Statement of earnings

(for years ending January 31)

2004 2005 2006
Net sales 930,110 1,599,920 2,066,820
Cost of goods sold 644,190 1,171,760 1,476,840
Gross profit 285,920 428,160 589,980
Operating expenses
Wages and comissions 183,620 253,910 306,170
Rent 19,430 22,200 11,100
Provision for doubtful accounts 6,710 0 0
General Selling expenses 29,100 27,560 23,860
General Administratitve expenses 76,430 104,720 132,850
Amortization 0 10,300 24,360
Total operating expenses 315,290 418,690 498,340
Interest expense 27,230 29,220 33,750

Net income before tax -56,600 -19,750 57,890

Income tax 0 0 0
Net Income (loss) -56,600 -19,750 57,890
 Proyeccion
Imputs 2007 2008
2,800,000.00 3,200,000.00
71.32% 1,996,960.00 2,282,240.00
803,040.00 917,760.00

14.81% 414,680.00 473,920.00

0 - -
0 - -
1.15% 32,200.00 36,800.00
6.43% 180,040.00 205,760.00
29,360.00 44,360.00
656,280.00 760,840.00
24,164.00 48,528.00

122,596.00 108,392.00
23% 23,951.28 24,930.16
98,644.72 83,461.84

EBITDA (utilidad operativa mas depreciacion) 176,120.00 201,280.00

 Statement of Retained Earnings
(for years ending January 31)
2004 2005 2006
Beginning retained earnings 0 -56,600 -76,350
Add: net income -56,600 -19,750 57,890
Less: dividends 0 0 0
Ending retained earnings -56,600 -76,350 -18,460
 Balance Sheets
(as at January 31)
2004 2005 2006
ASSETS
Current assets
Cash 86,060 17,510 1,420
Accounts receivable, net 128,500 201,670 338,690
Inventory 308,980 342,080 474,630
Prepaid expenses 3,020 3,020 1,740
Total current assets 526,560 564,280 816,480
Fixed Assets
Land 0 60,880
Automobiles 34,350 34,350 47,850
Building 122,940
Equipment 3,990
Sub Total 34,350 34,350 235,660
Less: acumulated amortizatio 10,300 34,660
Net fixed assets 34,350 24,050 201,000

Other assets
Goodwill 30,000 30,000 30,000
Deferred charges 6,570 3,850 2,750

TOTAL ASSETS 597,480 622,180 1,050,230

LIABILITIES
Current liabilities
Accounts payable 184,640 290,740 502,500
Other current liabilities 15,790 11,850 35,850
Total current liabilities 200,430 302,590 538,350
Long term liabilities
bank loan 126,900 101,700 76,500
Transport loan 30,240 17,730 5,210
Mortgage payable 196,510 176,510 176,510
CCB mortgage payable 0 0 172,120
Total long term liabilities 353,650 295,940 430,340
Equity
Common Stock 100,000 100,000 100,000
Retained earnings -56,600 -76,350 -18,460
Total Equity 43,400 23,650 81,540

TOTAL LIABILITIES & EQUITY 597,480 622,180 1,050,230

 Imputs 2007 2008

2% 56,000.00 64,000.00
60 466,666.67 533,333.33
117 649,012.00 741,728.00
1,740.00 1,740.00
1,173,418.67 1,340,801.33

200,000.00 435,660.00 435,660.00

64,020.00 108,380.00
371,640.00 327,280.00

30,000.00 30,000.00
2,750.00 2,750.00

1,577,808.67 1,700,831.33

60 332,826.67 380,373.33
35,850.00 35,850.00
368,676.67 416,223.33

593,812.00 481,888.00

100,000.00 100,000.00
80,184.72 163,646.56
180,184.72 263,646.56

1,142,673.39 1,161,757.89

DESBALANCE 435,135.28

EBITDA 176,120.00 2.14

INTERESES 82,315.78

prestamo 1,028,947.28
tasa 8%
 Financial Ratios
(as at January 31) 2006 selected industry ratios
2004 2005 2006 (where available)
Net sales 100.00% 100.00% 100.00% 100.00%
Cost of goods sold 69.26% 73.24% 71.45% 67.90% 71.32%
Gross profit 30.74% 26.76% 28.55% 32.10%
Operating expenses
Wages and comissions 19.74% 15.87% 14.81% 14.81%
Rent 2.09% 1.39% 0.54% 0
Provision for doubtful accounts 0.72% 0.00% 0.00% 0
General Selling expenses 3.13% 1.72% 1.15% 1.15%
General Administratitve expenses 8.22% 6.55% 6.43% 6.43%
Amortization 0.00% 0.64% 1.18%
Total operating expenses 33.90% 26.17% 24.11%
Interest expense 2.93% 1.83% 1.63%

Net Income (loss) -6.09% -1.23% 2.80% 2.80%

LIQUIDITY
Current ratio 2.63 1.86 1.52 1.80
Acid test 1.09 0.73 0.63 0.60
Working capital 326,130 261,690 278,130

EFFICIENCY
Age of receivables 50 46 60 52.4 For projection the average payment period is always the last , since Nostros as company never going to go back on this time
Age of inventory 175 107 117
Age of payables 105 91 124

STABILITY
Net worth to total assets 7.3% 3.8% 7.8%
EBIT -29,370 9,470 91,640
EBITDA -29,370 19,770 116,000
EBIT / interest 0.3 2.7 3.6
EBITDA / Interest 0.7 3.4

GROWTH 2005/04 2006/05

Sales 72% 29%
Net income
Total assets 4% 69%
Equity -46% 245%
 Statement of cash flows
(for years ending January 31)
2005 2006
OPERATIONS
Net income -19,750 57,890
Adjustments to cash basis
Amortization 10,300 24,360
Accounts receivable net -73,170 -137,020
Inventory -33,100 -132,550
Prepaid expenses 0 1,280
Accounts payable 106,100 211,760
Other current liabilities -3,940 24000

Net cash flo from operations -13,560 49,720

FINANCING ACTIVITIES
Bank Loan -25,200 -25,200
Transport loan -12,510 -12,520
Mortgage payable -20,000 0
CCB mortgage payable 172,120

Net cash flow from financing -57,710 134,400

INVESTING ACTIVITIES
Fixed assets 0 -201,310
Deferred charges 2,720 1,100

Net cash flow from investing 2,720 -200,210

Net cash flow -68,550 -16,090

Beginning cash 86,060 17,510

Ending cash 17,510 1,420