Exhibit 1

Financial Statements for Tire City, Inc.

For years ending 12/31

1993

1994

1995

1996

1997

$16,230

$20,355

$23,505

$28,206

$33,847

$9,430

$11,898

$13,612

$16,416

$19,699

$6,800

$8,457

$9,893

$11,790

$14,148

$5,195

$6,352

$7,471

$8,941

$10,730

Depreciation

$160

$180

$213

$213

$333.00

Net interest expense

$119

$106

$94

$116

$173

$1,326

$1,819

$2,115

$2,520

$2,913

$546

$822

$925

$1,094

$1,264

$780

$997

$1,190

$1,426

$1,649

$155

$200

$240

$285

$330

$508

$609

$706

$846

$1,015

Accounts receivable

$2,545

$3,095

$3,652

$4,372

$5,246

Inventories

$1,630

$1,838

$2,190

$1,625

$3,154

$4,683

$5,542

$6,548

$6,843

$9,415

Gross plant & equipment

$3,232

$3,795

$4,163

$6,163

$6,563

Accumulated depreciation

$1,335

$1,515

$1,728

$1,941

$2,274

Net plant & equipment

$1,897

$2,280

$2,435

$4,222

$4,289

Total assets

$6,580

$7,822

$8,983

$11,065

$13,704

INCOME STATEMENT

Net sales
Cost of sales
Gross Profit

Selling, general, and administrative expenses

Pre-tax income
Income taxes
Net income

Dividends

BALANCE SHEET

Assets
Cash balances

Total current assets

Liabilities
Current maturities

$125

$125

$125

$125

$125

Accounts payable

$1,042

$1,325

$1,440

$1,777

$2,132

Accrued expenses

$1,145

$1,432

$1,653

$1,974

$2,369

$2,312

$2,882

$3,218

$3,876

$4,627

$1,000

$875

$750

$625

$500

$408

$1,103

Total current liabilities

Long-term debt
Bank Debt
Common stock

$1,135

$1,135

$1,135

$1,135

$1,135

Retained earnings

$2,133

$2,930

$3,880

$5,021

$6,340

Total shareholders' equity

$3,268

$4,065

$5,015

$6,156

$7,475

Total liabilities

$6,580

$7,822

$8,983

$11,065

$13,704

Assumptions:
Sales Growth

20%

COGS

58.20%

Selling, general & distribution

31.70%

Dep.

case

tax

43.40%

Dividends

20%

Cash

3%

A/c Recievables

15.50%

Inventory

case

Plant & Equipment

case

Accumulated Dep.

case

Accounts Payable

6.30%

Accrued Expenses

7%

Depreciation Rate

5%

Interest Rate

10%

Percentage of Inventory

0.09

Exhibit 1

Financial Statements for Tire City, Inc.

For years ending 12/31

1993

1994

1995

1996

1997

$16,230

$20,355

$23,505

$28,206

$33,847

$9,430

$11,898

$13,612

$16,416

$19,699

$6,800

$8,457

$9,893

$11,790

$14,148

$5,195

$6,352

$7,471

$8,941

$10,730

Depreciation

$160

$180

$213

$213

$333.00

Net interest expense

$119

$106

$94

$221

$178

$1,326

$1,819

$2,115

$2,415

$2,908

$546

$822

$925

$1,048

$1,262

$780

$997

$1,190

$1,367

$1,646

$155

$200

$240

$273

$329

$508

$609

$706

$846

$1,015

Accounts receivable

$2,545

$3,095

$3,652

$4,372

$5,246

Inventories

$1,630

$1,838

$2,190

$2,628

$3,154

$4,683

$5,542

$6,548

$7,846

$9,415

Gross plant & equipment

$3,232

$3,795

$4,163

$6,163

$6,563

Accumulated depreciation

$1,335

$1,515

$1,728

$1,941

$2,274

Net plant & equipment

$1,897

$2,280

$2,435

$4,222

$4,289

Total assets

$6,580

$7,822

$8,983

$12,068

$13,704

$125

$125

$125

$125

$125

INCOME STATEMENT

Net sales
Cost of sales
Gross Profit

Selling, general, and administrative expenses

Pre-tax income
Income taxes
Net income

Dividends

BALANCE SHEET

Assets
Cash balances

Total current assets

Liabilities
Current maturities

Accounts payable

$1,042

$1,325

$1,440

$1,777

$2,132

Accrued expenses

$1,145

$1,432

$1,653

$1,974

$2,369

$2,312

$2,882

$3,218

$3,876

$4,627

$1,000

$875

$750

$625

$500

$1,458

$1,152

Total current liabilities

Long-term debt
Bank Debt
Common stock

$1,135

$1,135

$1,135

$1,135

$1,135

Retained earnings

$2,133

$2,930

$3,880

$4,974

$6,290

Total shareholders' equity

$3,268

$4,065

$5,015

$6,109

$7,425

Total liabilities

$6,580

$7,822

$8,983

$12,068

$13,704

Assumptions:
Sales Growth

20%

COGS

58.20%

Selling, general & distribution

31.70%

Dep.

