final financial statement with ratio

Selling Price Variable cost/unit

2016 2017 2018 2019

Cellphones

Program Flashing 250.00 61.01 60.53 60.12 59.70LCD replacement 800.00 610.73 610.73 610.32 609.89Drop signal 300.00 59.19 58.71 58.30 57.88Formatting/ Cleaning 250.00 60.52 60.04 59.63 59.20

Tablet

Program Flashing 300.00 61.01 60.53 60.12 59.70LCD replacement 1,200.00 911.21 910.73 910.32 909.89Drop signal 350.00 59.19 58.71 58.30 57.88Formatting/ Cleaning 300.00 60.52 60.04 59.63 59.20

Laptop

Hard Drive 2,500.00 2163.71 2163.24 2162.83 2162.40Memory 1,500.00 1162.30 1161.82 1161.41 1160.99Motherboard 3,000.00 2675.02 2674.54 2674.13 2673.70Software 500.00 108.80 108.32 107.91 107.48

Refurbished Defective Phones 2,300.00 2060.52 2060.04 2059.63 2059.21Unused Phones 2,200.00 2060.52 2060.04 2059.63 2059.21

AccessoriesEarphones(Copper Wires) 300.00 200.00 200.00 200.00 200.00Charger 300.00 200.00 200.00 200.00 200.00Connectors 300.00 200.00 200.00 200.00 200.00

0

0

057

Variable cost/unit Contribution margin/unit Fixed cost Breakeven(units)

2020 2016 2017 2018 2019 2020 201659.33 188.99 189.47 189.88 190.30 190.67### 5.75% 1176352 67606.45 357.73

609.53 189.27 189.27 189.68 190.11 190.47### 5.75% 1176352 67606.45 357.1957.51 240.81 241.29 241.70 242.12 242.49### 10.34% 1176352 121691.61 505.3558.84 189.48 189.96 190.37 190.80 191.16### 5.75% 1176352 67606.45 356.8059.33 238.99 239.47 239.88 240.30 240.67### 5.75% 1176352 67606.45 282.89

909.53 288.79 289.27 289.68 290.11 290.47### 8.05% 1176352 94649.03 327.7457.51 290.81 291.29 291.70 292.12 292.49### 8.05% 1176352 94649.03 325.4758.84 239.48 239.96 240.37 240.80 241.16### 6.90% 1176352 81127.74 338.77

2162.03 336.29 336.76 337.17 337.60 337.97### 8.05% 1176352 94649.03 281.451160.62 337.70 338.18 338.59 339.01 339.38### 8.05% 1176352 94649.03 280.282673.34 324.98 325.46 325.87 326.30 326.66### 6.90% 1176352 81127.74 249.64

107.12 391.20 391.68 392.09 392.52 392.88### 6.90% 1176352 81127.74 207.382058.84 239.48 239.96 240.37 240.79 241.16### 5.75% 1176352 67606.45 282.312058.84 139.48 139.96 140.37 140.79 141.16### 4.60% 1176352 54085.16 387.76

200.00 100.00 100.00 100.00 100.00 100.00### 1.15% 1176352 13521.29 135.21200.00 100.00 100.00 100.00 100.00 100.00### 1.15% 1176352 13521.29 135.21200.00 100.00 100.00 100.00 100.00 100.00### 1.15% 1176352 13521.29 135.21

### 100.00%

Ranking

Sales Mix

RatioAllocated fixed cost

Breakeven(units) Breakeven(peso)

2017 2018 2019 2020 2016 2017 2018 2019356.82 356.05 355.25 354.57 89431.65 89205.52 89013.39 88813.67357.19 356.42 355.62 354.94 285754.17 285754.17 285138.09 284497.64504.34 503.49 502.60 501.85 151604.29 151303.28 151047.28 150780.90355.90 355.13 354.34 353.66 89199.67 88974.71 88783.58 88584.88282.32 281.84 281.34 280.91 84865.50 84695.72 84551.33 84401.09327.20 326.74 326.25 325.84 393288.64 392637.31 392083.01 391505.91324.93 324.48 324.00 323.60 113914.31 113726.96 113567.52 113401.51338.09 337.51 336.92 336.41 101629.59 101426.69 101254.13 101074.58281.05 280.71 280.36 280.05 703635.10 702634.13 701781.93 700894.31279.88 279.54 279.19 278.89 420414.49 419818.92 419311.86 418783.72249.27 248.96 248.63 248.35 748914.27 747811.88 746873.42 745896.04207.13 206.91 206.69 206.49 103690.63 103563.81 103455.79 103343.24281.74 281.26 280.76 280.34 649302.88 648006.56 646904.07 645756.92386.44 385.31 384.14 383.15 853080.30 850160.24 847683.37 845112.53135.21 135.21 135.21 135.21 40563.87 40563.87 40563.87 40563.87135.21 135.21 135.21 135.21 40563.87 40563.87 40563.87 40563.87135.21 135.21 135.21 135.21 40563.87 40563.87 40563.87 40563.87

Breakeven(peso)

202088643.57

283952.22150553.83

88415.6684273.03

391013.74113259.93100921.53700137.01418333.12745062.23103247.19644779.11842926.32

40563.8740563.8740563.87

DEMAND AND SUPPLY2016 2017 2018

Repair ServiceCellphone 3394 3630 3882Tablet 1536 1643 1757Laptop 103 110 118Total 5033.04 5382.84 5756.95Secondhand PhonesSell(Demand) 2860 3059 3272Buy(Supply) 1524 1630 1743

AccesoriesEarphones 13391 14321 15317Connector 5143 5500 5883Charge 10694 11437 12232

OVERHEAD PER UNIT

Service Overhead KW/hr KW/minProgram Flashing

Computer 0.90 0.02LCD replacement

1.60 0.03Drop Signal

Soldering iron 0.13 0.002

1.60 0.03Formatting/Cleaning

1.60 0.03Computer 0.90 0.02

Hard driveSoldering iron 1.60 0.03

0.13 0.002Memory upgrade


0.13 0.002Motherboard


0.13 0.002Software Updating

Lamp with magnifying glass






Computer 0.90 0.02

FIXED OVERHEADDepreciationTable with drawerWifi router 124.95Soldering iron 93.5Desoldering tool 66Laptop 4284Magnifying Glass with lamp 292.4Multitester 340Hot air soldering tool 340Power supply variables 1360Software flasher 800Transportation Cost 2000Total Fixed Overhead 9700.85

SERVICE UNIT COST AND SERVICE FEE

Service Labor Service FeeCellphone RepairProgram Flashing 50 250 2.95LCD replacement 100 800 3.15Drop signal 50 300 1.13Formatting/ Cleaning 50 250 2.46Tablet RepairProgram Flashing 50 300 2.95LCD replacement 100 1200 3.15Drop signal 50 350 1.13Formatting/ Cleaning 50 300 2.46Laptop RepairHard Drive 150 2500 5.65Memory 150 1500 4.24Motherboard 150 3000 16.96Software 100 500 0.74

Refurbished Phones CostBuying Price* 2000.00Refurbishing Cost 2.46 *Assumed ValueTotal Cost 2002.46

ACCESSORIES

Variable Overhead

Pcs. Per KiloEarphones(Copper Wires) 200 300 200Charger 200 300 33.33Connectors 200 300 50

SALARIES (Bookkeeper, Sales Clerk, Cashier)Regular RateNo. of Regular Days of Work 255Multiply: Daily Rate 350Annual Regular Pay 89,250

Overtime RateNo. of Days - Overtime 102Multiply: Overtime Rate 437.5Annual Overtime Pay 44625

Annual Salaries 133,875 Monthly Salaries 11,156 Semi-Monthly Salaries 5,578

SALARIES (Manager)Regular RateNo. of Regular Days of Work 255Multiply: Daily Rate 400Annual Regular Pay 102000

Overtime RateNo. of Days - Overtime 102Multiply: Overtime Rate 500Annual Overtime Pay 51000

Annual Salaries 153000Monthly Salaries 12750Semi-Monthly Salaries 6375

Buying Price per kilo

Selling Price per kilo

DEMAND AND SUPPLY2019 2020 2021

4152 4441 4749.381879 2010 2149

126 1356157.05 6584.97

3499 37421864 1994

16381 175206292 6729

13082 13991

OVERHEAD PER UNIT

Duration(mins.) KW/hr Cost

20.00 0.30 2.95 2.95

12.00 0.32 3.15 3.15

4.00 0.01 0.08

4.00 0.11 1.05 1.13

6.00 0.16 1.576.00 0.09 0.88 2.46

20.00 0.53 5.24

20.00 0.04 0.41 5.65

15.00 0.40 3.93

15.00 0.03 0.31 4.24

60.00 1.60 15.73

60.00 0.13 1.23 16.96

Variable Overhead/service

5.00 0.08 0.74 0.74

Direct Materials Allocated Freight-in Direct Labor2016 2017 2018 2019 2020 2016 2017 2018

0 58.0618 57.58 57.17382500 0 0 0 0 0 108.062 107.6 107.1738

0 58.0618 57.58 57.173820 58.0618 57.58 57.17382

0 58.0618 57.58 57.17382800 0 0 0 0 0 108.062 107.6 107.1738

0 58.0618 57.58 57.173820 58.0618 57.58 57.17382

2000 158.062 157.6 157.17381000 158.062 157.6 157.17382500 158.062 157.6 157.1738

0 108.062 107.6 107.1738

2300 2016 2017 2018 2019 2020Unused Phone SP 2200 Direct Labor 58.06184 57.5828 57.17 56.7468 56.38

Variable Over 2.4585 2.4585 2.459 2.4585 2.459Buying Price 2000 2000 2000 2000 2000Total Cost 2060.52 2060 2060 2059.21 2059

Refurbished Phone selling Price

Refurbished Phones Cost

Unused Phones 2000 2000 2000 2000 2000

Direct Labor Unit Cost2019 2020 2016 2017 2018 2019 2020

56.74682 56.38165 61.01 60.53 60.12 59.70 59.33106.7468 106.3817 611.21 610.73 610.32 609.89 609.5356.74682 56.38165 59.19 58.71 58.30 57.88 57.5156.74682 56.38165 60.52 60.04 59.63 59.20 58.84

56.74682 56.38165 61.01 60.53 60.12 59.70 59.33106.7468 106.3817 911.21 910.73 910.32 909.89 909.5356.74682 56.38165 59.19 58.71 58.30 57.88 57.5156.74682 56.38165 60.52 60.04 59.63 59.20 58.84

156.7468 156.3817 2163.71 2163.24 2162.83 2162.40 2162.03156.7468 156.3817 1162.30 1161.82 1161.41 1160.99 1160.62156.7468 156.3817 2675.02 2674.54 2674.13 2673.70 2673.34106.7468 106.3817 108.80 108.32 107.91 107.48 107.12

Salaries Expense

Position

Administrative Expense Manager 1 6,375 6,375 Bookkeeper 1 5,578 5,578 TOTAL 11,953 11,953

