For this assignment you will take on the role of Brad (or Brandy) Banker who works as a credit analysis for Big Bucks Lending. Your job is to evaluate Wacky Wines loan request. As a relatively new credit analyst, you will not get to make the final determination on the loan. Instead you will present your results and recommendation to the credit committee of Big Bucks Lending in a memo.

The members of the Committee are extremely well versed in finance. Hence, do not dedicate a great deal of space to explaining simple finance concepts. The members are looking for advanced analysis with evidence of critical thinking. The members always appreciate well written memos that make appropriate use of correct grammar and spelling. They are also very busy evaluating several loan proposals therefore memos written in a concise manner are better received. In order to complete the analysis of the loan request use the information below and the two sets of provided pro forma financial statements (expected and worst cases). Your memo should clearly state your recommendation regarding the loan with a supporting analysis. You must justify your decision using both qualitative and quantitative analyses. If you have just one page of analysis, I will not read it. You will earn a zero.

More specifically, please evaluate the loan request using the 5 C's of Credit. You must explicitly address each of the C's in your memo. Please use the ratios (liquidity, solvency, profitability, repayment capacity, efficiency, etc.) that we discussed in class to support your analysis. A competent analysis will include a discussion of the company's past performance in terms of the financial ratios as well as also assess projected cash flow/ratios under various scenarios (expected and worst cases). In other words, you are expected to calculate relevant ratios for the historic data (years 2012, 2013, 2014 and 2015) as well as for projected years (2016, 2017 and 2018) for both the expected and worst case scenarios. Note: You are asked to calculate a certain number of each type of ratio, however, do not use two ratios that convey the same information (e.g., asset turnover and capital intensity; or debt-equity ratio and equity multiplier) as these count as just one ratio.

In addition, you are expected to conduct Du Pont analysis of ROE for all years (historic and projected) for all cases (expected and worst). Recall, that Du Pont analysis is useful for identifying the drivers of ROE and hence you must show all three parts of the analysis (profit margin, asset turnover, and the equity multiplier).

Banks often request that potential borrowers submit additional information to support their loan application. Discuss additional factors/information that you would like Dr. Frenz and Mr. Wolf to supply to assist the Committee in making a final determination about the project's credit worthiness.

The course website will only allow you to submit one document in Microsoft word format. Thus, you will need to embed your excel tables and graphs in your word document before uploading your write-up to the course website.

Wacky Wines opened in 2009 as a boutique wine retailer specializing in hard to find premium wines from around the world. Wacky Wines is unlike other wine retailers in that it employs several level 3 sommeliers who are available to assist costumers whenever the store is open. In addition, Wacky Wines offers an innovative interactive wine of the month club. When members enroll, they complete a survey that indicates their wine preferences. Each month each member receives a custom selection of wines based on his/her preferences. The member then rates the selections and future wines received through the club are selected based on the member's prior ratings. Because of this customization, Wacky Wines is able to charge a premium on its wine club memberships relative to other on-line clubs. In addition, Wacky Wines requires members to pick up their club selections at the store. On average, club members purchase six additional bottles of wine when they pick up their customized club selections.

As a result of these innovative marketing activities as well as traditional marketing techniques such as regular wine tastings events and discounts on cases, Wacky Wines has achieved accolades from Somm and Wine Spectator magazines. Hence, Wacky Wines has brand recognition and is ready to expand into two new locations while maintaining its flagship store located in Manhattan. Wacky Wines is requesting a $550,000 real estate loan to purchase retail space (along with furniture and fixtures, signage, etc.) to open new stores in Washington, DC and Boca Raton, FL. If the expansion is successful, Wacky Wines would like to open an additional store in LA. However, Wacky Wines views expansions into the California market as being more risky due to the presence of serval competitors and close proximity to Napa and Sonoma. Washington, DC and Boca Raton, FL were chosen as optimal expansion locations based on the per capita incomes of residents, per capital wine expenditures, and other market research.

Wacky Wines is owned and operated as a LLC by Dr. Kropp and her partner Mr. Wolf. Dr. Kropp and Mr. Wolf met in college where Kropp studied finance and Wolf studied food and beverage management with a minor in viticulture. After receiving her doctorate, Kropp taught finance at a prestigious university for several years before opening Kropp's Hops Brewery. Unfortunately, Kropp's Hops Brewery suffered from liquidity issues, product quality issues (Kropp had no idea how to make beer), and low profits due to stiff competition and went out of business three years after opening. Realizing the shortcomings of her prior business failure, Kropp contacted Wolf who had developed a stellar reputation as an industry leader in the wine world sinceentering the industry in 2001. Wolf's contactsand reputation are responsible for Wacky Wines ability to procure and maintain such an eclectic inventory of hard to find wines.

