INCOME ST

1998 1999 2000 2001

Sales 71,924 80,115 92,613 106,042
Operating expenses:
Production costs and expenses 33,703 38,393 46,492 53,445
Admin, and selling expenses 16,733 17,787 21,301 24,177
Depreciation 8,076 9,028 10,392 11,360
Total operating expenses 58,512 65,208 78,185 88,982

Operating profit 13,412 14,908 14,429 17,059

Interest expense 5,464 6,010 7,938 7,818
Earnings before taxes 7,948 8,898 6,491 9,241
Income taxes 2,221 2,322 1,601 2,093
Net earnings 5,727 6,576 4,890 7,148

Dividends to all common shares 2,000 2,000 2,000 2,000

Retention of earnings 3,727 4,576 2,890 5,148

BALANCE
Total Assets
Cash 4,816 5,670 6,090 5,795
Accounts receivable 22,148 25,364 28,078 35,486
Inventories 23,301 27,662 53,828 63,778
Total current assets 50,265 58,696 87,996 105,059

Gross property, plant & equipment 64,610 80,154 97,899 115,153

Accumulated depreciation (4,559) (13,587) (23,979) (35,339)
Net property, plant & equipment 60,051 66,567 73,920 79,814
Total assets 110,316 125,263 161,916 184,873

Liabilities and Stockholders' Equity:

Short-term borrowings (bank) 29,002 37,160 73,089 84,981
Accounts payable 12,315 12,806 11,890 13,370
Other accrued liabilities 24,608 26,330 25,081 21,318
Total current liabilities 65,925 76,296 110,060 119,669

Long-term debt 10,000 10,000 10,000 18,200

Shareholders' equity 34,391 38,967 41,856 47,004

Total liabilities and stockholders' equity 110,316 125,263 161,916 184,873
 INCOME STATEMENT
Assumptions
15% increase/year 15.0%

Average of 48.8% of sales 48.8%

Average of 22.5% of sales 22.5%
New DVD equipment depreciated over 7 years (SLD) + Average of 11.06% gross PPE of 2001 11.06%

Same as last year

Average of 25.3% EBT 25.3%

BALANCE SHEET

Average of 6.5% of sales 6.5%

Average of 31.6% of sales 31.6%
Latest yearly increase of 18.5% 118.5%

New DVD equipment spread over 2 years 54,600

Needs to be adjusted
Latest yearly increase of 12.4% 112.4%
Same as last year 23.0%

Needs to be adjusted

Retention of earnings increase

External funding (through debt - both short-term borrowings or long-term)

 2002 2003
121,948 140,241

59,566 68,501
27,438 31,554
20,537 20,537
107,541 120,592

14,407 19,649
7,818 7,818
6,589 11,831
1,670 2,998
4,919 8,833

2,000 2,000
2,919 6,833

7,870 9,050
38,485 44,258
75,567 89,536
121,922 142,844

142,453 169,753
(55,876) (76,413)
86,577 93,340
208,500 236,185

84,981 84,981
15,034 16,906
21,318 21,318
121,333 123,205

18,200 18,200

51,923 58,756
191,457 200,161
17,043 36,024