Cash Conversion Cycle = # Days of Inv + # of Days Collection - # of Days of Payables

Balance Sheet
ASSETS
2012
Current Assets
Cash and Treasuries
Accounts Receivable Less Allowance for loss
Inventories
Prepaid Expenses
Total Current Assets

$
$
$
$
$

250,000
2,043,668
817,467
37,195
3,148,330

Property and Equipment

Equipment Net of Depreciation
Office Furniture, Fixtures, Computers (NOD)
Net Property & Equip. - Fixed Assets

$
$
$

1,414,764
900,000
2,314,764

Other Assets
TOTAL ASSETS

$
$

220,000
5,683,094

LIABILITIES AND EQUITY

Current Liabilities
Note Payable to Bank
Accounts Payable
Accrued Expenses
Income Taxes Payable
Total Current Liabilities

$
$
$
$
$

25,000
1,331,734
35,000
15,400
1,407,134

Long-Term Liabilities
Bank Debt Remaining Principal
Other Liabilities

$
$

300,000
15,000

TOTAL LIABILITIES

1,722,134

Onwer's Equity
Common Stock
Additional Paid-in Capital
Retained Earnings
Total Owner's Equity
TOTAL LIABILITIES AND OWNERS' EQUITY

$
$
$
$
$

50,000
1,850,000
2,060,959
3,960,959
5,683,093

Income Statement:
Total Gross Sales Cream and Cleanser
Total Net Sales
Total Cost of Goods Sold
Total Gross Profit Cream and Cleanser

$
$
$
$

2012
8,755,200
8,154,432
3,834,864
4,319,568

Operating Expenses
Research & Development (Cream R&D in COGS)
Rent
General & Administrative Expenses
Total Operating Expenses

$
$
$
$

163,089
937,760
2,609,418
3,710,267

Operating Income

609,301

Other Income (Expense)

Interest Expense
Interest Income
Total Other Income (Expense)

$
$
$
$

(180)
65
(115)

Net Income Before Taxes

Income Taxes (34%)
Net Income

$
$
$

609,186
207,123
402,063