(ALL YES IN SCENARIO I - FORECAST) -

Run # 2 Forecast

Cash Ratios
Scenario I - Maximizing Firm Value
2012 2021 '12-'21
Current Ratio 5.35 13.15 146%
Quick Ratio 3.16 7.44 136%
Op. CF to Curr. Liabilities Rati 0.34 1.54 356%

Working Capital Ratios

Scenario I - Maximizing Firm Value
2012 2021 '12-'21
Accounts Receivable Turnove 3.27 3.68 13%
Inventory Turnover 4.02 4.01 0%
Accounts Payable Turnover 8.88 22.90 158%

Debt Ratios
Scenario I - Maximizing Firm Value
2012 2021 '12-'21
Liabilities to Assets Ratio 0.69 0.15 -79%
Liabilities to Equity Ratio 2.21 0.17 -92%
Long-term Debt to Equity Rati 1.61 0.08 -95%

Profitability Ratios
Scenario I - Maximizing Firm Value
2012 2021 '12-'21
Return on Equity 0.14 0.15 2%
EBIT Margin 0.07 0.11 66%
Profit Margin 0.02 0.06 155%
Expected Firm Value Creation 1,985
Run # 1 Actual

Cash Ratios
Scenario I - Maximizing Firm Value
2012 2021 '12-'21
Current Ratio 5.35 5.48 2%
Quick Ratio 3.16 3.14 -1%
Op. CF to Curr. 0.34 0.47 40%

Working Capital Ratios

Scenario I - Maximizing Firm Value
2012 2021 '12-'21
Accounts Rece 3.27 3.48 6%
Inventory Tur 4.02 4.04 0%
Accounts Paya 8.88 9.46 6%

Debt Ratios
Scenario I - Maximizing Firm Value
2012 2021 '12-'21
Liabilities to A 0.69 0.33 -52%
Liabilities to E 2.21 0.49 -78%
Long-term Debt 1.61 0.22 -87%

Profitability Ratios
Scenario I - Maximizing Firm Value
2012 2021 '12-'21
Return on Equi 0.14 0.14 -5%
EBIT Margin 0.07 0.09 32%
Profit Margin 0.02 0.05 94%
Actual Firm Value Creation 1,351
Scenario I - Maximizing Firm Value
Balance Sheet
(data in thousands of dollars) 2010 2011 2012 2013 2014
Minimum Cash Requirement $300 $300 $300 $300 $300
Cash & Equivalents (Shortfall) $0 $0 $0 $0 $0
Accounts Receivable $3,123 $3,096 $3,014 $2,219 $2,219
Inventories $2,357 $2,348 $2,305 $1,973 $1,973
Other CA $0 $0 $0 $0 $0
Total Current Assets $5,781 $5,744 $5,619 $4,493 $4,493
Net PP&E $40 $40 $40 $40 $40
Other FA $0 $0 $0 $0 $0
Total Assets $5,821 $5,784 $5,659 $4,533 $4,533

Accounts Payable $1,021 $1,055 $1,050 $886 $886

Acrued Expenses $0 $0 $0 $0 $0
Total Current Liabilities $1,021 $1,055 $1,050 $886 $886
Amount Borrowed from Credit Line $3,332 $3,200 $2,844 $1,645 $1,351
Total Liabilities $4,353 $4,255 $3,894 $2,531 $2,237
Common Stock $200 $200 $200 $200 $200
Retained Earnings $1,267 $1,329 $1,565 $1,802 $2,096
Total Stockholder's Equity $1,467 $1,529 $1,765 $2,002 $2,296
Total Liabilities & Equity $5,821 $5,784 $5,659 $4,533 $4,533

