\begin{tabular}{|r|} \hline Industry Averages 2016 \\ \hline 4.90x \\ \hline 1.30x \\ \hline \\ \hline 33.63 days \\ \hline 15.88 days \\ \hline 51.83 days \\ \hline 30.37 days \\ \hline 19.06 days \\ \hline 112.65 days \\ \hline 2.26x \\ \hline 1.22x \\ \hline 31.5% \\ \hline 25.2% \\ \hline 9.49x \\ \hline 3.35x \\ \hline \\ \hline 40.66% \\ \hline 14.04% \\ \hline 8.85% \\ \hline 10.80% \\ \hline 15.78% \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} 26 27 Exhibit 1 Exhibit 2 Exhibit 3 Sales Analysis Financial Benchmarks Exhibit 4 contains industry average information secured from Statistics Canada. Exhibit 4 Industry Averages \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Vertical Analysis (\%) } \\ \hline \multicolumn{2}{|c|}{ Income Statement 2016 } \\ \hline Sales & 100.00% \\ \hline Cost of sales & 59.34% \\ \hline Gross profit & 40.66% \\ \hline Operating costs & \\ \hline Selling and distribution & 9.32% \\ \hline Research and development & 7.02% \\ \hline Administration & 4.83% \\ \hline Depreciation & 5.45% \\ \hline Operating profit & 14.04% \\ \hline interest & 1.48% \\ \hline Earnings before taxes & 12.56% \\ \hline Taxes & 3.71% \\ \hline Net income & 8.85% \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Vertical Analysis } \\ \hline \multicolumn{2}{|c|}{ Balance Sheet 2016} \\ \hline Cash & 10.95% \\ \hline Accounts receivable & 10.15% \\ \hline Parts inventory & 6.67% \\ \hline WIP inventory & 3.15% \\ \hline Finished goods inventory & 10.28% \\ \hline \multicolumn{1}{|c|}{ Total current assets } & 41.21% \\ \hline \hline Land, plant, and equipment, net & 50.31% \\ \hline Other assets & 8.49% \\ \hline Total assets & 100.00% \\ \hline & \\ \hline Accounts payable & 3.78% \\ \hline Current portion of long-term debt & 4.62% \\ \hline \multicolumn{1}{|c|}{ Total current liabilities } & 8.41% \\ \hline Long-term debt & 23.12% \\ \hline Shareholders' equity & 68.48% \\ \hline Total liabilities and equities & 100.00% \\ \hline \end{tabular} \begin{tabular}{|r|} \hline Industry Averages 2016 \\ \hline 4.90x \\ \hline 1.30x \\ \hline \\ \hline 33.63 days \\ \hline 15.88 days \\ \hline 51.83 days \\ \hline 30.37 days \\ \hline 19.06 days \\ \hline 112.65 days \\ \hline 2.26x \\ \hline 1.22x \\ \hline 31.5% \\ \hline 25.2% \\ \hline 9.49x \\ \hline 3.35x \\ \hline \\ \hline 40.66% \\ \hline 14.04% \\ \hline 8.85% \\ \hline 10.80% \\ \hline 15.78% \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} 26 27 Exhibit 1 Exhibit 2 Exhibit 3 Sales Analysis Financial Benchmarks Exhibit 4 contains industry average information secured from Statistics Canada. Exhibit 4 Industry Averages \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Vertical Analysis (\%) } \\ \hline \multicolumn{2}{|c|}{ Income Statement 2016 } \\ \hline Sales & 100.00% \\ \hline Cost of sales & 59.34% \\ \hline Gross profit & 40.66% \\ \hline Operating costs & \\ \hline Selling and distribution & 9.32% \\ \hline Research and development & 7.02% \\ \hline Administration & 4.83% \\ \hline Depreciation & 5.45% \\ \hline Operating profit & 14.04% \\ \hline interest & 1.48% \\ \hline Earnings before taxes & 12.56% \\ \hline Taxes & 3.71% \\ \hline Net income & 8.85% \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Vertical Analysis } \\ \hline \multicolumn{2}{|c|}{ Balance Sheet 2016} \\ \hline Cash & 10.95% \\ \hline Accounts receivable & 10.15% \\ \hline Parts inventory & 6.67% \\ \hline WIP inventory & 3.15% \\ \hline Finished goods inventory & 10.28% \\ \hline \multicolumn{1}{|c|}{ Total current assets } & 41.21% \\ \hline \hline Land, plant, and equipment, net & 50.31% \\ \hline Other assets & 8.49% \\ \hline Total assets & 100.00% \\ \hline & \\ \hline Accounts payable & 3.78% \\ \hline Current portion of long-term debt & 4.62% \\ \hline \multicolumn{1}{|c|}{ Total current liabilities } & 8.41% \\ \hline Long-term debt & 23.12% \\ \hline Shareholders' equity & 68.48% \\ \hline Total liabilities and equities & 100.00% \\ \hline \end{tabular}