Danilo Galicia

GMC Health Product Enterprises Inc. STATEMENT OF FINANCIAL POSITION A S S E CURRENT ASSETS Petty Cash Fund Cash on Hand & Bank Advances to Officers (Personal Loan) Merchandize Inventory Total Current Assets 4 4 5 PROPERTY AND EQUIPMENT Office Equipment Furniture and Fixtures (Acquired) Office Improvement Total Fixed Assets Less: Accumulated Depreciation Net Fixed Assets TOTAL ASSETS December- Notes T S 5,-,-,-,593.86 5,-,-,-,-,260.08 106,-,150.00 8,-,208.00 (36,-,668.00 106,-,-,298.00 (24,-,938.00 487,261.86 405,198.08 6 Php LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accrued Taxes and Expenses Accounts Payable Total Current Liabilities 8 7 25,-,-,143.39 46,-,-,796.24 STOCKHOLDER'S EQUITY Authorized Capital Stock (50,000 shares @ 100.00 per share) Subscribed Capital Stock Less: Subscription Receivable Paid Up Capital Stock 9 Retained Earnings Beginning Net Income/Loss for the Year Retained Earning Ending Total Liabilities and Stockholder's Equity Php ########### 1,250,-,-,-,-,000.00 ########### 23,716.63 ########### ########### ########### ########### 487,261.86 405,198.08 GMC Health Product Enterprises Inc STATEMENT OF INCOME Notes SALES 10 December- ############ 235,214.34 Less: Cost of Sales Inventory Beginning Add: Purchases Total Goods Available for Sales Less: Inventory End 162,192.87 ############ ############ 283,387.77 198,-,-,-,192.87 Cost of Sales ############ 198,389.00 GROSS INCOME ( LOSS) 465,082.92 36,825.34 Add: Administrative Expenses Office Rental Salaries and Wages Taxes and Licenses & Registration Fee 11 SSS Premuim Expense Light and Water Representation & Christmas Expense Telephone and Internet Transportation & Delivery Expenses Office Supplies Auditing Fee Membership Fee Notary and Xerox Expense Miscellaneous Expense Depreciation Interest and Bank Charges 60,-,-,-,-,-,491.76 9,-,065.74 2,699.15 5,-,-,180.00 6,999.64 55,-,-,406.00 431,202.02 196,315.25 Total Administrative Expenses Profit /Loss before Income Tax Provision for Income Tax (30%) 33,-% 10,164.27 Net Income/Loss for the Year (To Retained Php Earnings) 23,716.63 10,230.50 4,967.50 3,141.50 7,489.00 3,589.75 4,-,-,180.00 3,000.00 (159,489.91) 5% 1,841.27 (161,331.18) GMC Health Product Enterprises Inc. STATEMENT OF CASH FLOW December- Cash flow from operating activities Net Income (Loss) 23,716.63 (161,331.18) Adjustment to reconcile net income to net cash used in operating activities Depreciation (Increase) Decrease in: Inventories Trade and Othert Receivables 12,180.00 12,180.00 (121,-,000.00 36,196.14 - Increase (Decrease) in: Trade & Other Payables Accrued Liabilities Total cash provided by operating activities 79,263.93 (20,-,048.87 62,944.24 (50,010.80) Cash flow from investing activities issuance of shares of stocks addition to property, plant and equipment Total Cash provided by investing activities (27,910.00) (27,910.00) - Cash flow from financing activities Paid-up Capital - - Accrue total cash provided by financing activities - - Net Increase(Decrease) in Cash 35,138.87 (50,010.80) Cash at the beginning of the period 21,067.22 71,078.02 Cash at the end of the period 56,206.09 21,067.22 GMC Health Product Enterprises Inc. STATEMENT OF CHANGES IN EQUITY For the Year's Ended December 31, 2011 and 2010 Share Capital Balance at January 1, 2011 Profit (Loss) for the Year Balance at December 31, 2011 Balance at January 1, 2010 Profit (Loss) for the Year Balance at December 31, 2010 625,-,-,-,000.00 Net Income (337,-,716.63 (313,881.53) Total 287,-,-,118.47 (176,-,733.02 (161,331.18) (161,331.18) (337,-,401.84 4 CASH This account consists of:- Petty Cash Fund 5,000.00 5,000.00 Cash in Bank 51,-,067.22 TOTAL 56,-,067.22 Cash on hand are undeposited collections as of the end of the period which will be deposited on the next banking day. Revolving fund are working funds where in small amount of expenses are being disbursed. Cash in bank represents current account deposits in local bank which do not earns interest. The Company reconciles the books and bank balances regularly as part of its cash monitoring and internal control measures. Cash in banks are unrestricted and immediately available for use in current operations. 