AP's KITCHEN

START-UP COST AND CAPITALIZATION

Projected Initial Cost

Pre-operating Expenses
Lease 3 month's rent Err:509
Licenses and Permits 15,207
Training 10,000
Uniform 4,000
Promotional expenses 7,500
Office supplies- 3 months 8,350
Office cleaning supplies - 3 months 470
Total Err:509

Acquisition and Fixed Cost

Office equipment 43,000
Leasehold improvements/ renovation Err:509
Furnitures and fixtures Err:509
Transportation Equipment 300,000
Total Err:509

Working Capital
Funds direct for Lending 3,000,000
Reserve (Deposit to Depository Bank) 2,220,423
Total 5,220,423

TOTAL COSTS Err:509

Paid-in capital 6,000,000

Authorized Capital 10,000,000
Par value per share 1,000

-1-
SCHEDULES

No. of Employees
Training 2 10,000.00
Uniforms 2 4,000.00

Licenses and Permits Year 1 Year 2

Department of Trade and Industry Registration 500 500
Business Bureau Initial payment 100 -
Business Bureau- Permit Fee 800 800
Business Bureau-Garbage Fee 400 400
CTO- Business Certificate 300 -
CTO-Cedula 200 200
CTO-Regulatory Fees on Business Permit 5,000 5,000
CTO Business Tax - 2,000
BFP-Fire Safety Inspection Fee 307 307
BFP-Fire Extinguisher 1,500 -
BIR-Registration Fee 500 500
BIR-Documentary Stamps/ Official Receipt 1,500 -
Zoning Inspector 2,000 -
DOLE Registration Certificate 500 -
SSS Registration Certificate 500 -
PHIC Registration Certificate 600 -
HDMF Registration Certificate 500 -

Total 15,207.00 9,707.00

Promotional Expenses Amount

Printing of Flyers 3,000.00
Signages 4,500.00

Total 7,500.00

Office Supplies - 3 Months

Quantity Cost Amount
Ballpen 1 Box 100.00 100.00
Logbook 1 150.00 150.00
Official Receipts 50 150.00 7,500.00
Forms (Agreement/ Confirmation Form) 2 100.00 200.00
Staple wire 5 80.00 400.00
Total 8,350.00

Kitchen equipment
Food storage 2 doz 80.00 160.00
Muriatic 2 75.00 150.00
Doormat 2 40.00 80.00
Broom 1 80.00 80.00
Total 470.00

Office Equipment
Quantity Cost Amount
Steel Cabinet 1 8,500.00 8,500.00
Desktop Computer 1 26,000.00 26,000.00
Printer-Epson L355 Series 1 6,000.00 6,000.00
Telephone 1 2,500.00 2,500.00
Total 43,000.00

Transportation Equipment
Quantity/Unit Cost Amount
1 Unit Close type multi-cab 1 300,000.00 300,000.00
Total 300,000.00

GRAND TOTAL 388,527.00

Working Capital
From the owner 2,500,000.00
Contingency funding 2,677,423.00
Total Start-Up Cost 5,565,950.00
 Amount No. Total
Polo 300 1 600.00
slacks 700 1 1,400.00 466.66667
Blouse and Skirt 1000 1 2,000.00 1000
Year 3 4,000.00
500
-
800
400
-
200
5,000
2,500
307
-
500
-
-
-
-
-
-

10,207.00
1 1466.6667
3 1066.6667
2
 AP's KITCHEN

PROJECTED STATEMENT OF FINANCIAL POSITION

As of December 31
(In Philippine Peso)

PARTICULARS Notes Year 1 Year 2 Year 3

ASSETS
Cash and Due from other Banks 1 2,220,423 2,557,805 2,601,626
Loans and Receivables
Current 2 3,644,825 3,438,649 3,560,279
Past Due 20,000 25,000
Total 3,644,825 3,458,649 3,585,279
Less:Allowance for credit losses 3 2,000 2,500
Total Loans and Receivables, Net 3,644,825 3,456,649 3,582,779
Fixed Assets
Leasehold Improvement, Net 4 160,000 160,000 160,000
Office Equipment, Net 4 152,667 152,667 152,667
Furniture and Fixtures, Net 4 80,000 80,000 80,000
Transportation Equipment, Net 4 68,000 68,000 68,000
Total Fixed Assets, Net 460,667 460,667 460,667
TOTAL ASSETS 6,325,915 6,475,120 6,645,072
LIABILITIES
Due to SSS 5 3,250 3,250 3,250
Due to PHIC 5 543 543 543
Due to HDMF 5 300 300 300
Income Tax Payable - - -
Total Liabilities 4,093 4,093 4,093
EQUITY
Share Capital 6 6,000,000 6,000,000 6,000,000
Retained Earnings 337,382 474,075 636,914
Total Equity 6,337,382 6,474,075 6,636,914

