Period

1Q X4
Sales and Collections Worksheet
Unit Sales and Price Inputs
Unit Sales
Price per unit

Sales Composition Inputs

Cash Sales as a % of total sales
Credit Sales as a % of total sales
Days receivable (DSO)
Days per quarter
COGS Worksheet
Cost-of-Goods Sold Inputs
Monitor screen: cost per unit
Monitor casing: cost per unit
Assembly labor: cost per unit
Total

$
$
$
$

2Q X4

1,000
1,000 $

1,500
960

60%
40%

60%
40%

30
90

30
90

75
75
50
200

$
$
$
$

72
72
50
194

Inventory and Purchases Worksheet

Inventory Inputs
Days inventory

20

20

Disbursements for Purchases Inputs

Days payable

30

30

Headcount Overview Worksheet

Headcount Overview Inputs
Number of employees
Chief Executive Officer
Chief Financial Officer
VP, Engineering
VP, Sales & Marketing
VP, Business Development
Salesperson
Hardware Engineer
Controller/Accountant
Administrative Assistant
Total

1
1
1
1
0
5
2
1
3
15

1
1
1
1
0
5
2
1
3
15

Periodic base salaries (annualized)

Chief Executive Officer
Chief Financial Officer

VP, Engineering
VP, Sales & Marketing
VP, Business Development
Salesperson
Hardware Engineer
Controller/Accountant
Administrative Assistant
Headcount Cost Worksheet
Headcount Cost Inputs
Benefits rate
Benefits factor (1 + benefits rate)
Operating Expenses Worksheet
Operating Expenses Inputs
Miscellaneous expenses as a % of sales

3.0%

3.0%

R&D expenses as a % of sales

7.0%

7.0%

Rent expense per square foot per quarter

Square feet of space rented
Total rent expense

$
$

Tax rate
Capital Worksheet
Capital Expenditures (CAPEX) Inputs
Equipment purchases
Furniture purchases
Fixtures purchases
Total CAPEX purchases
CAPEX Disbursements Inputs
% of purchases paid for in purchase period

5.00 $
4,000
20,000 $
35.0%

$
$
$
$

30,000
10,000
5,000
45,000

5.00
4,000
20,000
35.0%

$
$
$
$

30,000
10,000
5,000
45,000

100%

100%

5.0%
5.0%
6.3%

5.0%
5.0%
6.3%

Depreciation Inputs
Equipment depreciable life (years)
Furniture depreciable life (years)
Fixtures depreciable life (years)
Quarters per year
Equipment depreciation multiplier
Furniture depreciation multiplier
Fixtures depreciation multiplier

Cash Worksheet
Cash Inputs
Minimum cash balance desired

250,000 $

250,000

Equity investment (incremental)

Borrowing/loan (incremental)
Repayments of borrowing (incremental)

$ 1,000,000 $
$
$
$
$

50,000
-

Interest rate on borrowing/loan (annual)

Interest rate on borrowing/loan (quarterly)
Loan value used for interest calculations

1.75%
$

Free Cash Flows Worksheet

WACC (discount rate)
Growth rate to perpetuity (g)

1.75%
$

50,000

20%
5%

DASHBOARD
Is the Balance Sheet balanced?
Sum total of Balance Sheet differences
Is cash consistent across BS and SCF?
Sum total of BS and SCF differences
Period
Revenues (total sales in dollars)

