FINANCIAL FORECAST The attached financial statements (income statements, balance sheets and statements of cash flow) can be used to assist in forecasting results for the next 1 1 2 half years In addition, the RMA ratios can also be used to determine forecasted financials The assumptions to be used in the forecast are as follows Net sales are forecasted to total $2 7 million, a drop from 2015 to 2016 Net sales are expected to improve in 2017 to a level of $3 million Gross profits are expected to drop to 36 of sales for the entire year 2016 and to drop further to 35 of net sales in 2017 Sales expenses are projected to increase in the second half of 2016 with the total year 2016 amounting to $169,000 Sales expenses for 2017 are projected to increase by 5 over those in 2016 Administrative expenses are expected to increase to a projected $452,400 for all of 2016 and to $481,200 in 2017 Depreciation will amount to $36,300 for all of 2016 and $20,000 for 2017 Other expense will increase to $27,800 for all of 2016 and will amount to $20,800 in 2017 (This results from substantial increases in interest costs resulting from acquisition debt ) Income taxes include both state and federal taxes and will amount to 32 69 of pretax profits in 2016 and 39 22 of pretax profits in 201 (This is a higher rate than that historically experienced because of the previous use of tax credits that reduced income tax to a lower than normal rate ) There will be no profit sharing bonuses in 2016 and 2017 Accounts receivable will amount to 43 days of sales at the end of 2016 and will hold at the same dollar figure at the end of 2017 (Hint Dont enter cash into the balance sheet initially Use cash as the plug figure ) Inventory at the end of 2016 will amount to 59 07days of 2016 Cost of Sales and will hold the same dollar figure at the end of 2017 Prepaid expenses will amount to the same dollar figure at the end of 2016 and 2017 as it was on April 30, 2016 There will be no additions to fixed assets in the last fiscal half of 2016 and additions to fixed assets will amount to $20,000 during 2017 The current portion of long term debt will amount to $49,700 at the end of 2016 and $42,300 at the end of 2017 Accounts payable will amount to 35 43 days of 2016 cost of sales at the end of 2016 and will amount to 35 04 days of 2017 projected cost of sales Accrued expenses will amount to $38,400 at the end of 2016 and $40,000 at the end of 2017 Long term debt net of the current portion will amount to $182,700 at the end of 2016 and to $140,400 at the end of 2017 Common stock will remain at $9,800 at the end of 2016 and 20 Retained earnings will increase or decrease by the amount of after tax profit or loss during the period covered by the statements There will be no distributions from retained earnings to shareholders during the forecast period Lift Truck Attachments, Inc Historical Statements of Cash Flow $ in 000's For Years Ending 1031 Actual Fill in the Blanks Actual Year Ending Year Ending Year Ending 6 Mo Ended 6 Mo Ended Year EndingYear Ending Actual Actual Forecast Forecast Forecast Description Profit After Tax Bonus S34 1 S60 0 S657S222 1 Add Back Depreciation S7 2 Capital Expenditures Additions to Fixed Assets at Cos S10 6 S38 3S26 0 $6 4 Working Capital Needs Accts Receivable (Inc Inventory (Incr ) Decr Prepaid Exp (Incr ) Accts Payable (Decr ) Accrued Exp (Decr ) I $31 1 $17 5 $57 6 S9 7 S12 1 27 3$23 8 52 5 S21 8S60 5S30 3 S7 8 S51 4 S2 4 $22 2 S7 6 S18 61 S4401 S1467 S58 8 S258 2 Total Working Capital S24 5 $49 1 Loans (Decr ) Incr Cash Flow Beginning Cash S53 4 S79 9S40 6 S5 3 $26 3 S79 7 $159 6$119 0S113 7 Z $159 6 $119 0$11 3 7 S119 0 Ending Cash Lift Truck Attachments, Inc Historical Statements of Cash Flow $ in 000's For Years Ending 1031 Actual Fill in the Blanks Actual Year Ending Year Ending Year Ending 6 Mo Ended 6 Mo Ended Year EndingYear Ending Actual Actual Forecast Forecast Forecast Description Profit After Tax Bonus S34 1 S60 0 S657S222 1 Add Back Depreciation S7 2 Capital Expenditures Additions to Fixed Assets at Cos S10 6 S38 3S26 0 $6 4 Working Capital Needs Accts Receivable (Inc Inventory (Incr ) Decr Prepaid Exp (Incr ) Accts Payable (Decr ) Accrued Exp (Decr ) I $31 1 $17 5 $57 6 S9 7 S12 1 27 3$23 8 52 5 S21 8S60 5S30 3 S7 8 S51 4 S2 4 $22 2 S7 6 S18 61 S4401 S1467 S58 8 S258 2 Total Working Capital S24 5 $49 1 Loans (Decr ) Incr Cash Flow Beginning Cash S53 4 S79 9S40 6 S5 3 $26 3 S79 7 $159 6$119 0S113 7 Z $159 6 $119 0$11 3 7 S119 0 Ending Cash

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FINANCIAL FORECAST The attached financial statements (income statements, balance sheets and statements of cash flow) can be used to assist in forecasting results for the