case

tax

43.40%

Dividends

20%

Cash

3%

A/c Recievables

15.50%

Inventory

case

Plant & Equipment

case

Accumulated Dep.

case

Accounts Payable

6.30%

Accrued Expenses

7%

Depreciation Rate

5%

Interest Rate

10%

0.09

Bank Debt

1458.21

1152.49

5%

998.51

1839.74

6%

703.07

1471.20

7%

407.64

1102.66

8%

112.20

734.13

9%

-183.24

365.59

10%

-478.68

-2.95

1458.21

1152.49

6.00%

478.19

-70.01

7.00%

773.63

298.53

Levels of inventory

8.00%

1069.07

667.06

9.00%

1364.50

1035.60

10.00%

1659.94

1404.14

11.00%

1955.38

1772.67

What if Dep. Rate is more than 5% for 1997? How does that effect the fund Requirement?
Exhibit 1

Financial Statements for Tire City, Inc.

For years ending 12/31

1993

1994

1995

1996

1997

$16,230

$20,355

$23,505

$28,206

$33,847

$9,430

$11,898

$13,612

$16,416

$19,699

$6,800

$8,457

$9,893

$11,790

$14,148

$5,195

$6,352

$7,471

$8,941

$10,730

Depreciation

$160

$180

$213

$213

$333.00

Net interest expense

$119

$106

$94

$221

$178

$1,326

$1,819

$2,115

$2,415

$2,908

$546

$822

$925

$1,048

$1,262

$780

$997

$1,190

$1,367

$1,646

$155

$200

$240

$273

$329

$508

$609

$706

$846

$1,015

Accounts receivable

$2,545

$3,095

$3,652

$4,372

$5,246

Inventories

$1,630

$1,838

$2,190

$2,628

$3,154

$4,683

$5,542

$6,548

$7,846

$9,415

Gross plant & equipment

$3,232

$3,795

$4,163

$6,163

$6,563

Accumulated depreciation

$1,335

$1,515

$1,728

$1,941

$2,274

Net plant & equipment

$1,897

$2,280

$2,435

$4,222

$4,289

Total assets

$6,580

$7,822

$8,983

$12,068

$13,704

INCOME STATEMENT

Net sales
Cost of sales
Gross Profit

Selling, general, and administrative expenses

Pre-tax income
Income taxes
Net income

Dividends

BALANCE SHEET

Assets
Cash balances

Total current assets

Liabilities

Current maturities

$125

$125

$125

$125

$125

Accounts payable

$1,042

$1,325

$1,440

$1,777

$2,132

Accrued expenses

$1,145

$1,432

$1,653

$1,974

$2,369

$2,312

$2,882

$3,218

$3,876

$4,627

$1,000

$875

$750

$625

$500

$1,458

$1,152

Total current liabilities

Long-term debt
Bank Debt
Common stock

$1,135

$1,135

$1,135

$1,135

$1,135

Retained earnings

$2,133

$2,930

$3,880

$4,974

$6,290

Total shareholders' equity

$3,268

$4,065

$5,015

$6,109

$7,425

Total liabilities

$6,580

$7,822

$8,983

$12,068

$13,704

Assumptions:
Sales Growth

20%

COGS

58.20%

Selling, general & distribution

31.70%

Dep.

case

tax

43.40%

Dividends

20%

Cash

3%

A/c Recievables

15.50%

Inventory

case

Plant & Equipment

case

Accumulated Dep.

case

Accounts Payable

6.30%

Accrued Expenses

7%

Depreciation Rate

5%

Interest Rate

10%

0.09

Level of Dep.

1152.49
6.00%

1138.73

7.00%

1124.98

8.00%

1111.22

9.00%

1097.47

10.00%

1083.71

11.00%

1069.95

What if recievables percentage is higher than % of sales

What if recievables percentage is higher than % of sales?

Exhibit 1

Financial Statements for Tire City, Inc.