1Q X4
$ 1,000,000 $

2Q X4
1,440,000

Net Income

134,737 $

330,915

Free Cash Flows

(17,728) $

228,953

Revenues Data Table

Unit sales for 1Q X4

Revenues
for 1Q X4
1Q X4
800 Err:512
900 Err:512
1,000 Err:512

1,100 Err:512
1,200 Err:512
Net Income Data Table

$
$
Price per unit for 1Q X4 $
$
$

700
850
1,000
1,150
1,300

Net Income
for 1Q X4
$
134,737
Err:512
Err:512
Err:512
Err:512
Err:512

65.00
70.00
75.00
80.00
85.00

Free Cash Flow

for 1Q X4
$
(17,728)
Err:512
Err:512
Err:512
Err:512
Err:512

Free Cash Flow Data Table

$
$
Monitor screen: cost per unit for 1Q X4 $
$
$

Period
3Q X4

$
$
$
$

4Q X4

2,100
920

X4

2,800
900

60%
40%

60%
40%

30
90

30
90

65
65
48
178

$
$
$
$

60
60
45
165

20

20

30

30

1
1
1
1
1
7
4
2
4
22

1
1
1
1
1
8
4
2
4
23

$
$

200,000
175,000

$
$
$
$
$
$
$

175,000
150,000
140,000
120,000
110,000
55,000
35,000

12.0%
1.12

$
$

3.0%

3.0%

8.0%

8.0%

5.00
4,000
20,000

$
$

35.0%

$
$
$
$

30,000
10,000
5,000
45,000

100%

5.00
4,000
20,000
35.0%

$
$
$
$

30,000
10,000
5,000
45,000

100%

5.0
5.0
4.0
4.0

5.0%
5.0%
6.3%

5.0%
5.0%
6.3%

$
$
$
$

250,000

$
$
50,000 $

250,000
7.0%

1.75%
$

1.75%
$

Period
3Q X4
$ 1,932,000

4Q X4
$ 2,520,000

X4
6,892,000

425,843

685,328

1,576,822

330,580

$ 8,544,988

9,086,793

Period
1Q X4

2Q X4

SALES BUDGET
Unit Sales and Price Budget
Unit Sales
x Price per unit
= Total Sales

$
$
$

1,000
1,000
1,000,000

$
$
$

1,500
960
1,440,000

Sales Composition Budget

Cash Sales
+ Credit Sales
= Total Sales

$
$
$

600,000
400,000
1,000,000

$
$
$

864,000
576,000
1,440,000

COLLECTIONS BUDGET
Cash Collections from Customers Budget
Cash Sales this period
$
+ Credit Sales this period
$
= Total Collections
$

600,000
266,667
866,667

$
$
$

864,000
517,333
1,381,333

Accounts Receivable (A/R) Budget

Beginning A/R Balance
+ Addition to A/R
- Subtraction to A/R
= Ending A/R Balance

133,333
133,333

$
$
$
$

133,333
192,000
133,333
192,000

$
$
$
$

Period
3Q X4

4Q X4

X4

$
$
$

2,100
920
1,932,000

$
$
$

2,800
900
2,520,000

$
7,400
$
3,780
$ 6,892,000

$
$
$

1,159,200
772,800
1,932,000

$
$
$

1,512,000
1,008,000
2,520,000

$ 4,135,200
$ 2,756,800
$ 6,892,000

$
$
$

1,159,200
707,200
1,866,400

$
$
$

1,512,000
929,600
2,441,600

$ 4,135,200
$ 2,420,800
$ 6,556,000

$
$
$
$

192,000
257,600
192,000
257,600

$
$
$
$

257,600
336,000
257,600
336,000

$
$
$
$

918,933
582,933
336,000

Period
1Q X4
COST-OF-GOODS SOLD BUDGET
Cost-of-Goods Sold Budget
Monitor screen
Monitor casing
Assembly labor
Total

$
$
$
$

75,000
75,000
50,000
200,000

2Q X4

$
$
$
$

108,000
108,000
75,000
291,000

3Q X4

$
$
$
$

136,500
136,500
100,800
373,800

4Q X4

$
$
$
$

168,000
168,000
126,000
462,000

X4

$
487,500
$
487,500
$
351,800
$ 1,326,800

Period
1Q X4

2Q X4

3Q X4

INVENTORY BUDGET
Inventory Budget
Desired Ending Inventory
+ Cost of goods sold
= Total inventory needed

