Preparation of Complete Set of Financial Statement

H.A Printing Services

Income Statement

Year Year 2 Year 3 Year4 Year 5

Revenue 1,330,356.00 1,396,873.80 1,466,717.49 1,540,053.337 1617056.007

Cost Of Sales 427,303.80 448,668.99 471,102.44 494,657.56 519,390.44

Gross Margin 903,052.2 948,204.81 995,615.05 1,045,395.78 1,097,665.57

Expenses

Depreciation Expenses 128,677.00 128,677.00 128,677.00 128,677.00 128,677.00

Utilities Expense 37,304.40 39,169.62 41,128.10 43,184.51 45,343.74

Supplies Expense 4,000.00 4,200.00 3,585.00 3,800.00 3,800.00

Salaries Expense 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00

Rent Expense 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00

Repair and Maintenance

Expense 54,000.00 54,000.00 54,000.00 54,000.00 54,000.00

License and Legal expense 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00

Advertising expense 10,350.00 8,925.00 10,275.00 8,225.00 7,500.00

Other miscellaneous expense 1,250.00 875.00 775.00 725.00 750.00

Total Expenses 539,081.40 539,346.62 541,940.10 542,111.51 543,570.74

income before tax 363,970.80 408,858.19 453,674.95 503,284.27 554,094.83

Income tax expense 84,191.24 97,657.46 111,102.49 126,051.13 142,310.35

Net income 279,779.56 311,200.73 342,572.46 377,233.14 411,784.49

Computation of Annual Revenue

Product Annual Demand per unit Price Per Unit Annual Revenue

Tarpaulin 1,942.8 600.00 1,165,680.00

3,756 5.00 18,780.00

Fliers
Brochure 30 120.00 3,600.00
School Paper 1,800 30.00 54,000.00
Program Material 2,154 40.00 86,160.00
Other Printed Material 106.8 20.00 2,136.00

Total Annual Revenue 1,330,356.00

Computation of Cost of Sales

 Year 1 Year 2 Year 3 Year 4 Year 5
Cost of Sales:
55676.7
Tarpaulin rolls beginning inventory 49651.2 50616.96 43296 5
218257.
Add: Purchases 236 160 196800 198304.99 228288 9
Less:ending 55676.75
inventory 49 651.2 50616.96 43296 3 47232
215907.2 226702.
186 508.8 195834.24 205625.952 5 6

Papers for offset

printing beginning inventory 4982.1 5131.563 7804.02 10610.1
37176.43 39035.2
Add:Purchases 34672.5 31324.38 35406.125 7 6
Less:ending 10610.10 13556.4
inventory 4982.1 5131.563 7804.02 3 9
34370.35 36088.8
29 690.4 31174.92 32733.666 4 7

14244.4
Ink beginning inventory 17587.05 12245 10962.2 6
247662.2 255812.
Add:Purchases 228 691.65 216317.78 231460.0246 2 8
Less: ending 13458.2
inventory 17587.05 12245 10962.2 14244.46 5
244379.9
211 104.6 221659.83 232742.8215 6 256599
Schedule of Depreciation

Asset Cost Salvage Value Useful Life Annual Depreciation

Machineries and
Equipment:
 6ft. Large 450,00.00 0 10 45,000.00
Format Printing
Machine
 Offset Printing 375,000.00 0 10 37,500.00
Machine
 Cutting Machine 100,000.00 0 8 12,500.00
 Binding Machine 125,000.00 0 8 15,625.00
 Air Conditioning 30,000.00 0 5 6,000.00
Machine
 Printer 8,000.00 0 4 2,000.00
Computer Set 21,000.00 0 5 4,200.00
Furniture and Fixtures
 Computer Desk 8,000 0 5 1,600.00
 Monoblock 750 0
Chairs 3 250.00
  Cabinet 3,500 0 5 700.00
 Office Table 7,560 0 5 1,512.00
 Sofa 8,950 0 5 1,790.00

128,677.00

H.A. Printing Services

Statement of Changes in Equity

Year 1 Year 2 year 3 year 4 year 5

Beginning 1,434,779.5 1,680,980.2 1,958,552.7 2,270,785.8

Equity 6 9 5 9

1,220,000.0
Add: Investment 0 - - -

Add: Profit 279,779.56 311,200.73 342,572.46 377,233.14 411,784.49

Less: Withdrawal 65,000.00 65,000.00 65,000.00 65,000.00 65,000.00

1,434,779.5 1,680,980.2 1,958,552.7 2,270,785.8 2,617,570.3

Ending Equity 6 9 5 9 8
 H.A. Printing Services

Statement of Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5

1,396,873.8
Cash receipts 1,330,356.00 0 1,466,717.49 1540053.34 1,617,056.01

Purchase of inventories 499,524.15 444,442.16 465,171.14 513126.66 513,105.87

Purchase of supplies 4,475.00 4,790.00 3,920.00 3535 3,890.00

Rent Expense paid 140,000.00 100,000.00 135,000.00 125000 120,000.00

Utilities Expense paid 34,195.70 35,022.07 40,030.60 42183.88 46,242.70

Salaries Expense paid 172,500.00 180,000.00 180,000.00 180000 180,000.00

Repair and Maintenance Expense paid 54,000.00 54,000.00 54,000.00 54000 54,000.00
license and Legal expense paid 3,500.00 3,500.00 3,500.00 3500 3,500.00