Selling Expense Sales Clerk 2 5,578 11,156 Cashier 1 5,578 5,578 TOTAL 11,156 16,734

Salaries Expense (2016)

Position

Direct Labor Technician 2 8,850 17,701 TOTAL 8,850 17,701


Position



Position


No. of Employee

Semi-Monthly Salary

Total Semi-Monthly Salary

No. of Employee

Semi-Monthly Salary


No. of Employee

Semi-Monthly Salary


No. of Employee

Semi-Monthly Salary



Position



Position


Salaries and Wages 2016 2017 2018

Gross Salaries: General and Administrative 298,828 298,828 298,828 Selling 418,359 418,359 418,359

Total 717,188 717,188 717,188 Less: Allowable Employee Salary Deductions 84,384 84,384 84,384 Total Salaries and Wages, net of deductions 632,804 632,804 632,804

Allowable Employee Salary Deductions Selling And Admin Pag-ibig SSS PhilHealth

Employee Share 6,000 23,979.60 7,800

Withholding Tax Payable 2016 2017 2018

Withholding Tax Payable, beginning - 11,651 11,651 Add: Withholding Tax Expense 46,604 46,604 46,604 Total 46,604 58,256 58,256 Less:Withholding Tax Paid 34,953 46,604 46,604 Withholding Tax Payable, end 11,651 11,651 11,651

ADMINISTRATIVE SALARIES AND WAGES

No. of Employee

Semi-Monthly Salary


No. of Employee

Semi-Monthly Salary


Manager 1 6,375 6,375 Bookkeeper 1 5,578 5,578 TOTAL 11,953 11,953

SELLING SALARIES AND WAGES

Sales Clerk 2 5,578 11,156 Cashier 1 5,578 5,578 TOTAL - 11,156 16,734

DIRECT SALARIES AND WAGES

2016 2 8,850 17,701 2017 - 9,466 18,931 2018 2 10,123 20,247 2019 2 10,827 21,654 2020 2 11,579 23,159

No. Of Employees

Semi-Monthly Salary


No. Of Employees

Semi-Monthly Salary


No. Of Employees

Semi-Monthly Salary


Salaries Expense

SSS Contribution Philhealth Contribution Pag-ibig Contribution

EE ER EE ER EE ER

236 484 75 75 50 50 191 387 63 63 50 50 427 871 138 138 100 100

382 774 125 125 100 100 191 387 63 63 50 50 572 1,160 188 188 150 150



EE ER EE ER EE ER

581 1,790 213 213 100 100 581 1,790 213 213 100 100



EE ER EE ER EE ER

581 1,790 225 225 100 100 581 1,790 225 225 100 100



EE ER EE ER EE ER

581 1,790 250 250 100 100 581 1,790 250 250 100 100



EE ER EE ER EE ER

581 1,790 263 263 100 100 581 1,790 263 263 100 100



EE ER EE ER EE ER

581 1,790 288 288 100 100 581 1,790 288 288 100 100

Salaries and Wages 2019 2020

298,828 298,828 418,359 418,359 717,188 717,188 84,384 84,384 632,804 632,804

Allowable Employee Salary Deductions Selling And Admin Allowable Employee Salary Deductions DIRECT LABOR Withholding Tax Total Pag-ibig SSS 46,604.40 84,384 2016 2,400 13,951

2017 2,400 13,951 2018 2,400 13,951

2019 2020 1019 2,400 13,951 11,651 11,651 2020 2,400 13,951 46,604 46,604 58,256 58,256 46,604 46,604 11,651 11,651

ADMINISTRATIVE SALARIES AND WAGES Employer's Share

SSS PhilHealth Pag-ibig

6,375 159,375 11,612 1,800 1,200 5,578 139,453 9,282 1,500 1,500 11,953 298,828 20,894 3,300 2,700

SELLING SALARIES AND WAGES Employer's Share

SSS PhilHealth Pag-ibig

11,156 278,906 18,564 3,000 3,000 5,578 139,453 9,282 1,500 1,500 16,734 418,359 27,846 4,500 4,500

DIRECT SALARIES AND WAGES Employer's Share

SSS PhilHealth Pag-ibig Total Direct Labor

- 424,820 42,960 5,100 2,400 475,280 - 454,345 42,960 5,400 2,400 505,105 - 485,922 42,960 6,000 2,400 537,282 - 519,694 42,960 6,300 2,400 571,354 - 555,812 42,960 6,900 2,400 608,072

13th Month Pay Annual Salary



Salaries Expense

Net Pay Annual Salaries

14,612 557 5,457 6,375 159,375 11,982 346 4,929 5,578 139,453 26,594 903 10,386 11,953 298,828

23,964 692 9,857 11,156 278,906 11,982 346 4,929 5,578 139,453 35,946 1,039 14,786 16,734 418,359



50,460 2,190 13,408 - 424,820 50,460 2,190 13,408 - 424,820



50,760 2,488 14,328 - 454,345 50,760 2,488 14,328 - 454,345



51,360 2,735 15,372 - 485,922 51,360 2,735 15,372 - 485,922

Total Annual Employer

Contribution

Withholding Tax

13th Month Pay


Contribution

Withholding Tax

13th Month Pay


Contribution

Withholding Tax

13th Month Pay


Contribution

Withholding Tax

13th Month Pay



51,660 3,090 16,412 - 519,694 51,660 3,090 16,412 - 519,694



52,260 3,470 17,511 - 555,812 52,260 3,470 17,511 - 555,812

Allowable Employee Salary Deductions DIRECT LABOR PhilHealth Withholding T Total withholding for direct labor 5,100 52,562 74,013 5,175 59,704 81,231 Withholding Tax Payable, beginn 6,000 65,633 87,984 Add: Withholding Tax Expense 6,300 74,152 96,804 Total 6,900 83,286 106,537 Less:Withholding Tax Paid

Withholding Tax Payable, end


Contribution

Withholding Tax

13th Month Pay


Contribution

Withholding Tax

13th Month Pay

475,280 475,280

Total direct Labor

2016 2017 2018 2019 2020 - 13,140 14,926 16,408 18,538 52,562 59,704 65,633 74,152 83,286 52,562 72,845 80,559 90,561 101,824 39,421 57,919 64,151 72,023 81,003 13,140 14,926 16,408 18,538 20,822

Projected Population (2016) P 356, 746

Divide by: Ave. household size 5

Projected number of household (2016) 71448.16

Multiply by: Ave. Defective CPs/household 1.4

Defective CPs in Tarlac City 100027.424

Willing to avail repair services 56.90%

Demand for CP repair services 56915.604256

Competitors’ Customers 47520

Excess Demand 9395.60425599999

Patronize our business 72.25%

Expected Demand 6788.32

Divide 2Projected demand for repair 3394.16Daily Projected 9.43

Projected Population (2016) P 356, 746Divide by: Ave. household size 5Projected number of household (2016) 71448.16Multiply by: Ave. Defective/household 0.465Defective CPs in Tarlac City 33223.3944Willing to avail repair services 56.90%Demand for CP repair services 18904.1114136Competitors’ Customers 14652Excess Demand 4252.1114136Patronize our business 72.25%Expected Demand 3072.15Divide 2Projected demand for repair 1536.08Daily Projected 4.27

Projected Population (2016) P 356, 746Divide by: Ave. household size 5Projected number of household (2016) 71448.16Multiply by: Ave. Defective/household 0.27Defective CPs in Tarlac City 19291.0032Willing to avail repair services 56.90%Demand for CP repair services 10976.5808208Competitors’ Customers 10692Excess Demand 284.5808208

Patronize our business 72.25%Expected Demand 205.61Divide 2Projected demand for repair 102.80Daily Projected 0.29

BUY&SELL REFURBISHED CP (SELL)

Projected Population (2016) P 356, 746Divide by: Ave. household size 5Projected number of household (2016) 71448.16Multiply by: percentage of willing to buy 46%Expected buyers 32866.1536Less: Competitiors' market 24948Excess market 7918.15360000001conservatism percentage 72.25%projected customers 5720.865976Average years of buying 2Projected sales of refurbished CPs 2860.432988Projected Daily Sales 7.94564718888889

BUY&SELL REFURBISHED CP (BUY)

Projected Population (2016) P 356, 746Divide by: Ave. household size 5Projected number of household (2016) 71448.16Multiply by: Average defective CPs 1.4Defective CPs 100027.424Unused CPs 24292.3744Total CPs to buy 124319.7984prefer to sell percentage 43.10%Expected sellers 53581.8331104Less: Competitiors' market 33264Excess market 20317.8331104Conservatism percentage 50%

10158.9165552Acceptance Rate (obsolescence, price and demand fa 30%projected customers 3047.67496656Average years of buying 2Projected sales of refurbished CPs 1523.83748328Projected Daily Sales 4.232881898

ACCESSORIES Earphones ChargersProjected number of household (2016) 71448.16 71448.16Multiply: Ave. defective/unused per HH 2.135 1.705

Total defective/unused 152541.8216 121819.1128Multiply: willing to sell 60.75% 60.75%Total 92669.156622 74005.11103Conservatism percentage 72.25% 72.25%Expected sellers 66953.465659395 53468.69272years to buy 5 5Projected supply (year1) 13390.693131879 10693.73854

2017 2018 2019 2020 2021

Prior Year's demand 3394.16 3630.05629908486 3882.345 4152.168 4440.744

Multiply: 106.95% 106.95% 106.95% 106.95% 106.95% 106.95%

Current Year Demand 3630.056 3882.34521187125 4152.168 4440.744 4749.376

2017 2018 2019 2020 2021Prior Year's demand 1536.08 1642.83247791033 1757.009 1879.121 2009.72Multiply: 106.95% 106.95% 106.95% 106.95% 106.95% 106.95%Current Year Demand 1642.832 1757.0093351251 1879.121 2009.72 2149.396

2017 2018 2019 2020Prior Year's demand 102.80 109.949756609223 117.5913 125.7639Multiply: 106.95% 106.95% 106.95% 106.95% 106.95%Current Year Demand 109.9498 117.591264693564 125.7639 134.5044

2017 2018 2019 2020Prior Year's demand 2860.433 3059.233080666 3271.85 3499.243Multiply: 106.95% 106.95% 106.95% 106.95% 106.95%Current Year Demand 3059.233 3271.84977977229 3499.243 3742.441

2017 2018 2019 2020Prior Year's supply 1523.837 1629.74418836796 1743.011 1864.151Multiply: 106.95% 106.95% 106.95% 106.95% 106.95%Current Year's supply 1629.744 1743.01140945953 1864.151 1993.709

EarphonesConnectors 2017 2018 2019 2020

71448.16 Prior Year's supply 13390.69 14321.35 15316.68 16381.190.82 Multiply: 106.95% 106.95% 106.95% 106.95% 106.95%

58587.4912 Current Year's supply 14321.35 15316.68 16381.19 17519.6860.75%

35591.900904 Chargers72.25% 2017 2018 2019 2020

25715.14840314 Prior Year's supply 10693.74 11436.95 12231.82 13081.935 Multiply: 106.95% 106.95% 106.95% 106.95% 106.95%