Key assumptions used to construct the pro forma statement projections:

1. 1) In both the expected and worst case scenarios, Wacky Wines receives the $550,000 loan and uses the loan proceeds to purchase retail space, furniture and fixtures, signage, etc.
2. 2) In the expected scenario, Wacky Wines' sales from the flagship store are expected to increase by 15% in 2016 over the 2015's value. Also in 2016, Wacky Wines is expected to generate $500,000 in revenue from the new stores. Sales growth is expected to be 15% at all stores in both 2017 and 2018.
3. 3) In the worst case scenario, Wacky Wines' sales from the flagship store are expected to increase by only 10% in 2016, while revenue generated from the new stores is expected to be $250,000. Sales growth is expected to be 10% at all stores in both 2017 and 2018.
4. 4) The gross profit margin is assumed to be 5% lower in the worst case scenario than the expected case.
5. 5) The interest rate on all loans is assumed to be 3 percentage points higher in the worst case scenario than the expected case scenario.
6. 6) It is assumed that 50% of all sales are made on credit.
7. 7) Wages and benefits are assumed to be 10% of sales in the expected case scenario, while wages and benefits are assumed to be 15% of sales in the worst case scenario.

Thanks for your help!

Agricultural Loan Analysis We know Ag. We love Ag. We Are Ag. Bobby Carnley - Regional Lending Manager Kyle Eagerton - Principal Credit Analyst September 20, 2016 Farm Credit of Florida www.farmcreditfl.com 2 Farm Financial Ratios and Guidelines Liquidity 1.Current ratio - range desirable > 1.15 (FCF) 2.Working capital 3.Working capital/gross revenues ratio Solvency 4.Debt/asset ratio 5.Equity/asset ratio - range desirable > 0.4 (FCF) 6.Debt/equity ratio Profitability 7.Net farm income 8.Rate of return on farm assets 9.Rate of return on farm equity 10. Operating profit margin 11. EBITDA Farm Financial Ratios and Guidelines Repayment Capacity 12.Capital debt repayment capacity 13.Capital debt repayment margin 14.Replacement margin 15.Term debt coverage ratio - range desirable > 1.25 (FCF) 16.Replacement Margin Coverage Ratio Financial Efficiency 17.Asset turnover ratio 18.Operating expense ratio 19.Depreciation expense ratio 20.Interest expense ratio 21.Net farm income ratio Farm Financial Standards Council 4 Farm Financial Ratios and Guidelines How do we apply these ratios and guidelines? The five C's of credit are generally the guiding principles of credit analysis: Character Conditions Capital Capacity Collateral 5 The 5 C's of Credit Character (Primary Lending Factor): Credit Scores - one of the best indicators of future performance is past performance Reputation - an applicant's favorable reputation in the business community is critical Experience - can applicant manage the business they are wanting to finance Legal Structure - what is the ownership structure of the borrowing entity Succession - is the borrower looking ahead with a defined succession plan Conditions (Industry): What is the condition of the industry that provides the majority of the applicant's income - current & future outlook What is the condition of the industry that the applicant wants to finance - current and future outlook Applicant should take the initiative in explaining why the loan request is constructive for applicant & lender What programs are available to support the applicant's primary industry - USDA, ASCS, FSA, tax credits, etc. 6 The 5 C's of Credit