$
$
$

64,667
200,000
264,667

$
$
$

83,067
291,000
374,067

$
$
$

102,667
373,800
476,467

PURCHASES BUDGET
Purchases Budget
Total Inventory needed
- Beginning inventory
= Purchases

$
$
$

264,667
264,667

$
$
$

374,067
64,667
309,400

$
$
$

476,467
83,067
393,400

Disbursements for Purchases Budget

Payments of payables
Total disbursements for purchases

$
$

176,444
176,444

$
$

294,489
294,489

$
$

365,400
365,400

Accounts Payable(A/P) Budget

Beginning A/P balance
+ Additions to A/P
- Subtractions from A/P
= Ending A/P

$
$
$
$

88,222
88,222

$
$
$
$

88,222
103,133
88,222
103,133

$
$
$
$

103,133
131,133
103,133
131,133

4Q X4

X4

$
$
$

102,667
462,000
564,667

$
102,667
$ 1,326,800
$ 1,429,467

$
$
$

564,667
102,667
462,000

N/A
$

$
$

439,133
439,133

$ 1,275,467
$ 1,275,467

$
$
$
$

131,133
154,000
131,133
154,000

$
$
$
$

N/A

476,489
322,489
154,000

Period
1Q X4
HEADCOUNT BUDGET
Headcount Budget
Periodic base salaries
Chief Executive Officer
Chief Financial Officer
VP, Engineering
VP, Sales & Marketing
VP, Business Development
Salesperson
Hardware Engineer
Controller/Accountant
Administrative Assistant
Total

$
$
$
$
$
$
$
$
$
$

50,000
43,750
43,750
37,500
35,000
30,000
27,500
13,750
8,750
290,000

2Q X4

$
$
$
$
$
$
$
$
$
$

50,000
43,750
43,750
37,500
35,000
30,000
27,500
13,750
8,750
290,000

3Q X4

$
$
$
$
$
$
$
$
$
$

50,000
43,750
43,750
37,500
35,000
30,000
27,500
13,750
8,750
290,000

4Q X4

$
$
$
$
$
$
$
$
$
$

50,000
43,750
43,750
37,500
35,000
30,000
27,500
13,750
8,750
290,000

X4

$
$
$
$
$
$
$
$
$
$

200,000
175,000
175,000
150,000
140,000
120,000
110,000
55,000
35,000
1,160,000

Period
1Q X4
HEADCOUNT BUDGET
Headcount Budget
Periodic base salaries
Chief Executive Officer
$
Chief Financial Officer
$
VP, Engineering
$
VP, Sales & Marketing
$
VP, Business Developmen $
Salesperson
$
Hardware Engineer
$
Controller/Accountant
$
Administrative Assistant $
Total
$
Total (with benefits)

2Q X4

3Q X4

4Q X4

50,000
43,750
43,750
37,500
150,000
55,000
13,750
26,250
420,000

$
$
$
$
$
$
$
$
$
$

50,000
43,750
43,750
37,500
150,000
55,000
13,750
26,250
420,000

$
$
$
$
$
$
$
$
$
$

50,000
43,750
43,750
37,500
35,000
210,000
110,000
27,500
35,000
592,500

$
$
$
$
$
$
$
$
$
$

50,000
43,750
43,750
37,500
35,000
240,000
110,000
27,500
35,000
622,500

470,400

470,400

663,600

697,200

X4

$
$
$
$
$
$
$
$
$
$

200,000
175,000
175,000
150,000
70,000
750,000
330,000
82,500
122,500
2,055,000

2,301,600

Period
1Q X4
OPERATING EXPENSES BUDGET
Operating Expenses Budget
Salaries
Miscellaneous expenses
Research and Development
Rent
Depreciation
Total operating expenses

