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What-If Model – Users Guide

The What-If Model will allow a team the ability to model the potential financial impact of a variety of initiatives upo
This scenario, or “what-if”, modeling will incorporate the company’s historical financial statements and five-year pro
provided by the Quantitative Model. The historical and projected financial statements provided by the client will ser
state. The inputs provided by the Quantitative Model provide the variables to be modeled with the client projections
provide expected changes in financial statements and financial statement metrics from the base assumptions. These
target and prioritize the scenarios with the greatest expected benefits. This prioritization will aid further discussions
further work to be performed.

The model is segregated into four sections: inputs, calculations, statements, and analysis. Only the input section is e
protected and read only. The model’s format does have the capacity to be modified quickly. For example, if a subjec
cannot be fit into the current format, the current format can be appended or changed to accommodate the different fo
assumptions are inaccurate, they can also be altered to accommodate company-specific assumptions. Outlined below
how particular areas operate within the section. Sections Two – Four are protected and therefore have no operationa

Input Template:

Project Costs
Segregate Capitalized and Expensed Project Costs based on the expenditure characteristics.
Include project fees
Historical Financial Information
Income Statement - Based on audited financial report data, categorize revenues and expenses into the broad categori
Balance Sheet - Further, categorize assets, liabilities and equity into the appropriate balance sheet line items provided
Operating Assumptions
Pre-Implementation and Base Year: these are darkened to illustrate that they are not inputs, but calculations for infor
Income Statement Assumptions are percentage changes in the current year from the prior year.
Balance Sheet Assumptions are the assumption’s percentage of total assets.
Post-Implementation:
Sales revenue growth percentages are used for all projected years. The financial statements use these percentages by
dollars
by one plus
theprojected
growth rate
forcosts
each are
yearconstant
(compounding).
The following
items’
years’
(i.e. equal to the base year) and are direct inputs from histori

other accrued expenses, taxes payable, other current liabilities, long-term notes payable, deferred taxes payable, pref
dividend distribution to common shareholders.

The following items use growth percentage changes for all projected years: R&D expenses, G&A expenses, interest
payable, and distributions payable. The financial statements use these percentages by multiplying the prior year doll
for each year. Growth is not proportionate to sales.

The following items use growth percentage changes for all projected years: selling expenses, accounts receivable, in
current assets, other noncurrent assets, accounts payable, unearned revenue, and current portion of long-term debt. T
prior year dollars by one plus the growth rate input. Further, this product is multiplied by one plus the sales growth i
proportionally with sales.

The following items use growth percentage changes for all projected years: selling expenses, accounts receivable, in
current assets, other noncurrent assets, accounts payable, unearned revenue, and current portion of long-term debt. T
prior year dollars by one plus the growth rate input. Further, this product is multiplied by one plus the sales growth i
proportionally with sales.
Machinery & Equipment and Building and Plant, for all projected years, are estimated capital expenditures in whole
Intangible Asset Amortization
Additional Assumptions
Client should provide their applicable tax rates, weighted average cost of capital, and interest rate on excess cash.
Further, Asset lives and additional asset information should be captured.
Section Two – Calculations
Protected Sheet, Read-only Access
Section Three – Financial Statements
Protected Sheet, Read-only Access
Section Four - Analysis
Protected Sheet, Read-only Access

act of a variety of initiatives upon a company’s financial statements.
ncial statements and five-year projections in conjunction with inputs
nts provided by the client will serve as the models “base” or “null”
odeled with the client projections. The What-If Model will then
m the base assumptions. These expected changes allow the team to
ation will aid further discussions with management when determining

lysis. Only the input section is editable. All other sections are
quickly. For example, if a subject business’s financial statements
to accommodate the different format. Additionally, if the operating
fic assumptions. Outlined below is a description of Section One, and
and therefore have no operational details.

expenses into the broad categories provided.
balance sheet line items provided.

inputs, but calculations for information purposes.

tements use these percentages by multiplying the prior year sales

and are direct inputs from historical data: other controllable expenses,
ble, deferred taxes payable, preferred stock, treasury stock, and

penses, G&A expenses, interest expense, interest payable, notes
y multiplying the prior year dollars by one plus the growth rate input

xpenses, accounts receivable, inventory, prepaid expenses, other
rent portion of long-term debt. The financial statements multiply the
ed by one plus the sales growth input for each year to vary these items

. d interest rate on excess cash.ed capital expenditures in whole dollars.

