EALA INC

Pro-forma Income Statement

For the period from Year 1 to Year 10
Year 1 Year 2 Year 3

Gross Sales Revenue 5,471,213.15 5,741,857.39 5,966,128.05

32,477.31 26,912.48
VAT Output Tax (12%) 656,545.58 689,022.89 715,935.37

Net Sales Revenue 6,079,125.72 6,379,841.54 6,629,031.16

Cost of Sales 1,949,218.67 2,047,692.37 2,127,672.99

Gross Income 4,129,907.05 4,332,149.17 4,501,358.17

Less: Operating Expenses

Advertising Expense 110,500.00 30,000.00 30,000.00
Washing Expenses 180,000.00 180,000.00 180,000.00
Depreciation Expense 102,293.90 102,293.90 102,293.90
Repairs & Maintainance - 35,000.00 35,000.00
Rent Expense 150,000.00 161,250.00 173,343.75

Salaries and Wages 2,419,064.80 2,509,064.80 2,494,601.20

SSS Contribution 90,985.20 90,985.20 91,348.80
Phil Health/Medicare 19,950.00 19,950.00 19,950.00
Employee Benefits ( 13th Month Pay) 230,000.00 140,000.00 236,900.00
Utilities Expense (electricity, water, gasoline, telephone) 187,080.00 190,821.60 194,638.03

Supplies Expense 16,911.90 14,546.90 14,546.90

Miscellaneous Expense ( Business Permit,etc) 7,472.00 7,472.00 7,472.00

Insurance Expense 22,500.00 22,500.00 22,500.00
Total Operating Expenses 3,536,757.80 3,503,884.40 3,602,594.58

Operating Income 593,149.25 828,264.77 898,763.59

Less: Interest Expense (15%) 116,662.61 116,662.61

Earnings before Tax 476,486.64 711,602.16 898,763.59

Less: Income Tax (32%) 152,475.72 227,712.69 287,604.35
75,236.97 59,891.66
Net Income 324,010.91 483,889.47 611,159.24
 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

6,199,158.47 6,441,290.81 6,692,880.56 6,954,297.14 7,225,924.37 7,508,161.05 7,801,421.60

27,963.65 29,055.88 30,190.77 31,369.99 32,595.27 33,868.40 35,191.27
743,899.02 772,954.90 803,145.67 834,515.66 867,110.92 900,979.33 936,170.59

6,887,953.86 7,156,989.78 7,436,533.96 7,726,996.83 8,028,804.85 8,342,401.17 8,668,246.22

2,210,777.57 2,297,128.12 2,386,851.42 2,480,079.22 2,576,948.40 2,677,601.18 2,782,185.35

4,677,176.29 4,859,861.67 5,049,682.54 5,246,917.60 5,451,856.46 5,664,799.99 5,886,060.87

110,500.00 30,000.00 100,500.00 30,000.00 30,000.00 30,000.00 30,000.00

180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00
102,293.90 102,293.90 102,993.90 102,993.90 102,993.90 102,993.90 102,993.90
35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
186,344.53 200,320.37 215,344.40 231,495.23 248,857.37 267,521.67 287,585.80

2,587,301.20 2,570,596.60 2,570,496.60 2,650,154.11 2,644,574.11 2,731,756.89 2,724,813.29

91,348.80 93,530.40 93,630.40 93,895.20 99,475.20 95,080.40 102,024.00
19,950.00 19,950.00 19,950.00 20,550.00 20,550.00 20,700.00 20,700.00
144,200.00 244,007.00 244,007.00 251,327.21 251,327.21 258,867.03 258,867.03
198,530.79 202,501.41 206,551.44 210,682.47 214,896.11 219,194.04 223,577.92

14,546.90 14,546.90 14,546.90 14,546.90 14,546.90 14,546.90 14,546.90

7,472.00 7,472.00 7,472.00 7,472.00 7,472.00 7,472.00 7,472.00

22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00
3,699,988.12 3,722,718.58 3,812,992.64 3,850,617.01 3,872,192.81 3,985,632.83 4,010,080.84

977,188.16 1,137,143.09 1,236,689.90 1,396,300.59 1,579,663.65 1,679,167.16 1,875,980.04

- - - -

977,188.16 1,137,143.09 1,236,689.90 1,396,300.59 1,579,663.65 1,679,167.16 1,875,980.04

