Pro-forma Profit and Loss Statement

15% Growth, COGS 58.33, Dividend 30%

Ratios Year 1 Year 2 Year 3
Sales 41,400,000 47,610,000 53,323,200
COGS 58.33% 24,150,000 27,772,500 31,105,200
S&A Expenses 13.89% 5,750,000 6,612,500 7,406,000
EBIT 11,500,000 13,225,000 14,812,000
Interest 12.00% 480,000 480,000 480,000
EBT 11,020,000 12,745,000 14,332,000
Taxes 40.00% 4,408,000 5,098,000 5,732,800
PAT 6,612,000 7,647,000 8,599,200
Dividend 30.00% 1,983,600 2,294,100 2,579,760
Addition to RE 4,628,400 5,352,900 6,019,440

Pro-forma Balance Sheet

Cash 2.22% 919,080 1,056,942 1,183,775

Receivables 17.22% 7,130,000 8,199,500 9,183,440
Inventory 23.61% 9,775,000 11,241,250 12,590,200
Total Current Assets 17,824,080 20,497,692 22,957,415
Net Fixed Assets 31.94% 13,225,000 15,208,750 17,033,800
Total Assets 31,049,080 35,706,442 39,991,215

Accounts Payable 13.89% 5,750,000 6,612,500 7,406,000

Short-term payables 2.78% 1,150,000 1,322,500 1,481,200
Accrued wages and taxes 4.44% 1,840,000 2,116,000 2,369,920
Total Current Liabilities 8,740,000 10,051,000 11,257,120

Long-Term Debt 4,000,000 4,000,000 4,000,000

Paidup Capital 10,000,000 10,000,000 10,000,000
Retained Earnings 4,628,400 9,981,300 16,000,740
Total Liabilities and
Shareholders' Equity 27,368,400 34,032,300 41,257,860

External Funds Need 3,680,680 1,674,142 (1,266,645)

External Funds Need for 2 years 3,680,680

Year 4 Year 5
59,721,984 66,888,622
34,837,824 39,018,363
8,294,720 9,290,086
16,589,440 18,580,173
480,000 480,000
16,109,440 18,100,173
6,443,776 7,240,069
9,665,664 10,860,104
2,899,699 3,258,031
6,765,965 7,602,073

1,325,828 1,484,927
10,285,453 11,519,707
14,101,024 15,793,147
25,712,305 28,797,781
19,077,856 21,367,199
44,790,161 50,164,980

8,294,720 9,290,086
1,658,944 1,858,017
2,654,310 2,972,828
12,607,974 14,120,931

4,000,000 4,000,000
10,000,000 10,000,000
22,766,705 30,368,777

49,374,679 58,489,709

(4,584,518) (8,324,729)
Debt Ratio Test, TIE Test
20% Growth, COGS 58.33, Dividend 30%
Ratios Year 1 Year 2 Year 3 Year 4 Year 5
Sales 43,200,000 51,840,000 62,208,000 71,539,200 82,270,080
COGS 58.33% 25,200,000 - - - -
S&A Expenses 13.89% 5,184,000 6,220,800 7,464,960 8,584,704 9,872,410
EBIT 12,816,000 45,619,200 54,743,040 62,954,496 72,397,670
Interest 12.00% 480,000 480,000 480,000 480,000 480,000
EBT 12,336,000 45,139,200 54,263,040 62,474,496 71,917,670
Taxes 40.00% 3,700,800 13,541,760 16,278,912 18,742,349 21,575,301
PAT 8,635,200 31,597,440 37,984,128 43,732,147 50,342,369
Dividend 30.00% - - - - -
Addition to RE 8,635,200 31,597,440 37,984,128 43,732,147 50,342,369
Interest Limit with TIE of 6 768,960 2,737,152 3,284,582 3,777,270 4,343,860
Additional interest load 288,960 2,257,152 2,804,582 3,297,270 3,863,860
Additional debt load 2,408,000 18,809,600 23,371,520 27,477,248 32,198,835
Pro-forma Profit and Loss Statement
20% Growth, COGS 77.78, Dividend 30%
Ratios Year 1 Year 2 Year 3 Year 4 Year 5
Sales 43,200,000 51,840,000 62,208,000 74,649,600 89,579,520
COGS 77.78% 33,600,000 40,320,000 48,384,000 58,060,800 69,672,960
S&A Expenses 19.44% 8,400,000 10,080,000 12,096,000 14,515,200 17,418,240
EBIT 1,200,000 1,440,000 1,728,000 2,073,600 2,488,320
Interest 12.00% 480,000 480,000 480,000 480,000 480,000
EBT 720,000 960,000 1,248,000 1,593,600 2,008,320
Taxes 40.00% 288,000 384,000 499,200 637,440 803,328
PAT 432,000 576,000 748,800 956,160 1,204,992
Dividend 30.00% 129,600 172,800 224,640 286,848 361,498
Internal Funds Generated 302,400 403,200 524,160 669,312 843,494