5 0.xls MODEL INPUT I Project Project Costs-Capitalized 2000 Project Costs-Expensed Project Fees Date (MM/DD/YYYY) 2001 2002 2003 2004 5 0 0 0 0 1 1 1 1 1 0.001 0 0 7.5 7/1/1999 II Historical Financial Information Income Statement 1996 Pre-Implementation 1997 Sales Revenue Net Sales Revenue Cost of Sales Selling Expenses R&D Expenses General and Administrative Total Non-Sales Expenses Depreciation Amortization Other Controllable Expenses Interest Expense Interest Income Miscellaneous Income Income Tax 1998 Base Year* 1999 111.5 0. 07:43:59 .518 7.211 60.Maximize ERP Project Financial Model Input .631 Preferred Dividends 0 * Current or Post-Implementation Year STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 5 of 32 09/01/2015.884 0 250 647 0 0 32.5 0.5 0.211 111.518 4.282365324.

xls 6 of 32 09/01/2015. 07:43:59 .282365324.Maximize ERP Project STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only Financial Model Input .

939 770 Shareholder Equity Retained Earnings Common Equity Additional Paid-in Capital Preferred Stock Treasury Stock Other Equity Number of Shares .109 0 2.860 5.428 7 of 32 09/01/2015. 07:43:59 ./ License/Startup Goodwill Other Intangibles Accumulated Amortization 0 0 0 0 Current Liabilities CurInterest Payable Accounts Payable Other Accrued Expenses Unearned Revenue Notes Payable Current Portion of Long Term Debt Taxes Payable Distributions Payable Other Current Liabilities Noncurrent Liabilities Long-Term Notes Deferred Income Tax Liability Deferred Taxes Payable 0 10.365 2.086) 2.962 0 0 2.652 6.282365324.472 875 4.Common Stock * Current or Post-Implementation Year STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 0 7.901 10.xls MODEL INPUT Historical Financial Information Balance Sheet Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Other Current Assets Pre-Implementation 1996 1997 Base Year* 1998 1999 1.677 4.Maximize ERP Project Financial Model Input .359 0 8.445 0 4.153 49.822 0 668 (16.790 Noncurrent Assets Machinery and Equipment Building and Plant Accumulated Depreciation Deferred Income Tax Asset Other Noncurrent Assets 0 61.534 Intangible Assets Deferred Fin.977) (1.

07:43:59 .282365324.xls 8 of 32 09/01/2015.Maximize ERP Project STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only Financial Model Input .

0% 54% 46.0% 54.00% 0.00% 0.0% Income Statement Assumptions Sales Revenue Other Controllable Expenses R&D Expenses Selling Expenses General and Administrative Projected Expenses Interest Expense Gross Margin Percentage Cost of Sales (% Rev) #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 0 0 Pre-Implementation N/A N/A N/A #DIV/0! #DIV/0! #DIV/0! 647 46.00% 250 0.0% 0.0% 54.0% 0.Maximize ERP Project Financial Model Input .00% 0.xls MODEL INPUT III Pre-Implementation Operating Assumptions 1996 1997 Base Year* 1998 1999 #DIV/0! 0.0% 46.282365324.00% #DIV/0! #DIV/0! #DIV/0! #DIV/0! 250 #DIV/0! #DIV/0! #DIV/0! Post-Implementation Growth Benchmark 2000 2001 2002 2003 5. 07:43:59 .00% 250 0.0% 46.0% 54.00% 5.0% * Current or Post-Implementation Year STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 9 of 32 09/01/2015.00% 250 0.0% Post-Implementation Percentages 46.00% 0.00% 0.00% 0.0% 0.00% 5.00% 5.00% 0.00% 0.00% 250 0.0% 54.00% 0.

