Tire City

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Exhibit 1 Financial Statements for Tire City, Inc.

For years ending 12/31 1993 1994 1995 1996 1997

INCOME STATEMENT

Net sales $16,230.00 $20,355.00 $23,505.00 $28,206.00 $33,847.20

Cost of sales $9,430.00 $11,898.00 $13,612.00 $16,403.28 $19,683.93
Gross profit $6,800.00 $8,457.00 $9,893.00 $11,802.72 $14,163.27
Selling, general, and
administrative expenses $5,195.00 $6,352.00 $7,471.00 $8,931.85 $10,718.22
Depreciation $160.00 $180.00 $213.00 $213.00 $333.00
Net interest expense $119.00 $106.00 $94.00 $99.07 $139.93
Pre-tax income $1,326.00 $1,819.00 $2,115.00 $2,558.80 $2,972.12
Income taxes $546.00 $822.00 $925.00 $1,109.68 $1,288.92
Net income $780.00 $997.00 $1,190.00 $1,449.12 $1,683.19

Dividends $155.00 $200.00 $240.00 $290.31 $337.20

BALANCE SHEET

Assets
Cash $508.00 $609.00 $706.00 $846.18 $1,015.42
Accounts receivable
$2,545.00 $3,095.00 $3,652.00 $4,364.70 $5,237.64
Inventories
$1,630.00 $1,838.00 $2,190.00 $1,625.00 $3,203.08
Total current assets $4,683.00 $5,542.00 $6,548.00 $6,835.88 $9,456.13

Gross plant & equipment

$3,232.00 $3,795.00 $4,163.00 $6,163.00 $6,563.00
Accumulated depreciation
$1,335.00 $1,515.00 $1,728.00 $1,941.00 $2,274.00
Net plant & equipment $1,897.00 $2,280.00 $2,435.00 $4,222.00 $4,289.00

Total assets $6,580.00 $7,822.00 $8,983.00 $11,057.88 $13,745.13

LIABILITIES
Current maturities of
long-term debt $125.00 $125.00 $125.00 $125.00 $125.00
Accounts payable $1,042.00 $1,325.00 $1,440.00 $1,791.65 $2,149.98
Accrued expenses $1,145.00 $1,432.00 $1,653.00 $1,985.94 $2,383.13
Total current liabilities $2,312.00 $2,882.00 $3,218.00 $3,902.59 $4,658.10
NEW DEBT TO BE TAKEN $356.48 $1,067.22
Long-term debt $1,000.00 $875.00 $750.00 $625.00 $500.00

Common stock $1,135.00 $1,135.00 $1,135.00 $1,135.00 $1,135.00

Retained earnings $2,133.00 $2,930.00 $3,880.00 $5,038.81 $6,384.81
Total shareholders’ equity $3,268.00 $4,065.00 $5,015.00 $6,173.81 $7,519.81

Total liabilities $6,580.00 $7,822.00 $8,983.00 $11,057.88 $13,745.13

difference $0.00 $0.00

ASSUMPTIONS AND REMARKS PARTICULARS 1993 1994 1995

COST OF SALES % 58.10% 58.45% 57.91%

OPERATING COSTS 32.01% 31.21% 31.78%

TAX RATES 41.18% 45.19% 43.74%

DIVIDEND PAYOUT 19.87% 20.06% 20.17%

3% OF SALES

AVG. OF 3 YEARS % OF SALES ACCOUNTS RECEIVABLE 15.68% 15.21% 15.54%

1996 given, 1997 as per avarage
ratio of sales INVENTORIES 10.04% 9.03% 9.32%

1996 addition of 2,000,000 and

1997 addition of 400,000
add current year's depn to acc
depn

ACCOUNTS PAYABLE 6.42% 6.51% 6.13%

ACCRUED EXPENSES 7.05% 7.04% 7.03%
 E

58.16%

31.67%

43.37%

20.03%

15.47%

9.46%

6.35%
7.04%