TOTAL LIABILITIES AND EQUITY 6,341,475 6,478,169 6,641,007

-6-
 MACC Micro Lending

PROJECTED STATEMENT OF OPERATION

For the year ended December 31
(In Philippine Peso)

Notes Year 1 Year 2 Year 3

INTEREST INCOME
Interest Income on Loans 7 1,312,500 1,443,750 1,586,250
Interest Income on Deposits 7 4,441 12,225 12,246
Total 1,316,941 1,455,975 1,598,496
Other Income
Service charge/ fees 2&8 175,000 192,500 211,500
Penalties 8 - 6,000 4,500
Total Other Income 175,000 198,500 216,000
Total Gross Income 1,491,941 1,654,475 1,814,496
Less: Provision for Credit Losses 3 2,000 2,500
Net Income After Provision 1,491,941 1,652,475 1,811,996
OPERATING EXPENSES consolidated bank:
Salaries and Benefits 9 584,218 579,718
19,500 2 mos 604,918
advance 1 mos
Director's & Committee Honorarium 10 30,400 deposit 31,200 32,800
Insurance Expense 11 10,660 10,980 11,309
Rental Expense 12 78,000 78,000 78,000
Office Supplies 13 19,900 20,497 21,112
Repairs and Maintenance 14 5,616 5,784 5,958
Power, Light and Water 15 31,200 32,136 33,100
Taxes, fees and licenses 16 15,207 9,707 10,207
Communication Expense 17 6,000 6,000 6,000
Management and Other Professional fees 18 140,000 151,600 164,360
Traveling Expense 19 6,000 6,180 6,365
Fuel and Lubricants 20 27,180 27,995 28,835
Advertising Fee 21 5,000 5,150 5,305
Depreciation-Leasehold Improvement 4 40,000 40,000 40,000
Depreciation-Office Equipment 4 76,333 76,333 76,333
Depreciation-Furniture & Fixtures 4 40,000 40,000 40,000
Depreciation-Transportation Equipment 4 17,000 17,000 17,000
Total Operating Expense 1,132,714 1,138,281 1,181,603

Net Income / (Loss) Before Tax 359,227 514,195 630,393

Tax Rate (Based on Train Law) 21,845 58,549 87,598
Net Income/ (Loss) After Tax 337,382 455,646 542,795

-7-
INCOME FROM LOANS - SUMMARY

Interest Income, SC & Penalties

from Loans Year 1 Year 2 Year 3
Interest 1,312,500 1,443,750 1,586,250
Service Charges 175,000 192,500 211,500
Penalties - 6,000 4,500
TOTAL 1,487,500 1,642,250 1,802,250

INTEREST ON DEPOSITS
BANKS Deposit Product Amount Rate
Year 1 Interest on DFOB Savings 2,220,423 0.25%
Total
Total, Net of Tax

Savings 724,864 0.25%

Interest on DFOB
Year 2 Time 1,795,941 0.75%
Total
Total, Net of Tax 2,520,805

Savings 735,314 0.25%

Interest on DFOB
Year 3 Time 1,795,900 0.75%
Total
Total, Net of Tax 2,531,213

BANKS Deposit Product

-
-
Due From LBP - Demand Account 515,129.19 515,129.19
Due from LBP - San Francisco 2,645,131.28 2,645,131.28
Due From BDO Butuan - Savings Account 584,632.99 584,632.99
Due From PNB Surigao - Demand Account 411,156.12 411,156.12
Due From Enterprise Bank Barobo- 391,492.84 391,492.84
Due from Enterprise Bank Hinatuan- S.A 111,566.34 111,566.34
Due from Cantilan Bank - Savings Account 5,004,444.44 5,004,444.44
Due from RCBC Butuan - Demand 1,180,101.69 1,180,101.69
Due from DBP Bislig 515,631.85 515,631.85
501,024.77 501,024.77
11,860,311.51 -
 Cash and DFOB

Savings
Time Deposit

TOTAL

Interest withholding tax

5,551 20% 1,493,051.06
5,551 1,110.21 3,224,864 DFOB Year 2
4,441
37,000.00
1,812
13,470 2,557,805 10% Inc
15,282 3,056.34 1,657,531.72 164,480.66
12,225
1,832,940.76
1,838
13,469 9% Inc
15,308 3,061.51 1,817,557.53 160,025.82
12,246