312,700.21 363,885.79 395,740.77 446,816.19 505,492.37 537,333.49 600,313.61
25,095.86 51,185.58 31,854.98 51,075.42 58,676.18 31,841.12 62,980.12
664,487.95 773,257.30 840,949.13 949,484.40 1,074,171.28 1,141,833.67 1,275,666.42
 EALA
Pro-forma Bal
As of December 31,

Y E A
0 1 2

ASSETS
Currents Assets
Cash 786,641.00 2,283,457.02 2,917,591.96
Accounts Receivable - 14,000.00 156,446.93
Inventory 36,885.00 24,640.41 25,414.96
Supplies on Hand 52,911.90 4,529.20 4,105.66
Prepaid Advertising 110,500.00 110,500.00 30,000.00
Prepaid Rent 75,000.00 - -
Total Current Assets 1,061,937.90 2,437,126.63 3,133,559.51

Fixed Assets
Office Assets 109,200.00 109,200.00 109,200.00
Store Assets 464,610.00 464,610.00 464,610.00
Total Fixed Assets 573,810.00 573,810.00 573,810.00
Less: Accumulated Depreciation - 72,131.00 144,262.00
Total Fixed Assets 573,810.00 501,679.00 429,548.00

Intangibles (30,862.90) (30,862.90)

Leasehold Improvements 308,629.00 308,629.00 308,629.00
Less: Accumulated Depreciation - 30,862.90 61,725.80
Total Intangibles 308,629.00 277,766.10 246,903.20

TOTAL ASSETS 1,944,376.90 3,216,571.73 3,810,010.71

LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities
Interest Payable - 116,662.61 116,662.61
Insurance Payable - 22,500.00 22,500.00
VAT Output Tax Payable - 656,545.58 689,022.89
Income Tax Payable - 152,475.72 227,712.69
Dividends Payable
Total Current Liabilities - 948,183.91 1,055,898.19

Long-term Liabilities
Long-term loan 777,750.76 777,750.76 779,586.00

TOTAL LIABILITIES 777,750.76 1,725,934.67 1,835,484.19

Stockholder's Equity
Capital Stock (P10 par value) 1,166,626.14 1,166,626.14 1,166,626.14
Retained Earnings - 324,010.91 807,900.38
TOTAL STOCKHOLDER'S EQUITY 1,166,626.14 1,490,637.05 1,974,526.52

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 1,944,376.90 3,216,571.73 3,810,010.71

- 0.00 -
- 0.00 -

5460.4
9,828.61
 EALA INC.
Pro-forma Balance Sheet
As of December 31, Year 0 to Year 10

Y E A R
3 4 5 6 7 8

2,908,963.24 3,688,158.60 4,655,997.26 5,088,224.04 5,622,647.76 6,391,084.38

53,983.02 14,000.00 67,296.24 582,670.69 667,252.25 666,301.79
26,216.26 27,045.28 27,903.04 28,790.59 29,709.03 30,659.49
4,105.66 4,105.66 4,105.66 4,105.66 4,105.66 4,105.66
30,000.00 110,500.00 30,000.00 100,500.00 30,000.00 30,000.00
- - -
3,023,268.17 3,843,809.54 4,785,302.20 5,703,790.99 6,323,714.70 7,092,151.32

109,200.00 109,200.00 109,200.00 109,200.00 109,200.00 109,200.00

464,610.00 464,610.00 464,610.00 464,610.00 464,610.00 464,610.00
573,810.00 573,810.00 573,810.00 573,810.00 573,810.00 573,810.00
201,393.00 273,524.00 330,655.00 315,286.00 372,417.00 444,548.00
372,417.00 300,286.00 243,155.00 258,524.00 201,393.00 129,262.00

(30,862.90) (30,862.90) (30,862.90) (30,862.90) (30,862.90) (30,862.90)

308,629.00 308,629.00 308,629.00 308,629.00 308,629.00 308,629.00
92,588.70 123,451.60 154,314.50 185,177.40 216,040.30 246,903.20
216,040.30 185,177.40 154,314.50 123,451.60 92,588.70 61,725.80

3,611,725.47 4,329,272.94 5,182,771.70 6,085,766.59 6,617,696.40 7,283,139.12

- - -
22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00
715,935.37 743,899.02 772,954.90 803,145.67 834,515.66 867,110.92
287,604.35 312,700.21 363,885.79 395,740.77 446,816.19 505,492.37
500,000.00 500,000.00 500,000.00
1,026,039.71 1,079,099.23 1,159,340.69 1,721,386.44 1,803,831.85 1,895,103.29

