2004 2005 2006 2007

Net sales 1,624 1,916 2,242 608

Cost of goods sold 1,304 1,535 1,818 499
Gross profit 320 381 424 109
Operating expenses 272 307 347 94
Interest expense 27 30 31 8
Net income before taxes 21 44 46 7
Provision for income taxes 7 15 16 2
Net income 14 29 30 5

2004 2005 2006 2007

Cash 45 53 23 33
Accounts receivable 187 231 264 290
Inventory 243 278 379 432
Total current assets 475 562 666 755
Property & equipment 187 202 252 252
Accumulated depreciation (74) (99) (134) (142)
Total PP&E, net 113 103 118 110
Total assets 588 665 784 865

Accounts payable 36 42 120 203

Line of credit payable 149 214 249 250
Accrued expenses 13 14 14 12
Long-term debt, current portion 24 24 24 24
Current liabilities 222 294 407 489
Long-term debt 182 158 134 128
Total liabilities 404 452 541 617
Net worth 184 213 243 248
Total liabilities & net worth 588 665 784 865
 2004-20052005-20062006-2007 days
Net Income 29 30 5 365
A/R (418) (495) 26
Inventory 35 101 53
A/P 6 78 83
cash flow form operation (348) (286) 167
Land, plant & equipment (10) 15 (8)
cash flow form investin (10) 15 (8)
Line of credit payable 65 35 1
current long term debt - - -
long term debt (24) (24) (6)
cash flow from financing 41 11 (5)
cash change (317) (260) 154

liquidity
current ratio 2.14 1.91 1.64
quick ratio 1.05 0.97 0.71
A/P Days 10 10 24
A/R Days 42 44 43

profitability
return on assets 2.26% 0.13% -2.89%
return on equity 0.064159
sales 20.43
cogs % sales 80.1
op exp % sales 15.5
7.5
8
34.8
2.77
76
10
43

Cash 23
A/R 264
Inventory 379
Total Current Assets 666
PP&E 252
Accumulated depriciation (134)
Total PP&E, net 118
Total Assets 784

A/P 120
LOC payable 249
Accrued Expenses 14
LTD, current 24
Current Liabilities 407
LTD 134
Total Liabilities 541
Net worth 243
Total liabilities and net wort 784
Assumptions
how do you calculate sales growth?
Sales growth 20% how do you calculate the various projections?
COGS % Sales 81.1%
Op Exp % Sales 15.5%
Interest Rate (LOC)
Interest Rate (LTD)
Tax Rate
Min Cash % Sales
Inventory Days
A/P Days
A/R Days

2006 2007 (proj) 2006 Assumptions

Net sales 2,242 2,700 100.0%

Cost of goods sold 1,818 81.1%
Gross profit 424 18.9%
Operating expenses 347 15.5%
Interest expense 31 1.4%
Net income before taxes 46 2.1%
Provision for income taxes 16 0.7%
Net income 30 1.3%

2006 2007

Cash 23 1%
Accounts receivable 264 12%
Inventory 379 17%
Total current assets 666 30%
Property & equipment 252 11%
Accumulated depreciation (134) -6%
Total PP&E, net 118 5%
Total assets 784 35%

Accounts payable 120 5%

Line of credit payable 249 11%
Accrued expenses 14 1%
Long-term debt, current portio 24 1%
Current liabilities 407 18%
Long-term debt 134 6%
Total liabilities 541 24%
Net worth 243 11%
Total liabilities & net worth 784 35%
ate sales growth?
ate the various projections?