4,737,089 DFOB Year 3

% Target Average Rate Amount

- - -
- - -
100% 515,129.19 515,129.19 0.10% 515.13
100% 2,645,131.28 2,645,131.28 0.25% 6,612.83
100% 584,632.99 584,632.99 0.00% -
100% 411,156.12 411,156.12 0.25% 1,027.89
100% 391,492.84 391,492.84 0.00% -
100% 111,566.34 111,566.34 0.00% -
100% 5,004,444.44 5,004,444.44 0.00% -
100% 1,180,101.69 1,180,101.69 1.00% 11,801.02
100% 515,631.85 515,631.85 0.25% 1,289.08
100% 501,024.77 501,024.77 0.25% 1,252.56
11,860,311.51 11,860,311.51 22,498.51
 Year 1 Year 2 Year 3
2,220,423 737,089 747,560
- 1,795,941 1,795,900

2,220,423 2,533,030 2,543,459

DFOB Year 2

DFOB Year 3
 MACC MICRO LENDING
For the period December 31

SCHEDULE

No. of
Interest Service
Year 1 Interest Other Income Accounts
Rate charge Serve
Income
Month Loan Release Total Loan Releases 8,750,000
Less: Collection 5,105,175
January 625,000 15% 93,750 2% 12,500 25 Portfolio Balance 3,644,825
February 500,000 15% 75,000 2% 10,000 20
March 500,000 15% 75,000 2% 10,000 20 5,250,000.00 390
April 625,000 15% 93,750 2% 12,500 25 20
May 625,000 15% 93,750 2% 12,500 25 410
June 625,000 15% 93,750 2% 12,500 30 20
July 875,000 15% 131,250 2% 17,500 35 consolidated bank: consolidated bank: 430
August 750,000 15% 112,500 2% 15,000 20 Borrower's availedBorrower's availed
twice when in a year
twice when in a year
September 875,000 15% 131,250 2% 17,500 35 when they fully thewhen they fully the 1,050,000.00
October 1,000,000 15% 150,000 2% 20,000 40 amount within 6 amount within 6 1,225,000.00
mos. or when theymos. or when they
November 750,000 15% 112,500 2% 15,000 30 paid 50% of their paid 50% of their
December 1,000,000 15% 150,000 2% 20,000 40 loan they can availloan they can avail 875,000.00
renewal renewal
TOTAL 8,750,000 1,312,500 175,000 345.00 13.8
358.8
Assumptions: Target Market is 195 or 30% of the total establishments in Bangkerohan of 650. 40
10%
Cash Collection
Weekly
Amount Collectio Collection in a Loan Balance
n Month
January 500,000.00 0 0 ### 362
February 625,000.00 ### 83,333.33 ### 17.25
March 625,000.00 ### 187,500.00 ###
April 500,000.00 ### 312,500.00 ###
May 750,000.00 ### 375,000.00 ###
June 750,000.00 ### 500,000.00 ###
July 875,000.00 ### 625,000.00 ###
August 375,000.00 ### 687,500.00 ###
September 375,000.00 ### 645,833.33 ###
October 750,000.00 ### 604,166.67 ###
November 375,000.00 ### 645,833.33 ###
December 250,000.00 ### 583,333.33 ###
### 5,250,000.00 ###

Mode of Collection- Weekly

No. of
Interest Service
Year 2 Interest Other Income Accounts
Rate charge Serve
Income
Month Loan Release Total Loan Releases 9,625,000
Less: Collection 6,186,351
January 875,000 15% 131,250 2% 17,500 35 Portfolio Balance 3,438,649
February 875,000 15% 131,250 2% 17,500 35
March 750,000 15% 112,500 2% 15,000 30
April 875,000 15% 131,250 2% 17,500 35 362
May 750,000 15% 112,500 2% 15,000 30
June 875,000 15% 131,250 2% 17,500 35
July 875,000 15% 131,250 2% 17,500 35 consolidated bank:
August 625,000 15% 93,750 2% 12,500 25 Borrower's availed
twice when in a year
when they fully the
amount within 6
mos. or when they
paid 50% of their
loan they can avail
renewal
 consolidated bank:
Borrower's availed
twice when in a year
September 875,000 15% 131,250 2% 17,500 35 when they fully the
October 750,000 15% 112,500 2% 15,000 30 amount within 6
mos. or when they
November 750,000 15% 112,500 2% 15,000 30 paid 50% of their
December 750,000 15% 112,500 2% 15,000 30 loan they can avail
renewal
TOTAL 9,625,000 1,443,750 192,500 385 15.4

