Table A: Condensed Income Statements, 1991-93 ($ '000)

Net sales
Cost of goods sold
Gross profit
Operating expenses
Interest expenses
Interest income
PBT
Income tax
Net profit

1991.00
5213.00
3597.00
1616.00
1199.00
68.00
20.00
369.00
125.00
244.00

1992.00
6167.00
4440.00
1727.00
1542.00
75.00
15.00
125.00
43.00
82.00

1993.00
7967.00
5577.00
2390.00
1912.00
85.00
16.00
409.00
139.00
270.00

Table B: Balance Sheet as on December 31, 1993 ($ 000)

Cash
Accounts receivable
Inventory
Current assets
Plant and equipment, net
Total assets

200.00
2905.00
586.00
3691.00
1176.00
4867.00

Accounts payable
Notes payable, Bank
Accrued taxes
LT debt, current portion
Current liabilities
Long-term debt
Shareholders' equity
Total liabilities and shareholders' equity

282.00
752.00
88.00
50.00
1172.00
400.00
3295.00
4867.00

Table C: Monthly sales data ($ 000)

Sales 1993
January
February
March
April
May
June
July
August
September
October
November
December

64.00
88.00
96.00
88.00
87.00
95.00
96.00
1251.00
1474.00
1723.00
1965.00
940.00

Projected 1994 Production Opening Sales

Closing
120.00
542.50
586.00
78.12
1050.38
140.00
542.50
1050.38
91.14
1501.74
160.00
542.50
1501.74
104.16
1940.08
140.00
542.50
1940.08
91.14
2391.44
140.00
542.50
2391.44
91.14
2842.80
140.00
542.50
2842.80
91.14
3294.16
160.00
542.50
3294.16
104.16
3732.50
1620.00
542.50
3732.50 1054.62
3220.38
1840.00
542.50
3220.38 1197.84
2565.04
2140.00
542.50
2565.04 1393.14
1714.40
2285.00
542.50
1714.40 1487.54
769.37
1115.00
542.50
769.37
725.87
586.00

Pro Forma Balance Sheets under Level Production, 1994 ($ 000)

Actual Dec. 31, 1993Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Cash
Accounts receivable
Inventory
Current assets
Net plant and equipment
Total assets

200.00
2905.00
586.00
3691.00
1176.00
4867.00

623.86
1060.00
1050.38
2734.24
1176.00
3910.24

810.56
260.00
1501.74
2572.30
1176.00
3748.30

200.00
300.00
1940.08
2440.08
1176.00
3616.08

200.00
300.00
2391.44
2891.44
1176.00
4067.44

200.00
280.00
2842.80
3322.80
1176.00
4498.80

200.00
280.00
3294.16
3774.16
1176.00
4950.16

200.00
300.00
3732.50
4232.50
1176.00
5408.50

200.00
1780.00
3220.38
5200.38
1176.00
6376.38

200.00
3460.00
2565.04
6225.04
1176.00
7401.04

200.00
3980.00
1714.40
5894.40
1176.00
7070.40

200.00
4425.00
769.37
5394.37
1176.00
6570.37

200.00
3400.00
586.00
4186.00
1176.00
5362.00

Accounts payable
Notes, payable, bank
Accrued taxes
Long-term debt, current portion
Current liabilities
Long-term debt
Shareholders' equity
Total liabilities and equity

282.00
752.00
88.00
50.00
1172.00
400.00
3295.00
4867.00

250.00
0.00
29.26
50.00
329.26
400.00
3180.98
3910.24

250.00
0.00
(25.80)
50.00
274.20
400.00
3074.10
3748.30

250.00
111.87
(166.87)
50.00
245.00
400.00
2971.08
3616.08

250.00
765.18
(258.63)
50.00
806.55
400.00
2860.89
4067.44

250.00
1368.21
(317.00)
50.00
1351.21
400.00
2747.59
4498.80

250.00
2055.98
(411.98)
50.00
1944.00
375.00
2631.16
4950.16

250.00
2688.59
(471.23)
50.00
2517.36
375.00
2516.14
5408.50

250.00
3325.98
(358.86)
50.00
3267.11
375.00
2734.27
6376.38

250.00
3983.21
(257.04)
50.00
4026.17
375.00
2999.87
7401.04

250.00
3144.77
(84.38)
50.00
3360.38
375.00
3335.02
7070.40

250.00
2079.18
107.90
50.00
2487.08
375.00
3708.28
6570.37

250.00
764.57
129.43
50.00
1194.00
350.00
3818.00
5362.00

Proforma Income Statement Under Level Production, 1994 ($ 000)