Maximize ERP Project Financial Model Input . 07:43:59 .282365324.xls 2004 5.0% STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 10 of 32 09/01/2015.0% 54.00% 250 0.0% Post-Implementation Percentages 46.00% 0.00% 0.00% 0.

xls MODEL INPUT Pre-Implementation Operating Assumptions 1996 1997 Base Year* 1998 1999 Post-Implementation Growth Benchmark 2000 2001 2002 2003 Balance Sheet Items Current Assets Accounts Receivable Inventory Prepaid Expenses Other Current Assets Noncurrent Assets Capital Expenditures: Machinery and Equipment Building and Plant Other Noncurrent Assets Current Liabilities Interest Payable Accounts Payable Other Accrued Expenses Unearned Revenue Notes Payable Current Portion of Long Term Debt Taxes Payable Distributions Payable Other Current Liabilities Noncurrent Liabilities Long-Term Notes Payable Deferred Taxes Payable Equity Assumptions Preferred Stock Treasury Stock Cash Flow Assumptions Preferred Stock Dividends Dividend Distributions to Common Shareholders #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 8% 7% 1% 6% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0! 0% 74% 3% $0.977) 6% Days in Year 365 * Current or Post-Implementation Year STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 11 of 32 09/01/2015. 07:43:59 .00 0% 0 0 #DIV/0! #DIV/0! 0 0 #DIV/0! #DIV/0! 0 0 #DIV/0! #DIV/0! 0 0 0 0 0 0 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 0 0 0 7% 4.977) 0 0 0 0 0 0 10.00 $0.901 770 0 0 0 0 0 0 668 (16.00 $0.977) 668 (16.00 0% $0.109 0% 2.00 0% $0.445 0% 4.359 0 8.977) 668 (16.977) 668 (16.00 $0.153 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 668 (16.00 0% $0.00 $0.282365324.Maximize ERP Project Financial Model Input .

07:43:59 .00 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 668 (16.282365324.xls 2004 0% 0% 0% 0% $0.977) STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 12 of 32 09/01/2015.00 $0.Maximize ERP Project Financial Model Input .

07% Weighted Average Cost of Capital 10.00% Asset Lives Machinery and Equipment 7 Building and Plant 15 Fair Market Value of Assets in Excess of Book: Inventory Fixed Assets 0 0 Current Liabilities Assumed 0 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 13 of 32 09/01/2015.282365324.xls MODEL INPUT IV Intangible Assets Amortization Period Deferred Fin./ License/Startup 10 Goodwill 40 Other Intangibles Percent Amortizable 5 Project Costs-Capitalized 10 Project Fees 10 100.00% Interest Income Rate on Excess Cash Balances 0. 07:43:59 .Maximize ERP Project Financial Model Input .00% Effective State Income Tax Rate 0.00% V Additional Assumptions Effective Federal Income Tax Rate 86.

xls 14 of 32 09/01/2015.Maximize ERP Project STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only Financial Model Input . 07:43:59 .282365324.

879 4.879 4.879 4.879 4.70 Existing Basis 0 61.879 2001 Machinery and Equipment 2001 Building and Plant 2002 Machinery and Equipment 2002 Building and Plant 2003 Machinery and Equipment 2003 Building and Plant 2004 Machinery and Equipment 2004 Building and Plant Total Book Depreciation STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 15 of 32 09/01/2015.879 0 4. 07:43:59 .Maximize ERP Project Financial Model Calculations .879 4.879 0 4.282365324.962 2000 Incremental Capital Expenditures 2000 Machinery and Equipment 2000 Building and Plant 2001 2002 0 4.879 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4.xls CALCULATIONS Book Depreciation Existing Basis Machinery and Equipment Building and Plant Total Life 7 12.