Capital (Financial Position): Does applicant have strong equity or are they highly leveraged - attitude toward debt - prefer over 40% equity Does applicant have a strong liquidity position - can they continue to perform in the event of adversity - cash is king - prefer at least a 1.15:1 current ratio Are applicant's debts properly structured - does repayment match depreciation Are debts constructive - Any killer toys What is the applicants financial trend - positive, negative or stable Quality of financial information - compiled, reviewed, audited - good quality information is critical for managing a business Frequency of information provided - applicant can't properly manage a rapidly changing business with annual financials and tax returns. Financial analysis is an area that can be more or less complicated based on applicant's ownership structure. For tax planning, estate planning and other reasons, complicated ownership structures are becoming more and more common. Financial analysis typically only includes those assets & income sources that are owned & controlled by parties liable on the loan. Some examples are as follows: Applicant is married and spouse is not party to the loan, we do not show any values for jointly held assets, but show all jointly held liabilities Assets have been moved into a legal entity (trust, LLC, Partnership). These are handled on a case by case basis depending on ownership, control, history 7 The 5 C's of Credit Capacity (Ability to Repay): Typically want at least a 1.25 coverage What is the trend - positive, negative, stable Is applicant heavily dependent upon new sources/ projections -proven or unproven income Does applicant have multiple sources or only one source of income Are applicant's projections reasonable - supported by historical information How much adversity can they withstand - typically use 5-5-3 stress test or break-even analysis Collateral (If All Else Fails): Is the collateral highly specialized - highly depreciable How liquid is the collateral Is the collateral marketable in normal conditions What is applicant's commitment to the collateral What is the income producing capacity of the collateral Are there any environmental concerns 8 Realities of Agricultural Lending Can be more of an art than a science Credit standards reflect precise values, but they are derived from imprecise numbers The financial trend is rarely consistent - wide swings in prices and yields Most operations are constantly changing - difficult to project Many applications are for new ventures with no historical trend Applicants rarely have a written business plan Financial information is typically not high quality/complete is typically dated - prefer within 6 months cash basis vs. modified cash basis vs. accrual cost vs. fair market value We realize that a borrower may be weaker in some areas than desired, but we do consider compensating strengths. Considering all of the credit factors, we have to determine if the credit is safe and sound. 