Sales

COGS
Beg. Inv.
Purchases
Ending Inv.
Total COGS
Gross Profit
Operating Expenses
EBIT
Interest Exp.
Pretax Income
Taxes
Net Profit

1993
2,921,000

1994
3,477,000

1995 % of Sales
4,519,000

330,000
2,209,000
2,539,000
337,000
2,202,000

337,000
2,729,000
3,066,000
432,000
2,634,000

432,000
3,579,000
4,011,000
587,000
3,424,000

719,000
622,000
97,000
23,000
74,000
14,000
60,000

843,000
717,000
126,000
42,000
84,000
16,000
68,000

1,095,000
940,000
155,000
56,000
99,000
22,000
77,000

1996

209.514 1.095.000 587.000 22.000 2.000 23.424.000 60.000 99.000 1994 3.539.000 74.477.000 940.000 337.228.500.000 14.000 843.000 126.942.000 84. Pretax Income Taxes Net Profit 1993 2.519.000 3.144.000 10% 79% 13% 21% 587.428 4.000 3.000 4.921.000 3.000 330.271.000 4.000 56.058 127.355.942 714.Estimate Sales COGS Beg.729.634.579.000 71.000 1995 % of Sales 4.000 2. Purchases Ending Inv.000 432.000 16.000 2.000 717.857 58.000 432.000 719.066.000 622.000 337.486 1.000 68.942 4.000 97.000 <<<>>> 77. Inv.011.000 2.428 12.428 56. Total COGS Gross Profit Operating Expenses EBIT Interest Exp.000 155.000 2.571 .000 1.202.000 42.000 1996 5.

144.252 1.000 4.100 4.000 176.800 704.058 1.271.400 80.271.942 714.428 4.989 12.742.500.700 763.144.301 45.428 87.476.000 4.998 3.355.355.434 986.002 -11.94% to 30% Smaller ST funds Growth) Growth) Growth Debt 5.000 4.128.271.928 71.294.400 587.428 714.769 38.800 4.239.998 56.400 4.000 4.228.571 .222.779 86.100 1.803 615.942 714.486 1.942.000 -27.600 587.857 33.058 127.355.000 39.755.171 32.874.599 68.422.000 587.342.514 1.514 587.881.942 4.239 5.Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Add $500K @ 7% Interest Keep Sales Keep Sales Long Term at at Internal Debt and Borrow Sustainable Level Grow Sales Maintain additional Level (20% (4.400 1.358 1.015.100 89.939 58.942.942.245.803 4.436 28.726.428 127.514 4.228.700 5.000 117.513 1.942 4.144.428 5.000 587.228.700 5.428 4.398.000 3.486 1.500.486 1.652.000 5.805 587.177.800 4.500 56.942 4.058 127.500.428 82.684 4.321 17.127 6.000 Iteration 6 Find another investor 5.942 4.716 36.722 1.751 -15.

05% 24.30% 0.75% 9.62% 86.53% 0. Purchases .30% 75.000 1996 5.99% 75.20% 89.87% 12.000 1994 3.25% 20.000 Ending Inv.500.42% 75.77% 10.42% 0.48% 2.21% 2.49% 59.46% 1.61% 21.88% Gross Profit Operating Expenses EBIT Interest Exp.000 1995 4.62% 1.921.70% 23.19% 0.32% 0.96% 24.69% 78.42% 12.06% Sales COGS Beg.20% 88. Pretax Income Taxes Net Profit 24.12% 20.62% 3.519.39% 9.23% 1.67% 79.92% 11.Common Size IS Estimate 1993 2.80% 2.56% 79.43% 1.99% 76.23% 20. Total COGS 11. Inv.54% 75.79% 2.477.24% 2.80% 3.49% 1.32% 1.29% 3.02% 1.76% 12.