879 4.879 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4.xls 2004 ### 0 4.Maximize ERP Project Financial Model 2003 0 4.879 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 16 of 32 Calculations .879 4.879 0 0 0 0 0 0 0 0 0 0 0 0 4.879 09/01/2015.282365324. 07:43:59 .

164 45.07% 17 of 32 86.986 40.164 45.837 34.151 37.282365324. per Books STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only State @ 0. Ending Balance 0 0 0 0 0 0 0 0 0 0 0 0 Taxable Income Before NOL Less: NOL Utilized Taxable Income Blended Cash Income Taxes Income Taxes.986 0 0 0 40.475 43.837 37.00% Federal @ 86.164 45.986 34.581 Current Year Deferred Income Tax Benefit (Expense) .Temporary Difference 0 0 0 Cumulative Deferred Income Tax Asset (Liability) 0 0 0 Net Operating Loss (“NOL”).151 39.Maximize ERP Project Financial Model Calculations .xls CALCULATIONS Income Taxes 2000 Income from Continuing Operations 2001 2002 40. 07:43:59 .07% 09/01/2015. Beginning Balance Additional NOL Created NOL Utilized NOL.475 43.475 43.581 39.

063 48.282365324. 07:43:59 .810 44.951 52.132 42.xls 2004 48.063 0 0 48.810 0 0 0 0 0 0 0 0 0 0 0 0 18 of 32 09/01/2015.951 52.063 42.132 44.Maximize ERP Project Financial Model 2003 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only Calculations .951 52.

Agr.Maximize ERP Project Financial Model Calculations .282365324. Fin. 07:43:59 .xls CALCULATIONS Intangible Asset Amortization Life Lic. Beginning Balance Amortization Ending Balance 10 Goodwill Beginning Balance Amortization Ending Balance 40 Existing Basis 2000 2001 2002 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 0 0 0 Incremental Project Expenditures Project Costs-Capitalized Project Fees 10 10 2000 Project Costs-Capitalized 2000 Project Fees 2001 Project Costs-Capitalized 2001 Project Fees 2002 Project Costs-Capitalized 2002 Project Fees 0 0 0 2003 Project Costs-Capitalized 2003 Project Fees 2004 Project Costs-Capitalized 2004 Project Fees Other Intangibles Beginning Balance Amortization Ending Balance 5 Total Amortization STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 19 of 32 0 0 0 0 0 0 0 0 0 0 1 1 09/01/2015. / Def.

07:43:59 .282365324.xls 2004 0 0 0 0 0 ### 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 ### 0 0 0 0 0 0 0 0 0 0 0 1 1 20 of 32 09/01/2015.Maximize ERP Project Financial Model 2003 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only Calculations .

C.C.171 2000 2001 2002 40.282365324.164 6.740 32.911 5.xls CALCULATIONS Pre-Implementation 1996 SVA Income From Continuing Operations Less: W.823 10. x (Total Noncurrent Assets + Working Capital) SVA 0 0 0 NPV & IRR Net Cash Flow Less: Total Project Costs Cash Outflow/Inflow STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 21 of 32 1997 0 0 0 Post-Implementation 1998 0 0 0 1999 37.475 6.535 09/01/2015.453 9.300 34.Maximize ERP Project Financial Model Calculations . 07:43:59 .829 7 9.177 2 10.175 10.536 2 10.266 45.A.534 38.986 7.175 43.897 36.

xls Post-Implementation 2003 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 2004# 48.130 10.212 40.739 52.310 2 11. 07:43:59 .914 2 10.063 8.951 8.933 43.Maximize ERP Project Financial Model Calculations .282365324.912 11.309 22 of 32 09/01/2015.

