Common Size Common Size Common Size XYZ Plumbing - Income Statement 2019E Revenue CGS Gross Profit 2017 10.000.000 4,500,000 5,500,000 100.0% 45.0% 2018 12,500,000 5,562,500 6,937,500 Assumptions 2018 - 2109 100.0% Revenue increases by 25% ($ basis) 44.5% 55.5% Gross MARGIN increases by 0.05% 2018 2017 2018 S 55.0% S SG&A R&D Deprec & Amort Total Op. Expense XYZ Plumbing - Balance Sheet 2017 ASSETS Cash 1,500,000 AR 1,000,000 Inventory 2,000,000 Pre-paid expenses 500,000 Total Current Assets 5,000,000 2,000,000 1,000,000 500,000 3,500,000 20.0% 10.0% 5.0% 2,375,000 1,000,000 500,000 3,875,000 19.0% SG&A improves by 1.0% % basis) 8.0% R&D increases by 10% ($ basis) 4.0% No change in Deprec & Amort cost 31.0% 1,500,000 1,500,000 2,300,000 600,000 5,900,000 LIABILITIES Accounts Payable Notes Payable Current portion of LTD Accrued Liabilities Total Current Liabilities 1,800,000 1,500,000 1,000,000 700,000 5,000,000 2,000,000 1,500,000 1,000,000 1,520,000 6,020,000 35.09 Operating Profit S 2,000,000 20.0% S 3,062,500 24.5% Long-Term Debt 9,000,000 10,000,000 Building and Improvements Equipment 15,000,000 5,000,000 20,000,000 15,000,000 5,000,000 20,000,000 Interest cost Interest income 805,000 45,000 8.1% 0.5% 875.000 60,000 7.0% 0.5% Interest costs are given Interest income is given 875,000 80,000 Depreciation Net PP&E 500,000 19,500,000 Stockholder's Equity Common Stock at Par Paid in Capital Retained Earnings Total Stockholder's Equity 1,000,000 19,000,000 12.4% 35.09 $ $ 1,240,000 434,000 100,000 9,900,000 500,000 10,500,000 Pre-Tax Tax (35% in 2017. 21% rate in 2018 and 201. 100,000 9,900,000 2,275,525 12.275,525 2,247,500 18.0% 471.975' 21.0% 1,775,525 14.2% See D22 Net Income S 806,000 8.19 S Total Assets 24,500,000 24,900,000 Total Liabilities + Equity 24,500,000 28,295,525 0.08 0.18 EPS - Basic EPS - Diluted Average Shares Outstanding 10,000,000 10,000,000 10,000,000 Diluted Shares Diluted Shares Information Officers and Directors Options Exercise Price 3,000,000 $ 1.00 Publice Warrants Exercise Price 2,500,000 $ 4.00 Stock Price used for calculating Diluted Shares $ 4.50 10.000.000 Diluted Shares Calculation Table Basic Shares O&D warrants Public Total 10,000,000 Proceeds Officers and Directors Public Shareholders Total Proceeds Buyback Price Total Shares repurchased $ 4.50 Diluted Shares Common Size Common Size Common Size XYZ Plumbing - Income Statement 2019E Revenue CGS Gross Profit 2017 10.000.000 4,500,000 5,500,000 100.0% 45.0% 2018 12,500,000 5,562,500 6,937,500 Assumptions 2018 - 2109 100.0% Revenue increases by 25% ($ basis) 44.5% 55.5% Gross MARGIN increases by 0.05% 2018 2017 2018 S 55.0% S SG&A R&D Deprec & Amort Total Op. Expense XYZ Plumbing - Balance Sheet 2017 ASSETS Cash 1,500,000 AR 1,000,000 Inventory 2,000,000 Pre-paid expenses 500,000 Total Current Assets 5,000,000 2,000,000 1,000,000 500,000 3,500,000 20.0% 10.0% 5.0% 2,375,000 1,000,000 500,000 3,875,000 19.0% SG&A improves by 1.0% % basis) 8.0% R&D increases by 10% ($ basis) 4.0% No change in Deprec & Amort cost 31.0% 1,500,000 1,500,000 2,300,000 600,000 5,900,000 LIABILITIES Accounts Payable Notes Payable Current portion of LTD Accrued Liabilities Total Current Liabilities 1,800,000 1,500,000 1,000,000 700,000 5,000,000 2,000,000 1,500,000 1,000,000 1,520,000 6,020,000 35.09 Operating Profit S 2,000,000 20.0% S 3,062,500 24.5% Long-Term Debt 9,000,000 10,000,000 Building and Improvements Equipment 15,000,000 5,000,000 20,000,000 15,000,000 5,000,000 20,000,000 Interest cost Interest income 805,000 45,000 8.1% 0.5% 875.000 60,000 7.0% 0.5% Interest costs are given Interest income is given 875,000 80,000 Depreciation Net PP&E 500,000 19,500,000 Stockholder's Equity Common Stock at Par Paid in Capital Retained Earnings Total Stockholder's Equity 1,000,000 19,000,000 12.4% 35.09 $ $ 1,240,000 434,000 100,000 9,900,000 500,000 10,500,000 Pre-Tax Tax (35% in 2017. 21% rate in 2018 and 201. 100,000 9,900,000 2,275,525 12.275,525 2,247,500 18.0% 471.975' 21.0% 1,775,525 14.2% See D22 Net Income S 806,000 8.19 S Total Assets 24,500,000 24,900,000 Total Liabilities + Equity 24,500,000 28,295,525 0.08 0.18 EPS - Basic EPS - Diluted Average Shares Outstanding 10,000,000 10,000,000 10,000,000 Diluted Shares Diluted Shares Information Officers and Directors Options Exercise Price 3,000,000 $ 1.00 Publice Warrants Exercise Price 2,500,000 $ 4.00 Stock Price used for calculating Diluted Shares $ 4.50 10.000.000 Diluted Shares Calculation Table Basic Shares O&D warrants Public Total 10,000,000 Proceeds Officers and Directors Public Shareholders Total Proceeds Buyback Price Total Shares repurchased $ 4.50 Diluted Shares