Exhibit 2: Luxor Cosmetics Initial Budget for 2011 Incorporating Susan's Recommended Inventory Reduction (3 Millions) Budgeted Inventory Movement: Expressed in Wholesale Selling Prices (WSP) Nail Lipstick Polish Creams Inventory 12l31/2010 (Actual) $15.0 $11.4 $ 1.2 Planned Production (Not Sales) 8.0 5.5 6.0 Goods Available for Sale 23.0 16.9 7.2 Budgeted Sales 16.0 11.0 6.5 Ending Inventory 12l31/2011 (Budget) $ 7.0 $ 5.9 $ 0.7 Budgeted Cost of Goods Manufactured and Sold Variable Manufacturing Cost (Budget) $6.8 Fixed Manufacturing Cost (Budget) 0.8 Cost of Goods Manufactured 7.6 Inventory 12/31/2010 (Actual Cost) 13.6 Goods Available for Sale 21.2 Inventory 12731/2011 (Budget) 6.6 Budgeted Cost of Goods Sold $14.6 Budgeted Income Statement Sales Cost of Goods Sold Gross Margin Marketing & Promotion General Administration Interest Pretax Income Cash Flow Budget Cash Receipts From Customers $33.5 Cash disbursements Variable Manufacturing 14.2 Fixed Manufacturing 1.0 Marketing Br Promotion 3.4 General Administration 1.3 Interest 1.8 Total Disbursements $21.7 Beginning Cash $ 5.5 + Receipts 33.5 - Disbursements 21.7 - Loan Repayment 10.0 Ending Cash (Budgeted) $ 7.3 Pro-Forma Year-End Balance Sheet Assets Cash $ 7.3 Miscellaneous Current Assets 3.0 Inventory 12.4 Property 8t Equipment 11.2 Goodwill 9.3 Total Assets $43.2 Equities Bank Loan $16.3 Miscellaneous Current Liabilities 4.0 Common Stock 12.5 Retained Earnings 10.4 Total Equities $43.2