503 103.325 0 61.661 0 2.637) 47.983 Noncurrent Assets Machinery and Equipment Building and Plant Less: Accumulated Depreciation Net Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 61.033 965 5.933 0 0 5 2 0 (1) 5 0 3.030 30.292 110.962 (9.080 0 0 5 2 0 (2) 5 09/01/2015.194 7.749 55.794 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 64.545 53.083 0 61.531 0 0 0 84.064 5.264 45.941 6.481 7.515 Deferred Income Tax Asset Other Noncurrent Assets Intangible Assets Deferred Fin.500 32./ License/Startup Goodwill Project Costs-Capitalized Project Fees Other Intangibles Less: Accumulated Amortization Total Intangible Assets Total Noncurrent Assets Total Assets STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 23 of 32 0 0 5 1 0 (0) 5 0 0 5 1 0 (1) 5 0 2.127 96.563 6.203 5.962 0 61.281 41.028 43.013 5.472 875 4.496 59.446 0 0 0 0 0 0 0 2.282365324.xls BALANCE SHEET (Million of Dollars) Pre-Implementation ASSETS 1996 1997 Post-Implementation 1998 1999 2000 2001 2002 2003 Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Other Current Assets Total Current Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.335 1.003 50.962 0 61.204 0 61.378 21.651 1.962 (4.962 (14.879) 57.145 90.822 64.790 19.658 7.962 (19.516) 42.649 11.652 6.758) 52.746 919 5.Maximize ERP Project Financial Model Statements .534 0 2.860 5.338 6. 07:43:59 .108 8.

117 ### 6. 07:43:59 .194 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 24 of 32 09/01/2015.xls Post-Implementation 2004 54.962 (24.387 0 61.755 6.806 118.394) 37.282365324.984 1.234 0 0 ### 5 ### 3 0 (3) 5 40.568 0 3.418 8.Maximize ERP Project Financial Model Statements .113 77.

610 10.939 770 22.610 10.792 54.397 Noncurrent Liabilities Long-Term Notes Deferred Income Tax Liability Deferred Taxes Payable Total Noncurrent Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 10.901 10.359 0 8.363 67.061 4.390 60.736 0 668 (16.936 1.xls BALANCE SHEET (Million of Dollars) Pre-Implementation LIABILITIES Current Liabilities Interest Payable Accounts Payable Other Accrued Expenses Unearned Revenue Notes Payable Current Portion of Long Term Debt Taxes Payable Distributions Payable Other Current Liabilities Total Current Liabilities 1996 1997 Post-Implementation 1998 1999 2000 2001 2002 2003 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7.153 27.503 103.445 0 4.464 4.109 0 2.080 1.610 10.353 49.Maximize ERP Project Financial Model Statements .729 74.953 0 9.901 10.677 4.127 0 8.901 10.977) 52.445 0 4.359 0 8.939 770 22.977) 46.515 SHAREHOLDER’S EQUITY STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 25 of 32 09/01/2015.109 0 2.901 10.292 110.127 96.445 0 4.507 Total Liabilities and Shareholder’s Equity 0 0 0 84.963 1.359 0 8.977) 34.145 90.939 770 22.109 0 2.140 50.445 0 4.365 1.331 4.610 Total Liabilities 0 0 0 49.743 0 8.563 51.737 50.007 Retained Earnings Common Equity Additional Paid in Capital Preferred Stock Treasury Stock Total Shareholder’s Equity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 49.445 0 4.153 27.887 4.736 0 668 (16.359 0 8.610 10.736 0 668 (16.977) 40.736 0 668 (16.153 26.977) 59.939 770 22.939 770 22. 07:43:59 .109 0 2.153 28.530 0 8.153 27.736 0 668 (16.302 1.359 0 8.109 0 2.282365324.901 10.

610 51.901 10.798 4.445 0 4.359 ### ### 0 8. 07:43:59 .720 118.282365324.293 1.939 770 22.977) ### 66.153 28.194 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 26 of 32 09/01/2015.474 81.109 ### 0 2.864 10.736 0 668 ### (16.xls Post-Implementation 2004 ### 0 9.Maximize ERP Project Financial Model Statements .