Assumptions: Number of clients who availed loan increase by 10% and 18% increase in loan portfolio.
Cash Collection
Weekly
Amount Collectio Collection in a Loan Balance
n Month
January 750,000.00 0 0 ###
February 750,000.00 ### 125,000.00 ###
March 750,000.00 ### 250,000.00 ###
April 625,000.00 ### 375,000.00 ###
May 875,000.00 ### 479,166.67 ###
June 750,000.00 ### 625,000.00 ###
July 750,000.00 ### 750,000.00 -
August 625,000.00 ### 750,000.00 ###
September 625,000.00 ### 729,166.67 ###
October 625,000.00 ### 708,333.33 ###
November 625,000.00 ### 708,333.33 ###
December 500,000.00 ### 666,666.67 ###
### 6,166,666.67 ###
 No. of
Interest Service
Year 3 Interest Other Income Accounts
Rate charge Serve
Income
Month Loan Release Total Loan Releases 10,575,000
Less: Collection 7,014,721
January 925,000 15% 138,750 2% 18,500 37 Portfolio Balance 3,560,279
February 875,000 15% 131,250 2% 17,500 35
March 1,000,000 15% 150,000 2% 20,000 40 0
April 875,000 15% 131,250 2% 17,500 35
May 1,000,000 15% 150,000 2% 20,000 40 0
June 875,000 15% 131,250 2% 17,500 35
July 875,000 15% 131,250 2% 17,500 35 consolidated bank:
August 750,000 15% 112,500 2% 15,000 30 Borrower's availed
twice when in a year
September 750,000 15% 112,500 2% 15,000 30 when they fully the
October 900,000 15% 135,000 2% 18,000 36 amount within 6
mos. or when they
November 750,000 15% 112,500 2% 15,000 30 paid 50% of their
December 1,000,000 15% 150,000 2% 20,000 30 loan they can avail
renewal
TOTAL 10,575,000 1,586,250 211,500 413

Assumptions: Number of clients who availed loan increase by 10% and 10% increase in loan portfolio.

Cash Collection
Weekly
Amount Collectio Collection in a Loan Balance
n Month
January 750,000.00 0 0 ###
February 875,000.00 ### 125,000.00 ###
March 625,000.00 ### 270,833.33 ###
April 750,000.00 ### 395,833.33 ###
May 875,000.00 ### 500,000.00 ###
June 875,000.00 ### 645,833.33 ###
July 875,000.00 ### 791,666.67 ###
August 750,000.00 ### 812,500.00 ###
September 625,000.00 ### 791,666.67 ###
October 750,000.00 ### 791,666.67 ###
November 625,000.00 ### 791,666.67 ###
December 750,000.00 ### 750,000.00 -
### 6,666,666.67 ###
 -
3,149,086.00 4,948,533.46

9,750,000.00
10,237,500.00

10,749,375.00

9,625,000.00
 875,000.00
9,625,000.00
 Year 1 Year 2 Year 3
Interest Income loans 1,487,500 1,642,250 1,802,250
Interest Income-deposit 4,441 12,225 12,246
Total 1,491,941 1,654,475 1,814,496
Divided 12 12 12
Monthly Income 124,328 137,873 151,208

Operating Expenses 1,132,714 1,138,281 1,181,603

Tax 21,845 58,549 87,598
1,154,559 1,196,829 1,269,201
Divided 12 12 12
Monthly Opex 96,213 99,736 105,767

Net Monthly income 28,115 38,137 45,441

Multiplied 12 12 12
337,382 457,646 545,295

DFOB Year 1 Year 2 Year 3

Beginning 2,220,423 2,220,423 2,557,805
Ending 2,220,423 2,557,805 2,601,626
Should be added to DFOB 1,340,323
 Salaries and Benefits
Year 1
SSS PHIC HDMF
13th Month
Position Salary Cash Gift Employer Employer Employer Healthcare Clothing
Pay
Share Share Share
1 President/ Office
In-charge 15,000 1,500 15,000 1,230 206 100 3,700 2,000
Account Officer/
2 Collector 13,000 1,500 13,000 1,090 179 100 3,700 2,000
3 Loans Clerk 11,500 1,500 11,500 930 158 100 3,700 2,000
TOTAL 39,500 4,500 39,500 3,250 543 300 11,100 6,000
Multiplied 12 1 1 12 12 12 1 1
474,000 4,500 39,500 39,000 6,518 3,600 11,100 6,000