- - - - - -

1,026,039.71 1,079,099.23 1,159,340.69 1,721,386.44 1,803,831.85 1,895,103.29

1,166,626.14 1,166,626.14 1,166,626.14 1,166,626.14 1,166,626.14 1,166,626.14

1,419,059.62 2,083,547.57 2,856,804.87 3,197,754.01 3,647,238.41 4,221,409.69
2,585,685.76 3,250,173.71 4,023,431.01 4,364,380.15 4,813,864.55 5,388,035.83

3,611,725.47 4,329,272.94 5,182,771.70 6,085,766.59 6,617,696.40 7,283,139.12

- (0.00) - - - -
- (0.00) - - - -
 9 10

7,171,621.48 8,148,453.19
680,318.13 679,300.04
31,643.15 32,661.24
4,105.66 4,105.66
30,000.00 30,000.00

7,887,688.42 8,864,520.13

109,200.00 109,200.00
464,610.00 464,610.00
573,810.00 573,810.00
501,679.00 573,810.00
72,131.00 -

(30,862.90) (30,862.90)
308,629.00 308,629.00
277,766.10 308,629.00
30,862.90 -

7,990,682.32 8,864,520.13

- -
22,500.00 22,500.00
900,979.33 936,170.59
537,333.49 600,313.61
500,000.00 500,000.00
1,960,812.82 2,058,984.20

- -

1,960,812.82 2,058,984.20

1,166,626.14 1,166,626.14
4,863,243.36 5,638,909.79
6,029,869.50 6,805,535.93

7,990,682.32 8,864,520.13

- -
- -
 EALA INC.
Pro-forma Statement of Retained Earnin
For the period from Year 1 to Year 10
Year 1 Year 2 Year 3 Year 4

Retained Earnings - Beginning - 324,010.91 807,900.38 1,419,059.62

Less:
Net Income for the Year 324,010.91 483,889.47 611,159.24 664,487.95
Dividends Declared During the Year - - - -

Retained Earnings - Ending 324,010.91 807,900.38 1,419,059.62 2,083,547.57

EALA INC.
tement of Retained Earnings
iod from Year 1 to Year 10
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2,083,547.57 2,856,804.87 3,197,754.01 3,647,238.41 4,221,409.69 4,863,243.36

773,257.30 840,949.13 949,484.40 1,074,171.28 1,141,833.67 1,275,666.42

- 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00

2,856,804.87 3,197,754.01 3,647,238.41 4,221,409.69 4,863,243.36 5,638,909.79

Total orders paid/ Total Sales in Units 4,873 5,019 5,113 5,208
Cost of fnished goods per unit 400 408 416 424
Total COGS 1,949,218.67 2,047,692.37 2,127,672.99 2,210,777.57
 5,305 5,405 5,506 5,608 5,713 5,820
433 442 450 459 469 478
2,297,128.12 2,386,851.42 2,480,079.22 2,576,948.40 2,677,601.18 2,782,185.35
 EALA INC.
Pro-forma Statement of Cash Flows
For the period from Year 1 to Year 5
Year 1 Year 2

Cash Flows from Operating Activities

Net Income 324,010.91 483,889.47
Increase (Decrease) in Depreciation - Fixed Assets 72,131.00 72,131.00
Increase (Decrease) in Depreciation - Leasehold Improvements 30,862.90 30,862.90
Increase (Decrease) in Accounts Receivable 14,000.00 156,446.93
Increase (Decrease) in Inventory 12,244.59 774.56
Increase (Decrease) in Supplies On Hand 48,382.70 (423.54)
Increase (Decrease) in Prepaid Advertising - 80,500.00
Increase (Decrease) in Prepaid Rent
Increase (Decrease) in Interest Payable 116,662.61 -
Increase (Decrease) in Insurance Payable 22,500.00 -
Increase (Decrease) in VAT Output Tax Payable 538,115.76 32,477.31
Increase (Decrease) in Income Tax Payable 145,743.29 75,236.97
Net Cash Provided by Operating Activities 1,324,653.77 614,521.19

Cash Flows from Investing and Financing Activities

Acquisition of Office Assets (109,200.00) -
Acquisition of Store Assets (464,610.00) -
Increase (Decrease) in Long-term Loan 779,586.00
Dividends Paid - -
Net Cash Provided by Investing and Financing Activities 205,776.00 -

