Conduct a Scenario and Sensitivity Analysis

Ratio Analysis
Sales Growth	0.00%	71.93%	10.00%	8.66%
Percent of Total Assets
Accounts Receivable	39.26%	47.53%	39.18%	30.00%
Inventory	6.30%	4.13%	3.41%	23.04%
Other Current Assets	0.00%	0.00%	0.00%	22.61%
Total Current Assets	50.64%	65.87%	74.89%	75.65%
Long-term Assets	49.36%	34.13%	25.11%	24.35%
Total Assets	100.00%	100.00%	100.00%	100.00%
Current Liabilities	11.39%	8.13%	6.78%	37.93%
Long-term Liabilities	82.18%	49.60%	30.98%	14.30%
Total Liabilities	93.57%	57.74%	37.75%	52.23%
Net Worth	6.43%	42.26%	62.25%	47.77%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	71.80%	71.61%	71.61%	22.53%
Selling, General & Administrative Expenses	26.12%	0.00%	0.00%	5.73%
Advertising Expenses	0.00%	0.00%	0.00%	0.36%
Profit Before Interest and Taxes	14.20%	32.85%	31.89%	2.95%
Main Ratios
Current	4.45	8.10	11.05	1.88
Quick	3.89	7.59	10.55	1.19
Total Debt to Total Assets	93.57%	57.74%	37.75%	53.00%
Pre-tax Return on Net Worth	235.49%	127.55%	70.16%	4.52%
Pre-tax Return on Assets	15.14%	53.91%	43.67%	9.61%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	7.38%	21.70%	21.32%	n.a
Return on Equity	164.84%	89.29%	49.11%	n.a
Activity Ratios
Accounts Receivable Turnover	3.66	3.66	3.66	n.a
Collection Days	56	79	95	n.a
Inventory Turnover	4.31	11.52	12.51	n.a
Accounts Payable Turnover	6.18	12.17	12.17	n.a
Payment Days	27	30	28	n.a
Total Asset Turnover	1.44	1.74	1.43	n.a
Debt Ratios
Debt to Net Worth	14.55	1.37	0.61	n.a
Current Liab. to Liab.	0.12	0.14	0.18	n.a
Liquidity Ratios
Net Working Capital	$48,483	$101,270	$159,416	n.a
Interest Coverage	3.88	17.72	22.36	n.a
Additional Ratios
Assets to Sales	0.70	0.57	0.70	n.a
Current Debt/Total Assets	11%	8%	7%	n.a
Acid Test	0.45	1.75	4.77	n.a
Sales/Net Worth	22.34	4.12	2.30	n.a
Dividend Payout	0.00	0.00	0.00	n.a

Pro Forma Balance Sheet
Assets
Current Assets
Cash	$6,281	$24,923	$75,599
Accounts Receivable	$48,486	$83,363	$91,699
Inventory	$7,780	$7,251	$7,976
Other Current Assets	$0	$0	$0
Total Current Assets	$62,547	$115,537	$175,274
Long-term Assets
Long-term Assets	$62,160	$62,160	$62,160
Accumulated Depreciation	$1,200	$2,300	$3,400
Total Long-term Assets	$60,960	$59,860	$58,760
Total Assets	$123,507	$175,397	$234,034
Liabilities and Capital	Year 1	Year 2	Year 3
Current Liabilities
Accounts Payable	$14,064	$14,267	$15,859
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$14,064	$14,267	$15,859
Long-term Liabilities	$101,500	$87,000	$72,500
Total Liabilities	$115,564	$101,267	$88,359
Paid-in Capital	$10,000	$10,000	$10,000
Retained Earnings	($15,150)	($2,057)	$64,130
Earnings	$13,093	$66,187	$71,546
Total Capital	$7,943	$74,130	$145,675
Total Liabilities and Capital	$123,507	$175,397	$234,034
Net Worth	$7,943	$74,130	$145,675

Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales	$0	$0	$0
Cash from Receivables	$128,939	$270,176	$327,221
Subtotal Cash from Operations	$128,939	$270,176	$327,221
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
Subtotal Cash Received	$128,939	$270,176	$327,221
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$58,819	$63,654	$70,689
Bill Payments	$72,830	$173,380	$191,356
Subtotal Spent on Operations	$131,649	$237,034	$262,045
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$14,500	$14,500	$14,500
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
Subtotal Cash Spent	$146,149	$251,534	$276,545
Net Cash Flow	($17,209)	$18,642	$50,676
Cash Balance	$6,281	$24,923	$75,599