Pro-forma Balance Sheet

Cash 2.22% 960,000 1,152,000 1,382,400 1,658,880 1,990,656

Receivables 17.22% 7,440,000 8,928,000 10,713,600 12,856,320 15,427,584
Inventory 23.61% 10,200,000 12,240,000 14,688,000 17,625,600 21,150,720
Total Current Assets 18,600,000 22,320,000 26,784,000 32,140,800 38,568,960
Net Fixed Assets 31.94% 13,800,000 16,560,000 19,872,000 23,846,400 28,615,680
Total Assets 32,400,000 38,880,000 46,656,000 55,987,200 67,184,640

Accounts Payable 13.89% 6,000,000 7,200,000 8,640,000 10,368,000 12,441,600

Short-term payables 2.78% 1,200,000 1,440,000 1,728,000 2,073,600 2,488,320
Accrued wages and taxes 4.44% 1,920,000 2,304,000 2,764,800 3,317,760 3,981,312
Total Current Liabilities 9,120,000 10,944,000 13,132,800 15,759,360 18,911,232

Long-Term Debt 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

Paidup Capital+ret.earnings 15,400,000 15,702,400 16,105,600 16,629,760 17,299,072
Ret. Earnings/Funds generated 302,400 403,200 524,160 669,312 843,494
Total Liabilities and
Shareholders' Equity 28,822,400 31,049,600 33,762,560 37,058,432 41,053,798

External Funds Need 3,577,600 7,830,400 12,893,440 18,928,768 26,130,842

External Funds Need for 5 years 26,130,842 Largest amount in line 35

Equity Account balance 15,702,400 16,105,600 16,629,760 17,299,072 18,142,566

Debt Limit = 30 of Capital 6,729,600 6,902,400 7,127,040 7,413,888 7,775,386
Pro-forma Profit and Loss Statement
25% Growth
Ratios Year 1 Year 2 Year 3 Year 4
Sales 45,000,000 56,250,000 70,312,500 84,375,000
COGS 66.67% 30,000,000 37,500,000 46,875,000 56,250,000
S&A Expenses 19.44% 8,750,000 10,937,500 13,671,875 16,406,250
EBIT 6,250,000 7,812,500 9,765,625 11,718,750
Int. on cash equivalents 338,618 106,456 - -
Interest 12.00% 1,380,000 1,380,000 1,380,000 1,380,000
EBT 5,208,618 6,538,956 8,385,625 10,338,750
Taxes 40.00% 2,083,447 2,615,582 3,354,250 4,135,500
PAT 3,125,171 3,923,374 5,031,375 6,203,250
Dividend 30.00% 937,551 1,177,012 1,509,413 1,860,975
Internal Funds Generated 2,187,620 2,746,362 3,521,963 4,342,275
TIE ratio 4.53 5.66 7.08 8.49
Pro-forma Balance Sheet

Cash 2.22% 1,000,000 1,250,000 1,562,500 1,875,000

Cash Equivalents 4,837,400 1,520,800
Receivables 17.22% 7,750,000 9,687,500 12,109,375 14,531,250
Inventory 23.61% 10,625,000 13,281,250 16,601,563 19,921,875
Total Current Assets 24,212,400 25,739,550 30,273,438 36,328,125
Net Fixed Assets 31.94% 14,375,000 17,968,750 22,460,938 26,953,125
Total Assets 38,587,400 43,708,300 52,734,375 63,281,250

Short term debt

Accounts Payable 13.89% 6,250,000 7,812,500 9,765,625 11,718,750
Short-term payables 2.78% 1,250,000 1,562,500 1,953,125 2,343,750
Accrued wages and taxes 4.44% 2,000,000 2,500,000 3,125,000 3,750,000
Total Current Liabilities 9,500,000 11,875,000 14,843,750 17,812,500

