A B C D E F G H J K 123456780 Proforma Assumptions 1998 1Q 2Q 3Q 4Q 6 Annual sales growth 7 Quarterly sales percentages 8 Salaries % S 10.1% 33.0% 23.9% Highly uncertain, assuming no annual growth 33.0% Exhibit 5b 28.8% 22.1% 24.0% 9 Other cost % S 16.4% 14.2% 16.3% 21.6% Ignore case info, assume same ratio as last year 17.0% same as 1997 10 Depreciation % S 13.7% 3.6% 4.7% 6.2% same as 1997 11 G&A exp % S 52.8% 16.7% 31.9% 41.9% same as 1997 12 Other G & A exp % S 34.2% 13.4% 20.1% 19.4% same as 1997 13 Bad debt % S 0.0% 0.6% 0.0% 0.0% same as 1997 14 Distribution % NI -9% 0% 0% -28% same as 1997, they might give money even with net loss 15 16 Cash % S 1.0% 1.0% 1.0% 17 ACP 55 41 41 38 18 Loans to shareholders & affiliate 6 6 6 19 OCA % S 1.0% 1.0% 1.0% 20 21 A/P & accrual days 49 37 49 26 AP*91/COGS 22 Current installments of term debt 75 75 75 75 23 Term notes payable less current install. 24 Interest bearing debt 25 Interest rate 26 Net property & equipment 446 438 442 1.0% min cash of 1% throughout ACP=AR*91/Sale 6 Page 9:24,263 annually, divide by four for quarterly 1.0% 1% per quarter No change from Q4 18.82 reduce by an average quarterly number Average of past two Quarter 2.24% 2.05% 2.26% 2.19% Average the interest rate 59 66 (73) 17 Average Net property increase A G H K M N P Q R S T Interest rate 26 Net property & equipment B D E 2.24% 59 2.05% 66 2.26% (73) 2.19% Average the interest rate Proforma Income Statements 17 Average Net property increase 1997 1998 32 10 20 3Q 4Q 1Q 20 3Q 4Q YR 33 34 Revenue 238 894 35 Cost of revenue 36 Salaries 68 37 Other cost of revenue 39 38 Depreciation 33 39 Total 140 40 Gross profit 98 41 Operating expenses 42 General & admin. Salaries 125 43 Other G&A expenses 81 44 Bad debt expense 45 Total 46 Earnings from operations 47 Net interest 48 Net earnings 49 Distributions to shareholders 50 Earnings retained 207 (109) 9 (118) 11 (129) - R.[E 2 . 819 268 875 633 875 2,650 77 193 152 189 611 44 124 103 149 420 37 32 30 54 152 8 6.35 6 6 26 51 A B C (60) (77) Proforma Balance Sheets D E F H K L M N 54 55 56 57 58 59 60 Current assets 61 Cash 62 Accounts receiveable 63 Loans to shareholders & affiliate 64 Other current assets 65 Total 66 Net property & equipment 1997 1998 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 13 401 51 2 467 686 72 72 888 1,224 (3) 3 163 9 6 9 392 289 370 24 24 24 24 , 2 74 486 562 1,124 | ' 67 Loans to shareholders & affiliate 68 Total assets 69 70 Current liabilities 71 Borrowings under bank line of credit (Notes 68 97 72 Current installments of term debt 71 72 73 Accounts payable and accruals 75 145 74 Total CL 214 314 75 Term notes payable less current install. 296 279 76 Other term notes 4 4 77 Total liabilities 515 597 79 78 Equity Common stock 80 Additional paid-in-capital 2 2 74 74 81 Retained earnings 297 551 82 Total equity 373 627 83 Total liabilities & equity 888 1,224 84 85 696 713 730 70 64 58 747 52 75 75 75 Could use goal seek, or could caluculate directly 75 Same as last Quarter Use APD 224 206 187 168 Same as last Quarter Same as last Quarter Same as last Quarter