Forecast Period

2011 2016 2017 2018 2019 2020

Balance Sheet Check OK OK OK OK OK OK

Assumptions

SCENARIO 1
Revenue Growth (% Change) 10.0% 10.0% 10.0% 10.0% 10.0%
Cost of Goods Sold (% of Revenue) 42.0% 47.0% 50.0% 36.0% 35.0%
Salaries and Benefits (% of Revenue) 17.0% 17.0% 17.0% 17.0% 17.0%
Rent and Overhead ($000's) 15,000 15,000 15,000 15,000 15,000
Depreciation & Amortization (% of PP&E) 35.0% 35.0% 35.0% 35.0% 35.0%
Interest (% of Debt) 10.0% 10.0% 10.0% 10.0% 10.0%
Tax Rate (% of Earnings Before Tax) 28.0% 28.0% 28.0% 28.0% 28.0%
Accounts Receivable (Days) 18 18 18 18 18
Inventory (Days) 80 90 100 100 100
Accounts Payable (Days) 37 37 37 37 37
Capital Expenditures ($000's) 15,000 15,000 15,000 15,000 15,000
Debt Issuance (Repayment) ($000's) - - (20,000) - -
Equity Issued (Repaid) ($000's) - - - - -
SCENARIO 2
Revenue Growth (% Change) 5.0% 4.5% 4.0% 3.5% 3.0%
Cost of Goods Sold (% of Revenue) 37.0% 37.0% 36.0% 36.0% 35.0%
Salaries and Benefits (% of Revenue) 17.0% 17.0% 17.0% 17.0% 17.0%
Rent and Overhead ($000's) 10,000 10,000 10,000 10,000 10,000
Depreciation & Amortization (% of PP&E) 40.0% 40.0% 40.0% 40.0% 40.0%
Interest (% of Debt) 5.0% 5.0% 5.0% 5.0% 5.0%
Tax Rate (% of Earnings Before Tax) 28.0% 28.0% 28.0% 28.0% 28.0%
Accounts Receivable (Days) 18 18 18 18 18
Inventory (Days) 73 73 73 73 73
Accounts Payable (Days) 37 37 37 37 37
Capital Expenditures ($000's) 15,000 15,000 15,000 15,000 15,000
Debt Issuance (Repayment) ($000's) - - (20,000) - -
Equity Issued (Repaid) ($000's) - - - - -
 Historical Results
2011 2012 2013 2014 2015 2016
Balance Sheet Check OK OK OK OK OK OK
Income Statement

Reveneue 102,007 118,086 131,345 142,341 150,772 165,849

Cost of Goods Sold (COGS) 39,023 48,004 49,123 52,654 56,710 69,657
Gross Profit 62,984 70,082 82,222 89,687 94,062 96,193
Expenses
Salaries and Benefits 26,427 22,658 23,872 23,002 25,245 28,194
Rent and Overhead 10,963 10,125 10,087 11,020 11,412 15,000
Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 18382
Interest 2,500 2,500 1,500 1,500 1,500 3,000
Total Expenses 59,390 53,433 52,664 52,066 54,237 64,576
Earnings Before Tax 3,594 16,649 29,558 37,622 39,825 31,616
Taxes 1,120 4,858 8,483 10,908 11,598 8,853
Net Earnings 2,474 11,791 21,075 26,713 28,227 22,764

Balance Sheet

Assets
Cash 67,971 81,210 83,715 111,069 139,550 162,521
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 8,179
Inventory 7,805 9,601 9,825 10,531 11,342 15,267
Property & Equipment 45,500 42,350 40,145 38,602 37,521 34,139
Total Assets 126,376 139,065 140,252 167,319 195,951 220,106
Liabilities
Accounts Payable 3,902 4,800 4,912 5,265 5,671 7,061
Debt 50,000 50,000 30,000 30,000 30,000 30,000
Total Liabilities 53,902 54,800 34,912 35,265 35,671 37,061
Shareholder's Equity
Equity Capital 70,000 70,000 70,000 70,000 70,000 70,000
Retained Earnings 2,474 14,265 35,340 62,053 90,280 113,044
Shareholder's Equity 72,474 84,265 105,340 132,053 160,280 183,044
Total Liabilities & Shareholder's Equity 126,376 139,065 140,252 167,319 195,951 220,105
Forecast Period-Scenario-1st Forecast period-Scenario-2nd
2017 2018 2019 2020 2016 2017 2018 2019 2020
OK OK OK OK

182,434 200,678 220,745 242,820 158310.6 165434.577 172051.96 178073.779 183415.992

85,744 100,339 79,468 84,987 58,575 61,211 61,939 64,107 64,196
96,690 100,339 141,277 157,833 99,736 104,224 110,113 113,967 119,220

31,014 34,115 37,527 41,279 26,913 28,124 29,249 30,273 31,181

15,000 15,000 15,000 15,000 10,000 10,000 10,000 10,000 10,000
15,360 13,698 12,784 12,281 21008 18605 17163 16298 15779
3,000 1,000 1,000 1,000 1500 1500 500 500 500
64,374 63,813 66,311 69,560 59,421 58,229 56,912 57,071 57,460
32,316 36,526 74,966 88,273 40,315 45,995 53,201 56,897 61,761
9,049 10,227 20,991 24,716 11,288 12,879 14,896 15,931 17,293
23,268 26,298 53,976 63,556 29,027 33,116 38,305 40,966 44,468