Long-Term Debt 11,500,000 11,500,000 11,500,000 11,500,000

Paidup Capital+ret.earnings 15,400,000 17,587,620 20,333,981 23,855,944
Ret. Earnings/Funds generated 2,187,620 2,746,362 3,521,963 4,342,275
Total Liabilities and
Shareholders' Equity 38,587,620 43,708,981 50,199,694 57,510,719
Discrepancy 220 681 (2,534,681) (5,770,531)
External Funds Need (220) (681) 2,534,681 5,770,531

External Funds Need for 5 years

Equity Account balance 17,587,620 20,333,981 23,855,944 28,198,219

Debt Limit = 30 of Capital 7,537,551 8,714,563 10,223,976 12,084,951
Long term debt ratio 0.40 0.36 0.33 0.29
 Year 5
101,250,000
67,500,000
19,687,500
14,062,500
-
1,380,000
12,682,500
5,073,000
7,609,500
2,282,850
5,326,650
10.19

2,250,000

17,437,500
23,906,250
43,593,750
32,343,750
75,937,500

14,062,500
2,812,500
4,500,000
21,375,000

11,500,000
28,198,219
5,326,650

66,399,869
(9,537,631)
9,537,631

33,524,869
14,367,801
0.26
Pro-forma Profit and Loss Statement
25% Growth
Ratios Year 1 Year 2 Year 3 Year 4 Year 5
Sales 45,000,000 56,250,000 70,312,500 84,375,000 101,250,000
COGS 66.67% 30,000,000 37,500,000 46,875,000 56,250,000 67,500,000
S&A Expenses 19.44% 8,750,000 10,937,500 13,671,875 16,406,250 19,687,500
EBIT 6,250,000 7,812,500 9,765,625 11,718,750 14,062,500
Int. on cash equivalents 338,618 106,456 430,192 209,923 -
Interest 12.00% 1,380,000 1,380,000 1,380,000 1,380,000 1,380,000
EBT 5,208,618 6,538,956 8,815,817 10,548,673 12,682,500
Taxes 40.00% 2,083,447 2,615,582 3,526,327 4,219,469 5,073,000
PAT 3,125,171 3,923,374 5,289,490 6,329,204 7,609,500
Dividend 30.00% 937,551 1,177,012 1,586,847 1,898,761 2,282,850
Internal Funds Generated 2,187,620 2,746,362 3,702,643 4,430,443 5,326,650
TIE ratio 4.53 5.66 7.08 8.49 10.19
Pro-forma Balance Sheet

Cash 2.22% 1,000,000 1,250,000 1,562,500 1,875,000 2,250,000

Cash Equivalents 4,837,400 1,520,800 6,145,600 2,998,900
Receivables 17.22% 7,750,000 9,687,500 12,109,375 14,531,250 17,437,500
Inventory 23.61% 10,625,000 13,281,250 16,601,563 19,921,875 23,906,250
Total Current Assets 24,212,400 25,739,550 36,419,038 39,327,025 43,593,750
Net Fixed Assets 31.94% 14,375,000 17,968,750 22,460,938 26,953,125 32,343,750
Total Assets 38,587,400 43,708,300 58,879,975 66,280,150 75,937,500

Short term debt

Accounts Payable 13.89% 6,250,000 7,812,500 9,765,625 11,718,750 14,062,500
Short-term payables 2.78% 1,250,000 1,562,500 1,953,125 2,343,750 2,812,500
Accrued wages and taxes 4.44% 2,000,000 2,500,000 3,125,000 3,750,000 4,500,000
Total Current Liabilities 9,500,000 11,875,000 14,843,750 17,812,500 21,375,000

Long-Term Debt 11,500,000 11,500,000 11,500,000 11,500,000 11,500,000

Paidup Capital+ret.earnings 15,400,000 17,587,620 28,833,981 32,536,624 36,967,067
Ret. Earnings/Funds generated 2,187,620 2,746,362 3,702,643 4,430,443 5,326,650
Total Liabilities and
Shareholders' Equity 38,587,620 43,708,981 58,880,374 66,279,567 75,168,717
Discrepancy 220 681 399 (583) (768,783)
External Funds Need (220) (681) (399) 583 768,783

Debt ratio 0.40 0.36 0.26 0.24 0.21