Assuming strong performance in 2006, will this improve the cash position? Use the information provided in your team's Excel workbook to calculate the estimated cash position for 2006. Maggie assumes 2006 Deprecation and Capital Expenditures of $46,000 and $75,000, respectively. Remaining variables will use 2005 estimates.

Financial Ratio Analysis and Benchmarking
	2002	2003	2004	2005		Benchmark1
Revenue growth	2.9%	2.4%	12.5%	15.5%		(1.8)%
Gross margin (Gross profit / Revenue)	48.9%	46.9%	51.8%	52.0%		48.9%
Operating margin (Op. profit / Revenue)	6.4%	4.8%	8.6%	9.5%		7.6%
Net profit margin (Net profit / Revenue)	4.1%	3.1%	5.7%	5.8%		2.8%
Return on assets (Net profit / Total assets)	3.2%	2.4%	4.7%	5.1%		2.9%
Return on capital (Net profit / Total capital)	3.3%	2.5%	4.8%	5.4%		4.0%
Receivable days (AR / Revenue * 365)	41.9	45.0	48.0	50.9		21.8
Inventory days (Inventory / COGS * 365)	424.2	432.1	436.5	476.3		386.3
Payable days (AP / Purchases * 365)	15.6	13.3	10.2	9.9		26.9
NFA turnover (Revenue / NFA)	2.4	2.4	2.4	3.0		2.7
1Benchmark figures are based on 2004 financial ratios of publicly traded horticulture producers.

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