2Q X4

$
$
$
$

470,400
30,000
70,000
20,000

$
$
$
$

470,400
43,200
100,800
20,000

590,400

634,400

DISBURSEMENTS FOR OPERATING EXPENSES BUDGET

Disbursements for Operating Expenses Budget
Salaries
$
470,400
Miscellaneous expenses
$
30,000
Research and Development
$
70,000
Rent
$
20,000
Depreciation
$
Total operating expenses
$
590,400

$
$
$
$
$
$

470,400
43,200
100,800
20,000
634,400

Period
3Q X4

4Q X4

X4

$
$
$
$

663,600
57,960
154,560
20,000

$
$
$
$

697,200
75,600
201,600
20,000

896,120

994,400

$ 2,301,600
$
206,760
$
526,960
$
80,000
$
$ 3,115,320

$
$
$
$
$
$

663,600
57,960
154,560
20,000
896,120

$
$
$
$
$
$

697,200
75,600
201,600
20,000
994,400

$ 2,301,600
$
206,760
$
526,960
$
80,000
$
$ 3,115,320

Period
Sales
Cost of goods sold
Gross Profit

1Q X4
$ 1,000,000
$
200,000
$
800,000

2Q X4
$ 1,440,000
$
291,000
$ 1,149,000

3Q X4
$ 1,932,000
$
373,800
$ 1,558,200

4Q X4
$ 2,520,000
$
462,000
$ 2,058,000

Salaries
Rent
Insurance
Depreciation
Research & Development
Miscellaneous
Income from operations

$
$
$
$
$
$
$

470,400
20,000
2,313
70,000
30,000
207,288

$
$
$
$
$
$
$

470,400
20,000
4,625
100,800
43,200
509,975

$
$
$
$
$
$
$

663,600
20,000
6,938
154,560
57,960
655,143

$
697,200
$
20,000
$
$
9,250
$
201,600
$
75,600
$ 1,054,350

Interest expense
Taxable income

$
$

207,288

$
$

875
509,100

$
$

655,143

$
$ 1,054,350

Tax expense
Net income

$
$

72,551
134,737

$
$

178,185
330,915

$
$

229,300
425,843

$
$

369,023
685,328

$
$
$

X4
6,892,000
1,326,800
5,565,200

$
$
$
$
$
$
$

2,301,600
80,000
23,125
526,960
206,760
2,426,755

$
$

875
2,425,880

$
$

849,058
1,576,822

Period
1Q X4

2Q X4

CAPITAL BUDGET
Capital Expenditures Budget
Equipment
Furniture
Fixtures
Total capital expenditures

