QUESTIONS NEED ANSWERS!

1 ) What is the Current Ratio (From 2006-2010)

2) What is the Debt/Equity Ratio (From 2006-2010)

3) What is the Cash Flow Coverage (From 2006-2010)

4) What is the Net Profit Margin % (From 2006-2010)

5) What is the Return on Equity & (From 2006-2010)

EXHIBIT 1: DELISLE INDUSTRIES INCOME STATEMENTS ($) Sales Cost of goods sold Gross profit Operating costs Selling and distribution 2006 15,015,500 10,434,500 4,581,000 2007 26,130,560 18,595,530 7,535,030 2008 39,403,320 28,323,060 11,080,260 2009 58,532,340 42,565,660 15,966,680 2010 71,511,720 53,000,150 18,511,570 1,650,340 2,450,630 3,763,400 5,400,350 6,001,230 R&D Administration 145,340 550,340 453,640 1,050,750 765,340 1,950,600 1,580,340 3,400,000 1,900,450 4,080,520 Amortization Operating profit 574,944 1,660,036 908,884 2,671,126 1,880,284 2,720,636 2,999,199 2,586,791 3,838,790 2,690,580 Interest expense Earnings before taxes Taxes Net income 224,139 1,435,897 502,564 933,333 392,759 2,278,367 797,429 1,480,939 952,308 1,768,328 618,915 1,149,413 1,653,235 933,556 326,744 606,811 2,301,176 389,404 136,291 253,112 Source: Company data. 2010 765,340 11,550,420 3,240,340 2,489,390 6,751,713 EXHIBIT 2: DELISLE INDUSTRIES BALANCE SHEETS ($) 2006 2007 2008 2009 Cash 400,840 790,670 1,034,690 823,580 A/R 2,459,600 4,340,540 6,450,340 9,950,340 RM inventory 675,340 1,103,400 1,789,340 2,450,340 WIP inventory 874,230 1,440,530 1,950,340 2,340,680 Finished goods 802,160 1,674,293 2,614,583 4,413,753 inventory Total current assets 5,212,170 9,349,433 13,839,293 19,978,693 L, P & E, net 5,504,440 8,756,340 18,345,340 29,453,350 Intangibles 245,000 332,500 457,500 538,640 Total assets 10,961,610 18,438,273 32,642,133 49,970,683 A/P 1,760,340 4,009,870 6,498,227 9,922,996 Current portion of long- 399,534 649,188 1,518,833 2,636,739 term debt Total current 2,159,874 4,659,058 8,017,060 12,559,735 liabilities Long-term debt 3,995,340 6,491,880 15,188,326 26,367,389 Shareholders' equity 4,806,396 7,287,335 9,436,748 11,043,559 Total liabilities and 10,961,610 18,438,273 32,642,133 49,970,683 equities 24,797,203 37,689,560 698,340 63,185,103 12,885,442 3,545,726 16,431,168 35,457,263 11,296,671 63,185,103 Source: Company data. EXHIBIT 3: SALES ANALYSIS 2006 2007 2008 2009 2010 $590.00 $590.00 $410.00 $419.00 25,450 43,530 $590.00 $590.00 $590.00 $423.00 $430.00 $435.00 65,400 75,600 84,000 $0.00 $0.00 $98.00 $78.00 4,570 $98.00 $79.00 8,340 $98.00 $80.00 11,340 $98.00 $81.00 14,580 - Sheds Price Cost Quantity Rain Barrels Price Cost Quantity Patio Furniture Price Cost Quantity Plant Holders Price Cost Quantity $0.00 $0.00 $0.00 $0.00 $0.00 $180.00 $180.00 $0.00 $120.00 $127.00 55,340 95,030 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $33.00 $33.00 $29.00 $31.00 86,540 103,560 Source: Company data. EXHIBIT 4: KEY FINANCIAL RATIOS - INDUSTRY AVERAGES (2010) 3.17 Current ratio Cash ratio RM turnover in days WIP turnover in days Finished goods turnover in days A/R turnover in days A/P turnover in days Cash conversion cycle Fixed assets turnover Total assets turnover Long-term debt to total capitalization Cash flow coverage Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity 0.16 33.86 days 9.69 days 96.54 days 30.44 days 59.47 days 111.06 days 2.19 1.00 0.32 2.06 42.00% 15.55% 9.08% 5.90% 14.71% Source: Company data. EXHIBIT 5: VERTICAL ANALYSIS - INCOME STATEMENT (2010) (%) 100.00 58.00 42.00 Sales Cost of goods sold Gross profit Operating costs Selling and distribution R&D Administration Depreciation Operating profit Interest expense Earnings before taxes Taxes Net income 14.45 1.56 5.67 4.77 15.55 1.59 13.97 4.89 9.08 Source: Company data. EXHIBIT 6: VERTICAL ANALYSIS BALANCE SHEET, 2010 (%) Cash Accounts receivable RM inventory WIP inventory Finished goods inventory Total current assets Land, plant and equipment, net Other assets Total assets 16.45 8.34 5.38 1.54 15.34 47.05 45.65 7.30 100.00 Accounts payable Current portion of long-term debt Total current liabilities Long-term debt Shareholders' equity Total liabilities and equities 9.45 5.39 14.84 23.45 61.71 100.00 Source: Company data