5143.029680628 Current Year's supply 11436.95 12231.82 13081.93 13991.13

Connectors2017 2018 2019 2020

Prior Year's supply 5143.03 5500.47 5882.753 6291.604Multiply: 106.95% 106.95% 106.95% 106.95% 106.95%Current Year's supply 5500.47 5882.753 6291.604 6728.871

10470.01 43111.82

297.7613 318.4558 340.5884 364.2593 389.5754

6499.862 26764.143970.151 16347.68

50% 50%1985.076 8173.841

30% 30%595.5227 2452.152

2 2297.7613 1226.076 1311.288 1402.423 1499.891 1604.1340.827115 3.405767

DEMAND DISTRIBUTION FOR CELLPHONE REPAIRSERVICES Percentage of Demand 2016 2017Program Flashing 20.00% 679 726LCD replacement 43.75% 1485 1588Drop signal 18.75% 636 681Formatting/ Cleaning 17.50% 594 635Total 100.00% 3394 3630

DEMAND DISTRIBUTION FOR TABLET REPAIRSERVICES Percentage of Demand 2016 2017Program Flashing 31.11% 478 511LCD replacement 37.78% 580 621Drop signal 8.89% 137 146Formatting/ Cleaning 22.22% 341 365Total 100.00% 1536 1643

DEMAND DISTRIBUTION FOR LAPTOP REPAIRSERVICES Percentage of Demand 2016 2017Hard Drive 30.61% 31 34Memory 26.53% 27 29Motherboard 10.20% 10 11Software 32.65% 34 36Total 100.00% 103 110

DEMAND DISTRIBUTION FOR CELLPHONE REPAIR2018 2019 2020 2021

776 830 888 949.87511699 1817 1943 2077.852

728 779 833679 727 777

3882 4152 4441

DEMAND DISTRIBUTION FOR TABLET REPAIR2018 2019 2020

547 585 625664 710 759 811.994156 167 179390 418 447

1757 1879 2010

DEMAND DISTRIBUTION FOR LAPTOP REPAIR2018 2019 2020 2017 2018

36 38 41 67316.177516 71994.65185331 33 36 29170.34359 31197.6824712 13 14 28048.407298 29997.77160638 41 44 124534.9284 133190.105928

118 126 135

2019 202076998.28016 82349.6606

33365.9214 35684.852932082.61673 34312.3586142446.81829 152346.8722

Gadget CyclerComparative Cash Flow Statement

For the Year Ended December 31, 2016 - December 31, 2020

Preoperating 2016 2017Cash Flow from Operating Activities Net Income 118,110 241,517 Depreciation 23,171 23,171 Organizational cost 12,035 Unrealized Interest (2,990)Decrease (increase) in: Supplies Inventory (107,548) (7,475)

Withholding tax 24,792 1,786

Net Cash provided from Operating Activities 70,559 256,008

Cash flow from Investing ActivitiesAcquistion of Property, Plant and Equipment (126,020)Acquisition of Furnitures and Fixtures (89,200)Acquisition of Other Assets (13,435)Rent Deposit (80,000)Sale Of AssetPre-Operating Expenses (12,035) Investment in Time Deposit (92,000)

Net Cash provided from Investing Activities (320,690) - (92,000)

Cash Flow from financing ActivitiesInvestment from Owner 500,000

Increase (decrease) in cash 179,310 70,559 164,008 Cash, beginning 179,310 249,869

Cash, end 179,310 249,869 413,877

Gadget CyclerComparative Cash Flow Statement

For the Year Ended December 31, 2016 - December 31, 2020

2018 2019 2020

365,276 501,314 649,593 23,171 23,171 23,171

(11,115) (23,140) (39,065)

(7,994) (8,550) (9,144)

1,482 2,130 2,283

370,820 494,925 626,838

9,293

(250,000) (370,000) (490,000)

(250,000) (370,000) (480,707)

120,820 124,925 146,131 413,877 534,697 659,622

534,697 659,622 805,753

INITIAL COST OF INVESTMENTInitial Fixed Investment

No. Of Units Cost per unitFurniture and FixturesChairs 4 1200Bench 2 17000Table with drawer 4 7000Steel Cabinet 2 10000Glass Counter 1 2400

Property, Plant and EquipmentWifi router 1 1050Weighing scale 1 700SOLDERING IRON 2 1100Air conditioning unit 1 21000Desoldering Tool 2 495Multi-tester 2 1000Hot air soldering 2 4000Power supply variables 2 4000Screwdrivers 2 2580Magnifying glass with lamp 2 1720Laptop 2 18000Leasehold ImprovementOther AssetWindows 8.1 64bit pro 1 7335Office 2013 Home and Student 1 3900

1 2200Rent DepositTotal Initial Fixed Investment

Pre-Operating ExpenseLegal FeesDTIBIR Registration Fee 500 Certification Fee 100 Documentary Stamp Tax 15City Registration Mayor's Permit 1000 Health Clearance 905 Electrical Inspection Fee 850 Sign Board Permit 400 Zoning Fee 500PromotionTotal Pre-Operating expense

BITDEFENDER Sphere All Sec Unli Device

Initial Working CapitalSupplies Material Inventory PurchasesPurchases of Used phones Purchases of AccessoriesSupplies ExpenseDirect LaborSalaries ExpensesUtilities ExpenseRent ExpenseTOTALDivide by:Total

Initial Working Capital

Contingency Funds

TOTAL INITIAL INVESTMENT

Multiply by: (Cash Conversion Cycle- in days)

INITIAL COST OF INVESTMENT

Total Cost

48003400028000200002400 89200

1050700

220021000

99020008000800051603440

3600037480 126020

73353900

2200 1343580000

308655

515

615

3655 47857250

12035

13162573047675

981257641

475280717188

84123480000

6226288360

17295

8138362

40948.0376768311

500000

REVENUE PROJECTION

REPAIR SERVICEVOLUME(in units)

2016 2017 2018 2019 2020CellphoneProgram Flashing 679 726 776 830 888 LCD replacement 1,485 1,588 1,699 1,817 1,943 Drop signal 636 681 728 779 833 Formatting/ Cleaning 594 635 679 727 777 TabletProgram Flashing 478 511 547 585 625 LCD replacement 580 621 664 710 759 Drop signal 137 146 156 167 179 Formatting/ Cleaning 341 365 390 418 447 LaptopHard Drive 31 34 36 38 41 Memory 27 29 31 33 36 Motherboard 10 11 12 13 14 Software 34 36 38 41 44

TOTAL SERVICE REVENUE

Buy and SellDefective Phones 1,226 1,311 1,402 1,500 1,604 Unused Phones 298 318 341 364 390

AccessoriesEarphones 67 72 77 82 88 Charger 321 343 367 392 420 Connector 103 110 118 126 135

TOTAL SALES OF ACCESSORIES

TOTAL REVENUE

TOTAL SECONDHAND PHONES REVENUE

SP/UnitIn Pesos

2016 2017 2018 2019 2020

250 169,708 181,503 194,117 207,608 222,037 800 1,187,957 1,270,520 1,358,821 1,453,259 1,554,260 300 190,922 204,191 218,382 233,559 249,792 250 148,495 158,815 169,853 181,657 194,283

300 143,367 153,331 163,988 175,385 187,574 1,200 696,354 744,751 796,511 851,868 911,073 350 47,789 51,110 54,663 58,462 62,525 300 102,405 109,522 117,134 125,275 133,981

2,500 78,677 84,145 89,993 96,248 102,937 1,500 40,912 43,756 46,797 50,049 53,527 3,000 31,471 33,658 35,997 38,499 41,175 500 16,784 17,951 19,199 20,533 21,960

2,854,841 3,053,252 3,265,453 3,492,402 3,735,124

2,300 2,819,975 3,015,963 3,225,573 3,449,750 3,689,508 2,200 655,075 700,603 749,295 801,371 857,066

3,475,050 3,716,566 3,974,867 4,251,121 4,546,574

300 20,086 21,482 22,975 24,572 26,280 300 96,244 102,933 110,086 117,737 125,920 300 30,858 33,003 35,297 37,750 40,373

147,188 157,417 168,358 180,059 192,573

6,477,079 6,927,236 7,408,679 7,923,582 8,474,271

VARIABLE SERVICE COSTVariable Service Material Cost

Annual DemandService Cost 2016 2017 2018Cellphone LCD Replacement 500 1485 1588 1699Tablet LCD Replacement 800 580 621 664Hard Drive 2000 31 34 36Memory 1000 27 29 31Motherboard 2500 10 11 12TOTAL SERVICE MATERIAL COST

Variable Service Overhead CostAnnual Demand

Service Cost 2016 2017 2018Cellphone RepairProgram Flashing 2.95 679 726 776LCD replacement 3.15 1485 1588 1699Drop signal 1.13 636 681 728Formatting/ Cleaning 2.46 594 635 679Tablet RepairProgram Flashing 2.95 478 511 547LCD replacement 3.15 580 621 664Drop signal 1.13 137 146 156Formatting/ Cleaning 2.46 341 365 390Laptop RepairHard Drive 5.65 31 34 36Memory 4.24 27 29 31Motherboard 16.96 10 11 12Software 0.74 34 36 38Defective Phones(Buy and Sell) 2.46 1226 1311 1402

REPAIR SERVICEAnnual Demand

Cellphone 2016 2017 2018 2019Program Flashing 679 726 776 830LCD replacement 1485 1588 1699 1817Drop signal 636 681 728 779Formatting/ Cleaning 594 635 679 727TabletProgram Flashing 478 511 547 585

TOTAL SERVICE VARIABLE OVERHEAD

LCD replacement 580 621 664 710Drop signal 137 146 156 167Formatting/ Cleaning 341 365 390 418LaptopHard Drive 31 34 36 38Memory 27 29 31 33Motherboard 10 11 12 13Software 34 36 38 41

Defective Phones(Buy and Sell) 1226.07613597 1311.2884274225 1402.422973128 1499.89136976Total Direct Labor Cost

TOTAL SERVICE MATERIAL COSTTotal Direct Labor

Total Variable Service Cost

Cost Annual demand2016 2017 2018

Defective Phones 2000 1226.0761359724 1311.288427422 1402.42297313Unused Phones 2000 297.76134730759 318.4557609455 340.588436331Total

AccessoriesEarphones 200 66.953465659395 71.60673152272 76.5833993636Charger 200 320.81215629771 343.1086011604 366.954648941Connector 200 102.86059361256 110.0094048686 117.655058507TOTAL COST OF ACCESSORIES

TOTAL VARIABLE COST OF SALE

FIXED SERVICE COSTDepreciation 2016 2017 2018 2019Table with drawer 793 793 793 793Chairs 136 136 136 136Wifi router 89 89 89 89Soldering iron 374 374 374 374Screwdrivers 877 877 877 877Desoldering tool 168 168 168 168Laptop 6120 6120 6120 6120

