Historical and Pro Forma Financial Statements for Tire City, Inc.

For years ending 12/31

1993

1994

1995

1996

1997

INCOME STATEMENT
Net sales
Cost of sales

$ 16,230
9,430
6,800

$ 20,355
11,898
8,457

$ 23,505
13,612
9,893

28,206
16,416
11,790

33,847
19,699
14,148

Selling, general, and administrative expenses

Depreciation
Net interest expense
Pre-tax income
Income taxes
Net income

5,195
160
119
1,326
546
$
780

6,352
180
106
1,819
822
$
997

7,471
213
94
2,115
925
$ 1,190

8,941
213
109
2,527
1,097
1,430

10,730
333
166
2,920
1,267
1,653

Dividends

155

200

240

286

331

609
3,095
1,838
5,542

Total current assets

508
2,545
1,630
4,683

706
3,652
2,190
6,548

846
4,372
1,625
6,843

1,015
5,246
3,154
9,415

Net plant & equipment

3,232
1,335
1,897

3,795
1,515
2,280

4,163
1,728
2,435

6,163
1,941
4,222

6,563
2,274
4,289

$ 6,580

$ 7,822

$ 8,983

11,065

13,704

125
1,097
2,132
2,369
5,723

Gross Profit

BALANCE SHEET
Assets
Cash balances
Accounts receivable
Inventories

Gross plant & equipment

Accumulated depreciation

Total assets
Liabilities
Current maturities
Bank Debt
Accounts payable
Accrued expenses

1,042
1,145
2,312

1,325
1,432
2,882

1,440
1,653
3,218

125
405
1,777
1,974
4,281

1,000

875

750

625

500

1,135
2,133
Total shareholders' equity3,268

1,135
2,930
4,065

1,135
3,880
5,015

1,135
5,024
6,159

1,135
6,346
7,481

$ 6,580

$ 7,822

$ 8,983

11,065

13,704

2,371

2,660

3,330

Total current liabilities

Long-term debt
Common stock
Retained earnings

Total liabilities
Working Capital

125

125

125

Sensitivity Analysis

2,562

Debt 1996
Accrued Expenses
4%
5%
6%
7%
8%
9%

3,692

Debt 1997
405
1291
996
700
405
109
-186

1,097
2202
1834
1465
1097
728
360

10%

-482

-9

4%
5%
6%
7%
8%
9%
10%

405
405
405
405
405
405
405
405

1,097
1110
1097
1083
1069
1055
1042
1028

Depreciation

Inventory not reduced by the end of 1996

405
1,625
405
2,628.00
1,455

WORKING NOTES
Particulars
Sales
Cost of Sales
SG&A
Depreciation
Net Interest income
income tax
Dividends
Cash Balances
Account Receivables
Inventories for 1997
Accounts Payable
Accrued Expenses

Ratio
20.0%
58.2%
31.70%
5% 213+5% OF 2400
10%
10%
43.40%
20%
3%
15.50%
9.32%
6.30%
7%

-41.8%

1,097
1,097
1,146