1. Use data provided in the accompanying spreadsheet to create common-sized balance sheets and income statements based on the projected data.

PWBI Financial Statement Proiections 3 Income Statements 5 Net Sales 6 Cost of Goods Sold 7 Gross Profit $ 4,341,600 $ 11,793,600 $ 21,124,800 100.00% 100.00% 100.00% 63.01% 36.99% S 2,637,924 7,306,571 S 13,311,026 S 1,703,676 S 4,487,029$7,813,774 60.76% 39.24% 61.95% 38.05% 9 SGA Expenses 10 Commissions 11 Salaries and wages 12 Payroll expense S 494,942 1,344,470 S2,408,227 575,000 115,000 800,000 42,000 11.40% 11.40% 2.33% 0.47% 6.78% 0.36% 11.40% 2.72% 275,000 S 55,000 S 800,000 S 42,000 S 0.00% 13.47% 0.81% 15 Trade show expense 16 Miscellaneous 17 Depreciation 18 Total SGA 19 20 EBIT 21 Interest Expense S 585,000 S 35,000 S 25,000 S 52,700 S 25,000 S 3.79% 0.20% 0.00% 0.6396 0.10% 19.39% 82,900 S 23,200 S 133,150 21,900 570 S4,095,277 1.21% 0.58% 28.0596 0.70% 0.20% 22.2496 s 1.217642 2622570 S 486,034 S 1,864,459 $3,718,497 28,484 11.19% 15.81% 0.25% 17.60% 0.13% 29,548 S 29,548 S 182,594 $ 733,964 1476,005 4.21% 23 Taxes 24 25 Net Income 26 27 28 Current Assets 6.99% S 273,892 S 1,100,947S2,214,008 6.31% 9.34% 10.48% Balance Sheets End of Initial Year 6/30/2007 6/30/2008 6/30/2009