Exhibit 1 Operating Statements for Years Ending December 31, 2004-2006, and for the first quarter 2007 (thousands of dollars) \begin{tabular}{l|r|r|r|r} \hline & & & & \\ \hline & & & & \\ \hline & 2004 & 2005 & 2006 & 20072 \\ \hline Net sales & $1,624 & $1,916 & $2,242 & $608 \\ \hline Cost of goods sold & $1,304 & $1,535 & $1,818 & $499 \\ \hline Gross profit on sales & $320 & $381 & $424 & $109 \\ \hline & & & & \\ \hline Operating expense & $272 & $307 & $347 & $94 \\ Interest expense & $27 & $30 & $31 & $8 \\ \hline Net income before taxes & $21 & $44 & $46 & $7 \\ \hline & & & & \\ \hline Provision for income taxes & $7 & $15 & $16 & $2 \\ \hline Net income & $14 & $29 & $30 & $5 \\ \hline \hline \end{tabular} Sources \& Uses: January 1, 2005 to December 31, 2006 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[t]{3}{*}{2007 Sales } & 2700 & & & & & & & & & \multirow[b]{2}{*}{ With discount } \\ \hline & & & & First Quarter & & & & & Without discount & \\ \hline & 2004 & 2005 & 2006 & 2007 a & 2004 & 2005 & 2006 & \%of sales 2007 & & \\ \hline Net sales & $1,624 & $1,916 & $2,242 & $608 & & & & & 2,700.0 & 2,700.0 \\ \hline Cost of goods sold & $1,304 & $1,535 & $1,818 & $499 & 80.30% & 80.10% & 81.10% & 82.10% & 2,216.70 & 2,162.7 \\ \hline Gross profit on sales & $320 & $381 & $424 & $109 & & & & & 483.3 & 537.3 \\ \hline Operating expense & $272 & $307 & $347 & $94 & 16.75% & 16.04% & 15.46% & 15.46% & 417.3 & 417.3 \\ \hline Interest expense & $27 & $30 & $31 & $8 & & & & & 31.0 & 31.0 \\ \hline Net income before taxes & $21 & $44 & $46 & $7 & & & & & 34.99 & 89.0 \\ \hline Provision for income taxes ( 35%) & $7 & $15 & $16 & $2 & & & & & 12.25 & 31.15 \\ \hline Net income & $14 & $29 & $30 & $5 & & & & & 22.7 & 57.8 \\ \hline Profit margin & 0.85% & 1.50% & 1.34% & 0.78% & & & & & 0.84% & 2.14% \\ \hline \multicolumn{11}{|c|}{ (see how profit margin changes with and without discount) } \\ \hline & & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline \multicolumn{11}{|c|}{ with discount: if the discount offered by suppliers is taken (i.e., Jones pays its suppliers in 10 days) } \\ \hline without discount: if the discount & red by su & liers is N & OT taken ( & (i.e., Jones pay & ys its supplie & fter 10 days) & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & 2004 & 2005 & 2006 & \begin{tabular}{l} First \\ Quarter \\ 2007 \end{tabular} & \%of sales 2004 & \%of sales 2005 & \%of sales 2006 & \begin{tabular}{l} 2007 Forecast \\ (without \\ discount) \end{tabular} & \begin{tabular}{l} 2007 \\ Forecast \\ (with \\ discount) \end{tabular} \\ \hline Cash & $45 & $53 & $23 & $32 & 2.77% & 2.77% & 1.03% & $27.70 & $27.70 \\ \hline Accounts receivable & $187 & $231 & $264 & $290 & 11.51% & 12.05% & 11.78% & $318.08 & $318.08 \\ \hline Inventory & $243 & $278 & $379 & $432 & 14.96% & 14.48% & 16.89% & $455.94 & $455.94 \\ \hline Total current assets & $475 & $562 & $666 & $755 & & & & $801.72 & $801.72 \\ \hline Property \& equipment & $187 & $202 & $252 & $252 & & & & $252.00 & $252.00 \\ \hline Accumulated depreciation & ($74) & (\$99) & ($134) & ($142) & & & & ($134.00) & ($134.00) \\ \hline Total PP\&E, net & $113 & $103 & $118 & $110 & & & & $118.00 & $118.00 \\ \hline Total assets & $588 & $665 & $784 & $865 & & & & $919.72 & $919.72 \\ \hline Accounts payable & $36 & $42 & $120 & $203 & & & & 224.71 & $59.25 \\ \hline Line of credit payable & $149 & $214 & $249 & $250 & & & & $249 & $249 \\ \hline Accrued expenses & $13 & $14 & $14 & $12 & 0.80% & 0.71% & 0.64% & $17.26 & $17.26 \\ \hline Long term debt, current portion & $24 & $24 & $24 & $24 & & & & $24 & $24 \\ \hline Current liabiliities & $222 & $294 & $407 & $489 & & & & $515.15 & $349.70 \\ \hline Long-term debt & $182 & $158 & $134 & $128 & & & & $110 & $110 \\ \hline Total liabilities & $404 & $452 & $541 & $617 & & & & $625.15 & $459.70 \\ \hline Net worth & $184 & $213 & $243 & $248 & & & & $265.42 & $300.52 \\ \hline Total liabilities and net worth & $588 & $665 & $784 & $865 & & & & $890.57 & $760.21 \\ \hline Additional funds needed & & & & & & & & $29.15 & $159.51 \\ \hline \multicolumn{10}{|l|}{ Cash Conversion Cycle } \\ \hline Payable deferral period & 10 & 10 & 24 & 37.1 & & & & & \\ \hline Inventory conversion period & 36.5 & 36.5 & 15.2 & 9.8 & & & & & \\ \hline \multicolumn{10}{|l|}{ DSO } \\ \hline & & & & & & & & & \\ \hline & & & & & & & & & \\ \hline Accounts payable with 10 day payable deferral period & 59.25 & & & & & & & & \\ \hline Accounts paybale without discount & $224.71 & & & & & & & & \\ \hline \multicolumn{10}{|c|}{ with discount: if the discount offered by suppliers is taken (i.e., Jones pays its suppliers in 10 days) } \\ \hline \multicolumn{10}{|c|}{ without discount: if the discount offered by suppliers is NOT taken (i.e., Jones pays its suppliers after 10 days) } \\ \hline \multicolumn{10}{|c|}{ Calculate the four ratios below for 2004,2005,2006 and 2007 forecasts: } \\ \hline \multicolumn{10}{|l|}{ Total debt } \\ \hline \multicolumn{10}{|l|}{ Debt/Equity } \\ \hline \multicolumn{10}{|l|}{ Debt/Total assets } \\ \hline \multicolumn{10}{|l|}{ Current ratio (CA/CL)} \\ \hline & & & & & & & & & \\ \hline \multicolumn{10}{|c|}{ *internal growth rate will help you understand how much the company } \\ \hline \multicolumn{10}{|l|}{ can grow without raising external capital } \\ \hline \multicolumn{10}{|l|}{ ROA (with discount) (Net income/Total Assets) } \\ \hline Internal growth rate (with discount) & 0.0% & & & & & & & & \\ \hline \end{tabular}