TOTAL SERVICE VARIABLE OVERHEAD

Magnifying Glass with lamp 585 585 585 585Multitester 340 340 340 340Steel Cabinet 1133 1133 1133 1133Hot air soldering tool 680 680 680 680Power supply variables 1360 1360 1360 1360Windows 8.1 64bit pro 1467 1467 1467 1467Office 2013 Home and Student 780 780 780 780

440 440 440 440Delivery Cost 2000 2000 2000 2000Total Fixed Service Cost 17343 17343 17343 17343

Variable Operating CostParticulars 2016 2017 2018 2019Supplies Expense 2960 3165 3385 3620Total Variable Operating Cost 2960 3165 3385 3620

Fixed Operating CostParticulars 2016 2017 2018 2019Supplies Expense 4,681.00 4,681.00 4,681.00 4,681.00 Rent Expense 480000 480000 480000 480000Utilities Expenses 84122.6352 84122.6352 84122.6352 84122.6352SSS Premium-employer's share 48740.4 48740.4 48740.4 48740.4PhilHealth-employer's Share 7800 7800 7800 7800Pagibig-Employer's Share 7200 7200 7200 7200Depreciation-Administrative 5374 5374 5374 5374Depreciation-Selling 2454 2454 2454 2454Advertising Expense 7250 7250 7250 7250Transportation expense 1000 1000 1000 1000Salaries and Wages - Selling 418359.375 418359.375 418359.375 418359.375

298828.125 298828.125 298828.125 298828.125Total Fixed Operating cost 1,365,808.90 1,365,808.90 1,365,808.90 1,365,808.90


salaries and Wages - Administrative

VARIABLE SERVICE COST

Annual Demand Annual Variable Material Cost2019 2020 2016 2017 2018 2019 20201817 1943 742473 794075 849263 908287 971413

710 759 464236 496500 531007 567912 60738238 41 62942 67316 71995 76998 8235033 36 27275 29170 31198 33366 3568513 14 26226 28048 29998 32083 34312

1323151 1415110 1513460 1618646 1731142

Annual Demand Annual Variable Overhead Cost2019 2020 2016 2017 2018 2019 2020

830 888 2001.88 2141.01 2289.81 2448.95 2619.151817 1943 4671.05 4995.68 5342.88 5714.21 6111.35

779 833 719.42 769.42 822.90 880.09 941.26727 777 1459.70 1561.15 1669.65 1785.69 1909.80

585 625 1409.30 1507.24 1612.00 1724.03 1843.85710 759 1825.38 1952.24 2087.92 2233.03 2388.23167 179 154.35 165.08 176.55 188.82 201.95418 447 838.87 897.17 959.52 1026.21 1097.53

38 41 177.88 190.24 203.47 217.61 232.7333 36 115.62 123.66 132.25 141.44 151.2713 14 177.88 190.24 203.47 217.61 232.7341 44 24.75 26.47 28.31 30.28 32.38

1500 1604 3014.31 3223.80 3447.86 3687.48 3943.76

16590.38 17743.42 18976.58 20295.46 21705.99

Annual Demand DL/unit Total direct labor2020 2016 2017 2018 2019 2020 2016 2017

888 58 58 57 57 56 39414 41805.741943 108 108 107 107 106 160466 170857.5

833 58 58 57 57 56 36951 39192.88777 58 58 57 57 56 34487 36580.02

625 58 58 57 57 56 27747 29430.75

759 108 108 107 107 106 62708 66768.62179 58 58 57 57 56 7928 8408.786447 58 58 57 57 56 19819 21021.96

41 158 158 157 157 156 4974 5303.93536 158 158 157 157 156 4311 4596.74314 158 158 157 157 156 1658 1767.97844 108 108 107 107 106 3628 3862.432

1604.133819959 58.06184 57.582766 57.1738168 56.746816 56.381652 71188.235 75507.62475280 505105

2016 20171323151 1415110

475280 505105

16590.38 17743.421815022 1937959

Annual demand Annual cost2019 2020 2016 2017 2018 2019 2020

1499.891369761 1604.134 2452152.3 2622576.85 2804845.9 2999782.7 3208267.6364.2593326562 389.5754 595522.69 636911.522 681176.87 728518.67 779150.71

3047675 3259488.38 3486022.8 3728301.4 3987418.4

81.90594561932 87.59841 13390.693 14321.3463 15316.68 16381.189 17519.682392.4579970425 419.7338 64162.431 68621.7202 73390.93 78491.599 83946.766125.8320850732 134.5774 20572.119 22001.881 23531.012 25166.417 26915.483

98125.243 104944.948 112238.62 120039.21 128381.93

4960822 5302391.95 5667980.4 6058635.5 6476720.3

2020 2016 2017 2018 2019793 Variable Cost 4963782 5305557 5671365 6062255136 Fixed Cost 1383152 1383152 1383152 1383152

89374 Cost of Good Sold 4978165 5319735 5685324 6075979877 General and Selling 1380803.9 1368973.9 1369193.9 1369429168

6120

585340

1133680

13601467

780

4402000

17343

202038703870

2020 4,681.00

48000084122.6352

48740.4780072005374245472501000

418359.375

298828.125 1,365,808.90

Total direct labor2018 2019 2020

44393.7 47124.47 50075.3182037.5 193913.4 20668141619.09 44179.19 46945.5938844.49 41233.91 43815.88

31252.64 33175.07 35252.42

71137.59 75778.53 80767.98929.327 9478.592 10072.1222323.32 23696.48 25180.3

5657.837 6034.618 6438.9884903.459 5230.002 5580.4561885.946 2011.539 2146.3294115.169 4383.638 4672.263

80181.87 85114.06 90443.71537282 571353.5 608072.2

2018 2019 20201513460 1618646 1731142

537282 571354 608072

18976.58 20295.46 21705.992069719 2210295 2360920

202064805901383152

64940641369679

Supplies Inventory 2016In Units

LCD-CP 1485 132 0LCD- Tablet 580 52Total Cost (w/o Allocated Freight-in) 2065 184Freight-InTotal Cost (w/ Allocated Freight-in)

Supplies Inventory 2017

LCD-CP 1588 141.543835849 132LCD- Tablet 621 55.3132568465 52Total Cost (w/o Allocated Freight-in) 2209 197 184Freight-inTotal Cost (w/ Allocated Freight-in)


LCD-CP 1699 151.381132441 141.54383584947LCD- Tablet 664 59 55.313256846531Total Cost (w/o Allocated Freight-in) 2362 211 197Freight-inTotal Cost (w/ Allocated Freight-in)


LCD-CP 1817 161.902121146 151.38113244101LCD- Tablet 710 63.2689764071 59Total Cost (w/o Allocated Freight-in) 2526 225 211Freight-inTotal Cost (w/ Allocated Freight-in)


LCD-CP 1943 173.154318565 161.90212114566LCD- Tablet 759 67.6661702674 63.268976407082Total Cost (w/o Allocated Freight-in) 2702 241 225

Annual Supplies Inventory Usage

Desired Ending Inventory

Beginning Inventory



Beginning Inventory



Beginning Inventory



Beginning Inventory



Beginning Inventory

Freight-inTotal Cost (w/ Allocated Freight-in)

In Units In Pesos

Purchases Cost per LCD Purchases1617 500 808645.847 66172.9012854 742472.945698749

632 800 505611.115 41375.0401844 464236.0750003732249 1314256.96 107547.94147 1206709.02069912

20001316256.96

Purchases Cost per LCD Purchases1597 500 66172.901285 798673.832 70771.9179247 794074.815424812

624 800 41375.040184 499376.048 44250.6054772 496500.4822128992222 1300 107548 1298049.88 115022.523402 1290575.29763771

2000107548 1300049.88


668 800 44250.605477 534082.683 47326.0225579 531007.2657266962376 115022.5234 1388264.35 123016.588778 1380270.28082353

2000115022.5234 1390264.35


714 800 47326.022558 571201.429 50615.1811257 567912.2706947012541 123017 1484749 131566 1476199

2000123017 1486749


764 800 50615.181126 610899.929 54132.9362139 607382.1735079832718 131566 1587939 140710 1578795

Beginning Inventory

Ending Inventory

Cost of Supplies inventory Used

Beginning Inventory

Ending Inventory


Beginning Inventory

Ending Inventory


Beginning Inventory

Ending Inventory


Beginning Inventory

Ending Inventory


2000131566 1589939

Particulars Hr/day Cost of kw/hr

Lights 4 0.030 8 0.96 9.83

Airconditioning unit 1 3.000 6 18 9.83

Wifi Router 1 0.060 2.4 0.144 9.83

Laptop 1 0.100 5 0.5 9.83

Total Fixed Electricity Expense

Internet Expense

Total Utilities

Fixed Internet Expense

Particulars 2013 2014 2015 2016

Internet Expense 1,000 12,000 12,000 12,000 12,000 Total 1,000 12,000 12,000 12,000 12,000

Fixed Electricity Expense 2016 to 2020

Number of Equipment

Supply Voltage

Total kw/h for the day

Monthly cost

Cost per day 2016 2017 2018 2019 2020

9.4368 283.10 3,397.25 3,397.25 3,397.25 3,397.25 3,397.25

176.94 5,308.20 63,698.40 63,698.40 63,698.40 63,698.40 63,698.40

1.41552 42.47 509.59 509.59 509.59 509.59 509.59

4.915 147.45 1,769.40 1,769.40 1,769.40 1,769.40 1,769.40

69,374.64 69,374.64 69,374.64 69,374.64 69,374.64

1229 14,748.00 14,748.00 14,748.00 14,748.00 14,748.00

84,122.64 84,122.64 84,122.64 84,122.64 84,122.64

Fixed Internet Expense

2017

12,00012,000

Total cost for the month

Gadget Cycler Comparative Statement of Cashflow

For the year ended December 31, 2016 - December 31, 2020 Pre-Operating 2016

Cash Flow from Operating Activities Cash Disbursement for legal fees Cash Receipts from Sale of Services 2,854,841

Cash Receipts from Sale of Refurbished Phones 3,475,050 Cash Receipts from Sale of Gadget Accessories 147,188 Cash Disbursement to Sellers of Used Phones (3,047,675) Cash Disbursement for Accessories (98,125) Cash Disbursement for Laptop Supplies (116,442) Cash Disbursement for Supplies Purchases (7,641) Cash Disbursement to Suppliers of LCD (1,316,257) Cash Disbursement For Direct Labor (462,140) Cash disbursement for FOH Consumption (16,590) Cash Disbursement from Advertising (7,250) Cash Disbursements for Salaries (769,277) Cash disbursement for Transportaion Expense (1,000) Cash Disbursements for Utilities (84,123) Payment for Tax Withholding Payable Cash Disbursement for Rent (480,000)

Net Cash Provided by Operating Activities 70,559

Cash flow from investing activities Purchase of Equipment (126,020) - Purchase of Furniture and Fixtures (89,200) - Acquisition of Other Assets (13,435) - Rent Deposit (80,000) Sale of Asset Pre-Operating Expenses (12,035) Investment in Time Deposit