$
$
$
$

30,000
10,000
5,000
45,000

$
$
$
$

30,000
10,000
5,000
45,000

Disbursements for Capital Expenditures Budget

Equipment
Furniture
Fixtures
Total disbursements for capital expenditures

$
$
$
$

30,000
10,000
5,000
45,000

$
$
$
$

30,000
10,000
5,000
45,000

Depreciation Budget
Equipment
Furniture
Fixtures
Total depreciation

$
$
$
$

1,500
500
313
2,313

$
$
$
$

3,000
1,000
625
4,625

Cumulative capital expenditures

- Accumulated depreciation
= Fixed assets, net of depreciation

$
$
$

45,000
2,313
42,688

$
$
$

90,000
6,938
83,063

Cumulative disbursements for CAPEX

Payables adjustment for CAPEX disbursements

$
$

45,000
-

$
$

90,000
-

Period
3Q X4

4Q X4

X4

$
$
$
$

30,000
10,000
5,000
45,000

$
$
$
$

30,000
10,000
5,000
45,000

$ 120,000
$ 40,000
$ 20,000
$ 180,000

$
$
$
$

30,000
10,000
5,000
45,000

$
$
$
$

30,000
10,000
5,000
45,000

$ 120,000
$ 40,000
$ 20,000
$ 180,000

$
$
$
$

4,500
1,500
938
6,938

$
$
$
$

6,000
2,000
1,250
9,250

$
$
$

135,000
13,875
121,125

$
$
$

180,000
23,125
156,875

$
$

135,000 $
$

180,000
-

$
$
$
$

15,000
5,000
3,125
23,125

Period
1Q X4
CASH BUDGET
Beginning cash balance
Cash Receipts
Collections from customers
Total cash available, before financing
Cash disbursements
Purchases disbursements
Operating expense
Tax expense
Capital Expenditure
Total disbursements
Minimum cash balance desired
Total cash needed
Excess (deficiency) of total cash available over
Total cash needed before financing
Financing
Equity investment
Borrowing
Repayments
Interest
Total cash increase (decrease) from financing
Ending cash balance

2Q X4
-

982,272

$
$

866,667
866,667

$
$

1,381,333
2,363,605

$
$
$
$
$

176,444
590,400
72,551
45,000
884,395

$
$
$
$
$

294,489
634,400
178,185
45,000
1,152,074

$
$

250,000
1,134,395

$
$

250,000
1,402,074

(267,728) $

961,531

$
$
$
$
$

1,000,000 $
$
$
$
1,000,000 $

982,272

50,000
(875)
49,125
1,260,656

Period
3Q X4

4Q X4

X4

1,260,656

1,541,236

$
$

1,866,400
3,127,056

$
$

2,441,600
3,982,836

$
$

6,556,000
10,340,164

$
$
$
$
$

365,400
896,120
229,300
45,000
1,535,820

$
$
$
$
$

439,133
994,400
369,023
45,000
1,847,556

$
$
$
$
$

1,275,467
3,115,320
849,058
180,000
5,419,845

$
$

250,000
1,785,820

$
$

250,000
2,097,556

N/A
N/A

1,341,236

1,885,280

N/A

$
$
$
$
$
$

(50,000)
(50,000)
1,541,236

$
$
$
$
$
$

2,135,280

$
$
$
$
$

1,000,000
50,000
(50,000)
(875)
999,125

2,135,280

Period
1Q X4

2Q X4

Assets
Cash
Accounts Receivable
Inventory
Fixed Assets, net
Total Assets

$
$
$
$
$

982,272
133,333
64,667
42,688
1,222,959

$
$
$
$
$

1,260,656
192,000
83,067
83,063
1,618,785

Liabilities
Accounts Payable
Payables from Capital Budget
Loan payable
Total Liabilities

$
$
$
$

88,222
88,222

$
$
$
$

103,133
50,000
153,133

Owners Equity
Common Stock
Retained Earnings
Total Owners Equity

$
$
$

1,000,000 $
134,737 $
1,134,737 $

1,000,000
465,652
1,465,652

Total Liabilities and Owners Equity

1,222,959 $

1,618,785

Balance Sheet calculation check

Net Working Capital (NWC)

Current assets
- Current liabilities
= Net working capital

$
$
$

198,000 $
88,222 $
109,778 $

275,067
103,133
171,933

Beginning NWC
- Ending NWC
= Change in NWC

$
$
$

$
109,778 $
(109,778) $

109,778
171,933
(62,156)

Period
3Q X4

4Q X4

X4

$
$
$
$
$

1,541,236
257,600
102,667
121,125
2,022,628

$
$
$
$
$

2,135,280
336,000
102,667
156,875
2,730,822

$
$
$
$

131,133
131,133

$
$
$
$

154,000
154,000

$
$
$

1,000,000 $
891,495 $
1,891,495 $

1,000,000
1,576,822
2,576,822

$ 1,000,000
$ 1,576,822
$ 2,576,822

2,022,628 $

2,730,822

$ 2,730,822

$ 2,135,280
$
336,000
$
102,667
$
156,875
$ 2,730,822

$
$
$
$

154,000
154,000

$
$
$

360,267 $
131,133 $
229,133 $

438,667
154,000
284,667

N/A
N/A
N/A

$
$
$

171,933 $
229,133 $
(57,200) $

229,133
284,667
(55,533)