638 37.879 1 12.280 09/01/2015.459 59.05% 46.002 1 0 250 0 7.178 72.598 40 5.210 116.911 0 0 40. 07:43:59 .690 1 0 250 0 7.879 0 12.932 62. Beginning of Period Less: Dividends Retained Earnings.769 48.211 60.768 43.837 5.302 67.459 128.122 43.741 128.951 Provision for State & Federal Tax Net Income Before Dividends 0 0 0 0 0 0 32.366 40 6. 0 0 0 0 1999 2000 111.178 135.05% 1 0 250 0 7.Maximize ERP Project Financial Model Statements .442 0 0 0 0 0 0 0 0 0 4.151 6.518 7.001 53.211 111.518 7.963 (40) 60.769 46.302 (40) 74.05% 46.936 60.772 63. Depr.973 40 6.518 7.986 0 0 48.649 4.05% 46.080 Depreciation Amortization Total Operating Expenses Retained Earnings.649 Earnings Before Interest and Tax (“EBIT”) 0 0 0 38.936 (40) 67.884 0 12.769 51.282 135.648 4. and Amort.475 0 0 43.132 6.741 69.811 46.365 (40) 54.581 6.280 40 5.151 56.648 4.610 122.477 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 250 0 7. End of Period STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 0 0 0 27 of 32 0 5.963 54.558 41.769 54.280 34.779 49.879 1 12.652 4.633 49.246 N/A 46.610 66.771 2001 Post-Implementation 2002 2003 122.879 1 12.406 42. Tax.513 1 0 250 0 7.164 0 0 45.518 7.013 39.518 7.001 51.282365324.631 5.819 Preferred Dividends Net Income Available to Common Shareholders 0 0 0 0 0 0 0 5.772 116.05% 46.xls STATEMENT OF INCOME AND RETAINED EARNINGS (Million of Dollars) Pre-Implementation 1996 1997 1998 Sales Revenue Net Sales Revenue Cost of Sales Gross Margin on Sales 0 0 0 0 0 0 0 0 Gross Margin Percentage Expense Projections '99 Forward Project Costs-Expensed R&D Expenses Other Controllable Expenses Selling Expenses General and Admin Expenses Total Non-Sales Expenses Earnings Before Interest.598 Total Interest Expense 0 0 0 647 647 647 647 647 Interest Income Miscellaneous Income Income from Continuing Operations 0 0 0 0 0 0 0 0 37.

Maximize ERP Project Financial Model Statements . 07:43:59 .358 46.293 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 28 of 32 09/01/2015.937 ### 141.063 44.05% ### 1 0 250 0 7.578 65.710 647 # 0 ### 0 52.589 ### 4.810 7.879 1 12.xls Post-Implementation 2004 141.649 52.769 ### 57.282365324.252 40 7.080 (40) 81.937 76.212 74.518 7.

481 21.406 0 (1) 4.194 43.013 0 (1) 4.652 11.829 0 10. Beginning Balance Cash.536 0 0 (40) (40) 10.880 (378) (302) (48) (264) (992) 0 423 0 0 0 423 (140) 0 0 10.880 (397) (317) (51) (277) (1.282365324.879 (360) (287) (46) (251) (945) 0 403 0 0 0 403 (133) 0 0 10.829 0 0 (40) (40) 10.xls CASH FLOW STATEMENT (Million of Dollars) Pre-Implementation 1996 1997 1998 1999 2000 Net Income Before Dividends 5.638 Adjustments to Reconcile Net Income to Cash from Operations Project Costs-Capitalized Project Fees Depreciation and Amortization Change in Accounts Receivable Change in Inventory Change in Prepaid Expenses Change in Other Current Assets Change in Total Current Assets Change in Interest Payable Change in Accounts Payable Change in Current Portion of Long Term Debt Accrued Expenses and Bonuses Change in Customer Deposits Change in Total Current Liabilities Change in Other Noncurrent Assets Change in Deferred Income Tax Change in Deferred Taxes Payable Cash Provided (Used) by Operating Activities Investing Activities Capital Expenditures: Cash Provided (Used) by Investing Activities 2001 (5) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (1) 4.658 32. Ending Balance 0 0 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 29 of 32 0 0 0 (40) (40) 9.658 21.914 0 0 1.954 0 0 Financing Activities Change in Long-Term Notes Change in Notes Payable Preferred Dividends Cash Provided (Used) by Financing Activities Net Cash Flow Available to Common Shareholders 0 0 0 Dividend Distributions to Common Shareholders Net Cash Flow 0 0 Cash.819 0 (1) 4.914 0 0 0 9.879 (343) (274) (44) (240) (900) 0 384 0 0 0 384 (127) 0 0 9. 07:43:59 .Maximize ERP Project Financial Model Statements .576 0 0 6.042) 0 444 0 0 0 444 (147) 0 0 10.108 09/01/2015.177 0 10.194 32.217 0 0 6.536 0 10.869 0 0 Post-Implementation 2002 2003 6.177 0 0 (40) (40) 10.481 11.