Net Cash Provided by Investing Activities (320,690)

Cash flows from Financing activities Investment 500,000

Net cash provided by financing activities 500,000

Increase(decrease) in cash 179,310 70,559 Cash balance, beginning 179,310 Cash balance,ending 179,310 249,869

Gadget Cycler Comparative Statement of Cashflow

For the year ended December 31, 2016 - December 31, 2020 2017 2018 2019 2020

- - - - 3,053,252 3,265,453 3,492,402 3,735,124

3,716,566 3,974,867 4,251,121 4,546,574 157,417 168,358 180,059 192,573 (3,259,488) (3,486,023) (3,728,301) (3,987,418) (104,945) (112,239) (120,039) (128,382) (124,535) (133,190) (142,447) (152,347) (7,846) (8,066) (8,301) (8,551) (1,300,050) (1,390,264) (1,486,749) (1,589,939) (490,179) (520,874) (552,815) (587,251) (17,743) (18,977) (20,295) (21,706) (7,250) (7,250) (7,250) (7,250) (769,277) (769,277) (769,277) (769,277) (1,000) (1,000) (1,000) (1,000) (84,123) (84,123) (84,123) (84,123) (24,792) (26,577) (28,059) (30,189) (480,000) (480,000) (480,000) (480,000)

256,008 370,820 494,925 626,838

- - - - - - - - - - - -

9,293

(92,000) (250,000) (370,000) (490,000)

(92,000) (250,000) (370,000) (480,707)

164,008 120,820 124,925 146,131 249,869 413,877 534,697 659,622 413,877 534,697 659,622 805,753

FURNITURES AND FIXTURES

ChairsBench

2016 4528 32073 26413 18867 19922017 4256 30147 24827 17733 15842018 3984 28220 23240 16600 11762019 3712 26293 21653 15467 7682020 3440 24367 20067 14333

Table with drawer

Steel Cabinet

Glass Counter

TOTALWifi router Weighing scale Air conditioning

83873.33 871.5 581 1826 18768.7578546.67 693 462 1452 16537.5

73220 514.5 343 1078 14306.2567893.33 336 224 704 1207562206.67 9843.75

SOLDERING IRON

Desoldering Tool Multi-tester Screwdrivers Laptop821.7 1660 7320 6640 4282.8 2855.2 29880653.4 1320 6640 5280 3405.6 2270.4 23760485.1 980 5960 3920 2528.4 1685.6 17640316.8 640 5280 2560 1651.2 1100.8 11520

4600

Hot air soldering

Power supply variables

Magnifying glass with lamp

TOTAL Windows 8 TOTAL35356.1333333333 110863.1 5868 3120 1760 1074833232.2666666667 95706.17 4401 2340 1320 8061

31108.4 80549.25 2934 1560 880 537428984.5333333333 65392.33 1467 780 440 268726860.6666666667 41304.42 0 0 0 0

Leasehold Improvement

Office 2013 Home and Student

BITDEFENDER Sphere All Sec

Unli Device

DEPRECIATION LAPSING SCHEDULESAirconditioning unit

YEAR Cost Salvage Value Useful Life

2016 21,000 3,150 82017 21,000 3,150 82018 21,000 3,150 82019 21,000 3,150 82020 21,000 3,150 8

ChairsYEAR Cost Salvage Value Useful Life2016 4,800 720 152017 4,800 720 152018 4,800 720 152019 4,800 720 152020 4,800 720 15

BenchYEAR Cost Salvage Value Useful Life2016 34,000 5,100 152017 34,000 5,100 152018 34,000 5,100 152019 34,000 5,100 152020 34,000 5,100 15

Table with DrawersYEAR Cost Salvage Value Useful Life2016 28,000 4,200 152017 28,000 4,200 152018 28,000 4,200 152019 28,000 4,200 152020 28,000 4,200 15

Wifi routerYEAR Cost Salvage Value Useful Life2016 1,050 158 52017 1,050 158 52018 1,050 158 52019 1,050 158 52020 1,050 158 5

Soldering iron

YEAR Cost Salvage Value Useful Life2016 2,200 330 52017 2,200 330 52018 2,200 330 52019 2,200 330 52020 2,200 330 5

Desoldering toolYEAR Cost Salvage Value Useful Life2016 990 148.50 52017 990 148.50 52018 990 148.50 52019 990 148.50 52020 990 148.50 5

LaptopYEAR Cost Salvage Value Useful Life2016 36,000 5,400 52017 36,000 5,400 52018 36,000 5,400 52019 36,000 5,400 52020 36,000 5,400 5

Magnifying Glass with lampYEAR Cost Salvage Value Useful Life2016 3,440 516 52017 3,440 516 52018 3,440 516 52019 3,440 516 52020 3,440 516 5

Screwdrivers YEAR Cost Salvage Value Useful Life2016 5,160 774 52017 5,160 774 52018 5,160 774 52019 5,160 774 52020 5,160 774 5

MultitesterYEAR Cost Salvage Value Useful Life2016 2,000 300 5

2017 2,000 300 52018 2,000 300 52019 2,000 300 52020 2,000 300 5

Steel cabinetYEAR Cost Salvage Value Useful Life2016 20,000 3,000 152017 20,000 3,000 152018 20,000 3,000 152019 20,000 3,000 152020 20,000 3,000 15

Hot air soldering toolYEAR Cost Salvage Value Useful Life2016 8,000 1,200 102017 8,000 1,200 102018 8,000 1,200 102019 8,000 1,200 102020 8,000 1,200 10

Power supply variablesYEAR Cost Salvage Value Useful Life2016 8,000 1,200 52017 8,000 1,200 52018 8,000 1,200 52019 8,000 1,200 52020 8,000 1,200 5

Windows 8.1 64bit proYEAR Cost Salvage Value Useful Life2016 7,335 - 52017 7,335 - 52018 7,335 - 52019 7,335 - 52020 7,335 - 5

YEAR Cost Salvage Value Useful Life2016 3,900 - 52017 3,900 - 52018 3,900 - 5


2019 3,900 - 52020 3,900 - 5

YEAR Cost Salvage Value Useful Life2016 2,200 - 52017 2,200 - 52018 2,200 - 52019 2,200 - 52020 2,200 - 5

Leasehold improvementsYEAR Cost Salvage Value Useful Life2016 37,480 5,622 152017 37,480 5,622 152018 37,480 5,622 152019 37,480 5,622 152020 37,480 5,622 15

Glass counterYEAR Cost Salvage Value Useful Life2016 2,400 360 52017 2,400 360 52018 2,400 360 52019 2,400 360 52020 2,400 360 5

Weighing ScaleYEAR Cost Salvage Value Useful Life2016 700 105 52017 700 105 52018 700 105 52019 700 105 52020 700 105 5

SUMMARY OF DEPRECIATIONAnnual Depreciation Operation Selling

Air Conditioning unit 2,231 Chairs 272 136 - Bench 1,927 1,927 Table with drawer 1,587 793


Wifi router 179 89 Screwdrivers 877 877 Soldering iron 374 374 Desoldering tool 168 168 Laptop 6,120 6,120 Magnifying Glass with lamp 585 585 Multitester 340 340 Steel cabinet 1,133 1,133 Hot air soldering tool 680 680 Power supply variables 1,360 1,360 Windows 8.1 64bit pro 1,467 1,467

780 780

440 440

Glass Counter 408 408 Weighing Scale 119 119 Leasehold improvements 2,124

TOTAL 23,171 15,343 2,454



DEPRECIATION LAPSING SCHEDULES

Accumulated Depreciation Depreciation Book Value

2,231 2,231 18,769 4,463 2,231 16,538 6,694 2,231 14,306 8,925 2,231 12,075 11,156 2,231 9,844

Accumulated Depreciation Depreciation Book Value 272 272 4,528 544 272 4,256 816 272 3,984 1,088 272 3,712 1,360 272 3,440

Accumulated Depreciation Depreciation Book Value 1,927 1,927 32,073 3,853 1,927 30,147 5,780 1,927 28,220 7,707 1,927 26,293 9,633 1,927 24,367


Accumulated Depreciation Depreciation Book Value 179 179 872 357 179 693 536 179 515 714 179 336 893 179 158

Accumulated Depreciation Depreciation Book Value 374 374 1,826 748 374 1,452 1,122 374 1,078 1,496 374 704 1,870 374 330



Accumulated Depreciation Depreciation Book Value 585 585 2,855 1,170 585 2,270 1,754 585 1,686 2,339 585 1,101 2,924 585 516

Accumulated Depreciation Depreciation Book Value 877 877 4,283 1,754 877 3,406 2,632 877 2,528 3,509 877 1,651 4,386 877 774

Accumulated Depreciation Depreciation Book Value 340 340 1,660

680 340 1,320 1,020 340 980 1,360 340 640 1,700 340 300


Accumulated Depreciation Depreciation Book Value 680 680 7,320 1,360 680 6,640 2,040 680 5,960 2,720 680 5,280 3,400 680 4,600


Accumulated Depreciation Depreciation Book Value 1,467 1,467 5,868 2,934 1,467 4,401 4,401 1,467 2,934 5,868 1,467 1,467 7,335 1,467 -

Accumulated Depreciation Depreciation Book Value 780 780 3,120 1,560 780 2,340 2,340 780 1,560

3,120 780 780 3,900 780 -

Accumulated Depreciation Depreciation Book Value 440 440 1,760 880 440 1,320 1,320 440 880 1,760 440 440 2,200 440 -


Accumulated Depreciation Depreciation Book Value 408 408 1,992 816 408 1,584 1,224 408 1,176 1,632 408 768 2,040 408 360


SUMMARY OF DEPRECIATIONAdministrative

2,231 136

793

89

2,124 5,374

GENERAL AND ADMINISTRATIVE EXPENSESParticulars 2016 2017

Supplies 2,665 2,665 Rent Expense 480,000 480,000 Salaries And Wages Expense 298,828 298,828 Utilities Expenses 84,123 84,123 SSS Premium-employer's share 20,894 20,894 PhilHealth-employer's Share 3,300 3,300 Pagibig-Employer's Share 2,700 2,700 Depreciation 5,374 5,374

Organizational Cost 12,035 -

Total 909,919 897,884

GENERAL AND ADMINISTRATIVE EXPENSES2018 2019 2020

2,665 2,665 2,665 480,000 480,000 480,000 298,828 298,828 298,828 84,123 84,123 84,123 20,894 20,894 20,894 3,300 3,300 3,300 2,700 2,700 2,700 5,374 5,374 5,374

- - -

897,884 897,884 897,884

SELLING EXPENSEParticulars 2016 2017Supplies 4,976 5,181 Advertising Expense 7,250 7,250 Transportation expense 1,000 1,000 Salaries and Wages 418,359 418,359 SSS Premium-employer's share 27,846 27,846 PhilHealth-employer's Share 4,500 4,500 Pagibig-Employer's Share 4,500 4,500 Depreciation 2,454 2,454