Advertising expense paid 8,000.00 10,275.00 7,525.00 11975 5,225.00

Other miscellaneous expense paid 1,250.00 875.00 775.00 725 750.00

Income tax expense paid - 84,191.24 97,657.46 111102.49 126,051.13

Cash Flow from Operating Activities 412,911.15 479,778.33 479,138.29 494,905.31 564,291.31

Purchase of Computer equipment 21,000.00 - - - -

Purchase of Furnitures and Fixtures 28,760.00 - - 750.00 8,000.00

Purchase of Machineries and
Equipments 1,088,000.00 - - - -

Cash Flow from Investing Activities 1,137,760.00 - - 750.00 8,000.00

Cash Investment 1,220,000.00 - -

Withdrawal 65,000.00 65,000.00 65,000.00 65,000.00 65,000.00

Cash Flow from Financing Activities 1,155,000.00 65,000.00 65,000.00 65,000.00 65,000.00

Beginning Cash balance 1259067.7

430,151.15 844,929.48 7 1,688,223.0
 9

Net Cash Flow 430,151.15 414,778.33 414,138.29 429,155.31 491,291.31

1,259,067.7 1688223.0 2,179,514.4

Ending Cash balance 430,151.15 844,929.48 7 9 0

H.A. Printing Services

Statement of Financial Position

Year 1 year 2 Year 3 year 4 year 5

Asset

1,259,067.7 1,688,223.0 2,179,514.4

Cash 430,151.15 844,929.48 7 9 1

Inventory 72,220.35 67,993.52 62,062.22 80,531.31 74,246.74

Supplie
s 475.00 1,065.00 1,400.00 1,135.00 1,225.00
 Prepaid Rent 20,000.00 - 15,000.00 20,000.00 20,000.00

Computer Set 21,000.00 21,000.00 21,000.00 21,000.00 21,000.00

Accumulated Depreciation 4,200.00 8,400.00 12,600.00 16,800.00 21,000.00

Furniture and Fixtures 28,760.00 28,760.00 28,760.00 28,760.00 28,760.00

Accumulated Depreciation 5,852.00 11,704.00 17,556.00 22,658.00 28,510.00

1,088,000.0 1,088,000.0 1,088,000.0 1,088,000.0 1,088,000.0

Equipment and machinery 0 0 0 0 0

Accumulated Depreciation 118,625.00 237,250.00 355,875.00 474,500.00 585,125.00

Total 1,531,929.5 1,794,394.0 2,089,258.9 2,413,691.4 2,778,111.1

Assets 0 0 9 0 5
Liability

Utilities payable 3,108.70 7,256.25 8,353.75 9,354.38 8,455.42

Advertising
payable 2,350.00 1,000.00 3,750.00 - 2,275.00

Salaries payable 7,500.00 7,500.00 7,500.00 7,500.00 7,500.00

Income tax
payable 84,191.24 97,657.46 111,102.49 126,051.13 142,310.35
Total
Liability 97,149.94 113,413.71 130,706.24 142,905.51 160,540.77
Owner's equity 1,680,980.2
1,434,779.5 9 1,958,552.7 2,270,785.8 2,617,570.3
 6 5 9 8

Total liability and owner's 1,531,929.5 1,794,394.0 2,089,258.9 2,413,691.4 2,778,111.1

equity 0 0 9 0 5

Computation of Ending Inventory

Year 1 Year 2 Year 3 Year 4 Year 5

Ending
Inventory:
55676.7
Tarpaulin rolls beginning inventory 49651.2 50616.96 43296 5
218257.
Add: purchases 236 160 196800 198304.99 228288 9
Less: Cost of 215907.2 226702.
Sales: 186 508.8 195834.24 205625.952 5 6
49 651.2 50616.96 43296 55676.75 47232
 3

Papers for offset

printing beginning inventory 4982.1 5131.563 7804.02 10610.1
37176.43 39035.2
Add:purchases 34672.5 31324.38 35406.125 7 6
Less: Cost of 34370.35 36088.8
Sales: 29 690.4 31174.92 32733.666 4 7
10610.10 13556.4
4982.1 5131.563 7804.02 3 9

14244.4
Ink beginning inventory 17587.05 12245 10962.2 6
247662.2 255812.
Add: purchases 228 691.65 216317.78 231460.0246 2 8
Less: Cost of 244379.9
Sales: 211 104.6 221659.83 232742.8215 6 256599
13458.2
17587.05 12245 10962.2 14244.46 5

Return on Investment

A method of appraising capital investments where the average annual profits from a project are divided into the average
investment cost, also known as accounting rate of return on capital employed.
 Year 1 Year 2 Year 3 Year 4 Year 5
408858.1 453674.9 503284. 554094
Profit 363970.8 9 5 27 83
Investme 122000
nt 1220000 1220000 1220000 1220000 0
0.2983367 0.335129 0.371864 0.41252 45.4176
ROI 21 66 71 81 1

Payback Period

Project Cost 1,176,490.00

Cash Flow from 1st year 430,151.15 1year

746,338.85

Cash flow from 2nd year 414,778.33 2 years

Excess 331,560.52

Divided by Cash Flow from 3rd year 414,775.29

.79 9 mos.

Payback Period: 2Years and 9months