TOTAL EXPENSES 584,218

Year 2
SSS PHIC HDMF
13th Month
Position Salary Cash Gift Employer Employer Employer Healthcare
Pay
Share Share Share
President/ Office
1
In-charge 15,000 2,000 15,000 1,230 206 100 3,700
Account Officer/
2 Collector 13,000 2,000 13,000 1,090 179 100 3,700
3 Loans Clerk 11,500 2,000 11,500 930 158 100 3,700
TOTAL 39,500 6,000 39,500 3,250 543 300 11,100
Multiplied 12 1 1 12 12 12 1
474,000 6,000 39,500 39,000 6,518 3,600 11,100
TOTAL EXPENSES 579,718
 Year 3
SSS PHIC HDMF
13th Month
Position Salary Cash Gift Employer Employer Employer Healthcare Clothing
Pay
Share Share Share
1 President/ Office
In-charge 15,450 3,000 15,450 1,230 212 100 3,700 2,200
Account Officer/
2 Collector 13,390 3,000 13,390 1,090 184 100 3,700 2,200
3 Loans Clerk 11,845 3,000 11,845 930 163 100 3,700 2,200
TOTAL 40,685 9,000 40,685 3,250 559 300 11,100 6,600
No. of Months 12 1 1 12 12 12 1 1
488,220 9,000 40,685 39,000 6,713 3,600 11,100 6,600
TOTAL EXPENSES 604,918.03

Assumptions:
3% in salary rate
2% increase in clothing allowance

Directors and Committees' Honorarium Year 1 Year 2 Year 3

No of
Director Meetings in a Honararium Amount
year Per meeting
Director 1 4 800.00 3,200.00 3,200.00 3,200.00
Director 2 4 800.00 3,200.00 3,200.00 3,200.00
Director 3 4 800.00 3,200.00 3,200.00 3,200.00
Director 4 4 800.00 3,200.00 3,200.00 3,200.00
Director 5 4 800.00 3,200.00 3,200.00 3,200.00
Director 6 4 800.00 3,200.00 3,200.00 3,200.00
Director 7 4 800.00 3,200.00 3,200.00 3,200.00
TOTAL 22,400.00 22,400.00 22,400.00 22,400.00 22,400.00

Year 1 Inc 5% Year 2 Inc 10% Year 3

 No of Honararium
Audit Committee Meetings in a Amount Amount Amount
Per meeting
year
Member 1 4 1,000 4,000 100 1,100 4,400 200 1,300 5,200
Member 2 4 1,000 4,000 100 1,100 4,400 200 1,300 5,200
TOTAL 8,000 8,800 10,400

Year 1 Inc 5% Year 2 Inc 10% Year 3

No of 5% or 100
Honararium
Credit Committee Meetings in a Amount w/ever is Amount Amount
Per meeting
year higher

Member 2
TOTAL - - -

GRAND TOTAL 30,400 31,200 32,800

Assumptions: Board meetings is conducted quarterly

The Board may appoint 3 member of the Audit Committee and 2 members of Credit Committee from among themselves
Audit Committee meeting will be also conducted the day the schedule BOD meeting
* No increase in the Board honararium during the first 3 years

* Audit committee honararium will inc to 5% and 10% on the 2nd and 3rd yr respectively
Credit Committee will meet as often as necessary for loans approval
* CRECOM is entitled for a monthly honararium of P1500.00 on the first year and increase to 5% for year and 10% inc on the 3rd year

MONTHLY RENTALS Year 1 Year 2 Year 3

Montly rentals 3-Mos. Rental
6,500 19,500 78,000 78,000 78,000
* Monthly rentals is net of tax
Income tax Payable
Salaries, net of mandatory deductions 13th month Cash gift
Total

13,463.75 12 161,565.00 15,000.00 1,500.00 191,540.75

11,631.25 12 139,575.00 13,000.00 1,500.00 165,718.25 Exempt

10,311.88 12 123,742.50 11,500.00 1,500.00 147,066.38

13,463.75 12 161,565.00 15,000.00 2,000.00 178,565.00

11,631.25 12 139,575.00 13,000.00 2,000.00 154,575.00 Exempt

10,311.88 12 123,742.50 11,500.00 2,000.00 137,242.50
13,907.56 12 166,890.75 15,450.00 3,000.00 185,340.75
Exempt
12,015.89 12 144,190.65 13,390.00 3,000.00 160,580.65
10,652.13 12 127,825.58 11,845.00 3,000.00 142,670.58
2yr 5% or 100 pesos whichever is higher