470,885 471,090

SELLING EXPENSE2018 2019 2020

5,401 5,636 5,886 7,250 7,250 7,250 1,000 1,000 1,000 418,359 418,359 418,359 27,846 27,846 27,846 4,500 4,500 4,500 4,500 4,500 4,500 2,454 2,454 2,454

471,310 471,545 471,795

Fixed Supplies Expense

Selling Expense 2016 2017 2018 2019 Spudger 296.00 296.00 296.00 296.00 Pliers 1,720.00 1,720.00 1,720.00 1,720.00

2,016.00 2,016.00 2,016.00 2,016.00

Administrative Expense Ballpen 500.00 500.00 500.00 500.00 Working paper 300.00 300.00 300.00 300.00 Fire extinguisher 1,300.00 1,300.00 1,300.00 1,300.00 Logbook 65.00 65.00 65.00 65.00 Cleaning Tools 500.00 500.00 500.00 500.00

2,665.00 2,665.00 2,665.00 2,665.00 Total Fixed Supplies Expense 4,681.00 4,681.00 4,681.00 4,681.00

Variable Supplies Expense Selling Expense 2016 2017 2018 2019 Official Receipt 2,960.00 3,165.00 3,385.00 3,620.00 Total Variable Supplies Expense 2,960.00 3,165.00 3,385.00 3,620.00

Administrative Selling Expense 2,665.00 2,665.00 2,665.00 2,665.00 Selling Supplies Expense 4,976.00 5,181.00 5,401.00 5,636.00

7,641.00 7,846.00 8,066.00 8,301.00

Total Fixed Supplies Expense-Selling

Total Fixed Supplies Expense-Admin

Fixed Supplies Expense

2020 296.00 1,720.00

2,016.00

500.00 300.00 1,300.00 65.00 500.00

2,665.00 4,681.00

Variable Supplies Expense 2020

3,870.00 3,870.00

2,665.00 5,886.00 8,551.00

Gadget CyclerComparative Changes in Owner's Equity

As of December 31, 2016 - December 31, 20202016 2017 2018

GADGET CYLER Capital, beginning 500,000 618,110 859,626 Add: Net Income 118,110 241,517 365,276 Less: Drawings - - - GADGET CYCLER CAPITAL, end 618,110 859,626 1,224,903

Gadget CyclerComparative Changes in Owner's Equity

As of December 31, 2016 - December 31, 20202019 2020

1,224,903 1,726,217 501,314 649,593 - - 1,726,217 2,375,810

Particulars Unit Price QTY 2016 2017 2018Tarpaulin 180 50 50 50 50Fliers* 1 3600 7200 7200 7200Total 7250 7250 7250* (1*3600) + 3600(labor)

2019 202050 50

7200 72007250 7250

Payback Period

Initial Investment

Net Operating Cash Flow-2016Net Operating Cash Flow-2017Net Operating Cash Flow-2018Net Operating Cash Flow-2019Net Operating Cash Flow-2020

Payback Period

NET PRESENT VALUEInitial Investment

Year Present value factor Net Operating Cash Flow2016 0.837661249790585 70,559.02 2017 0.701676369400724 462808.1273766452018 0.587767104540731 577619.7441757212019 0.492349727375382 701724.7218623342020 0.412422287967316 833638.375358165

Net Present Value for 5 years

Weighted Average Cost of Capital

Source of Financing: PercentageCapital Investment 500000 100%

Internal Rate of Return

Initial Investment (500,000.00)

Net Operating Cash Flow 2016 70,559.02 Net Operating Cash Flow 2017 462808.127376645Net Operating Cash Flow 2018 577619.744175721Net Operating Cash Flow 2019 701724.721862334Net Operating Cash Flow 2020 833638.375358165

IRR 65%

Payback Period

(500,000.00)Payback years

70,559.02 273,853.68 1 462,808.13 226,146.32 0.48863948 577,619.74 701,724.72 833,638.38

1 year, 5 months and 26 days

NET PRESENT VALUE (500,000.00)

Present Value59104.5585458131324741.526546792339505.884559721345493.975501486343811.046102571 1412656.991256

912,656.99

Weighted Average Cost of Capital

WACC19.38% Industry Average - Business Services

SENSITIVITY ANALYSIS10% DECREASE IN SALES VOLUME

2016.00 2017.00 2018.00 Revenue 5829370.85 6234512.13 6667810.72 Less: Service Cost 4482082.84 4789495.97 5118525.55 Gross Profit 1347288.01 1445016.15 1549285.17 Less: Operating ExpensesGeneral and Administrative 715693.34 715693.34 715693.34 Selling Expenses 446275.67 446480.67 446700.67 Operating Income 185319.01 282842.15 386891.17

10% DECREASE IN UNIT SELLING PRICE2016.00 2017.00 2018.00

Revenue 5829370.85 6234512.13 6667810.72 Less: Service Cost 4978165.02 5319735.17 5685323.59 Gross Profit 851205.83 914776.96 982487.13 Less: Operating ExpensesGeneral and Administrative 715693.34 715693.34 715693.34 Selling Expenses 446275.67 446480.67 446700.67 Operating Income (310763.17) (247397.04) (179906.87)

10% INCREASE IN FIXED COST2016.00 2017.00 2018.00

Revenue 6477078.73 6927235.70 7408678.58 Less: Variable Cost of Good 4960821.81 5302391.95 5667980.37 Variable Operating 2960.00 3165.00 3385.00 Total Variable Cost 4963781.81 5305556.95 5671365.37 Contribution Margin 1513296.92 1621678.74 1737313.20 Less: Fixed Costs Fixed Service Cost 19077.54 19077.54 19077.54 Fixed Operating Cost 1274909.90 1274909.90 1274909.90 Total Fixed Cost 1293987.44 1293987.44 1293987.44 Net Income 219309.48 327691.30 443325.76

10% INCREASE IN VARIABLE COST2016.00 2017.00 2018.00

Revenue 6477078.73 6927235.70 7408678.58 Less: Variable Cost of Good 5456903.99 5832631.15 6234778.41 Variable Operating 3256.00 3481.50 3723.50 Total Variable Cost 5460159.99 5836112.65 6238501.91 Contribution Margin 1016918.74 1091123.05 1170176.67 Less: Fixed Costs Fixed Service Cost 17343.22 17343.22 17343.22 Fixed Operating Cost 1159009.00 1159009.00 1159009.00 Total Fixed Cost 1176352.22 1176352.22 1176352.22 Net Income (159433.48) (85229.17) (6175.55)

10% INCREASE IN OPERATING EXPENSES2016.00 2017.00 2018.00

Revenue 6477078.73 6927235.70 7408678.58 Less: Service Cost 4978165.02 5319735.17 5685323.59 Gross Profit 1498913.70 1607500.53 1723354.99 Less: Operating ExpensesGeneral and Administrative 787262.67 787262.67 787262.67 Selling Expenses 490903.23 491128.73 491370.73 Operating Income 220747.80 329109.13 444721.59

10% INCREASE IN WACCNET PRESENT VALUEInitial Investment

Year Present value factor Net Operating Cash Flow Present Value2016.00 0.82 274017.34 225867.01 2017.00 0.68 462808.13 314449.20 2018.00 0.56 577619.74 323494.05 2019.00 0.46 701724.72 323940.92 2020.00 0.38 833638.38 317213.37

Net Present Value for 5 years

2019.00 2020.00 7131223.57 7626843.60 Cash Flow from Operating Activities5470115.16 5846391.48 Net Income1661108.41 1780452.13 Depreciation

Decrease (increase) in:715693.34 715693.34 Supplies Inventory446935.67 447185.67 Withholding tax498479.41 617573.13 Net Cash provided from Operating Activities


Decrease (increase) in:715693.34 715693.34 Supplies Inventory446935.67 447185.67 Withholding tax

(107384.14) (30098.90) Net Cash provided from Operating Activities

2019.00 2020.00 7923581.74 8474270.67 Cash Flow from Operating Activities6058635.49 6476720.29 Net Income

3620.00 3870.00 Depreciation6062255.49 6480590.29 Decrease (increase) in:1861326.25 1993680.38 Supplies Inventory

Withholding tax19077.54 19077.54 Net Cash provided from Operating Activities

1274909.90 1274909.90 1293987.44 1293987.44

567338.81 699692.94

2019.00 2020.00 7923581.74 8474270.67 Cash Flow from Operating Activities6664499.04 7124392.32 Net Income

3982.00 4257.00 Depreciation6668481.04 7128649.32 Decrease (increase) in:1255100.70 1345621.36 Supplies Inventory

Withholding tax17343.22 17343.22 Net Cash provided from Operating Activities

1159009.00 1159009.00 1176352.22 1176352.22

78748.48 169269.14


Decrease (increase) in:787262.67 787262.67 Supplies Inventory491629.23 491904.23 Withholding tax568711.13 701040.27 Net Cash provided from Operating Activities

(500000.00)

1504964.56

1004964.56

2016.00 2017.00 2018.00 2019.00 2020.00 Initial Investment

185319.01 282842.15 386891.17 498479.41 617573.13 23170.58 23170.58 23170.58 23170.58 23170.58

(107547.94) (7474.58) (7994.07) (8549.65) (9143.85)21450.00 1785.60 1482.24 2129.76 2283.48

122391.65 300323.75 403549.92 515230.10 633883.34 IRR


(310763.17) (247397.04) (179906.87) (107384.14) (30098.90)23170.58 23170.58 23170.58 23170.58 23170.58

(107547.94) (7474.58) (7994.07) (8549.65) (9143.85)21450.00 1785.60 1482.24 2129.76 2283.48

(373690.53) (229915.44) (163248.11) (90633.45) (13788.69)IRR


219309.48 327691.30 443325.76 567338.81 699692.94 23170.58 23170.58 23170.58 23170.58 23170.58

(107547.94) (7474.58) (7994.07) (8549.65) (9143.85)21450.00 1785.60 1482.24 2129.76 2283.48

156382.12 345172.91 459984.52 584089.50 716003.15 IRR


(159433.48) (85229.17) (6175.55) 78748.48 169269.14 23170.58 23170.58 23170.58 23170.58 23170.58

(107547.94) (7474.58) (7994.07) (8549.65) (9143.85)21450.00 1785.60 1482.24 2129.76 2283.48

(222360.84) (67747.57) 10483.21 95499.17 185579.35 IRR


220747.80 329109.13 444721.59 568711.13 701040.27 23170.58 23170.58 23170.58 23170.58 23170.58

(107547.94) (7474.58) (7994.07) (8549.65) (9143.85)21450.00 1785.60 1482.24 2129.76 2283.48

157820.44 346590.73 461380.34 585461.82 717350.48 IRR

Initial Investment (500000.00)

Net Operating Cash Flow 2016 122391.65 (0.76)Net Operating Cash Flow 2017 300323.75 (0.09)Net Operating Cash Flow 2018 403549.92 0.25 Net Operating Cash Flow 2019 515230.10 0.42 Net Operating Cash Flow 2020 633883.34