9 Real World Example: Albert & Alberta Angus, LLC 10 Albert & Alberta Angus Farms, LLC is requesting a loan to finance 75% of the purchase price of a $200,000 piece of equipment. Take a look a the financials we have provided. What are some questions you might ask? What kind of information should you look for? 11 We know Ag. We love Ag. We Are Ag. Income Statement (Unaudited) (for years ending September 1) Net Sales Cost of Goods Sold Gross Profit $ $ $ Operating expenses Advertising and promotion Depreciation Insurance Legal and accounting Office expenses Repairs and Maintenance Rent Telephone Utilities Wages and benefits Total operating profit Interest expense Income before taxes Income taxes Net Income $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2012 459,000.00 $ 137,700.00 $ 321,300.00 $ 36,720.00 26,371.90 20,655.00 27,540.00 1,463.00 1,463.00 32,130.00 9,180.00 13,770.00 68,850.00 83,157.10 9,906.53 73,250.57 29,300.23 43,950.34 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2013 550,800.00 $ 165,240.00 $ 385,560.00 $ 49,572.00 27,914.80 24,786.00 33,598.80 1,417.00 1,417.00 33,048.00 12,668.40 16,524.00 93,636.00 90,978.00 8,259.62 82,718.38 33,087.35 49,631.03 2014 688,500.00 206,550.00 481,950.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 68,850.00 28,387.70 30,982.50 42,687.00 3,337.00 3,337.00 34,425.00 17,212.50 20,655.00 130,815.00 101,261.30 6,527.69 94,733.61 37,893.45 56,840.17 Statement of Retained Earnings (Unaudited) (for years ending September 1) Beginning retained earnings Add: Net Income $ 2012 39,506.00 $ 43,950.34 2013 83,456.34 $ 49,631.03 2014 133,087.37 56,840.17 Ending retained earnings $ 83,456.34 $ 133,087.37 $ 189,927.54 2013 2014 Balance Sheet (Unaudited) (as at September 1) 2012 ASSETS Current Assets: Cash Accounts Receivable Inventory Prepaid expenses Total Current Assets $ $ $ $ $ Fixed Assets: Computer hardware & software Furniture & fixtures $ $ 83,908.08 82,620.00 59,670.00 12,341.00 238,539.08 $ $ $ $ $ 17,190.00 11,688.00 $ 73,963.91 99,144.00 82,620.00 13,528.00 269,255.91 $ $ $ $ $ 71,971.28 123,930.00 106,717.50 13,459.00 316,077.78 ### $ 26,662.00 $ 18,060.00 30,521.00 Signage Real Estate Total Fixed Assets (cost) Less: Accumulated depreciation Net fixed assets $ $ $ $ $ 9,545.00 225,296.00 263,719.00 98,398.00 165,321.00 TOTAL ASSETS $ 403,860.08 $ LIABILITIES Current Liabilities: Operating line of credit ($40,000 limit) Accounts Payable Current Portion of Long Term Debt Total Current Liabilities $ $ $ $ Long Term Liabilities: Term Bank Loans Deferred Income Taxes Total Long Term Liabilities $ $ $ TOTAL LIABILITIES Shareholder's Equity Share Capital Retained Earnings Total Shareholder's Equity 26,736.00 19,503.00 35,755.00 81,994.00 $ $ $ $ $ $ $ $ 10,000.00 ### 279,148.00 126,312.80 152,835.20 $ $ $ $ $ 10,000.00 225,296.00 283,877.00 154,700.50 129,176.50 422,091.11 $ 445,254.28 34,442.00 19,500.00 32,407.00 86,349.00 $ $ $ $ 36,000.00 20,150.00 28,929.00 85,079.00 140,986.74 $ 13,387.00 154,373.74 $ 105,231.74 $ ### $ 118,618.74 $ 72,824.74 13,387.00 86,211.74 $ 236,367.74 $ 204,967.74 $ 171,290.74 $ $ $ 84,036.00 83,456.34 $ 167,492.34 $ ### $ 133,087.37 $ 217,123.37 $ 84,036.00 189,927.54 273,963.54 TOTAL LIABILITIES AND SHAREHOLDER'S EQUIT $ 403,860.08 $ 422,091.11 $ 445,254.28 2013 2014 49,631.03 $ 56,840.17 Statement of Cash Flows (for the year ending September 1) OPERATIONS: Net Income Adjustments to Cash Basis: Depreciation Accounts Receivable Inventory Prepaid Expenses Accounts Payable Deferred Income taxes $ $ $ $ $ $ $ $ 27,914.80 (16,524.00) (22,950.00) (1,187.00) (3.00) (12,749.20) $ $ $ $ $ $ $ 28,387.70 (24,786.00) (24,097.50) 69.00 650.00 (19,776.80) Net Cash Flow From Operations $ 36,881.83 $ 37,063.37 FINANCING ACTIVITIES Operating Line of Credit Current Portion of Long Term Debt $ $ 7,706.00 $ (3,348.00) $ 1,558.00 (3,478.00) Term Bank Loans Net Cash Flow From Financing Activities $ $ (35,755.00) $ (31,397.00) $ (32,407.00) (34,327.00) INVESTING ACTIVITIES Fixed Assets $ (15,429.00) $ (4,729.00) Net Cash Flow Beginning Cash Ending Cash $ $ $ (9,944.17) $ 83,908.08 $ 73,963.91 $ (1,992.63) 73,963.91 71,971.28 $ $ $ 2015 2016F 2017F 2018F 895,050.00 $ 1,529,307.50 $ 1,758,703.63 $ 2,022,509.17 268,515.00 $ 458,792.25 $ 527,611.09 $ 606,752.75 626,535.00 $ 1,070,515.25 $ 1,231,092.54 $ 1,415,756.42 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 98,455.50 28,492.50 40,277.25 53,703.00 3,164.53 3,164.53 35,802.00 17,901.00 26,851.50 187,960.50 130,762.70 6,154.79 124,607.91 49,843.17 74,764.75 $ 2015 189,927.54 $ 74,764.75 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 182,025.83 80,335.70 91,012.91 121,350.55 80,900.37 80,900.37 101,125.46 40,450.18 60,675.28 202,250.92 374,728.86 25,009.79 349,719.08 139,887.63 209,831.45 2016F 264,692.29 $ 148,015.07 2017F 412,707.35 $ 177,273.81 2018F 589,981.16 209,831.45 264,692.29 $ 412,707.35 $ 589,981.16 $ 799,812.61 2015 2016F 2017F 2018F 95,208.03 161,109.00 143,208.00 13,002.00 412,527.03 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 18,060.00 $ 30,521.00 $ 137,637.68 80,335.70 68,818.84 91,758.45 61,172.30 45,879.23 76,465.38 30,586.15 45,879.23 152,930.75 279,051.56 32,359.79 246,691.78 98,676.71 148,015.07 129,326.32 275,275.35 229,396.13 13,000.00 646,997.79 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 18,060.00 $ 40,000.00 $ 158,283.33 80,335.70 79,141.66 105,522.22 70,348.15 61,554.63 87,935.18 35,174.07 52,761.11 175,870.36 324,166.13 28,709.79 295,456.35 118,182.54 177,273.81 273,659.18 316,566.65 228,631.47 13,250.00 832,107.30 $ 428,521.69 $ 364,051.65 $ 242,701.10 $ 13,500.00 $ 1,048,774.44 18,060.00 $ 40,000.00 $ 18,060.00 40,000.00 $ $ $ $ $ 12,000.00 225,296.00 285,877.00 183,193.00 102,684.00 $ $ $ $ $ $ 515,211.03 $ 1,186,826.09 $ 1,291,599.90 $ 1,427,931.34 $ $ $ $ 40,000.00 22,000.00 22,200.00 84,200.00 $ $ $ 68,895.74 $ 13,387.00 $ 82,282.74 $ $ $ $ $ $ 20,000.00 725,297.00 803,357.00 343,864.40 459,492.60 35,000.00 23,000.00 72,000.00 130,000.00 $ $ $ $ $ 20,000.00 725,297.00 803,357.00 424,200.10 379,156.90 35,000.00 23,500.00 70,000.00 128,500.00 546,695.74 $ 13,387.00 $ 560,082.74 $ 474,195.74 $ 13,387.00 $ 487,582.74 $ 402,195.74 13,387.00 415,582.74 166,482.74 $ 690,082.74 $ 617,582.74 $ 544,082.74 $ $ $ 84,036.00 $ 264,692.29 $ 348,728.29 $ 84,036.00 $ 412,707.35 $ 496,743.35 $ 84,036.00 $ 589,981.16 $ 674,017.16 $ 84,036.00 799,812.61 883,848.61 $ 515,211.03 $ 1,186,826.09 $ 1,291,599.90 $ 1,427,931.35 $ $ $ $ $ $ $ 35,000.00 22,500.00 72,500.00 130,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 20,000.00 725,297.00 803,357.00 263,528.70 539,828.30 2015 2016F 2017F 2018F 74,764.75 $ 148,015.07 $ 177,273.81 $ 209,831.45 80,335.70 (41,291.30) 764.65 (250.00) 500.00 40,059.05 $ $ $ $ $ $ $ 80,335.70 (47,485.00) (14,069.63) (250.00) 500.00 19,031.07 28,492.50 (37,179.00) (36,490.50) 457.00 1,850.00 (42,870.00) $ 80,335.70 $ $ (114,166.35) $ $ (86,188.13) $ $ 2.00 $ $ 500.00 $ $ - $ $ (119,516.78) $ $ 31,894.75 $ 28,498.29 $ 217,332.86 $ 228,862.52 $ $ 4,000.00 $ (6,729.00) $ (5,000.00) $ 50,300.00 $ - $ (500.00) $ (2,000.00) $ $ (3,929.00) $ (6,658.00) $ 477,800.00 $ 523,100.00 $ $ (2,000.00) $ (517,480.00) $ $ $ $ 23,236.75 $ 71,971.28 $ 95,208.03 $ 34,118.29 $ 95,208.03 $ 129,326.32 $ (72,500.00) $ (73,000.00) $ - $ 144,332.86 $ 129,326.32 $ 273,659.18 $ (72,000.00) (74,000.00) 154,862.52 273,659.18 428,521.69 Income Statement (Unaudited) (for years ending