1.LYRIX Panels Inc. (LPI) is a manufacturer of speciality panels, small tools for the panel industry, as well as sales of solar panel, which they build for other manufacturers.The company has been in business since 2015, results include 2020 and 2021.The company through its Board of Directors is developing a plan to acquire more equipment to expand its current facilities. The Board is recommending purchasing $250,000 of new equipment each year and wants to put away cash reserves to purchase the property next to at which has a value of $3,000,000.

The CFO who sits on the Board is concerned the Board may have unrealistic goals considering LPI's recent financial performance.The CFO is preparing a report to the Board outlining the concerns.

LYRIX Panels Inc. Income Statement (Cash Basis) For the Years Ended June 30 (in thousands) 2021 2020 Revenues: Speciality Panels $ 475,000 S 400,000 Solar Panels 275,000 235,000 Tools for Panel Industry 4,000 2,500 Total Revenues $ 754,000 637,500 Expenses: Management Wages $ 66,000 S 66,000 Plant Wages 225,000 225,000 Plant Supplies 235,000 175 Utilties 68,000 61 Bank Charges and Interest 45,100 47,800 Miscellaneous 4,000 2,500 Total Expenses $ 643,100 S 341,536 Cash = $ 110,900 S 295,965