5 INVENTORIES This account consists of Merchandise Inventory TOTAL 6 -,-,192.86 -,-,150.00 8,760.00 -,-,-,298.00 PROPERTY AND EQUIPMENT The accounts consist of: Office Equipment Furniture and Fixtures Office Improvements TOTAL ACCUMULATED DEPRECIATION Beginning Deprciation for the Year Ending NET CARRYING AMOUNT 31-Dec-11 7 -,-,387.77 184,-,-,-,540.00 12,-,-,360.00 147,668.00 131,938.00 -,218.30 2010 70,954.97 2011 16,500.00 3,180.00 5,- 2010 44,750.00 1,- TRADE PAYABLES This account consists of : Accounts Payable TOTAL 150,-,954.97 Trade payables are liabilities usually arising from purchases of goods and services in the ordinary course of business. It measured at amounts established in exchanges, usually the amounts to be paid for goods or services that have been 8 ACCRUED Expenses This accounts consist of : Accruded Salaries and Bonus SSS Payable Income Tax Payabe Expanded Withhiolding Tax TOTAL 9 PAID UP CAPITAL 25,924.49 46,841.27 - Authorized Capital Stock 50,000 common shares at P 100.00 par value each 5,000,000.00 5,000,000.00 Subscribed Capital Stock 12,500 common shares at P 100.00 par value each 1,250,000.00 1,250,000.00 PAID-UP CAPITAL 1,250,000.00 1,250,000.00 The Company manages its capital in such a way to increse the value of the shareholders' investment while maintaining strong credit ratings in order to support its business. It sets startegies with the objective of establishing a resourceful 10 REVENUES- Sales 1,534,-,214.34 TOTAL 1,534,-,214.34 Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliability. 11 TAXES AND LICENSES Breakdown of the account were as follows: 2011 BIR Annual Registration Fee Municipal License/Permity and other Fees TOTAL 2010 -,-,229.84 -,-,406.00 INCOME TAX Net Income/Gross Profit MCIT Rate 2011 33,-% 2010 36,825.34 5% TOTAL 10,164.27 1,841.27 The Company will be subjected to minimum Corporate Income Tax (MCIT) of 2% on the year following the date of operation. In Compliance with BIR Revenue Recognition No. 15-2010 (amending certain provision of Sec. No. 2 of RR No. 21-2002), which requires addition to the disclosures mandated under the Philippine Financial Reporting Standard, and such other Income Tax Liability - Current period Less: Tax Credit Tax payment for the first 3 Qts. Tax W/H 1st-3rd Qts. Tax W/H 4th Qts. Total Credit INCOME TAX DUE 10,164.27 1,841.27 4,169.78 - 4,169.78 5,994.49 1,841.27 The income tax expense for 2011 and 2010 are based on Minimum Corporate Income Tax (MCIT) of 2% Republic Act No. 9337 was passed in 2005 which amended several sections of the National Internal Revenue Code of 1997. the Act included the following significant provisions: a. change in the corporate income tax rate to 35% effective November 5, 2005 and 30% effective January 01, 2009; b. change in the allowable deduction for interest expense to 42% of the interest income subject to final tax effective November 1,2005 and 33% effective January 01,2009. c. Grant of authority to the Philippines President to increase the 10% VAT rate to 12% effective February 1, 2006 subject to compliance with certain economic conditions. In accordance with RR 2010-15, the following are the taxes paid and filled with the Bureau of Internal Revenue: Total Monthly Value Added Tax Paid (2550M) for the year 2011 32,533.51 Total Quarterly Value Added Tax Paid (2550Q) for the year 2011 8,135.72 Total Tax Withheld -Expanded (1601-E) for the year 2011 3,000.00 Quarterly Income Tax (1-3 Quarters) for the year 2011 4,169.78 Total Tax Withheld - Compensation (1601-C) for the year 2011 EXEMPT Annual Registration Fee (0605) for the year 2011 Total -,339.01