1. Use at least six financial ratios to assess and discuss profitability (three or more ratios) and risk analysis (three or more ratios) for the company.

Income Statements Year 1 Year 2 Year 3 Year 4 Year 5 Revenues $2, 173,600 $2,282,280 $2,396,394 $2,516,214 $2,667,024 Cost of Sales 1,395,708 1,490,980 1,578,910 1,685,954 1,814,508 Gross Profit $777,892 $791,300 $817,484 $830,259 $852,516 Accounting $6,240 $6,552 $6,880 $7,224 $7,585 Advertising & Promotion $47,759 $42,640 $40,363 $37,778 $34,853 Bank Charges $43, 156 $45,314 $47,579 $49,958 $52,457 Compensation & Benefits $256,509 $264,204 $272, 130 $280,294 $288,702 Consulting Fees $2,496 $0 $0 $0 $0 Insurance $1,040 $1,092 $1,147 $1,204 $ 1,265 Lease - Facilities $349,440 $349,440 $349,440 $349,440 $349,440 Legal & Professional 500 500 500 500 500 Licenses & Fees 500 510 520 531 541 Maintenance 600 612 624 637 649 Miscellaneous 1,800 1,836 1,873 1,910 1,948 Office supplies 2,700 2,754 2,809 2,865 2,923 Security 720 742 764 787 810 Telephone 1,800 1,836 1,873 1,910 1,948 Utilities 4,200 4,410 4,631 4,862 5, 105 Website 1,800 1,800 1,800 1,800 1,800 Total Operating Exp. 721,260 724,242 732,932 741,700 750,525 EBIDTA $56,633 $67,058 $84,552 $88,560 $101,991 Depreciation 4,916 4,916 4,916 4,916 4,916 Operating Profit $51,717 $62, 142 $79,636 $83,644 $97,075 Interest Expense 11040 10488 9936 9384 8832Earnings Before Taxes 40,677 51,654 69,700 74,260 88,243 Income Taxes 8,542 10,847 14,637 15,595 18,531 Net Income $32, 135 $40,807 $55,063 $58, 665 $69,712 Balance Sheets Begin Year 1 Year 2 Year 3 Year 4 Year 5 Cash $33, 150 $50,685 80,307 122,461 166,233 239,914 Inventory 77,000 191,916 213,416 237,641 264,950 278, 197 Total Current Assets $110,150 $242,601 $293,723 $360, 102 $431,183 $518,111 Fixed Assets 33,850 33,850 33,850 33,850 33,850 33,850 Less: Depreciation 0 4,916 9,832 14,748 19,664 24,580 Net Fixed Assets 33,850 28,934 24,018 19,102 14,186 9,270 Total Assets 144,000 271,535 317,741 379,204 445,369 527,381 Accounts Payable 100,000 110,000 121,000 133, 100 150,000 Long Term Debt 92,000 87,400 82.800 78,200 73,600 69,000 Total Liabilities 92,000 187,400 192,800 199,200 206,700 219,000 Owner's Equity Paid in Capital 52,000 52,000 52,000 52,000 52,000 52,000 Retained Earnings 0 32, 135 72,941 128,004 186,669 256,381 Total Liabilities & Equity $144,000 $271,535 $317,741 $379,204 $445,369 $527,381