N/A
N/A
N/A

Period
1Q X4
Cash Flows from Operating Activities
Net Income
Adjustments to reconcile net income to cash
provided from operating activities
Depreciation
(Increase) decrease in Accounts Receivable
(Increase) decrease in Inventory
Increase (decrease) in Accounts Payable
Increase (decrease) in Loan Payable
Cash provided (used) by operating activities

$
$
$
$
$
$

Cash Flows from Investing Activities

Purchase of capital assets
Cash provided (used) by investing activities

2Q X4

134,737 $

2,313
(133,333)
(64,667)
88,222
27,272

330,915

$
$
$
$
$
$

4,625
(58,667)
(18,400)
14,911
50,000
323,384

$
$

(45,000) $
(45,000) $

(45,000)
(45,000)

Cash Flows from Financing Activities

Proceeds from sale of Common Stock
Cash provided (used) by financing activities

$
$

1,000,000 $
1,000,000 $

Net increase (decrease) in cash

Cash,beginnning of period
Cash, end of period

$
$
$

982,272 $
$
982,272 $

Changing in Balance Sheet Accounts

Opening value of Account Receivable
Ending value of Account Receivable
(Increase)Decrease in Account Receivable

$
$
$

$
133,333 $
(133,333) $

133,333
192,000
(58,667)

Inventory Beginning Value

Inventory Ending Value
(Increase)Decrease in Inventory

$
$
$

$
64,667 $
(64,667) $

64,667
83,067
(18,400)

Opening value of Account Payable

Ending value of Account Payable
Increase(Decrease) in Account Payable

$
$
$

$
88,222 $
88,222 $

88,222
103,133
14,911

Opening value of Loan Payable

Ending value of Loan Payable
Increase(Decrease) in Loan Payable

$
$
$

$
$
$

278,384
982,272
1,260,656

50,000
50,000

Period
3Q X4

4Q X4

X4

425,843 $

685,328

1,576,822

$
$
$
$
$
$

6,938
(65,600)
(19,600)
28,000
(50,000)
325,580

$
$
$
$
$
$

9,250
(78,400)
22,867
639,044

$
$
$
$
$
$

23,125
(336,000)
(102,667)
154,000
1,315,280

$
$

(45,000) $
(45,000) $

(45,000)
(45,000)

$
$

(180,000)
(180,000)

$
$

$
$

$
$
$

280,580 $
1,260,656 $
1,541,236 $

594,044
1,541,236
2,135,280

$
$
$

192,000 $
257,600 $
(65,600) $

257,600
336,000
(78,400)

$
$
$

83,067 $
102,667 $
(19,600) $

102,667
102,667
-

$
$
$

103,133 $
131,133 $
28,000 $

131,133
154,000
22,867

$
$
$

50,000 $
$
(50,000) $

$
$

1,000,000
1,000,000

$
$
$

2,135,280
2,135,280

Period
EBIT

Tax rate

35%

EBIT (1-t)
+ Depreciation
- CAPEX
- Change in NWC
= Free Cash Flow
+ Terminal Value
= Total Free Cash Flow

$
$
$
$
$
$

Present Value

NPV

WACC
g (to perpetuity)

1Q X4
207,288

134,737
2,313
(45,000)
(109,778)
(17,728)

2Q X4
509,975

35%

35%

331,484
4,625
(45,000)
(62,156)
228,953

$
$
$
$
$

425,843
6,938
(45,000)
(57,200)
330,580

(17,728) $

228,953

330,580

(16,938) $

209,005

288,331

7,601,220
20%
5%

$
$
$
$
$

3Q X4
655,143

4Q X4
1,054,350

X4
$ 2,426,755

35%
$
$
$
$
$
$
$

685,328
9,250
(45,000)
(55,533)
594,044
7,950,944
8,544,988

7,120,823

$
$
$
$
$
$
$

1,577,391
23,125
(180,000)
(284,667)
1,135,849
7,950,944
9,086,793

Period
1Q X4

2Q X4

3Q X4

CVP ANALYSIS
Variable Costs
Monitor screen
Monitor casing
Assembly labor
Miscellaneous expenses
Research and Development
Total Variable Costs

