TRUE THREAD LTD.

Author Aiswarya RachyJohnson

Date 24/06/2020

To perform a financial analysis to get a loan

Purpose from Fed bank
TRUE THREAD LTD.
Pro Forma Income Statement
Corporate Tax

in thousands
Years 2013 2014 2015 2016
Net Sales 16230 20355 23505 28206
Cost of sales 9430 11898 13612 16334
Gross Profit 6800 8457 9893 11872
Selling, general, and administrative expenses 5195 6352 7471 8965
Depricaition 160 180 213 213
Depreciation for new warehouse 0 0 0 0
Net interest expense 119 106 94 270
Pre-tax income 1326 1819 2115 2423
Income taxes 546 822 925 848
Net income 780 997 1190 1575

Dividend 155 200 240 315

Total net income 625 797 950 1260

 35%

2017
33847
19601
14246
10758
213
120
109
3046
1066
1980

396

1584
TRUE THREAD LTD.
Pro Forma Balance Sheet

2013 2014 2015 2016 2017

Assests
cash 508 609 706 846 1015
Account Receivable 2,545 3,095 3,652 4,382 5,259
Inventories 1,630 1,838 2,190 1,625 2,190
Total current assents 4,683 5,542 6,548 6854 8464
Gross Plant and equipment 3,232 3,795 4,163 4,996 5,995
Warehouse 0 0 0 0 2,400
Depreciation of warehouse 0 0 0 0 120
Accumulated Depreciation 1,335 1,515 1,728 2,074 2,488
Net plant and equipments 1,897 2,280 2,435 2,922 5,786

TOTAl ASSETS 6,580 7,822 8,983 9,776 14,251

Liabilities
Current maturities of long-term d 125 125 125 125 125
Current maturities of new debt 0 0 0 120 120
Accounts Payable 1,042 1,325 1,440 1,728 2,074
Accrued expenses 1,145 1,432 1,728 2,074 2,488
Total current liabilities 2,312 2,882 3,218 4,047 4,807
Long term debt 1,000 875 750 1718 0
Common stock 1,135 1,135 1,135 1,362 1,634
Retained earning 2,133 2,930 3,880 1260 1584
Total shareholders equity 3,268 4,065 5,015 4340 3218

TOTAL LIABILITIES 6,580 7,822 8,983 8,387 8,025

Cash balance 3%
TRUE THREAD LTD.
Loan Schedule

in thousands
Loan Annual Rate Payments per year Rate per Period(RATE)
875 10.00% 4 2.50%

Amortization Schedule
Year Period Remaining Principal Interest Payment
1 1 875 ($22)
1 2 $775 ($19)
1 3 $672 ($17)
1 4 $567 ($14)
2 5 $459 ($11)
2 6 $349 ($9)
2 7 $235 ($6)
2 8 $119 ($3)
Final Balance $0

Cummulative Interest and Principal Payment per Year

YEAR 1 YEAR 2
1 5
4 8
Interest -72 -29
Principal -416 -459
Principal Remaining 459 0

Loan Schedule for new loan

in thousands
Loan Annual Rate Payments per year Rate per Period(RATE)
2400 10.00% 4 2.50%
Amortization Schedule
Year Period Remaining Principal Interest Payment
1 1 2400 ($60.00)
1 2 $2,125.28 ($53.13)
1 3 $1,843.69 ($46.09)
1 4 $1,555.06 ($38.88)
2 5 $1,259.21 ($31.48)
2 6 $955.97 ($23.90)
2 7 $645.15 ($16.13)
2 8 $326.56 ($8.16)
Final balance $0.00

Cummulative Interest and Principal Payment per Year

YEAR 1 YEAR 2
1 5
4 8
Interest -198.100658899984 -79.6723810762926
Principal -1140.78586108815 -1259.21413891185
Principal Remaining 1259.21413891185 0

Total interest for year 2016

Total interest for year 2017

Total principle remainining 2016

Total principle remainining 2017
Years Payments(NPER) Payment (PMT)
2 8 ($122.03)

Principal Payment Total Payment

($100) ($122)
($103) ($122)
($105) ($122)
($108) ($122)
($111) ($122)
($113) ($122)
($116) ($122)
($119) ($122)

TOTAL
-101
-875

Years Payments(NPER) Payment (PMT)

2 8 ($334.72)
Principal Payment Total Payment
($274.72) ($334.72)
($281.59) ($334.72)
($288.63) ($334.72)
($295.85) ($334.72)
($303.24) ($334.72)
($310.82) ($334.72)
($318.59) ($334.72)
($326.56) ($334.72)

TOTAL
-277.773039976276
-2400

-270
-109

1718
0
TRUE THREAD LTD.
Depreciation
in thousands
Long Term Asset(cost) 2400
rate 5%
Life of Asset 2

Year
Straight-Line (SLN) 2016 2017
Yearly Depreciation 120 120
Cummulative Depreciation 120 240