10% or 200 whichever is higher

Office Supplies - 3 Months Year 1 3%
Quantity Cost Amount
Bond paper (newsprint) 30 120.00 3,600 108
Ballpen 1 Box 100.00 100 3
Logbook 2 150.00 300 9
Loan Forms (PN,Application) 40 200.00 8,000 240
Official Receipts 50 150.00 7,500 225
Staple wire 5 80.00 400 12
Total 19,900

Office Supplies increase 3% per year

Insurance Expenses Year 1 0

Money and Securitties Outside consolidated bank:
Premises Comprehensive
100,000.00 2,518 76
insurance
Fire Insurance Bldg & Content 300,000.00 6,300 189
Motor vehicle insurance -TPL 1,842 55
Total 10,660

MSPR -100,000 (ave.collection)

Repairs and Maintenance Monthly Year 1 3%

Motorcycle 468 12 5,616 168

Year 1 3%
Power, Lights and Water Monthly No.of Mos.
Lights 1,800.00 12 21,600 54
Water 300.00 12 3,600 9
Cable 500.00 12 6,000 15
Total 31,200

Taxes, Fees and Licenses 7,500

SEC Annual Fee 7,500
Business Permits Renewal
SEC Annual fee is 1/8 of 1% of the Capital 7,500

Communication Expenses
Load 500.00 12 6,000.00
Information Technology Expense

Management and Other Professional Fee

Monthly No.of Mos. 10%
Annual Audit Fee 80,000.00 8000
Bookkeeper-Retainer 3,000.00 36,000.00 3600
MIS Retainers fee 2,000.00 12 24,000.00
Total 140,000.00

Traveling Expenses Monthly Year 1 3%

500 12 6,000 180

Monthly Year 1 3%
Fuel and Lubricants 2,265.00 12.00 27,180.00 815.40

3%
Advertising Fee 5,000.00 150.00

50 200 10,000.00
20000
Year 2 3% Year 3

3,708 111 3,819

103 3 106
309 9 318
8,240 247 8,487
7,725 232 7,957
412 12 424
20,497 21,112

Year 2 0 Year 3

2,594 78 2,671 75.54

6,489 195 6,684 0.03

1,897 57 1,954
10,980 11,309

Year 2 3% Year 3
5,784 174 5,958

Year 2 3% Year 3

1,854 22,248 56 1,910 22,915

309 3,708 9 318 3,819
515 6,180 15 530 6,365
32,136 33,100

13,750 13,938
7,500 7,500
- 6,250 188 6,438
13,750 13,938

6,000.00 6,000.00
 10%
88,000.00 8800 96,800.00
39,600.00 3960 43,560.00
24,000.00 24,000.00
151,600.00 164,360.00

Year 2 3% Year 3
6,180 185 6,365

Year 2 3% Year 3
27,995.40 839.86 28,835.26

3%
5,150.00 154.50 5,304.50

50 220 11000 50 250 12500

24000 27500
24000 #REF!
Depreciable Cost

Estimated Life Depreciation Cost

Depreciable Cost Quantity Cost (Yrs) (Per Year)
Leasehold
improvements/renovation
Building Renovation 1 150,000.00 5 30,000.00
Signages (exterior facade sign
and exterior and interior sign) 1 50,000.00 5 10,000.00
Total 200,000.00 40,000.00
Depreciation
Year 1 Year 2 Year 3
Building Renovation 30,000.00 30,000.00 30,000.00
Signages (exterior facade sign
and exterior and interior sign) 10,000.00 10,000.00 10,000.00

Office Equipment

Office Equipment Cost Estimated Depreciation Net (per year)

Life (Yrs) Cost (Per Year)
Steel Cabinet 17,000 3 5,667 11,333
Desktop Computer 78,000 3 26,000 52,000
Printer-Epson L355 Series 15,000 3 5,000 10,000
Cash Safe 45,000 3 15,000 30,000
Surveilance Cam (CCTV) 64,000 3 21,333 42,667
Telephone 5,000 3 1,667 3,333
External hard drive (1TB) 5,000 3 1,667 3,333
Total 229,000 76,333 152,667

