Thousands of dollars (000) Income Statements (000s) 2015 2016 2017 2018 2019 Sales $6,875 $7,563 $8,319 $9,317 $10,715 Cost of goods sold (4,690) (5,173) (5,618) (6,261) (7,232) Gross profit 2,185 2,390 2,700 3,056 3,482 Operating Expenses (667) (734) (807) (904) (1,039) Depreciation (28) (28) (28) (28) (28) EBIT 1,490 1,628 1,865 2,124 2,415 Interest (250) (238) (225) (213) (200) EBT 1,240 1,391 1,640 1,911 2,215 Taxes (459) (515) (607) (707) (819) EAT $781 $876 $1,033 $1,204 $1,395 Dividends 0 0 0 0 0 550 11,145 (650) 11,045 $16,462 $16,947 Balance Sheets (000s) 2015 2016 2017 2018 2019 Cash $3,668 $4,019 $4,547 $5,448 $6,500 Accounts receivable 735 891 1,094 1,251 1,526 Inventory 1,015 1,020 1,047 1,132 1,288 Total current assets 5,417 5,930 6,688 7,831 9,314 Land Buildings and equipment Less: accumulated depreciati Total fixed assets Total assets 550 550 550 550 11,145 11,145 11,145 11,145 (678) (706) (734) (762) 11,017 10,989 10,961 10,933 $17,677 $18,792 $20,247 Accounts payable Bank notes $ 128 $ 213 $ 385 $ 772 $ 1,308 2,341 2,107 1,873 1,639 1,405 Total current liabilities 2,469 2,319 2,258 2,411 2,712 Long-term debt 7,250 7,008 6,767 6,525 6,283 Common stock 4,200 4,200 4,200 4,200 4,200 Retained earnings 2,543 3,419 4,452 5,657 7,052 Total liabilities & equity $16,462 $16,947 $17,677 $18,792 $20,247 Thousands of dollars (000) Cash Flow Statements (000s) 2016 2017 2018 2019 Operating activities: EAT $876 $1,033 $1,204 $1,395 Amortization of adv. program 0 0 0 0 Depreciation 28 28 28 28 Change in A/R (156) (203) (157) (276) Change in Inv (5) (26) (85) (156) Change in A/P 84 172 387 536 Cash flow provided (used) $827 $1,004 $1,377 $1,528 Investing activities: Advertising program 0 0 0 0 Cash flow provided (used) $0 $0 $0 $0 Financing activities: Debt repayment (476) (476) (476) (476) Dividend payments 0 0 0 0 Cash flow provided (used) ($476) ($476) ($476) ($476) Net change in cash $351 $528 $901 $1,052 Common size Income Statements (000s) 2015 2016 2017 2018 2019 Industry 2019 Sales 100.0% 100.0% Cost of goods sold -68.2% -68.4% 100.0% 100.0% -67.5% -67.2% 100.0% 100.0% -67.5% -72.1% Gross profit 31.8% 31.6% 32.5% 32.8% 32.5% 27.9% Operating Expenses -9.7% -9.7% -9.7% -9.7% -9.7% -12.2% Depreciation -0.4% -0.4% -0.3% -0.3% -0.3% -2.2% EBIT 21.7% 21.5% 22.4% 22.8% 22.5% 13.5% Interest -3.6% -3.1% -2.7% -2.3% -1.9% -5.9% EBT 18.0% 18.4% 19.7% 20.5% 20.7% 7.6% Taxes -6.7% -6.8% -7.3% -7.6% -7.6% -2.8% EAT 11.4% 11.6% 12.4% 12.9% 13.0% 4.8% Dividends 0.0% 0.0% 0.0% 0.0% 0.0% Industry Balance Sheets (000s) 2015 2016 2017 2018 2019 2019 Cash 22.3% 23.7% 25.7% 29.0% 32.1% 17.0% Accounts receivable 4.5% 5.3% 6.2% 6.7% 7.5% 13.8% Inventory 6.2% 6.0% 5.9% 6.0% 6.4% 15.7% Total current assets 32.9% 35.0% 37.8% 41.7% 46.0% 46.6% Land 3.3% 3.2% 3.1% 2.9% 2.7% 14.3% Buildings and equipment 67.7% 65.8% 63.0% 59.3% 55.0% 71.3% Less: accumulated depreciati -3.9% -4.0% -4.0% -3.9% -3.8% -32.1% Total fixed assets 67.1% 65.0% 62.2% 58.3% 54.0% 53.4% Total assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Accounts payable 0.8% 1.3% 2.2% 4.1% 6.5% 6.2% Bank notes 14.2% 12.4% 10.6% 8.7% 6.9% 4.2% Total current liabilities 15.0% 13.7% 12.8% 12.8% 13.4% 10.4% Long-term debt 44.0% 41.4% 38.3% 34.7% 31.0% 48.0% Common stock 25.5% 24.8% 23.8% 22.3% 20.7% 16.0% Retained earnings 15.4% 20.2% 25.2% 30.1% 34.8% 25.6% Total liabilities & equity 100% 100% 100% 100% 100% 100.0% Industry Selected Ratios: 2015 2016 2017 2018 2019 2019 Current ratio 2.19 2.56 2.96 3.25 3.43 4.48 Quick ratio 1.78 2.12 2.50 2.78 2.96 2.97 ROE 11.6% 11.5% 11.9% 12.2% 12.4% 10.0% ROA 4.7% 5.2% 5.8% 6.4% 6.9% 4.2% Sales/Total assets 0.42 0.45 0.47 0.50 0.53 0.87 Sales/Fixed assets 0.62 0.69 0.76 0.85 0.98 1.63 Total debt/Equity 1.44 1.22 1.04 0.91 0.80 1.25 Long-term debt/Equity 1.08 0.92 0.78 0.66 0.56 1.15 Accounts receivable T.O. 9.36 8.49 7.60 7.45 7.02 6.29 Average collection perio 39.00 43.00 48.00 49.00 52.00 58.00 Inventory T.O. 4.62 5.07 5.37 5.53 5.62 5.53 Days sales in inventory 79.00 72.00 68.00 66.00 65.00 66.00 Accounts payable T.O. 36.50 24.33 14.60 8.11 5.53 10.14 Days' payables 10.00 15.00 25.00 45.00 66.00 36.00 BEP 9.1% 9.6% 10.6% 11.3% 11.9% 11.7%