Jan
Net sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense old
Interest Expense new
Interest income
Profit (loss) before taxes
Income taxes
Net profit

Feb
120.00
78.12
41.88
209.58
3.61
2.82
1.37
(172.76)
(58.74)
(114.02)

140.00
91.14
48.86
209.58
3.61
0.00
2.39
(161.94)
(55.06)
(106.88)

Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
160.00
140.00
140.00
140.00
160.00 1620.00 1840.00 2140.00 2285.00
1115.00 10000.00
104.16
91.14
91.14
91.14
104.16 1054.62 1197.84 1393.14 1487.54
725.87 6510.00
55.84
48.86
48.86
48.86
55.84
565.38
642.16
746.86
797.47
389.14 3490.00
209.58
209.58
209.58
209.58
209.58
209.58
209.58
209.58
209.58
209.58 2515.00
3.61
3.61
3.61
3.51
3.41
3.41
3.41
3.41
3.41
3.31
41.91
0.42
3.29
8.00
12.84
17.79
22.55
27.41
26.73
19.59
10.66
152.11
1.68
0.67
0.67
0.67
0.67
0.67
0.67
0.67
0.67
0.67
11.45
(156.09) (166.95) (171.67) (176.41) (174.28)
330.50
402.43
507.80
565.55
166.25
792.43
(53.07)
(56.76)
(58.37)
(59.98)
(59.25)
112.37
136.82
172.65
192.29
56.52
269.43
(103.02)
(110.19) (113.30)
(116.43) (115.02)
218.13
265.60
335.15
373.26
109.72
523.00

940.00
2.39
942.39
250.00
209.58
0.00
3.61
292.50
0.00
755.69
186.70
623.86
810.56
200.00
0.00
0.00
810.56

Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
120.00
140.00
160.00
140.00
140.00
140.00
160.00 1620.00 1840.00
2140.00 9505.00
1.68
0.67
0.67
0.67
0.67
0.67
0.67
0.67
0.67
0.67
11.45
121.68
140.67
160.67
140.67
140.67
140.67
160.67 1620.67 1840.67
2140.67 9516.45
250.00
250.00
250.00
250.00
250.00
250.00
250.00
250.00
250.00
250.00 3032.00
209.58
209.58
209.58
209.58
209.58
209.58
209.58
209.58
209.58
209.58 2515.00
88.00
35.00
0.00
35.00
0.00
0.00
35.00
0.00
0.00
35.00
228.00
4.03
6.90
11.61
16.35
21.20
25.96
30.82
30.14
23.00
13.97
194.02
292.50
292.50
292.50
292.50
292.50
292.50
292.50
292.50
292.50
292.50 3510.00
0.00
0.00
0.00
25.00
0.00
0.00
0.00
0.00
0.00
25.00
50.00
844.11
793.98
763.69
828.43
773.28
778.05
817.90
782.22
775.08
826.06 9529.02
(722.43) (653.31) (603.03) (687.77) (632.62) (637.38) (657.23)
838.44 1065.58
1314.61
(12.57)
810.56
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00 3434.42
88.13
(453.31) (403.03) (487.77) (432.62) (437.38) (457.23) 1038.44 1265.58
1514.61 3421.85
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00 2400.00
(111.87) (653.31) (603.03) (687.77) (632.62) (637.38) (657.23)
838.44 1065.58
1314.61
(12.57)
111.87
765.18 1368.21
2055.98 2688.59 3325.98 3983.21 3144.77 2079.18
764.57 20287.54
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00 3434.42