0.52


Net Operating Cash Flow 2016 (373690.53) (1.00)Net Operating Cash Flow 2017 (229915.44) (1.00)Net Operating Cash Flow 2018 (163248.11) (1.00)Net Operating Cash Flow 2019 (90633.45) (1.00)Net Operating Cash Flow 2020 (13788.69)

(1.00)


Net Operating Cash Flow 2016 156382.12 Net Operating Cash Flow 2017 345172.91 0.00 Net Operating Cash Flow 2018 459984.52 0.34 Net Operating Cash Flow 2019 584089.50 0.51 Net Operating Cash Flow 2020 716003.15

0.60


Net Operating Cash Flow 2016 (222360.84) (1.00)Net Operating Cash Flow 2017 (67747.57) (1.00)Net Operating Cash Flow 2018 10483.21 Net Operating Cash Flow 2019 95499.17 (0.45)Net Operating Cash Flow 2020 185579.35

(0.21)

-68.72%

-89.24%


Net Operating Cash Flow 2016 157820.44 (0.68)Net Operating Cash Flow 2017 346590.73 0.01 Net Operating Cash Flow 2018 461380.34 0.34 Net Operating Cash Flow 2019 585461.82 0.51 Net Operating Cash Flow 2020 717350.48

0.61

REPAIR SERVICE VOLUME(in units)2016 2017 2018 2019

CellphoneProgram Flashing 679 726 776 830LCD replacement 1485 1588 1699 1817Drop signal 636 681 728 779Formatting/ Cleaning 594 635 679 727TabletProgram Flashing 478 511 547 585LCD replacement 580 621 664 710Drop signal 137 146 156 167Formatting/ Cleaning 341 365 390 418LaptopHard Drive 31 34 36 38Memory 27 29 31 33Motherboard 10 11 12 13Software 34 36 38 41Defective Phones 1226 1311 1402 1500Unused PhonesAccessoriesEarphones ChargersConnectors

TOTAL VARIABLE COST OF SALES

FIXED SERVICE COSTParticulars 2016 2017 2018 2019DepreciationTable with drawer 793 793 793 793Chairs 136 136 136 136Wifi router 89 89 89 89Screwdrivers 877 877 877 877Soldering iron 374 374 374 374Desoldering tool 168 168 168 168Laptop 6120 6120 6120 6120Magnifying Glass with lamp 585 585 585 585Multitester 340 340 340 340Steel Cabinet 1133 1133 1133 1133Hot air soldering tool 680 680 680 680Power supply variables 1360 1360 1360 1360Windows 8.1 64bit pro 1467 1467 1467 1467Office 2013 Home and Student 780 780 780 780

440 440 440 440Delivery Cost 2000 2000 2000 2000Total Fixed Service Cost 17343 17343 17343 17343


Variable Operating CostParticulars 2016 2017 2018 2019Supplies Expense 2960 3165 3385 3620Total Variable Operating Cost 2960 3165 3385 3620

Fixed Operating CostParticulars 2016 2017 2018 2019Supplies Expense 4,681.00 4,681.00 4,681.00 4,681.00 Rent Expense 480000 480000 480000 480000Utilities Expenses 84123 84123 84123 84123SSS Premium-employer's share 48740.4 48740.4 48740.4 48740.4PhilHealth-employer's Share 7800 7800 7800 7800Pagibig-Employer's Share 7200 7200 7200 7200Depreciation-Administrative 5374 5374 5374 5374Depreciation-Selling 2454 2454 2454 2454Advertising Expense 7250 7250 7250 7250Transportation expense 1000 1000 1000 1000Salaries and Wages - Selling 418359.375 418359.375 418359.375 418359.375

298828.125 298828.125 298828.125 298828.125Total Fixed Operating cost 1365809 1365809 1365809 1365809

Salaries and Wages - Administrative

VOLUME(in units) Variable Service cost/Unit Variable Service cost in Pesos2020 2016 2017 2018 2019 2020 2016 2017 2018

888 61.01 60.53 60.12 59.70 59.33 41416.134 43946.7439 46683.5061943 611.21 610.73 610.32 609.89 609.53 907609.97 969928.029 1036643.42

833 59.19 58.71 58.30 57.88 57.51 37670.291 39962.3026 42441.9921777 60.52 60.04 59.63 59.20 58.84 35947.177 38141.1707 40514.1375

0.00625 61.01 60.53 60.12 59.70 59.33 29156.474 30937.9938 32864.6423759 911.21 910.73 910.32 909.89 909.53 528769.21 565221.341 604232.781179 59.19 58.71 58.30 57.88 57.51 8082.1164 8573.86476 9105.8792447 60.52 60.04 59.63 59.20 58.84 20658.28 21919.1332 23282.8401

0.0041 2163.71 2163.24 2162.83 2162.40 2162.03 68093.951 72810.3562 77855.954836 1162.30 1161.82 1161.41 1160.99 1160.62 31701.468 33890.7456 36233.394114 2675.02 2674.54 2674.13 2673.70 2673.34 28061.715 30006.6295 32087.183244 108.80 108.32 107.91 107.48 107.12 3652.268 3888.90104 4143.47717

1604 2060.52 2060.041 2059.632 2059.205 2058.84 2526354.8 2701308.27 2888475.68595522.69 636911.52 681176.87

13390.693 14321.3463 15316.679964162.431 68621.7202 73390.929820572.119 22001.881 23531.0117

4960821.8 5302392 5667980.37

2020

793136

89877374168

6120585340

1133680

13601467

780440

200017343

202038703870

2020 4,681.00

48000084123

48740.4780072005374245472501000

418359.375

298828.1251365809

Variable Service cost in Pesos2019 2020

49573.414 52694.4461107914.46 1184205.145059.2771 47886.84643019.5989 45725.681

34899.1038 37096.274645923.835 690538.39667.41461 10274.06624722.6894 26277.832

83250.5046 89021.37938737.3677 41416.58434311.7627 36691.4184413.91373 4704.64283088584.28 3302655.1

728518.67 779150.71

16381.1891 17519.68278491.5994 83946.766

25166.417 26915.483

6058635.49 6476720.3

REPAIR SERVICEVOLUME(in units)

DL/UnitIn Pesos

2016 2017 2018 2019 2020 2016CellphoneProgram Flashing 679 726 776 830 888 50 33941.6204LCD replacement 1485 1588 1699 1817 1943 100 148494.589Drop signal 636 681 728 779 833 50 31820.2691Formatting/ Cleaning 594 635 679 727 777 50 29698.9178TabletProgram Flashing 478 511 547 585 625 50 23894.5039LCD replacement 580 621 664 710 759 100 58029.5094Drop signal 137 146 156 167 179 50 6827.0011Formatting/ Cleaning 341 365 390 418 447 50 17067.5028LaptopHard Drive 31 34 36 38 41 150 4720.62956Memory 27 29 31 33 36 150 4091.21228Motherboard 10 11 12 13 14 150 1573.54319Software 34 36 38 41 44 100 3356.89213

Defective Phones(Buy and Sell) 1226 1311 1402 1500 1604 50 61303.8068Annual Salary 424820Employer's Share 50,460 Total Direct Labor 475280

Direct labor Cost Per unit

REPAIR SERVICE Annual Demand DL/unitCellphone 2016 2017 2018 2019 2020 2016 2017Program Flashing 679 726 776 830 888 58.06 57.583LCD replacement 1485 1588 1699 1817 1943 108.06 107.583Drop signal 636 681 728 779 833 58.06 57.583Formatting/ Cleaning 594 635 679 727 777 58.06 57.583TabletProgram Flashing 478 511 547 585 625 58.06 57.583LCD replacement 580 621 664 710 759 108.06 107.583Drop signal 137 146 156 167 179 58.06 57.583Formatting/ Cleaning 341 365 390 418 447 58.06 57.583Laptop 0.00 0.000Hard Drive 31 34 36 38 41 158.06 157.583Memory 27 29 31 33 36 158.06 157.583Motherboard 10 11 12 13 14 158.06 157.583Software 34 36 38 41 44 108.06 107.583

Defective Phones(Buy and Sell) 1226 1311 1402 1500 1604 58.06 57.58Total Direct Labor Cost

2016 2017 2018 2019 2020Employer's Share 50460 50760 51360 51660 52260Divide: Total Demand for Repair 6259 6694 7159 7657 8189Additional DL per unit 8.061838 7.5828 7.1738 6.7468 6.382

In Pesos2017 2018 2019 2020

36300.563 38823.4521 41521.682 44407.4389158814.963 169852.603 181657.359 194282.54534031.7778 36396.9864 38926.5769 41631.97431762.9926 33970.5206 36331.4718 38856.5091

25555.1719 27331.2563 29230.7786 31262.317862062.5603 66375.9082 70989.0338 75922.77177301.47768 7808.93038 8351.65104 8932.0907918253.6942 19522.3259 20879.1276 22330.227

5048.71331 5399.59889 5774.87101 6176.224554375.55154 4679.65237 5004.88821 5352.727941682.90444 1799.8663 1924.957 2058.741523590.19613 3839.71477 4106.57494 4391.9819

65564.4214 70121.1487 74994.5685 80206.691454345 485922 519694 555812

50,760.00 51,360.00 51,660.00 52,260.00 505105 537282 571354 608072

DL/unit Total direct labor2018 2019 2020 2016 2017 2018 2019 2020

57.17 56.75 56.38 39414.2576 41805.74 44393.7 47124.47 50075.3107.17 106.75 106.38 160465.983 170857.5 182037.5 193913.4 206681

57.17 56.75 56.38 36950.8665 39192.88 41619.09 44179.19 46945.5957.17 56.75 56.38 34487.4754 36580.02 38844.49 41233.91 43815.88

0.00 0.00 0.00 0 0 057.17 56.75 56.38 27747.1765 29430.75 31252.64 33175.07 35252.42

107.17 106.75 106.38 62707.7547 66768.62 71137.59 75778.53 80767.957.17 56.75 56.38 7927.7647 8408.786 8929.327 9478.592 10072.1257.17 56.75 56.38 19819.4118 21021.96 22323.32 23696.48 25180.3

0.00 0.00 0.00 0 0 0157.17 156.75 156.38 4974.34258 5303.935 5657.837 6034.618 6438.988157.17 156.75 156.38 4311.0969 4596.743 4903.459 5230.002 5580.456157.17 156.75 156.38 1658.11419 1767.978 1885.946 2011.539 2146.329107.17 106.75 106.38 3627.51935 3862.432 4115.169 4383.638 4672.263

57.17 56.75 56.38 71188.2345 75507.62 80181.87 85114.06 90443.71475280 505105 537282 571353.5 608072.2

