Beta Protection Company Assets (in thous.) Cash Accts.Rec. Prev Year Current Year Over full capacity so fixed assets rise Forecast Sales growth of 20% Projected Next Yr. Balance Sheet Under capacity so no New Fixed Assets needed Forecast Sales growth of 10% Projected Next Yr. Balance Sheet 890.98 880 400 150 180 500 800 960 Inventory 1450 2000 2400 2200 Total Current Assets 2350 2950 3540 3970.98 Gross Fixed Assets 2000 2800 3456 2800 Less Accum. Depreciation -950 -1250 -1850 -1550 Net Fixed Assets 1050 1550 1606 Total Assets 3400 4500 5146 1250 5220.98 Liabilities & Equity Accounts Payable 300 400 480 440 Accrued Liabilities 100 150 180 165 1 Year Bank Loan 150 250 344 250 Total Current Liabilities 550 800 1004 855 Long-term Debt 150 150 150 150 Total Debt 700 950 1154 1005 Common Stock 850 1100 1100 Retained Earnings 1850 2450 $2,892 1100 $3,115.98 Total Equity 2700 3550 $3,992 $4,215.98 Total Liabilities & Equity 3400 4500 $5,146 $5,220.98 (in thous.) 20% Growth 10% Growth Net Sales Income Statement Cost of Goods Sold Gross Profit Prev. Year Current Year Projected Income St. Projected Income St. 3750 4500 5400 4950 2250 2700 3240 2970 1500 1800 2160 1980 Operating Expenses 670 860 1460 946 Operating Profit 830 940 700 1034 Interest Expense 30 40 40 40 Earnings before taxes 800 900 660 994 Income Taxes 250 300 217.8 328.02 Net Income 550 600 442.2 665.98 Dividend Paid 0 0 0 0 Additionto RE $550 $600 $442 $665.98 Net Income $300.00 Plus Chg Depr. Current Year Indirect Cash fFlow Statement Cash from Operations Net Income Plus Change in Depreciation (in thous.) $600.00 Forecast Indirect Cash Flow Statement Next Year 20% Growth in Sales Cash from Operations (in thous.) Forecast Indirect Cash Flow Statemt Next year 10% Growth in Sales Cash from Operations (in thous.) $442.00 Net Income $665.98 $600.00 Plus Chg. Depr. $300.00 Total Net Income + Depr. $900.00 NI plus Depr. $1,042.00 NI plus Depr. $965.98 Less Rise in Accounts Receivable -$300.00 Less Rise AR -$160.00 Less Rise AR -$80.00 Less Rise in Inventory -$550.00 Less Rise Inv. -$400.00 Less Rise Inv. -$200.00 Plus Rise in Accounts Payable $100.00 Plus Rise AP $80.00 Plus Rise AP $40.00 Plus Rise in Accrued Liabilities Net Cash from Operations $50.00 Plus RiseAccLib $30.00 Plus Rise AL $15.00 $200.00 Net CFO $592.00 Net CFO $740.98 Cash Used in Investing Cash Used in Investing Change Gross Fixed Assets $800.00 Change GFA $656.00 Cash Used in Inv. Change GFA $0.00 Net Cash Used in Investing $800.00 Net CFI Net CFI Cash from Financing Cash from Financing Cash from Financing Less Dividends Paid Plus Rise in S.T. Bank Loans $0.00 Dividend Paid $0.00 Dividend Paid $0.00 $100.00 Rise in STLoan $94.00 Change ST Debt $0.00 Plus Rise in Long-term Debt Plus Rise in Common Stock Net Cash from Financing Change in Cash CFO-CFI+CFF Check Change in Cash Balance $0.00 Rise in LTDebt $0.00 Change LTD $0.00 $250.00 Rise in ComSt. $0.00 Change Com. Stock $0.00 $350.00 Net CFF $94.00 Net CFF $0.00 -$250.00 Change Cash $30.00 Change Cash $740.98 -$250.00 CheckChgCash $30.00 Check Chg Cash $740.98 Financial Ratios Solvency Ratios Current Ratio Quick Ratio Total Debt to Total Assets Long-term Debt to Total Assets Cash Flow Liquidity Ratios Days Accounts Receivables Next Year Forecast 20% Next Year Forecast 10% Pre. Yr. Cur. Yr. growth Sales growth Sales 4.27 3.69 3.53 4.64 1.64 1.19 1.14 20.59% 21.11% 22.43% 2.07 19.25% 4.41% 3.33% 12.99% 2.87% Prev Yr Cur. Yr. Prev. Yr. Current Yr. 48.67 64.89 64.89 64.89 Days Inventory 235.00 270.37 270.37 270.37 Days Operating Cycle 283.67 335.26 335.26 335.26 Days Accts Payable & Accr Liabs. 64.90 74.35 74.35 Days Cash to Cash Cycle 218.77 260.91 260.91 74.35 260.91 DuPont Profitability Ratios Prev Year Cur Yr 20% grow 10% grow Return on Equity 20.37% 16.90% 11.08% 15.80% Return on Assets 16.18% 13.33% 8.59% 12.75% Operating Return on Assets 24.41% 20.89% 13.60% 19.81% Equity Multiplier 1.26 1.27 1.29 1.23 Asset Utilization 1.10 1.00 1.05 0.95 Net Profit Margin 14.67% 13.33% 8.19% 13.45% Gross Profit Margin 40.00% 40.00% 40.00% 40.00% Operating Profit Margin 22.13% 20.89% 12.96% 20.89% Assumptions: No change in working capital policies under either growth rate.