$
$
$
$
$
$

75,000
75,000
50,000
30,000
70,000
300,000

$
$
$
$
$
$

108,000
108,000
75,000
43,200
100,800
435,000

$
$
$
$
$
$

136,500
136,500
100,800
57,960
154,560
586,320

Fixed Costs
Salaries
Rent
Depreciation
Total Fixed Costs

$
$
$
$

470,400
20,000
2,313
492,713

$
$
$
$

470,400
20,000
4,625
495,025

$
$
$
$

663,600
20,000
6,938
690,538

Contribution Margin
Sales
- Variable Costs
= Contribution Margin
- Fixed Costs
- Interest Expense
- Taxes
= Net Income

$
$
$
$
$
$
$

1,000,000
300,000
700,000
492,713
72,551
134,737

$
$
$
$
$
$
$

1,440,000
435,000
1,005,000
495,025
875
178,185
330,915

$
$
$
$
$
$
$

1,932,000
586,320
1,345,680
690,538
229,300
425,843

Operating Leverage
Fixed Costs
Total Costs (Fixed+Variable)

$
$

492,713 $
792,713 $

495,025 $
930,025 $

690,538
1,276,858

62.2%

53.2%

Operating leverage

54.1%

Breakeven Point in units

Contribution Margin per unit
Price per unit
- Variable cost per unit
= Contribution Margin per unit

$
$
$

1,000 $
300 $
700 $

960 $
290 $
670 $

920
279
641

Fixed Costs

492,713 $

495,025 $

690,538

Breakeven in units
Breakeven Point in Dollars
Breakeven point in units
* Price per unit

704

704
1,000 $

739

739
960 $

1078

1078
920

= Breakeven point in Dollars

703,875 $

709,290 $

991,408

4Q X4

X4

$
$
$
$
$
$

168,000
168,000
126,000
75,600
201,600
739,200

$
$
$
$
$
$

487,500
487,500
351,800
206,760
526,960
2,060,520

$
$
$
$

697,200
20,000
9,250
726,450

$
$
$
$

2,301,600
80,000
23,125
2,404,725

$
$
$
$
$
$
$

2,520,000
739,200
1,780,800
726,450
369,023
685,328

$
$
$
$
$
$
$

6,892,000
2,060,520
4,831,480
2,404,725
875
849,058
1,576,822

$
$

726,450
1,465,650

$
$

2,404,725
4,465,245

49.6%

$
$
$

900
264
636

726,450
1142

1142
900

53.9%

1,027,995

Period
1Q X4

2Q X4

Profit Margins
Gross margin
Pre tax margin
Net profit margin

80.0%
20.7%
13.5%

79.8%
35.4%
23.0%

Investment Returns(Annualized)
Return on Equity
Return on Assets
Return on Capital

47.5%
44.1%
47.5%

90.3%
81.8%
87.3%

Management Efficiency(Annualized)
Income/Employee
Revenue/Employee
Receivable turnover
Inventory turnover
Asset turnover

Values used for the

above calculations
Gross Profit
Sales
Taxable Income
Net Income
Owners Equity
Total Assets
Capital
Employees
Ending value of Account Receivable
COGS
Inventory Ending Value

$
$

$
$
$
$
$
$
$
$
$
$

35,930 $
266,667 $
30.0
12.4
3.3

800,000
1,000,000
207,288
134,737
1,134,737
1,222,959
1,134,737
15
133,333
200,000
64,667

