Horizontal Analysis: P&L: o Absolute Change: In E3, C3-D3. Drag Formula Down. Delete empty cells. o Relative Change: In F3, E3/D3. Drag Formula Down. Delete empty cells. Balance Sheet: o Absolute Change: In E5, C5-D5. Drag Formula Down. Delete empty cells. o Relative Change: In F5, E5/D5. Drag Formula Down. Delete empty cells. Cash Flow: o Absolute Change: In F4, D4-E4. Drag Formula Down. Delete empty cells. o Relative Change: In G4, F4/E4. Drag Formula Down. Delete empty cells. Average Analysis: In B4, B3/B2. Drag Formula Over. Net sales Cost of goods sold Gross profit Karat Packaging Inc. P&L 2018 $129,619,000 $97,146,000 $32,473,000 2017 $105,582,000 $73,009,000 $32,573,000 Operating expenses Selling expense General and administrative expense Total operating expenses Operating income $6,908,000 $23,418,000 $30,326,000 $2,147,000 $5,053,000 $21,089,000 $26,142,000 $6,431,000 Other income (expense) Other income Gain (loss) on foreign exchange Interest expense Total other expense $263,000 $309,000 ($989,000) (S417,000) $160,000 ($334,000) ($714,000) ($888.000) Income before provision for income tax Provisjon for income tax Net income $1,730,000 $1,649,000 $81,000 $5,543,000 $44,000 $5,499,000 2017 S791,000 $11,226,000 $28,517,000 $1,368,000 $117,000 $300,000 $42,319,000 $19,813,000 $1,251.000 S689,000 $19,000 $64,091,000 Karat Packaging Inc. Balance Sheet 2018 Assets Current assets Cash $982,000 Accounts receivable $15,280,000 Inventories $32,357,000 Prepaid expenses and other current assets $3,260,000 Due from affiliated companies $198.000 Due from stockholders $300,000 Total current assets $52,377,000 Other Assets Property and equipment, net $29,757,000 Investment in other entities SO Deposits $4,021,000 Other assets S29,000 Total assets $86,184,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $18,143,000 Accrued expenses $1,617,000 Related party payable $3,523,000 Credit cards payable $759.000 Line of credit $24,566,000 Customer deposits $980,000 Capital leases, current portion $124.000 Related party convertible debt SO Convertible debt, current portion SO Long-term debt, current portion $6,283,000 Total current liabilities $55,995,000 Deferred tax liability $1,153,000 Long-term debt, net of current portion $8,179,000 Related party convertible debt, net of current portion Total liabilities $65,327,000 Karat Packaging Inc. stockholders' equity Preferred Stock $15,000 Receivable from stockholders (5962,000) Additional paid in capital $14,217,000 Retained earnings (accumulated deficit) (5394,000) Total Karat Packaging Inc, stockholders' equity $12,876,000 Noncontrolling interest $7.981,000 Total stockholders' equity $20,857,000 Total liabilities and stockholders' equity S86,184,000 $11,622,000 $2,469,000 $5,844,000 $405,000 $19,398,000 S187,000 $28,000 S2,150,000 $250,000 $3,274,000 $45,627,000 SO $7,416,000 S350,000 $53,393,000 $15,000 (5784,000) $3,533,000 $7,934,000 $10,698,000 SO $10.698,000 $64,091,000 Karat Packaging Inc. Cash Flows 2018 2017 $81.000 $5.499,000 $2.932.000 S173,000 $14,000 (56.000) $1,153,000 $2.283.000 SO SO $251.000 SO Cash flows from operating activities Net income Adjustments due to operating activities Depreciation and amortization expense (Gain) loss on sale of property and equipment Provision for bad debt Reserve for inventory obsolescence Deferred tax (Increase) decrease in operating assets Accounts receivable Inventories Prepaid expenses and other current assets Deposits Due from affiliated companies Other assets Increase (decrease) in operating liabilities Accounts payable Accrued expenses Related party payable Credit cards payable Customer deposits Net cash provided by (used in operating activities (S4.068,000) ($1.852.000) (53.834,000) ($7,012.000) (51.892,000) $71.000 $112.000 SO (S81.000) (S161,000) ($13.000) SO S6.316,000 (5852.000) (52.321.000) $354,000 $793.000 ($1.139,000) $1.354,000 $673.000 $764,000 ($338.000) (S108,000) S1,424,000 Cash flows from investing activities Purchases of property and equipment Deposits paid for property and equipment Proceeds from sale of property and equipment Impact to cash resulting from initial consolidation of Global Wells Investment Group LLC Net cash used in investing activities (512,828,000) (52.094,000) (53.194,000) (53,366,000) $85,000 $276,000 S7.512.000 SO (58.425.000) (55.184.000) Cash flows from financing activities Net proceeds from line of credit Proceeds from long-term debt Payments on long-term debt Contribution from noncontrolling interest Receivable from shareholders Principal payments on obligations under capital leases Distributions paid to shareholders Net cash provided by financing activities 55,168,000 $2,740,000 $11.948.000 S4.193.000 (58,176.000) (51,905,000) $1,510,000 SO (5178,000) (S556,000) (55.000) (S81.000) (5512.000) {$370,000) $9.755.000 S4,021,000 Net increase in cash $191,000 $261.000 Cash Beginning of year End of year $791,000 $982,000 $181.000 $442.000 Manufacturing Space (Sq Ft) Sales (2019 Projected) 2017 2018 2019 300,000 300,000 800,000 $105,582,000 $129,619,000 $210,000,000