181,087 180,315 234,688 293,483 328144 364254 384323 426076 471051

8,997 9,896 10,886 11,975 7,807 8,158 8,485 8,782 9,045
21,142 27,490 21,772 23,284 11,715 12,242 12,388 12,821 12,839
28,527 25,440 23,742 22,808 31513 27908 25745 24447 23668
239,753 243,141 291,088 351,550 379,179 412,563 430,940 472,126 516,603

8,692 10,171 8,056 8,615 5,938 6,205 6,279 6,498 6,507

30,000 10,000 10,000 10,000 30,000 30,000 10,000 10,000 10,000
38,692 20,171 18,056 18,615 35,938 36,205 16,279 16,498 16,507

70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000

136,311 162,610 216,586 280,142 119,307 152,423 190,728 231,694 276,161
206,311 232,610 286,586 350,142 189,307 222,423 260,728 301,694 346,161
245,003 252,781 304,641 368,757 225,244 258,628 277,007 318,192 362,669
 Historical Results Forecast period-Scenario-1st
2011 2012 2013 2014 2015 2016 2017
Balance Sheet Check OK OK OK OK OK OK OK
Cash Flow Statement

Operating Cash Flow

Net Earnings 2,474 11,791 21,075 26,713 28,227 22,764 23,268
Plus: Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 18,382 15,360
Less: Changes in Working Capital 9,003 1,702 775 903 827 3,175 5,062
Cash from Operations 12,971 28,239 37,505 42,354 43,480 37,971 33,566
Investing Cash Flow
Investments in Property & Equipment (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000)
Cash from Investing (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000)
Financing Cash Flow
Issuance (repayment) of debt - - (20,000) - -
Issuance (repayment) of equity 170,000 - - - -
Cash from Financing 170,000 - -20,000 - -
Net Increase (decrease) in Cash 167,971 13,239 2,505 27,354 28,480 22,971 18,566
Opening Cash Balance - 67,971 81,210 83,715 111,069 139,550 162,521

Closing Cash Balance 167,971 81,210 83,715 111,069 139,550 162,521 181,087

Supporting Schedules

Working Capital Schedule

Accounts Receivable 5,100 5,904 6,567 7,117 7,539 8,179 8,997
Inventory 7,805 9,601 9,825 10,531 11,342 15,267 21,142
Accounts Payable 3,902 4,800 4,912 5,265 5,671 7,061 8,692
Net Working Capital (NWC) 9,003 10,705 11,480 12,382 13,210 16,385 21,447
Change in NWC 9,003 1,702 775 903 828 3,175 5,062
Depreciation Schedule
PPE Opening 50,000 45,500 42,350 40,145 38,602 37,521 28,887
Plus Capex 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Less Depreciation 19,500 18,150 17,205 16,544 16,080 18,382 15,360
PPE Closing 45,500 42,350 40,145 38,602 37,521 34,139 28,527
Debt & Interest Schedule
Debt Opening 50,000 50,000 50,000 30,000 30,000 30,000 30,000
Issuance (repayment) - - (20,000) - -
Debt Closing 50,000 50,000 30,000 30,000 30,000 30,000 30,000
Interest Expense 2,500 2,500 1,500 1,500 1,500 3,000 3,000
Forecast period-Scenario-1st Forecast period-Scenario-2nd
2018 2019 2020 2016 2017 2018 2019 2020
OK OK OK OK OK OK OK OK

26,298 53,976 63,556 29,027 33,116 38,305 40,966 44,468

13,698 12,784 12,281 21,008 18,605 17,163 16,298 15,779
5,768 (2,613) 2,042 374 611 399 511 272
34,228 69,373 73,795 49,661 51,110 55,069 56,753 59,975

(15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000)

(15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000)

(20,000) (20,000)

(20,000) (20,000)
-772 54,373 58,795 34,661 36,110 20,069 41,753 44,975
181,087 180,315 234,688 293,483 328,144 364,254 384,323 426,076

180,315 234,688 293,483 328,144 364,254 384,323 426,076 471,051

9,896 10,886 11,975 7807 8158 8485 8782 9045

27,490 21,772 23,284 11715 12242 12388 12821 12839
10,171 8,056 8,615 5,938 6,205 6,279 6,498 6,507
27,215 24,602 26,644 13,584 14,195 14,594 15,105 15,377
5,768 (2,613) 2,042 374 611 399 511 272

24,138 21,526 20,089 37521 31513 27908 25745 24447

15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
13,698 12,784 12,281 21,008 18,605 17,163 16,298 15,779
25,440 23,742 22,808 31,513 27,908 25,745 24,447 23,668

30,000 10,000 10,000 30,000 30,000 30,000 10,000 10,000

(20,000) -20000
10,000 10,000 10,000 30000 30000 10000 10000 10000
1,000 1,000 1,000 1500 1500 500 500 500