Increase (Decrease) in Cash 1,530,429.77 614,521.19

Add: Cash - Beginning 786,641.00 2,283,457.02

Cash Balance - End 2,283,457.02 2,917,591.96

Flows
Year 5
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

611,159.24 664,487.95 773,257.30 840,949.13 949,484.40 1,074,171.28

57,131.00 72,131.00 57,131.00 15,369.00 57,131.00 72,131.00
30,862.90 30,862.90 30,862.90 30,862.90 30,862.90 30,862.90
53,983.02 14,000.00 67,296.24 582,670.69 667,252.25 666,301.79
801.30 829.02 857.76 887.55 918.44 950.46
- - - - - -
- (80,500.00) 80,500.00 (70,500.00) 70,500.00 -

- - - - - -
- - - - - -
26,912.48 27,963.65 29,055.88 30,190.77 31,369.99 32,595.27
59,891.66 25,095.86 51,185.58 31,854.98 51,075.42 58,676.18
785,957.28 901,041.37 860,992.66 1,019,726.79 1,049,423.71 1,268,436.63

- - - (72,000.00) - -
(15,000.00) - (15,000.00) (15,500.00) (15,000.00) -
(779,586.00) - - -
- - - (500,000.00) (500,000.00) (500,000.00)
(794,586.00) - (15,000.00) (587,500.00) (515,000.00) (500,000.00)

(8,628.72) 901,041.37 845,992.66 432,226.79 534,423.71 768,436.63

2,917,591.96 2,908,963.24 3,688,158.60 4,655,997.26 5,088,224.04 5,622,647.76

2,908,963.24 3,688,158.60 4,655,997.26 5,088,224.04 5,622,647.76 6,391,084.38

 Year 9 Year 10

1,141,833.67 1,275,666.42
57,131.00 72,131.00
30,862.90 30,862.90
680,318.13 679,300.04
983.66 1,018.09
- -
- -

- -
- -
33,868.40 35,191.27
31,841.12 62,980.12
1,295,537.10 1,476,831.71 -

- -
(15,000.00) -

(500,000.00) (500,000.00)
(515,000.00) (500,000.00)

780,537.10 976,831.71

6,391,084.38 7,171,621.48

7,171,621.48 8,148,453.19 48,876,198.92

 EALA INC
SALES FORECAST (Y
YEAR Year 1 Year 2
Total orders 6,160 6,275
Unpaid orders
Finished goods (in units) 17 17
Work in Process
Day 1 at P280 17 17
Day 2 at P364 17 17
Day 3 at 473.2 17 17
Total unpaid orders 68 70
Total orders paid/ Total Sales in Units 6,091 6,274
Percentage of paid orders sold at regular price 0.99 0.99
Units sold at regular price 6,030 6,211
Average Selling Price 1,000 1,020
Revenue from regular sales 6,030,395.25 6,335,048.27
Units sold at discount 61 63
Selling price at discount 800 714
Revenue from discounted sales 48,730.47 44,793.27
Total Revenue 6,079,125.72 6,379,841.54

Total Raw Materials Inventory 9,221.25 9,393.55

Cost of fnished goods per unit 400 408
Total units in Finished goods Inventory 14 14
Total finished goods inventory 5475 5689
WIP:
DAY 1 182 186
in units 14 14
in pesos 2,492 2,590
DAY 2 237 241
in units 14 14
in pesos 3,240 3,366
DAY 3 308 314
in units 14 14
in pesos 4,211.79 4,376.30
Total Work in Process inventory 9,943.82 10,332.22
Total Inventory 24,640.41 25,414.96
 EALA INC.
ALES FORECAST (YEAR 1-10)
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
6,392 6,512 6,633 6,757 6,883 7,012 7,143

18 18 18 19 19 19 20

18 18 18 19 19 19 20
18 18 18 19 19 19 20
18 18 18 19 19 19 20
71 72 74 75 76 78 79
6,391 6,510 6,632 6,756 6,882 7,011 7,142
0.99 0.99 0.99 0.99 0.99 0.99 0.99
6,327 6,445 6,566 6,688 6,813 6,940 7,070
1,040 1,061 1,082 1,104 1,126 1,149 1,172
6,582,488.32 6,839,593.10 7,106,740.11 7,384,321.59 7,672,745.09 7,972,434.11 8,283,828.65
64 65 66 68 69 70 71
728 743 758 773 788 804 820
46,542.85 48,360.76 50,249.68 52,212.37 54,251.73 56,370.75 58,572.53
6,629,031.16 6,887,953.86 7,156,989.78 7,436,533.96 7,726,996.83 8,028,804.85 8,342,401.17