Estimated
Furniture and Fixtures Cost Depreciation Net (per year)
Life (Yrs)
Cost (Per Year)
Aircon-ceiling 25,000 3 8,333 16,667
Table Office 18,000 3 6,000 12,000
Office Chair 13,500 3 4,500 9,000
Venetian Blinds 25,000 3 8,333 16,667
Fire extinguisher 2,500 3 833 1,667
Computer Table 5,000 3 1,667 3,333
Visitor chair 21,000 3 7,000 14,000
Television 10,000 3 3,333 6,667
Total 120,000 40,000 80,000
Transportation Equipment
Motorcycle XRM-125 85,000.00 5 17,000.00 68,000.00
Total 85,000.00 17,000.00 68,000.00
GRAND TOTAL 634,000.00 173,333.33 460,666.67

434000
 Net

120,000.00

40,000.00
160,000.00
No. of Business Establishments in Bangkerohan 650

Percentage of the Target Market who are expected to

avail the products 30%
Target Market 195

Frequency of availment 2 per year

390
Percentage of the Business can serve
Projected Loan portfolio for year 1 7,800,000.00
 MACC Micro Lending

COMMON SHAREHOLDINGS
As of December 31
No. Name Shares Paid-in Amount Ratio
1 Charlane Jade Alinsub 800 800,000 13%
2 Angelita D. Dungog 800 800,000 13%
3 Chona Escatron 800 800,000 13%
4 Melanie Sayawan 800 800,000 13%
5 Marlon Aliscad 600 600,000 10%
6 Richie Cervantes 600 600,000 10%
7 Jeaneth A. Magdua 400 400,000 7%
8 Lezardo Franca 400 400,000 7%
9 Rose Marie N. Torculas 400 400,000 7%
10 Merry Jo-anne L. Carreon 400 400,000 7%
TOTAL 6,000 6,000,000 100%
 MACC Micro Lending

PROJECTED STATEMENT OF CASH FLOWS

For the year ended December 31
(In Philippine Peso)

Year 1 Year 2 Year 3

CASH FLOW FROM OPERATING ACTIVITIES

Net Income 337,382 455,646 542,795
Add (Deduct) adjustment for:
Inrest Income -1,320,500 -1,456,750 -1,606,250
Depreciation-Leasehold Improvement 40,000 40,000 40,000
Depreciation-Office Equipment 76,333 76,333 76,333
Depreciation-Furniture and Fixtures 40,000 40,000 40,000
Depreciation-Transportation 17,000 17,000 17,000
Provision for credit losses on loans receivables - 2,000 2,500
Cash Provided by (used) in operating activities -809,785 -825,771 -887,622
Interest Received 1,491,941 1,654,475 1,814,496
Net cash used in operating Activities 682,156 828,705 926,874
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of Fixed Assets (671,900) - -
Recoverable Deposit- Leasehold (Rental) 19,500 19,500 19,500
Cash flow used in investing activities (652,400) 19,500 19,500
CASH FLOWS FROM FINANCING ACTIVITIES
Initial Investments 6,000,000 - -
Cash flow used in financing activities 6,000,000 - -
Net changes in Cash and Cash equivalent 2,220,423 337,382 43,821
Cash and Cash Equivalent, Beginning - 2,220,423 2,557,805
Cash and Cash Equivalent, Ending 2,220,423 2,557,805 2,601,626

- 38 -
 MACC Micro Lending

PROJECTED STATEMENT OF CHANGES IN EQUITY

For the year ended December 31
(In Philippine Peso)

Notes Year 1 Year 2 Year 3

As of January 1
Paid-in Capital Stock 6,000,000 6,000,000 6,000,000

As at December 31 6,000,000 6,000,000 6,000,000

Retained Earnings - 337,382 474,075

Profit for the Year 337,382 455,646 542,795
Total 337,382 793,028 1,016,870
Less: Unappropriated Retained Earnings 22 - 318,952 379,956
Appropriated Retained Earnings 337,382 474,075 636,914

As at December 31 337,382 474,075 636,914

- 39 -
Distribution of Cash Dividend
Year 2 Year 3
Net income 455,646.14 542,794.98
Distributable Net Surplus
Distributed as follows:
Dividend 70% 318,952.30 379,956.49
Retained Earnings 30% 136,693.84 162,838.49

70% of the net income will be distributed in the form of cash dividend
30% will be charged to Retained Earning

Average shares Capital Stock Capital Stock

Shares balance, beginning 6,000,000.00 6,000,000.00
Shares balance, end 6,000,000.00 6,000,000.00
Total (beg. bal + ending bal) 12,000,000.00 12,000,000.00
Ave shares (total/2) * 6,000,000.00 6,000,000.00