September 1) Net Sales Cost of Goods Sold Gross Profit $ $ $ Operating expenses Advertising and promotion Depreciation Insurance Legal and accounting Office expenses Repairs and Maintenance Rent Telephone Utilities Wages and benefits Total operating profit Interest expense Income before taxes Income taxes Net Income $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2012 459,000.00 $ 137,700.00 $ 321,300.00 $ 36,720.00 26,371.90 20,655.00 27,540.00 1,463.00 1,463.00 32,130.00 9,180.00 13,770.00 68,850.00 83,157.10 9,906.53 73,250.57 29,300.23 43,950.34 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2013 550,800.00 $ 165,240.00 $ 385,560.00 $ 49,572.00 27,914.80 24,786.00 33,598.80 1,417.00 1,417.00 33,048.00 12,668.40 16,524.00 93,636.00 90,978.00 8,259.62 82,718.38 33,087.35 49,631.03 2014 688,500.00 206,550.00 481,950.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 68,850.00 28,387.70 30,982.50 42,687.00 3,337.00 3,337.00 34,425.00 17,212.50 20,655.00 130,815.00 101,261.30 6,527.69 94,733.61 37,893.45 56,840.17 Statement of Retained Earnings (Unaudited) (for years ending September 1) Beginning retained earnings Add: Net Income $ 2012 39,506.00 $ 43,950.34 2013 83,456.34 $ 49,631.03 2014 133,087.37 56,840.17 Ending retained earnings $ 83,456.34 $ 133,087.37 $ 189,927.54 2013 2014 Balance Sheet (Unaudited) (as at September 1) 2012 ASSETS Current Assets: Cash Accounts Receivable Inventory Prepaid expenses Total Current Assets $ $ $ $ $ Fixed Assets: Computer hardware & software Furniture & fixtures $ $ 83,908.08 82,620.00 59,670.00 12,341.00 238,539.08 $ $ $ $ $ 17,190.00 11,688.00 $ 73,963.91 99,144.00 82,620.00 13,528.00 269,255.91 $ $ $ $ $ 71,971.28 123,930.00 106,717.50 13,459.00 316,077.78 ### $ 26,662.00 $ 18,060.00 30,521.00 Signage Real Estate Total Fixed Assets (cost) Less: Accumulated depreciation Net fixed assets $ $ $ $ $ 9,545.00 225,296.00 263,719.00 98,398.00 165,321.00 TOTAL ASSETS $ 403,860.08 $ LIABILITIES Current Liabilities: Operating line of credit ($40,000 limit) Accounts Payable Current Portion of Long Term Debt Total Current Liabilities $ $ $ $ Long Term Liabilities: Term Bank Loans Deferred Income Taxes Total Long Term Liabilities $ $ $ TOTAL LIABILITIES Shareholder's Equity Share Capital Retained Earnings Total Shareholder's Equity 26,736.00 19,503.00 35,755.00 81,994.00 $ $ $ $ $ $ $ $ 10,000.00 ### 279,148.00 126,312.80 152,835.20 $ $ $ $ $ 10,000.00 225,296.00 283,877.00 154,700.50 129,176.50 422,091.11 $ 445,254.28 34,442.00 19,500.00 32,407.00 86,349.00 $ $ $ $ 36,000.00 20,150.00 28,929.00 85,079.00 140,986.74 $ 13,387.00 154,373.74 $ 105,231.74 $ ### $ 118,618.74 $ 72,824.74 13,387.00 86,211.74 $ 236,367.74 $ 204,967.74 $ 171,290.74 $ $ $ 84,036.00 83,456.34 $ 167,492.34 $ ### $ 133,087.37 $ 217,123.37 $ 84,036.00 189,927.54 273,963.54 TOTAL LIABILITIES AND SHAREHOLDER'S EQUIT $ 403,860.08 $ 422,091.11 $ 445,254.28 2013 2014 49,631.03 $ 56,840.17 Statement of Cash Flows (for the year ending September 1) OPERATIONS: Net Income Adjustments to Cash Basis: Depreciation Accounts Receivable Inventory Prepaid Expenses Accounts Payable Deferred Income taxes $ $ $ $ $ $ $ $ 27,914.80 (16,524.00) (22,950.00) (1,187.00) (3.00) (12,749.20) $ $ $ $ $ $ $ 28,387.70 (24,786.00) (24,097.50) 69.00 650.00 (19,776.80) Net Cash Flow From Operations $ 36,881.83 $ 37,063.37 FINANCING ACTIVITIES Operating Line of Credit Current Portion of Long Term Debt $ $ 7,706.00 $ (3,348.00) $ 1,558.00 (3,478.00) Term Bank