exibit 1 selected financial information for previous three years (000s) 1993 sales receivables average collection period

(days) accounts payable accruals 88500 7432 30.2 5700 2400 1994 96000 8533 32 6000 1800 1995 100000 8000 28.2 9500 3000

s1 1996 sales (000 000s) CGS/sales cash/sales ACP AP/sales sales/inventory 115 0.76 0.023 38 0.07 6.3

s2 125 0.75 0.028 36 0.06 6.5

s3 125 0.75 0.025 39 0.063 6.3

s4 130 0.77 0.02 38 0.063 6.1 average

AP/sales in years 1993-1995

6.44%

6.25%

9.50%

7.40%

assumptions for financial plan sales increase inventory turnover increase of administr&selling exp purchase of new plant and equipment cash as % of sales payout ratio contrains in forecasting max total debt ratio current ratio quick ratio Q3 inventory level is inventoty level has been increased for CGS

exibit 2 balance sheets (000s) 1995 assets cash & marketable securities accounts receivable inventory current assets gross fixed assets accumulated depreciation net fixed assets total assets liabilities and equity notes payable accounts payable accruals current liabilities bonds common stock (10$ par) retained earnings total liabilities and equity Q5 calculations - financial contrains (limitations) max total debt ratio current ratio quick ratio max amount of long term liabilities max amount of short term liabilities Q7 no of shares (000s) no of Tiptons' family shares (60%) no of shares issued in no debt scenario total no of shares after new issue total share of Tipton family Q8 all-equity financing DPS EPS financed by borrowing DPS EPS 0 9500 3000 12500 0 20000 10000 42500 equity debt 1996 1996 3000 8000 11500 22500 24000 -4000 20000 42500

exibit 2 continued income statements (000s) 1995 net sales cost of goods gross profit administrative & selling expenses depreciation miscellaneous EBIT interest Earnings before taxes taxes (50%) net income dividends to retained earnings 100000 79000 21000 10000 600 200 10200 0 10200 5100 5100 2550 2550 equity 1996 debt 1996

exibit 3 industry averages current quick Debt (%) TIE inventory turnover (sales) average collection period (days) total asset turnover return on total assets (%) ROA (%) net profit on sales (%) return on net worth 1.8 0.8 50 6 6 26 2.1 18 8.5 3.9 17