$
$
$
$
$
$
$
$
$
$

88,244
384,000
30.0
14.0
3.6

1,149,000
1,440,000
509,100
330,915
1,465,652
1,618,785
1,515,652
15
192,000
291,000
83,067

Period
3Q X4

$
$

$
$
$
$
$
$
$
$
$
$

4Q X4

X4

80.7%
33.9%
22.0%

81.7%
41.8%
27.2%

80.7%
35.2%
22.9%

90.1%
84.2%
90.1%

106.4%
100.4%
106.4%

61.2%
57.7%
61.2%

77,426 $
351,273 $
30.0
14.6
3.8

1,558,200
1,932,000
655,143
425,843
1,891,495
2,022,628
1,891,495
22
257,600
373,800
102,667

$
$
$
$
$
$
$
$
$
$

119,187
438,261
30.0
18.0
3.7

$
$

68,557
299,652.17
20.5
12.9
2.5

2,058,000
2,520,000
1,054,350
685,328
2,576,822
2,730,822
2,576,822
23
336,000
462,000
102,667

$
$
$
$
$
$
$

5,565,200
6,892,000
2,425,880
1,576,822
2,576,822
2,730,822
2,576,822
23
336,000
1,326,800
102,667

$
$
$

Public Company Comparables

Valuation
(Price)

Projected (Next 4
Sales

Direct Competitors
Competitor 1
Competitor 2
Competitor 3
Median

$
$
$
$

250,000,000
200,000,000
150,000,000
200,000,000

$
$
$
$

300,000,000
290,000,000
275,000,000
290,000,000

Stock Index
Stock index

1,250,000,000

1,400,000,000

Valuation based upon Median Mult

4 quarters
Sales
Napavale
Direct competitors median multiples
Stock index multiples

$
$

4,753,103
6,153,571

Projected (Next 4 quarters)

Net Income
Free Cash Flows
$
$
$
$

30,000,000
25,000,000 $
30,000,000 $
30,000,000 $

160,000,000 $

###
27,500,000
22,000,000
27,500,000

150,000,000

sed upon Median Multiples and Projected (Next

4 quarters)
Net Income
Free Cash Flows
$
$

12,614,576 $
12,318,922 $

66,085,765
75,723,272

Multiple of Projected (Next 4 quarters)

Sales
Net Income
$
$
$
$

0.83
0.69
0.55
0.69

0.89

$
$
$
$

8.33
8.00
5.00
8.00

7.81

cted (Next 4 quarters)

Free Cash Flows
$
$
$
$

8.33
7.27
6.82
7.27

8.33

Mergers & Acquisitions Comparables

Valuation
(Price)
Target Companies
Company 1
Company 2
Company 3
Median

$
$
$
$

120,000,000
95,000,000
85,000,000
95,000,000

Projected (Next 4
Sales
$
$
$
$

150,000,000
125,000,000
115,000,000
125,000,000

Valuation based upon Median Mult

4 quarters
Sales
Napavale
Direct competitors median multiples

5,237,920

Projected (Next 4 quarters)

Net Income
Free Cash Flows
$
$
$
$

17,000,000
15,000,000
14,000,000
15,000,000

$
$
$
$

125,000,000
100,000,000
92,000,000
100,000,000

sed upon Median Multiples and Projected (Next

4 quarters)
Net Income
Free Cash Flows
$

9,986,539 $

8,632,453

Multiple of Projected (Next 4 quarters)

Sales
Net Income
$
$
$
$

0.80
0.76
0.74
0.76

$
$
$
$

7.06
6.33
6.07
6.33

cted (Next 4 quarters)

Free Cash Flows
$
$
$
$

0.96
0.95
0.92
0.95

Valuation Technique
Discounted Cash Flow
Public Company Comparables
M&A Comparables
Total

$
$
$

Valuation
7,601,220
4,753,103
5,237,920

Relative Weight
60%
20%
20%
100%

Weighted Value
$
$
$
$

4,560,732
950,621
1,047,584
6,558,937