Loans Net Cash Flow From Financing Activities $ $ (35,755.00) $ (31,397.00) $ (32,407.00) (34,327.00) INVESTING ACTIVITIES Fixed Assets $ (15,429.00) $ (4,729.00) Net Cash Flow Beginning Cash Ending Cash $ $ $ (9,944.17) $ 83,908.08 $ 73,963.91 $ (1,992.63) 73,963.91 71,971.28 $ $ $ 2015 2016F 2017F 2018F 895,050.00 $ 1,234,555.00 $ 1,358,010.50 $ 1,493,811.55 268,515.00 $ 432,094.25 $ 475,303.68 $ 522,834.04 626,535.00 $ 802,460.75 $ 882,706.83 $ 970,977.51 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 98,455.50 28,492.50 40,277.25 53,703.00 3,164.53 3,164.53 35,802.00 17,901.00 26,851.50 187,960.50 130,762.70 6,154.79 124,607.91 49,843.17 74,764.75 $ 2015 189,927.54 $ 74,764.75 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 134,443.04 80,335.70 67,221.52 89,628.69 59,752.46 59,752.46 74,690.58 29,876.23 44,814.35 224,071.73 106,390.74 40,225.66 66,165.08 26,466.03 39,699.05 2016F 264,692.29 $ 20,606.14 2017F 285,298.43 $ 30,036.00 2018F 315,334.43 39,699.05 264,692.29 $ 285,298.43 $ 315,334.43 $ 355,033.48 2015 2016F 2017F 2018F 95,208.03 161,109.00 143,208.00 13,002.00 412,527.03 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 18,060.00 $ 30,521.00 $ 111,109.95 80,335.70 55,554.98 74,073.30 49,382.20 37,036.65 61,727.75 24,691.10 37,036.65 185,183.25 86,329.23 51,985.66 34,343.57 13,737.43 20,606.14 99,185.71 222,219.90 185,183.25 13,000.00 519,588.86 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 18,060.00 $ 40,000.00 $ 122,220.95 80,335.70 61,110.47 81,480.63 54,320.42 47,530.37 67,900.53 27,160.21 40,740.32 203,701.58 96,205.67 46,145.66 50,060.01 20,024.00 30,036.00 123,227.31 244,441.89 176,541.37 13,250.00 557,460.57 $ $ $ $ $ 142,351.85 268,886.08 179,257.39 13,500.00 603,995.32 18,060.00 $ 40,000.00 $ 18,060.00 40,000.00 $ $ $ $ $ 12,000.00 225,296.00 285,877.00 183,193.00 102,684.00 $ $ $ $ $ $ $ $ $ $ 20,000.00 725,297.00 803,357.00 424,200.10 379,156.90 $ 515,211.03 $ 1,059,417.16 $ 1,016,953.17 $ 983,152.22 $ $ $ $ 40,000.00 22,000.00 22,200.00 84,200.00 $ $ $ 68,895.74 $ 13,387.00 $ 82,282.74 $ $ 546,695.74 $ 13,387.00 $ 560,082.74 $ 474,195.74 $ 13,387.00 $ 487,582.74 $ 402,195.74 13,387.00 415,582.74 166,482.74 $ 690,082.74 $ 617,582.74 $ 544,082.74 $ $ $ 84,036.00 $ 264,692.29 $ 348,728.29 $ 84,036.00 $ 285,298.43 $ 369,334.43 $ 84,036.00 $ 315,334.43 $ 399,370.43 $ 84,036.00 355,033.48 439,069.48 $ 515,211.03 $ 1,059,417.17 $ 1,016,953.17 $ 983,152.22 2015 2018F 2016F 74,764.75 $ 28,492.50 (37,179.00) (36,490.50) 457.00 1,850.00 (42,870.00) $ $ $ $ 20,000.00 725,297.00 803,357.00 343,864.40 459,492.60 35,000.00 23,500.00 70,000.00 128,500.00 $ $ $ $ $ $ $ 35,000.00 22,500.00 72,500.00 130,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 20,000.00 725,297.00 803,357.00 263,528.70 539,828.30 $ $ $ $ $ $ $ 2017F 20,606.14 $ 80,335.70 (61,110.90) (41,975.25) 2.00 500.00 (22,248.45) 35,000.00 23,000.00 72,000.00 130,000.00 $ $ $ $ $ $ $ 30,036.00 $ 80,335.70 (22,221.99) 8,641.88 (250.00) 500.00 67,005.60 39,699.05 $ $ $ $ $ $ $ 80,335.70 (24,444.19) (2,716.02) (250.00) 500.00 53,425.49 $ 31,894.75 $ (1,642.31) $ 97,041.60 $ 93,124.54 $ $ 4,000.00 $ (6,729.00) $ (5,000.00) $ 50,300.00 $ - $ (500.00) $ (2,000.00) $ $ (3,929.00) $ (6,658.00) $ 477,800.00 $ 523,100.00 $ $ (2,000.00) $ (517,480.00) $ $ $ $ 23,236.75 $ 71,971.28 $ 95,208.03 $ 3,977.69 $ 95,208.03 $ 99,185.71 $ (72,500.00) $ (73,000.00) $ - $ 24,041.60 $ 99,185.71 $ 123,227.31 $ (72,000.00) (74,000.00) 19,124.54 123,227.31 142,351.85