For years ending 12/31

1993

1994

1995

1996

1997

$16,230

$20,355

$23,505

$28,206

$33,847

$9,430

$11,898

$13,612

$16,416

$19,699

$6,800

$8,457

$9,893

$11,790

$14,148

$5,195

$6,352

$7,471

$8,941

$10,730

Depreciation

$160

$180

$213

$213

$333.00

Net interest expense

$119

$106

$94

$221

$178

$1,326

$1,819

$2,115

$2,415

$2,908

$546

$822

$925

$1,048

$1,262

$780

$997

$1,190

$1,367

$1,646

$155

$200

$240

$273

$329

$508

$609

$706

$846

$1,015

Accounts receivable

$2,545

$3,095

$3,652

$4,372

$5,246

Inventories

$1,630

$1,838

$2,190

$2,628

$3,154

$4,683

$5,542

$6,548

$7,846

$9,415

Gross plant & equipment

$3,232

$3,795

$4,163

$6,163

$6,563

Accumulated depreciation

$1,335

$1,515

$1,728

$1,941

$2,274

Net plant & equipment

$1,897

$2,280

$2,435

$4,222

$4,289

Total assets

$6,580

$7,822

$8,983

$12,068

$13,704

INCOME STATEMENT

Net sales
Cost of sales
Gross Profit

Selling, general, and administrative expenses

Pre-tax income
Income taxes
Net income

Dividends

BALANCE SHEET

Assets
Cash balances

Total current assets

Liabilities

Current maturities

$125

$125

$125

$125

$125

Accounts payable

$1,042

$1,325

$1,440

$1,777

$2,132

Accrued expenses

$1,145

$1,432

$1,653

$1,974

$2,369

$2,312

$2,882

$3,218

$3,876

$4,627

$1,000

$875

$750

$625

$500

$1,458

$1,152

Total current liabilities

Long-term debt
Bank Debt
Common stock

$1,135

$1,135

$1,135

$1,135

$1,135

Retained earnings

$2,133

$2,930

$3,880

$4,974

$6,290

Total shareholders' equity

$3,268

$4,065

$5,015

$6,109

$7,425

Total liabilities

$6,580

$7,822

$8,983

$12,068

$13,704

Assumptions:
Sales Growth

20%

COGS

58.20%

Selling, general & distribution

31.70%

Dep.

case

tax

43.40%

Dividends

20%

Cash

3%

A/c Recievables

15.50%

Inventory

case

Plant & Equipment

case

Accumulated Dep.

case

Accounts Payable

6.30%

Accrued Expenses

7%

Depreciation Rate

5%

Interest Rate

10%

Percentage of Inventory for last year

9.32%

1996

1997

1458.21

1152.49

17%

1901.36

1705.29

18%

2196.80

2073.83

19%

2492.24

2442.37

20%

2787.67

2810.90

Higher Level of Recievables

21%

3083.11

3179.44

22%

3378.55

3547.98

23%

3673.99

3916.51

24%

3969.42

4285.05

What if payable percentage is lower than % of sales in 1997?

What if payable percentage is lower than % of sales in 1997?

Exhibit 1

Financial Statements for Tire City, Inc.

For years ending 12/31

1993

1994

1995

1996

1997

$16,230

$20,355

$23,505

$28,206

$33,847

$9,430

$11,898

$13,612

$16,416

$19,699

$6,800

$8,457

$9,893

$11,790

$14,148

$5,195

$6,352

$7,471

$8,941

$10,730

Depreciation

$160

$180

$213

$213

$333.00

Net interest expense

$119

$106

$94

$221

$178

$1,326

$1,819

$2,115

$2,415

$2,908

$546

$822

$925

$1,048

$1,262

$780

$997

$1,190

$1,367

$1,646

$155

$200

$240

$273

$329

$508

$609

$706

$846

$1,015

Accounts receivable

$2,545

$3,095

$3,652

$4,372

$5,246

Inventories

$1,630

$1,838

$2,190

$2,628

$3,154

$4,683

$5,542

$6,548

$7,846

$9,415

Gross plant & equipment

$3,232

$3,795

$4,163

$6,163

$6,563

Accumulated depreciation

$1,335

$1,515

$1,728

$1,941

$2,274

Net plant & equipment

$1,897

$2,280

$2,435

$4,222

$4,289

Total assets

$6,580

$7,822

$8,983

$12,068

$13,704

INCOME STATEMENT

Net sales
Cost of sales
Gross Profit

Selling, general, and administrative expenses

Pre-tax income
Income taxes
Net income

Dividends

BALANCE SHEET

Assets
Cash balances

Total current assets

Liabilities

Current maturities

$125

$125

$125

$125

$125

Accounts payable

$1,042

$1,325

$1,440

$1,777

$2,132

Accrued expenses

$1,145

$1,432

$1,653

$1,974

$2,369

$2,312

$2,882

$3,218

$3,876

$4,627

$1,000

$875

$750

$625

$500

$1,458

$1,152

Total current liabilities

Long-term debt
Bank Debt
Common stock

$1,135

$1,135

$1,135

$1,135

$1,135

Retained earnings

$2,133

$2,930

$3,880

$4,974

$6,290

Total shareholders' equity

$3,268

$4,065

$5,015

$6,109

$7,425

Total liabilities

$6,580

$7,822

$8,983

$12,068

$13,704

Assumptions:
Sales Growth

20%

COGS

58.20%

Selling, general & distribution

31.70%

Dep.

case

tax

43.40%

Dividends

20%

Cash

3%

A/c Recievables

15.50%

Inventory

case

Plant & Equipment

case

Accumulated Dep.

case

Accounts Payable

6.30%

Accrued Expenses

7%

Depreciation Rate

5%

Interest Rate

10%

Percentage of Inventory for last year

9.32%

1996

1997

1458.21

1152.49

1%

3024.02

3105.73

2%

2728.59

2737.20

3%

2433.15

2368.66

4%

2137.71

2000.12

Lower level of Payables

5%

1842.28

1631.59

Ratio Analysis of the forecas

Exhibit 1

Financial Statements for Tire City, Inc.

