2015 2014 2013

Sales $ 4,700,000.00 $ 3,760,000.00 $ 3,000,000.00

COGS $ 3,877,500.00 $ 3,045,600.00 $ 2,400,000.00
Gross Profit $ 822,500.00 $ 714,400.00 $ 600,000.00
Selling and G& A Expense $ 275,000.00 $ 250,000.00 $ 215,000.00
Fixed Expense $ 90,000.00 $ 90,000.00 $ 90,000.00
Depreciation Expense $ 25,000.00 $ 25,000.00 $ 25,000.00
EBIT $ 432,500.00 $ 349,400.00 $ 270,000.00
Interest Expense $ 66,000.00 $ 66,000.00 $ 66,000.00
EBT $ 366,500.00 $ 283,400.00 $ 204,000.00
Taxes (40%) $ 146,600.00 $ 113,360.00 $ 81,600.00
Net Income $ 219,900.00 $ 170,040.00 $ 122,400.00
Retained Earnings $ 131,940.00 $ 102,024.00 $ 73,440.00
$ 351,840.00 $ 272,064.00 $ 195,840.00

Selling and G& A Expense Ratio with Sales 0.059 0.066 0.072
Considering trend lets Assume we can expect Selling and Admin expenses would be 0.053
 25% 40%
2016 2016
Sales $ 5,875,000.00 $ 6,580,000.00
COGS $ 4,846,875.00 $ 5,428,500.00
Gross Profit $ 1,028,125.00 $ 1,151,500.00
Selling and G& A Expense $ 311,375.00 $ 348,740.00
Fixed Expense $ 90,000.00 $ 90,000.00
Depreciation Expense $ 25,000.00 $ 25,000.00
EBIT $ 601,750.00 $ 687,760.00
Interest Expense $ 66,000.00 $ 66,000.00
EBT $ 535,750.00 $ 621,760.00
Taxes (40%) $ 214,300.00 $ 248,704.00
Net Income $ 321,450.00 $ 373,056.00
 2015 2014 2013
Dividends $ 29,436.00 $ 81,600.00 $ 186,996.00
Retained Earnings Dec 31st $ 322,404.00 $ 190,464.00 $ 8,844.00
Owner Capital $ 155,560.00 $ 155,560.00 $ 155,560.00
Total Share Holder Equity $ 477,964.00 $ 346,024.00 $ 164,404.00
 25% 40%
2016 2017
Dividends
Retained Earnings Dec 31st $ 441,895.00 $ 537,487.80
Owner Capital $ 155,560.00 $ 155,560.00
Total Share Holder Equity $ 597,455.00 $ 693,047.80
 2015 2014 2013
Assets
Cash and Cash Equivalents $ 60,000.00 $ 97,376.00 $ 48,000.00
Accounts Recievables $ 250,416.00 $ 175,000.00 $ 150,000.00
Inventory $ 511,500.00 $ 390,000.00 $ 335,000.00
Total Current Assets $ 821,916.00 $ 662,376.00 $ 533,000.00
Plant and Equipment $ 560,000.00 $ 560,000.00 $ 560,000.00
Accumulated depreciation $ 175,000.00 $ 150,000.00 $ 125,000.00
Net plant and Equipment $ 385,000.00 $ 410,000.00 $ 435,000.00
Total Assets $ 1,206,916.00 $ 1,072,376.00 $ 968,000.00

Liabilities and Owners Equity

Accounts Payable $ 135,000.00 $ 151,352.00 $ 128,000.00
Notes Payable $ 275,000.00 $ 275,000.00 $ 275,000.00
Other Current Liabilities $ 43,952.00 $ 50,000.00 $ 46,000.00
Total Current Liabilities $ 453,952.00 $ 476,352.00 $ 449,000.00
Long Term Debts $ 275,000.00 $ 250,000.00 $ 300,000.00
Total Liabilities $ 728,952.00 $ 726,352.00 $ 749,000.00
Owners Capital $ 155,560.00 $ 155,560.00 $ 155,560.00
Retained Earnings $ 322,404.00 $ 190,464.00 $ 8,844.00
Total Liabilities and Owners Equity $ 1,206,916.00 $ 1,072,376.00 $ 913,404.00