000 12.905 507.157 737.000 1.000 20.000 45.000 1.000 120.000 N/A 100. Holtz Addtl Funding Needed Total Liabilities Net Worth Total Liabilities and Net Worth AFN 1993 43.000 1994 52.249.99% 1.000 20.000 262.000 127.24% 606.41% 587.905 80.773.000 1.265. bank Notes Payable to Holtz.000 8.64% 388.000 27.000 8.000 895.000 100.188.520.000 457. current portion Notes Payable.000 449.553 714.000 306.000 1.000 1.000 13.890 340.000 390.000 1.000 504.157.000 213.000 N/A 127.59% 1.000 919.000 337.Cash A/R.000 100.000 140.000 686.088.637.476 218.000 415.000 275.000 1.185.281 20.000 919.000 233. trade A/P Accrued Expenses Term Loan(s). net Total Assets Notes Payable.000 1995 % of Sales 56. net Inventory Current Assets Property. Mr.000 1996 68.66% 20.157.000 432.000 1.992.000 100. current portion Current Liabilities Term Loan Term Loan II Note Payable.000 565.637.000 .32% 75.000 372.000 411.000 100.000 N/A 376.000 1.571 1.428 1.000 42.137 472.000 785.623 91.366 60.228 1.000 390.

000 127.100 1.571 1.200 737.281 20.185.905 482.500 20.000 100.366 1.000 390.365 (0) 224.513 1.844 1.045.586.000 488.000 100.936 787.553 727.310.400 390.840 1.574 78.000 450.137 1.615 1.157 67.600 1.992.800 635.717.905 80.178.078 1.498.000 1.623.358 1.428 1.000 1.228 472.964.000 100.887 481.100 394.795 80.520.000 451.000 20.428 714.000 1.998 763.167 504.94% to 30% Growth) Growth 58.200 90.610.000 127.800 97.000 Iteration 5 Iteration 6 Add $500K @ 7% Interest Long Term Debt and Maintain Smaller ST Find Another Debt Investor 134.007.964.800 615.228 2.766 72.000 100.000 239.000 904.058.000 1.000 390.553 737.623 91.553 714.200 80.890 100.717.100 0 100.284.575.520.623 91.000 593.939 2.128.128.366 200.300 80.Iteration 1 Iteration 2 Keep Sales at Borrow Sustainable Additional Level (20% Funds Growth) 68.992.795 1.992.000 457.378 517.000 127.843 (0) 108.223.868 (0) 307.000 1.800 472.008 487.687 1.748 1.482.103 1.157 737.000 457.623 91.428 704.701 1.700 407.722 2.228 465.281 70.000 457.635 68.281 20.000 127.868 2.000 984.505.400 0 Iteration 3 Iteration 4 Keep Sales at Internal Level Grow Sales (4.058.200 714.400 1.992.137 472.366 .279 80.705 20.119 433.000 127.905 80.400 1.000 610.

43% 1.Common Size Balance Sheet Cash A/R.70% 1.18% 4.000 1995 3. current portion Current Liabilities Term Loan Note Payable.42% 37.157.62% 1.86% 76.82% 6.51% 72.37% 8.000 67.64% 1.16% 54.30% 23.39% 3.157.67% 74.11% 7.15% 1. net Total Assets Notes Payable.80% 5.16% 25.36% 22.52% 37.02% 35.000 .70% 1.992.366 5.30% 36. trade A/P Accrued Expenses Term Loan.86% 76.000 71. Mr.73% 48.65% 25.84% 919.49% 35.34% 77. current portion Notes Payable. bank Notes Payable to Holtz.46% 6.773.68% 33.58% 1.42% 37.89% 1. net Inventory Current Assets Property.000 1994 4.57% 2.22% 66.13% 66.57% 27.92% 15.15% 1.83% 10.000 1996 3.35% 919.02% 35.11% 21.97% 4.85% 32.99% 5.64% 23.19% 8.18% 29.637.637. Holtz Addtl Funding Needed Total Liabilities Net Worth Total Liabilities and Net Worth 1993 4.30% 23.64% 45.476 23.23% 29.38% 28.87% 4.64% 7.76% 22.