For years ending 12/31

1993

1994

1995

1996

1997

$16,230

$20,355

$23,505

$28,206

$33,847

$9,430

$11,898

$13,612

$16,416

$19,699

$6,800

$8,457

$9,893

$11,790

$14,148

$5,195

$6,352

$7,471

$8,941

$10,730

Depreciation

$160

$180

$213

$213

$333.00

Net interest expense

$119

$106

$94

$116

$173

$1,326

$1,819

$2,115

$2,520

$2,913

$546

$822

$925

$1,094

$1,264

$780

$997

$1,190

$1,426

$1,649

$155

$200

$240

$285

$330

$508

$609

$706

$846

$1,015

Accounts receivable

$2,545

$3,095

$3,652

$4,372

$5,246

Inventories

$1,630

$1,838

$2,190

$1,625

$3,154

$4,683

$5,542

$6,548

$6,843

$9,415

Gross plant & equipment

$3,232

$3,795

$4,163

$6,163

$6,563

Accumulated depreciation

$1,335

$1,515

$1,728

$1,941

$2,274

Net plant & equipment

$1,897

$2,280

$2,435

$4,222

$4,289

Total assets

$6,580

$7,822

$8,983

$11,065

$13,704

INCOME STATEMENT

Net sales
Cost of sales
Gross Profit

Selling, general, and administrative expenses

Pre-tax income
Income taxes
Net income

Dividends

BALANCE SHEET

Assets
Cash balances

Total current assets

Liabilities
Current maturities

$125

$125

$125

$125

$125

Accounts payable

$1,042

$1,325

$1,440

$1,777

$2,132

Accrued expenses

$1,145

$1,432

$1,653

$1,974

$2,369

$2,312

$2,882

$3,218

$3,876

$4,627

$1,000

$875

$750

$625

$500

$408

$1,103

Total current liabilities

Long-term debt
Bank Debt
Common stock

$1,135

$1,135

$1,135

$1,135

$1,135

Retained earnings

$2,133

$2,930

$3,880

$5,021

$6,340

Total shareholders' equity

$3,268

$4,065

$5,015

$6,156

$7,475

Total liabilities

$6,580

$7,822

$8,983

$11,065

$13,704

$12,106

$13,964

$15,851

$21,228

Purchases

alysis of the forecasted Statement

Assumptions:
Sales Growth

20%

COGS

58.20%

Selling, general & distribution

31.70%

Dep.

case

tax

43.40%

Dividends

20%

Cash

3%

A/c Recievables

15.50%

Inventory

case

Plant & Equipment

case

Accumulated Dep.

case

Accounts Payable

6.30%

Accrued Expenses

7%

Depreciation Rate

5%

Interest Rate
Percentage of Inventory for last year

10%
9.32%

1993

1994

1995

1996

1997

6.38

6.58

6.44

6.45

6.45

57.24

55.50

56.71

56.58

56.58

5.79

6.47

6.22

10.10

6.25

63.09

56.39

58.72

36.13

58.43

Creditors Turnover Ratio

0.00

9.14

9.70

8.92

9.95

Creditors ( Days)

0.00

39.95

37.64

40.92

36.67

41.90%

41.55%

42.09%

41.80%

41.80%

8.90%

9.46%

9.40%

9.34%

9.12%

Efficiency Ratios

Debtor Turnover Ratio

Recievables ( Days)
Inventory Turnover Ratio
Inventory ( Days)

Profitability Ratios

Gross Profit Margin

Operating Profit Margin

Net Profit Margin

4.81%

4.90%

5.06%

5.06%

4.87%

Return on Assets (ROA)

11.85%

12.75%

13.25%

12.89%

12.03%

Return on Equity (ROE)

23.87%

24.53%

23.73%

23.17%

22.06%

Current Ratio

2.03

1.92

2.03

1.77

2.04

Quick Ratio

1.32

1.29

1.35

1.35

1.35

Cash Ratio

0.22

0.21

0.22

0.22

0.22

Interest Coverage Ratio

12.14

18.16

23.50

22.77

17.86

Debt Service Ratio

13.91

Debt to Equity Ratio

0.31

0.22

0.15

0.10

0.07

Liquidity Ratios

Leverage Ratios