Maximize ERP Project Financial Model Statements .350 ### 0 0 0 0 (40) (40) 11.108 54.310 43.880 (417) (333) (53) (291) (1.418 STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 30 of 32 09/01/2015. 07:43:59 .xls Post-Implementation 2004 7.094) ### 0 467 0 0 0 467 ### (154) 0 0 11.310 0 11.282365324.252 0 ### (1) 4.

4 (15. Equivalents and Accounts Receivable/Current Liabilities) Working Capital (Current Assets Less Current Liabilities) Benchmark 2000 2001 2002 0.094) 1.075 32. 07:43:59 .13 Growth Sales Growth EPS 2.4 11.14 0.7) 3.6 23.0 1.282365324.7 0.6 22.1 0.6 1.970 1.32 5% 2.6 22.2 32.1 13.6 2.729 Err:523 77% 34.4 25.xls ANALYSIS Pre-Implementation Financial and Operating Ratios 1996 1997 Post-Implementation 1998 1999 Liquidity Ratios Current Ratio (Current Assets/Current Liabilities) Quick Ratio (Cash.2 2.15 0.0 11.251 1.0 45.3 Profitability Ratios Net Income/Average Shareholder’s Equity 0.3 16.6 6.30 0.266 13% 80% 38.5 8.9 1.6 14.175 14% 79% 36.6 16.3 (7.9 16.6 2.9 2.3 21.171 15% $39.6 15.17 5% 2.Maximize ERP Project Financial Model Analyses .5 8.64 5% 46% 7% 5% 46% 6% 5% 46% 6% Activity Ratios Sales/Average Receivables Days in Average Receivables Cost of Sales/Average Inventory Days in Average Inventory Cost of Sales/Average Accounts Payable Days in Average Accounts Payable Working Capital Turnover (Net Sales Revenue/(Average Working Capital) Fixed Asset Turnover (Net Sales Revenue/Average Net Fixed Assets) Asset Turnover (Net Sales Revenue/Average Total Assets) Cost NI/Sales (Profit Margin) Gross Margin SG&A as a % of Sales Capital Assets/Sales SVA Project ROI NPV IRR STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 5% 46% 7% #DIV/0! #DIV/0! 0 #DIV/0! 0 #DIV/0! 31 of 32 #DIV/0! 0 #DIV/0! 76% 32.0 45.6 22.7 3.5 1.0 45.453 12% 09/01/2015.3 16.6 35.48 5% 2.2 32.0 11.0 11.2 1.5 8.2 32.

586 2.0 11.5 1.0 45.6 4.xls Post-Implementation 2003 2004 2.3 1.130 11% STRICTLY CONFIDENTIAL -Unaudited Preliminary Draft For discussion and review purposes only 32 of 32 11% 09/01/2015.12 0.0 11.6 22.523 16.6 3.99 # 5% 46% 6% 5%# 46% ## 5% ## 82% 40.2 0.282365324.0 45.3 3.8 36.5 8. 07:43:59 .5 8.2 48.0 1.6 22.2 32.7 2.739 83% 43.11 5% 2.81 5% ## 2.3 16.2 32.Maximize ERP Project Financial Model Analyses .4 3.