,203

Notes Issued (for Land Acquisition) Suggested Investment Total Investment Initial Investment Cost Working Capital

6,400,000 15,000,000 21,400,000 17,749,203 3,650,797

101

Organization Cost SEC Registration BIR Community Tax SSS Documentary Stamp Tax Sanitary Mayor Utilities Business Permit Environmental Fee Barangay Clearance Organization Cost

31,280 500 9,799 500 75,000 500 30,000 3,500 500 500 500 152,579

SEC Registration Filing Fee

15,000,000 fifth of 1%

0.002 Legal Fee 0.01 Articles and By-Laws Registration cost, and Transfer books

30,000 300 510 470 31,280

Total Documentary Stamp Tax 1.00 for every 200 paid in capital Community Tax Schedule Gross Receipt Divided by: Total Amount Taxable Multiply by Community Tax Real Property Community Tax Land Assessed Value Divided by Total Amount Taxable Multiply Community Tax Community Tax on Gross Receipts Real Property Community Tax Total Community Tax Due

102

75,000

13,097,350 5,000 2,619 2 5,239

11,400,000 5000 2,280 2 4,560 5,239 4,560 9,799

Financial Ratios

Finacial Ratio Analysis Year 1. Test of Liquidity a) Current Ratio Current assets Current liabilities

b) Quick or acid-test ratio Current asset - inventories Current Liabities

2. Test of debt-service a) Debt-to-networht ratio Total liabilities Total equities

3. Test of Profitability a) Net profit margin Net income after tax Sales b) Return on owner's investment (ROI) Net income Stockholder equity c) Return on assets or earning power (ROA) Net income Total tangible assets

2008

2009

2010

2011

2012

6,155,804.88 396,405.50 15.53

6,086,585.72 426,906.81 14.26

6,275,828.69 480,634.53 13.06

6,981,000.05 562,472.07 12.41

8,294,968.67 658,834.20 12.59

4,203,615.51 396,405.50 10.60

3,579,659.47 426,906.81 8.39

3,538,968.09 480,634.53 7.36

4,086,465.46 562,472.07 7.27

5,254,487.90 658,834.20 7.98

6,796,405.50 16,408,818.35 0.41

5,226,906.81 17,361,892.36 0.30

3,680,634.53 18,550,202.08 0.20

2,162,472.07 19,161,269.74 0.11

658,834.20 19,351,035.83 0.03

1,408,818.35 11,694,062.50 0.12

953,074.01 12,863,468.75 0.07

1,188,309.73 14,149,815.63 0.08

1,676,128.28 15,564,797.19 0.11

2,270,400.96 17,121,276.91 0.13

1,408,818.35 16,408,818.35 0.09

953,074.01 17,361,892.36 0.05

1,188,309.73 18,550,202.08 0.06

1,676,128.28 19,161,269.74 0.09

2,270,400.96 19,351,035.83 0.12

1,408,818.35 23,205,223.85 0.06

953,074.01 22,588,799.17 0.04

1,188,309.73 22,230,836.61 0.05

1,676,128.28 22,388,802.44 0.07

2,270,400.96 23,155,565.53 0.10

103

104