SERVICE COST

REPAIR SERVICEVOLUME(in units) Cost/unit

2016 2017 2018 2019 2020 2016CellphoneProgram Flashing 679 726 776 830 888 61.01LCD replacement 1485 1588 1699 1817 1943 611.21Drop signal 636 681 728 779 833 59.19Formatting/ Cleaning 594 635 679 727 777 60.52TabletProgram Flashing 478 511 547 585 625 61.01LCD replacement 580 621 664 710 759 911.21Drop signal 137 146 156 167 179 59.19Formatting/ Cleaning 341 365 390 418 447 60.52LaptopHard Drive 31 34 36 38 41 2163.71Memory 27 29 31 33 36 1162.30Motherboard 10 11 12 13 14 2675.02Software 34 36 38 41 44 108.80TOTAL REPAIR SERVICE COSTBuy and SellDefective Phones 1226 1311 1402 1500 1604 2060.52Unused Phones 298 318 341 364 390 2000TOTAL COST OF SECONDHAND PHONESAccessoriesEarphones 67 72 77 82 88 200Charger 321 343 367 392 420 200Connector 103 110 118 126 135 200TOTAL COST OF ACCESSORIES

TOTAL VARIABLE COST OF SALESFIXED COST OF SALESTotal Cost of Sales

Cost/unit Service cost in pesos2017 2018 2019 2020 2016 2017 2018

60.53 60.12 59.70 59.33 41416.13 43946.7439 46683.506610.73 610.32 609.89 609.53 907609.97 969928.029 1036643.42

58.71 58.30 57.88 57.51 37670.29 39962.3026 42441.992160.04 59.63 59.20 58.84 35947.18 38141.1707 40514.1375

60.53 60.12 59.70 59.33 29156.47 30937.9938 32864.6423910.73 910.32 909.89 909.53 528769.21 565221.341 604232.781

58.71 58.30 57.88 57.51 8082.12 8573.86476 9105.879260.04 59.63 59.20 58.84 20658.28 21919.1332 23282.8401

2163.24 2162.83 2162.40 2162.03 68093.95 72810.3562 77855.95481161.82 1161.41 1160.99 1160.62 31701.47 33890.7456 36233.39412674.54 2674.13 2673.70 2673.34 28061.72 30006.6295 32087.1832

108.32 107.91 107.48 107.12 3652.27 3888.90104 4143.477171740819.06 1859227.21 1986089.20

2060.04 2059.63 2059.21 2058.84 2526354.81 2701308.27 2888475.682000 2000 2000 2000 595522.69 636911.52 681176.87

3121877.51 3338219.79 3569652.55

13390.69313188 14321.3463045 15316.6798727 16381.189124 17519.68176864162.43125954 68621.7202321 73390.9297882 78491.599408 83946.765567420572.11872251 22001.8809737 23531.0117014 25166.417015 26915.482997298125.24311393 104944.94751 112238.621362 120039.20555 128381.930333

4960821.81 5302391.95 5667980.37 6058635.49 6476720.2917343 17343.2166667 17343.2166667 17343.216667 17343.2166667

4978165.02 5319735.17 5685323.59 6075978.71 6494063.50

Service cost in pesos2019 2020

49573.414 52694.4458081107914.46 1184205.059345059.2771 47886.84641843019.5989 45725.680598

34899.1038 37096.273686645923.835 690538.298719667.41461 10274.06626524722.6894 26277.832216

83250.5046 89021.37903338737.3677 41416.58396334311.7627 36691.4183534413.91373 4704.64277192121493.34 2266532.53

3088584.28 3302655.12728518.67 779150.71

3817102.95 4081805.83

2107 2018 2019Supplies Material Inventory Purchases 1,300,050 1,390,264 1,486,749 Purchases of Used phones 3,259,488 3,486,023 3,728,301 Purchases of Accessories 104,945 112,239 120,039 Supplies Expense 7,846 8,066 8,301 Direct Labor 505,105 537,282 571,354 Salaries Expenses 717,188 717,188 717,188 Utilities Expense 84,123 84,123 84,123 Rent Expense 480,000 480,000 480,000 TOTAL 6,458,744 6,815,184 7,196,054 Divide by: 360 360 360 Total 17,941 18,931 19,989 Multiply by (Cash Conversion Cycle) 8 8 8 Working Capital 143,528 151,449 159,912 Contingency Funds(10% of working capital) 14,341 12,429 4,785 Total 157,869 163,877 164,697

2,017 2,018 2,019 Cash, Beginning 249,869 413,877 534,697 Working Capital and Contingency 157,869 163,877 164,697 Total 92,000 250,000 370,000 Rounded Off 92,000 250000 370000

Cash Beginning 249,869 413,877 534,697 Investment on Time Deposit 92,000 250,000 370,000 Initial Working Capital 157,869 163,877 164,697

2020 1,589,939 3,987,418 128,382 8,551 608,072 717,188 84,123 480,000 7,603,672 360 21,121 8 168,970 651 169,622

2,020 659,622 169,622 490,000

490000

659,622 490,000 169,622

INTEREST INCOME2016 2017

Investment in Time Deposit, Jan.1 0 92,000.00 Interest Rate 3.25% 3.25%Interest Income 0 2990

INTEREST INCOME2018 2019 2020

342,000.00 712,000.00 1,202,000.00 3.25% 3.25% 3.25%11115 23140 39065

Other IncomeInterest IncomeSale of Depreciated Asset

Gadget CyclerComparative Balance Sheet

As of December 31, 2016 - December 31, 2020

ASSET Notes 2016 2017Current AssetCash 249,869 413,877 Interest Receivable 2,990 Supplies Inventory 107,548 115,023 Rent Deposit 80,000 80,000

Non-Current AssetFurnitures and Fixtures (4) 83,873 78,547 Property, Plant and Equipment (5) 110,863 95,706 Other Asset 10,748 8,061 Investment on Time Deposit 92,000 Total assets 642,901 886,204

LIABILITIES AND OWNER'S EQUITYCurrent Liability:Withholding tax payable 24,792 26,577

Owner's CapitalGADGET CYCLER,Capital 618,110 859,626 Total Liabilities and Changes in Owner's Equity 642,901 886,204

Gadget CyclerComparative Balance Sheet

As of December 31, 2016 - December 31, 2020

2018 2019 2020

534,697 659,622 805,753 14,105 37,245 76,310 123,017 131,566 140,710 80,000 80,000 80,000

73,220 67,893 62,207 80,549 65,392 41,304 5,374 2,687 - 342,000 712,000 1,202,000 1,252,962 1,756,406 2,408,285

28,059 30,189 32,473

1,224,903 1,726,217 2,375,810 1,252,962 1,756,406 2,408,283

Gadget CyclerComparative Absorption Income Statement

For the Year Ended December 31, 2016 - December 31, 2020Notes 2016 2017

Revenue 6,477,079 6,927,236 Less: Cost of Sales 4,978,165 5,319,735 Gross Profit 1,498,914 1,607,501 Interest Income (1) 2,990 Gross Income 1,498,914 1,610,491 Less: Operating ExpensesGeneral and Administrative Expense (2) 909,919 897,884 Selling Expenses (3) 470,885 471,090 Net Income 118,110 241,517

Gadget CyclerComparative Variable Income Statement

For the Year Ended December 31, 2016 - December 31, 20202016 2017

Revenue 6,477,079 6,927,236 Less: Variable Cost of Good Sold 4,960,822 5,302,392 Variable Operating Cost 2,960 3,165 Total Variable Cost 4,963,782 5,305,557 Contribution Margin 1,513,297 1,621,679 Less: Fixed Costs Fixed Service Cost 17,343 17,343 Fixed Operating Cost 1,365,809 1,365,809 Total Fixed Cost 1,383,152 1,383,152 Operating Income 130,145 238,527 Interest Income 2,990 Net Income 130,145 241,517

Gadget CyclerComparative Absorption Income Statement

For the Year Ended December 31, 2016 - December 31, 20202018 2019 2020

7,408,679 7,923,582 8,474,271 5,685,324 6,075,979 6,494,064 1,723,355 1,847,603 1,980,207 11,115 23,140 39,065 1,734,470 1,870,743 2,019,272

897,884 897,884 897,884 471,310 471,545 471,795 365,276 501,314 649,593

Gadget CyclerComparative Variable Income Statement

For the Year Ended December 31, 2016 - December 31, 20202018 2019 2020

7,408,679 7,923,582 8,474,271 5,667,980 6,058,635 6,476,720 3,385 3,620 3,870 5,671,365 6,062,255 6,480,590 1,737,313 1,861,326 1,993,680

17,343 17,343 17,343 1,365,809 1,365,809 1,365,809 1,383,152 1,383,152 1,383,152 354,161 478,174 610,528 11,115 23,140 39,065 365,276 501,314 649,593

Liquidity Ratios2016

Current RatioCurrent Assets

= 437,417

Current liabilities 24,792 17.6

Quick(Acid Test) RatioCurrent Asset-Inventory

= 329,869

Current Liabilities 24,792 13.31

Activity Ratios2016

Average age of Inventory365

=365

Inventory Turnover 46.29 7.89

Cash Conversion Cycle = 7.89

Operating Cycle = 7.89

Inventory TurnoverCost of Good Sold

= 4,978,165

Average Inventory balance 107,548 46.29

Total Assets TurnoverSales

= 6,477,079

Average Total Assets 642,901 10.07

Profitability Ratio 2016 2017

Gross Profit MarginNet Sales - Cost of Sales

= 1,498,914 1,607,501

Net Sales 6,477,079 6,927,236 23.14% 23.21%

Net Profit MarginNet Income

= 118,110 241,517

Net Sales 6,477,079 6,927,236 1.82% 3.49%

Return on Investment on total assets Net Income

= 118,110 241,517

Average Age of Inventory + Average Collection Period -

Average Payment Period

Average Age of Inventory + Average Collection Period

Return on Investment on total assets Average Total Assets

= 642,901 764,552

18.37% 31.59%

Return on EquityNet Income

= 118,110 241,517

Average Owner's equity 618,110 738,868 19.11% 32.69%

2017 2018 2019 2020 611,890 751,819 908,433 1,102,773 26,577 28,059 30,189 32,473

23.0 26.8 30.1 34.0

496,867 628,802 776,867 962,063 26,577 28,059 30,189 32,473

18.70 22.41 25.73 29.63

2017 2018 2019 2020365 365 365 365

47.80 47.77 47.73 47.70 7.64 7.64 7.65 7.65

7.64 7.64 7.65 7.65

7.64 7.64 7.65 7.65

5,319,735 5,685,324 6,075,979 6,494,064 111,285 119,020 127,291 136,138

47.80 47.77 47.73 47.70

6,927,236 7,408,679 7,923,582 8,474,271 764,552 1,069,583 1,504,684 2,082,345

9.06 6.93 5.27 4.07

2018 2019 2020 1,723,355 1,847,603 1,980,207 7,408,679 7,923,582 8,474,271

23.26% 23.32% 23.37%

365,276 501,314 649,593 7,408,679 7,923,582 8,474,271

4.93% 6.33% 7.67%

365,276 501,314 649,593

1,069,583 1,504,684 2,082,345 34.15% 33.32% 31.20%

365,276 501,314 649,593 1,042,264 1,475,560 2,051,013

35.05% 33.97% 31.67%

final financial statement with ratio

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