$ 0.06 $ 0.07 $ 0.10


Assets
Cash and Cash Equivalents
Accounts Recievables
Inventory
Total Current Assets
Plant and Equipment
Accumulated depreciation
Net plant and Equipment
Total Assets
25% 40%
2016 2017
$ 267,395.00 $ 403,028.20
$ 293,750.00 $ 329,000.00 Approx 5% considering previous data
$ 587,500.00 $ 658,000.00 Approx 11% Considering previous data
$ 1,148,645.00 $ 1,390,028.20
$ 560,000.00 $ 560,000.00
$ 200,000.00 $ 200,000.00
$ 360,000.00 $ 360,000.00
$ 1,508,645.00 $ 1,750,028.20

Liabilities and Owners Equity

Accounts Payable $ 235,000.00 $ 263,200.00 Approx 4% Considering previous data
Notes Payable $ 275,000.00 $ 275,000.00
Other Current Liabilities $ 58,750.00 $ 65,800.00 Approx 1% Considering previous data
Total Current Liabilities $ 568,750.00 $ 604,000.00
Long Term Debts $ 342,440.00 $ 452,980.40
Total Liabilities $ 911,190.00 $ 1,056,980.40
Owners Capital $ 155,560.00 $ 155,560.00
Retained Earnings $ 441,895.00 $ 537,487.80
Total Liabilities and Owners Equity $ 1,508,645.00 $ 1,750,028.20

Total Equity $ 597,455.00 $ 693,047.80

The Debt Equity Ratio is 1.525119
Total Liabilities $ 911,190.00 $ 1,056,980.40
Cash Flow 2015 2014 2013
Operating Cash flow $ 310,900.00 $ 261,040.00 $ 213,400.00
NWC $ 367,964.00 $ 186,024.00 $ 84,000.00
Change in NWC $ 181,940.00 $ 102,024.00
Net Capital Spending $ - $ -
CFFA $ 128,960.00 $ 159,016.00
Cash flow to Creditors $ 41,000.00 $ 116,000.00
Short Term 2015 2014 2013 Profitability Ratios 2015
Current Ratio 1.810579 1.390518 1.187082 Profit Margin 5%
Quick Ratio 0.683808 0.571796 0.44098 Return on Assets 18%
Cash Ratio 0.132173 0.20442 0.106904 Return on Equity 46%
Interval Measure 62.63034 62.79669 62.95955
NWC to Total Assets Ratio 0.30488 0.173469 0.086777
Long Term
Total Debt Ratio 0.603979 0.67733 0.77376
Debt-Equity Ratio 1.525119 2.099138 4.55585
Equity Multiplier 2.525119 3.099138 5.887935
Long Term Debt Ratio 0.365223 0.419446 0.645989
Interest Coverage Ratio 6.55303 5.293939 4.090909
Cash Coverage Ratio 6.931818 5.672727 4.469697
Inventory Turnover 7.580645 7.809231 7.164179
Recievables Turnover 18.76877 21.48571 20
NWC Turnover 12.77299 20.21245 35.71429
Fixed Assets Turnover 12.20779 9.170732 6.896552 0.46 0.49
Total Assets Turnover 3.894223 3.506233 3.099174
2014 2013
5% 4%
16% 13%
49% 74%

0.74
 100% capacity sales $ 5,222,222.22
Change In sales $ 522,222.22

 for the 100% capacity case, EFN(100% case) = (CA/S0) x (Change in Sales) - PM x New S

(CA/S0)*Change in Sales PM*New Sales*b EFN

### $ 146,608.67 -$ 55,284.67

Additional change in EFN = [(CA/S0) + (FA/Sales for 100% case)] x (Change in Sales above 100% case) - PM

Growth Rate Sales Change in Sales

25% 5875000 $ 652,777.78
30% 6110000 $ 887,777.78
35% 6345000 $ 1,122,777.78
40% 6580000 $ 1,357,777.78

EFN = EFN(100% case) + Additional change in EFN

Growth Rate CA/S0 FA/Sales for 100% case SUM

25% 0.175 0.074 0.249
30% 0.249
35% 0.249
40% 0.249
0) x (Change in Sales) - PM x New Sales x b

Profit Margin= Net Income/Sales

] x (Change in Sales above 100% case) - PM x Change in Sales above 100% case x b

onal change in EFN

SUM*Change In sales abve 100% Case
$ 162,280.00
$ 221,056.67
$ 279,571.67
$ 338,086.67
PM x Change in Sales above 100% case x b
$ 18,326.08
$ 24,923.47
$ 31,520.86
$ 38,118.25
0.04678723404255

Additional EFN EFN

$ 143,953.92 $ 88,669.25
$ 196,133.19 $ 140,848.53
$ 248,050.80 $ 192,766.14
$ 299,968.41 $ 244,683.75