9,569.07 9,747.87 9,930.01 10,115.56 10,304.57 10,497.11 10,693.25

416 424 433 442 450 459 469
14 14 15 15 15 16 16
5911 6142 6382 6631 6891 7160 7439

189 193 197 201 205 209 213

14 14 15 15 15 16 16
2,691 2,796 2,905 3,018 3,136 3,259 3,386
246 251 256 261 267 272 277
14 14 15 15 15 16 16
3,498 3,634 3,776 3,924 4,077 4,236 4,402
320 327 333 340 347 353 361
14 14 15 15 15 16 16
4,547.24 4,724.85 4,909.39 5,101.15 5,300.39 5,507.42 5,722.54
10,735.78 11,155.11 11,590.82 12,043.54 12,513.95 13,002.73 13,510.60
26,216.26 27,045.28 27,903.04 28,790.59 29,709.03 30,659.49 31,643.15
 Year 10
7,277

20

20
20
20
81
7,275
0.99
7,202
1,195
8,607,385.91
73
837 0 0 0 0 0 0 0 0
60,860.30
8,668,246.22

10,893.06
478
16
7730

218
16
3,518
283
16
4,574
368
16
5,946.05
14,038.31
32,661.24
 EALA Incorporated EALA Incorporated
Computation of Payback Period Computation of Net Present Value

Project Cost 1,944,376.90 EALA's Cost of Capital 19.2%

Total Investment 1,944,376.90
Year Year- End Cash Flow
1 2,283,457.02 Year Year-End Cash Flow PV
2 2,917,591.96
3 2,908,963.24 1 2,283,457.02 ($1,915,651.86)
4 3,688,158.60 2 2,917,591.96 ($2,447,644.26)
5 4,655,997.26 3 2,908,963.24 ($2,440,405.40)
6 5,088,224.04 4 3,688,158.60 ($3,094,092.79)
7 5,622,647.76 5 4,655,997.26 ($3,906,037.97)
8 6,391,084.38 6 5,088,224.04 ($4,268,644.33)
9 7,171,621.48 7 5,622,647.76 ($4,716,986.37)
10 8,148,453.19 8 6,391,084.38 ($5,361,647.97)
9 7,171,621.48 ($6,016,460.97)
Payback Period 1 year 10 8,148,453.19 ($6,835,950.66)
NPV ($39,059,145.69)

EALA INC.
Financial Ratios
1 2 3

Liquidity Ratios
Current Ratio 2.49 3.72 4.95
Quick Ratio 2.47 3.70 4.93

Activity Ratios
Inventory Turnover 1.54 1.57 1.60
Total Asset Turnover 1.98 1.05 0.80

Debt Ratios
Debt Ratio 0.37 0.27 0.19

Profitability Ratios
Gross Profit Margin 99.12% 99.12% 99.12%
Operating Profit Margin 47.00% 49.00% 47.00%
Net Profit Margin 31.39% 33.22% 32.30%

Return on Assets 7.38% 1.46% 7.24%

Return on Equity 8.68% 4.37% 23.20%
 EALA Incorporated
Computation of Internal Rate of Return

Year Year-End Cash Flow

0 (1,944,376.90)
1 2,283,457.02
2 2,917,591.96
3 2,908,963.24
4 3,688,158.60
5 4,655,997.26
6 5,088,224.04
7 5,622,647.76
8 6,391,084.38
9 7,171,621.48
10 8,148,453.19
IRR 136%

EALA INC.
Financial Ratios
Years
4 5 6 7 8 9 10

6.16 7.40 6.54 7.63 8.69 9.79 10.80

6.14 7.38 6.53 7.62 8.68 9.78 10.79

1.63 1.66 2.03 2.07 2.11 2.15 2.19

0.65 0.54 0.53 0.44 0.39 0.34 0.31

0.16 0.13 0.15 0.13 0.11 0.10 0.09

99.12% 99.12% 99.12% 99.12% 99.12% 99.12% 99.12%

48.00% 48.00% 56.00% 56.00% 57.00% 56.00% 57.00%
32.90% 32.41% 38.15% 38.35% 38.70% 38.41% 38.73%

10.05% 23.81% 25.83% 23.05% 23.77% 18.81% 19.66%

29.71% 41.96% 44.18% 36.46% 37.94% 27.31% 28.34%