76 0.65 1996 64% 2.11 41.01 0.53 8.11 6.08 56.017 2.24 48.51% 0.76 0.65 0.74 0.82 0.020 3.14 45.04% 0.65 1996 9.06 0.24% 22.28 0.49 1993 0.12 1994 0.95 47.67 3.17 1996 0.020 3.11 1995 73% 2.28 2.18 0.98% 13.17 1996 0.50 56.77 2.70 2.03% 13.76 48.18 1995 0.12 1994 0.18 38.76 3.75 43.11 6.02 0.22 0.95 7.58 0.65 1993 45% 4.38 8.18 1.01 43.70% 0.011 2.95 47.06 3.01 0.07 0.82 1994 68% 3.11 48.14 8.15 0.31 82.41 39.46 13.46 11.76 48.86 7.11 35.94% 20.05 0.03 0.05 3.28 7.27 1994 1.09 4.49 1.70 2.28 2.24 4. Ratios Debt Ratio Time Interest Earned Fixed Charge Coverage Debt-to-Equity Ratio Profitability Ratios Return on Sales Return on Assets Basic Earnings Power Internal Growth Rate Sustainable Growth Rate ROE No Pricing Given--> ROA ROE .77 2.Liquidity Ratios Current Ratio: Quick Ratio: 1993 2.37% 0.011 2.01 3.021 3.00 2.18 1995 0.11 0.05 0.41 40.72 42.34 75.12 Valuation Ratios EPS P/E Ratio MV-to-BV 1993 1994 1995 1996 DuPont Analysis Profitability Asset Mgmt.021 3.22 4.02 0.02 0.95 7.00 3.017 2. Efficiency DuPont ROA Return on Sales Total Asset T/O Equity Multiplier DuPont ROE 1993 0.68 1993 10.27 1995 9.82 12.06 0.07 0.35 47.03 0.82 1995 1.54 1994 7.76 2.61 1996 1.08 Asset Mgmt Ratios A/P Turnover Days Receivable Outstanding Days Inventory Outstanding Days Payable Outstanding Cash Conversion Cycle Inventory Turnover Total Asset Turnover Days Sales Outstanding A/R Turnover Fixed Asset Turnover Debt Mgmt.46 11.

24 9.40% 15.65 11.09 4.70 7.65 11.007 0.76 2.07 (0.67 2.89 Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6 9.46 2.08 0.45 0.41 47.006 0.95 48.95 48.76 2.46 7.Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6 1.07 0.70 7.007 0.46 7.46 2.07 0.76 0.98 0.46 7.96 4.54% 7.95 7.76 2.76 4.95 47.67 1.76 2.41 47.70 0.03 0.06 0.95 48.01) 0.70 7.17 0.011 2.01 0.08 0.03 0.86 56.50 39.003 0.50 56.26 9.52 1.02 (0.012 0.31% 7.67 2.28 3.52 1.76 2.65 11.50 39.83 0.65 Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6 76% 75% 75% 76% 77% 49% 1.006 -0.70 2.13 0.95 48.46 7.16 9.006 0.01 0.08 3.24 48.34% 1.76 2.94 57.13 0.76 2.08 0.55 1.11 3.95 48.28 1.06 .95 48.46 11.55 1.24 9.07 (0.52 1.70 7.03% 8.64 39.012 0.02 0.01 0.06 0.65 11.96 1.45 9.21 1.41 39.02 0.003 0.00 0.71 56.006 -0.27 2.96 1.42 38.56% 6.86 56.06 1.68% 3.88% 3.76 2.02 0.04) 0.33 1.28 1.65 11.41 47.01 0.76 2.11 4.86 7.68 0.96 3.70 7.01) 0.76 2.95 48.67 2.03 0.24% -3.95 48.01 0.98 Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6 0.06 Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6 Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6 0.26 0.76 48.68% -0.68 0.02 (0.04) 0.26 1.50 56.41 47.09 3.41 47.96% 1.06 0.76 2.17% 0.02 0.45 0.76 2.95 48.03 0.02 0.95 48.08 2.85 39.011 2.46 7.

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