FINANCIAL FORECAST

The attached financial statements (income statements, balance sheets and statements of cash flow) can be used to assist in forecasting results for the next 1-1/2 half years. In addition, the RMA ratios can also be used to determine forecasted financials. The assumptions to be used in the forecast are as follows:

Net sales are forecasted to total $2.7 million, a drop from 2015 to 2016. Net sales are expected to improve in 2017 to a level of $3 million
Gross profits are expected to drop to 36% of sales for the entire year 2016 and to drop further to 35% of net sales in 2017.
Sales expenses are projected to increase in the second half of 2016 with the total year 2016 amounting to $169,000. Sales expenses for 2017 are projected to increase by 5% over those in 2016.
Administrative expenses are expected to increase to a projected $452,400 for all of 2016 and to $481,200 in 2017.
Depreciation will amount to $36,300 for all of 2016 and $20,000 for 2017.
Other expense will increase to $27,800 for all of 2016 and will amount to $20,800 in 2017. (This results from substantial increases in interest costs resulting from acquisition debt.)
Income taxes include both state and federal taxes and will amount to 32.69% of pretax profits in 2016 and 39.22% of pretax profits in 201 (This is a higher rate than that historically experienced because of the previous use of tax credits that reduced income tax to a lower than normal rate.)
There will be no profit sharing bonuses in 2016 and 2017.
Accounts receivable will amount to 43 days of sales at the end of 2016 and will hold at the same dollar figure at the end of 2017. (Hint: Dont enter cash into the balance sheet initially. Use cash as the plug figure.)
Inventory at the end of 2016 will amount to 59.07days of 2016 Cost of Sales and will hold the same dollar figure at the end of 2017.
Prepaid expenses will amount to the same dollar figure at the end of 2016 and 2017 as it was on April 30, 2016.
There will be no additions to fixed assets in the last fiscal half of 2016 and additions to fixed assets will amount to $20,000 during 2017.
The current portion of long term debt will amount to $49,700 at the end of 2016 and $42,300 at the end of 2017.
Accounts payable will amount to 35.43 days of 2016 cost of sales at the end of 2016 and will amount to 35.04 days of 2017 projected cost of sales.
Accrued expenses will amount to $38,400 at the end of 2016 and $40,000 at the end of 2017.
Long term debt net of the current portion will amount to $182,700 at the end of 2016 and to $140,400 at the end of 2017.
Common stock will remain at $9,800 at the end of 2016 and 20
Retained earnings will increase or decrease by the amount of after tax profit or loss during the period covered by the statements.
There will be no distributions from retained earnings to shareholders during the forecast period.

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Lift Truck Attachments, Inc Historical Statements of Cash Flow $ in 000's For Years Ending 1031 Actual Fill in the Blanks Actual Year Ending Year Ending Year Ending 6 Mo. Ended 6 Mo. Ended Year EndingYear Ending Actual Actual Forecast Forecast Forecast Description Profit After Tax & Bonus S34.1 S60.0 S657S222.1 Add Back Depreciation S7.2 Capital Expenditures- Additions to Fixed Assets at Cos S10.6 S38.3S26.0 $6.4 Working Capital Needs Accts. Receivable (Inc Inventory (Incr.) Decr Prepaid Exp. (Incr.) Accts. Payable (Decr.) Accrued Exp. (Decr.) I $31.1 $17.5 -$57.6 S9.7-S12.1 27.3$23.8 52.5 S21.8S60.5S30.3 S7.8 S51.4 S2.4-$22.2 S7.6 S18.61 S4401 -S1467 S58.8 -S258.2 Total Working Capital S24.5 -$49.1 Loans (Decr.) Incr Cash Flow Beginning Cash S53.4 S79.9S40.6 S5.3 $26.3 S79.7 $159.6$119.0S113.7 Z $159.6 $119.0$11 3.7 S119.0 Ending Cash Lift Truck Attachments, Inc Historical Statements of Cash Flow $ in 000's For Years Ending 1031 Actual Fill in the Blanks Actual Year Ending Year Ending Year Ending 6 Mo. Ended 6 Mo. Ended Year EndingYear Ending Actual Actual Forecast Forecast Forecast Description Profit After Tax & Bonus S34.1 S60.0 S657S222.1 Add Back Depreciation S7.2 Capital Expenditures- Additions to Fixed Assets at Cos S10.6 S38.3S26.0 $6.4 Working Capital Needs Accts. Receivable (Inc Inventory (Incr.) Decr Prepaid Exp. (Incr.) Accts. Payable (Decr.) Accrued Exp. (Decr.) I $31.1 $17.5 -$57.6 S9.7-S12.1 27.3$23.8 52.5 S21.8S60.5S30.3 S7.8 S51.4 S2.4-$22.2 S7.6 S18.61 S4401 -S1467 S58.8 -S258.2 Total Working Capital S24.5 -$49.1 Loans (Decr.) Incr Cash Flow Beginning Cash S53.4 S79.9S40.6 S5.3 $26.3 S79.7 $159.6$119.0S113.7 Z $159.6 $119.0$11 3.7 S119.0 Ending Cash