Interest 5.32% 6.33%

Financial Ratio Analysis

1 Liquidity Ratio
Year 1 Year 2 Year 3
Current Assets 2,220,423 2,557,805 2,601,626
Current Liabilities 4,093 4,093 4,093
Working Capital 2,216,330 2,553,711 2,597,533
Current Assets 2,220,423 2,557,805 2,601,626
Current Liabilities 4,093 4,093 4,093
Current Ratio 542.48 624.90 635.61
Quick Assets 2,220,423 2,557,805 2,601,626
Current Liabilities 4,093 4,093 4,093
Quick Ratio 542.48 624.90 635.61

2 Solvency Ratio
Year 1 Year 2 Year 3
Total Liabilities 4,093 4,093 4,093
Total Assets 6,325,915 6,475,120 6,645,072
Debt Ratio 0.06% 0.06% 0.06%
Total Equity 6,337,382 6,474,075 6,636,914
Total Assets 6,325,915 6,475,120 6,645,072
Equity Ratio 100.18% 99.98% 99.88%
Total Liabilities 4,093 4,093 4,093
Total Equity 6,337,382 6,636,914 6,636,914
Debt- Equity Ratio 0.06% 0.06% 0.06%

3 Profitability Ratio
Year 1 Year 2 Year 3
Gross Interest Income 1,316,941 1,455,975 1,598,496
Total Income 1,491,941 1,654,475 1,814,496
Gross Profit Ratio 88.27% 88.00% 88.10%
Net Income 337,382 455,646 542,795
Total Income 1,491,941 1,654,475 1,814,496
Net Profit Ratio 22.61% 27.54% 29.91%
Total Income 1,491,941 1,654,475 1,814,496
Total Assets 6,325,915 6,475,120 6,645,072
Asset Turnover 23.58% 25.55% 27.31%
Net Income 337,382 455,646 542,795
Average Equity 6,337,382 6,405,729 6,555,495
Return on Investment 5.32% 7.11% 8.28%

Break-even analysis
Year 1 Year 2
Amount % Amount
Revenue 1,316,941 100% 1,455,975
Variable Costs 767,314 58% 774,110
Contribution Margin 549,627 42% 681,865
Fixed Costs
Net Income

Year 1 Year 2 Year 3

Fixed Costs - -
Contribution Margin Ratio 30% 36%
Break-even Sales (Peso) - -

Payback Period
Initial
Year Cash Flow
Investment
0 -6,000,000
1 2,220,423 -3,779,577
2 337,382 -3,442,195
3 43,821 -3,398,374
2,601,625.75
0.43
Cost of Funds
Year 1
% Cost
Sources:
Capital Stock 6,000,000 94.62% 0.00%
Other Liabilities 4,093 0.06% 0.00%
Retained earnings 337,382 5.32% 0.00%
6,341,475

Uses of funds
Cash 2,220,423 35.10% 0.25%
Current loans 3,644,825 57.62% 30.00%
Past due - 0.00% 0.00%
Other assets 460,667 7.28% 0.00%
6,325,915

Margin 1,098,999 CM Ratio

1,132,714
 2,269,972.37
64,750.71
35.06

Year 2 Year 3
% Amount %
100% 1,598,496 100%
 53% 814,289 51%
47% 784,207 49%

Year 2 Year
Cost Mix % Cost Cost Mix

0.00% 6,000,000 92.62% 5.76% 4.84% 6,000,000

0.00% 4,093 0.06% 0.00% 0.00% 4,093
0.00% 474,075 7.32% 0.00% 0.00% 636,914
0.00% 6,478,169 4.84% 6,641,007

0.09% 2,557,805 39.50% 0.25% 0.10% 2,601,626

17.29% 3,438,649 53.11% 30.00% 15.93% 3,560,279
0.00% 18,000 0.28% 0.00% 0.00% 13,000
0.00% 460,667 7.11% 0.00% 0.00% 460,667
17.37% 6,475,119 16.03% 6,635,573

17.37% Margin 724,593 CM Ratio 11.19% Margin

 Year 3
% Cost Cost Mix

90.35% 5.76% 5.20%

0.06% 0.00% 0.00%
9.59% 0.00% 0.00%
5.20%

39.21% 0.75% 0.29%

53.65% 30% 16.10%
0.20% 0.00% 0.00%
6.94% 0.00% 0.00%
16.39%

742,279 CM Ratio 11.19%