Cash Flow for level production

Dec
Collection of recievables
Interest Income
Inflow
Payables
Operating Expenses
Taxes
Interest
Other manufacturing
Loan Repayment
Outflow
Cash flow
Opening
Total Available
Minimum
Repaid
Load outsanding
Closing

Jan

752.00

Feb
1965.00
1.37
1966.37
282.00
209.58
0.00
6.43
292.50
0.00
790.51
1175.86
200.00
1375.86
200.00
752.00
0.00
623.86

Table A: Condensed Income Statements, 1991-93 ($ '000)

Net sales
Cost of goods sold
Gross profit
Operating expenses
Interest expenses
Interest income
PBT
Income tax
Net profit

1991
5,213
3,597
1,616
1,199
68
20
369
125
244

1992
6,167
4,440
1,727
1,542
75
15
125
43
82

1993
7,967
5,577
2,390
1,912
85
16
409
139
270

Table B: Balance Sheet as on December 31, 1993 ($ 000)

Cash
Accounts receivable
Inventory
Current assets
Plant and equipment, net
Total assets

200
2,905
586
3,691
1,176
4,867

Accounts payable
Notes payable, Bank
Accrued taxes
LT debt, current portion
Current liabilities
Long-term debt
Shareholders' equity
Total liabilities and shareholders' equity

282
752
88
50
1,172
400
3,295
4,867

Table C: Monthly sales data ($ 000)

Sales 1993
January
February
March
April
May
June
July
August
September
October
November
December

64
88
96
88
87
95
96
1251
1474
1723
1965
940

Projected 1994
120
140
160
140
140
140
160
1620
1840
2140
2285
1115

Pro Forma Balance Sheets under Seasonal Production, 1994 ($ 000)

Actual Dec. 31, 1993Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Cash
Accounts receivable
Inventory
Current assets
Net plant and equipment
Total assets

200
2905
586
3691
1176
4867

878
1060
586
2524
1176
3700

1526
260
586
2372
1176
3548

1253
300
586
2139
1176
3315

1054
300
586
1940
1176
3116

915
280
586
1781
1176
2957

696
280
586
1562
1176
2738

527
300
586
1413
1176
2589

200
1780
586
2566
1176
3742

200
3460
586
4246
1176
5422

200
3980
586
4766
1176
5942

200
4425
586
5211
1176
6387

200
3400
586
4186
1176
5362

Accounts payable
Notes, payable, bank
Accrued taxes
Long-term debt, current portion
Current liabilities
Long-term debt
Shareholders' equity
Total liabilities and equity

282
752
88
50
1172
400
3295
4867

36
0
31
50
117
400
3183
3700

42
0
-23
50
69
400
3079
3548

48
0
-162
50
-64
400
2979
3315

42
0
-251
50
-159
400
2875
3116

42
0
-305
50
-213
400
2770
2957

42
0
-394
50
-302
375
2665
2738

48
0
-448
50
-350
375
2564
2589

486
433
-352
50
617
375
2750
3742

552
1741
-271
50
2072
375
2975
5422

642
1745
-126
50
2311
375
3256
5942

686
1677
33
50
2446
375
3566
6387

334
942
40
50
1366
350
3646
5362

1115
781
334.5
200
14
1
121.5
42
79.5

Total
10000
7000
3000
2400
95
28
533
182
351

Proforma Income Statement Under Seasonal Production, 1994 ($ 000)

Jan
Net sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Interest income
Profit (loss) before taxes
Income taxes
Net profit

Feb
120
84
36
200
7
2
-169
-57
-112

Mar
140
98
42
200
4
4
-158
-54
-104

Apr
160
112
48
200
4
5
-151
-51
-100

May
140
98
42
200
4
4
-158
-54
-104

Jun
140
98
42
200
4
3
-159
-54
-105

Jul
140
98
42
200
4
3
-159
-54
-105

Aug
160
112
48
200
3
2
-153
-52
-101

Sep
1620
1134
486
200
5
1
282
96
186

Oct
1840
1288
552
200
12
1
341
116
225

Nov
2140
1498
642
200
17
1
426
145
281

Dec
2285
1600
685.5
200
17
1
469.5
159
310.5