Income Statement
(data in thousands of dollars) 2010 2011 2012 2013 2014
Sales $10,000 $10,000 $10,000 $9,000 $9,000
Cost of Sales $9,560 $9,630 $9,350 $8,378 $8,378
EBIT $440 $370 $650 $622 $622
Interest Expense $180 $267 $256 $228 $132
Pre-Tax Income $260 $103 $394 $394 $490
Income Taxes $104 $41 $157 $158 $196
Net Income $156 $62 $236 $237 $294
11% 4% 13%
Cash Cycle
(data in days) 2010 2011 2012 2013 2014
Accounts Receivables (days) '- 113 110 90 90
Inventories (days) '- 89 90 86 86
Accounts Payables (days) '- 40 41 39 39
Cash Cycle (days) '- 162 159 137 137
Cash Cycle (months) '- 5 5 5 5
Cash Flow
(data in thousands of dollars) 2010 2011 2012 2013 2014
Net Income '- $62 $236 $237 $294
Depreciation '- $0 $0 $0 $0
Change in Account Receivable '- ($27) $82 $795 $0
Change in Inventories '- ($9) $43 $332 $0
Change in Other CA '- $0 $0 $0 $0
Change in Account Payable '- $34 ($5) ($164) $0
Change in Accrued Expenses '- $0 $0 $0 $0
Cash Flow from Operations '- $133 $356 $1,199 $295
CAPEX '- $0 $0 $0 $0
Cash Flow from Investments '- $0 $0 $0 $0
Change in Credit Line '- ($132) ($356) ($1,199) ($294)
Equity Issuance '- $0 $0 $0 $0
Dividends '- $0 $0 $0 $0
Cash Flow from Financing '- ($132) ($356) ($1,199) ($294)
Net Cash Flow '- $0 $0 $0 $0
Beginning Excess Cash and Cash Equivalents'- $0 $0 $0 $0
Ending Cash and Equivalents '- $0 $0 $0 $0
 % Change CAGR₁₂₋₂₁
2015 2016 2017 2018 2019 2020 2021 '12-'21
$300 $300 $300 $300 $300 $300 $300 0% 0.00%
$0 $0 $0 $0 $0 $0 $0 - 0.00%
$2,219 $2,870 $3,167 $3,386 $5,469 $5,566 $5,566 85% 7.05%
$1,973 $2,629 $2,961 $3,164 $4,211 $4,381 $4,381 90% 7.40%
$0 $0 $0 $0 $0 $0 $0 - 0.00%
$4,493 $5,799 $6,428 $6,850 $9,981 $10,247 $10,247 82% 6.90%
$40 $40 $40 $40 $40 $40 $40 0% 0.00%
$0 $0 $0 $0 $0 $0 $0 - 0.00%
$4,533 $5,839 $6,468 $6,890 $10,021 $10,287 $10,287 82% 6.87%
- 0.00%
$886 $1,138 $1,285 $1,375 $1,814 $1,871 $1,871 78% 6.63%
$0 $0 $0 $0 $0 $0 $0 - 0.00%
$886 $1,138 $1,285 $1,375 $1,814 $1,871 $1,871 78% 6.63%
$1,042 $1,582 $1,511 $1,248 $3,028 $2,385 $1,501 -47% -6.85%
$1,928 $2,720 $2,797 $2,623 $4,842 $4,255 $3,371 -13% -1.59%
$200 $200 $200 $200 $200 $200 $200 0% 0.00%
$2,404 $2,919 $3,472 $4,067 $4,978 $5,832 $6,716 329% 17.57%
$2,604 $3,119 $3,672 $4,267 $5,178 $6,032 $6,916 292% 16.39%
$4,533 $5,839 $6,468 $6,890 $10,021 $10,287 $10,287 82% 6.87%

% Change CAGR₁₂₋₂₁
2015 2016 2017 2018 2019 2020 2021 '12-'21
$9,000 $11,700 $13,203 $14,117 $18,775 $19,357 $19,357 94% 7.61%
$8,378 $10,758 $12,155 $13,003 $17,156 $17,692 $17,692 89% 7.34%
$622 $941 $1,047 $1,113 $1,618 $1,664 $1,664 156% 11.01%
$108 $83 $127 $121 $100 $242 $191 -25% -3.20%
$514 $858 $921 $992 $1,519 $1,422 $1,474 274% 15.79%
$206 $343 $368 $397 $607 $569 $589 275% 15.82%
$308 $515 $552 $595 $911 $853 $884 275% 15.80%

% Change CAGR₁₂₋₂₁
2015 2016 2017 2018 2019 2020 2021 '12-'21
90 90 88 88 106 105 105 -5% -0.52%
86 89 89 89 90 90 90 0% 0.00%
39 39 39 39 39 39 39 -5% -0.55%
137 140 138 138 157 157 157 -1% -0.14%
5 5 5 5 5 5 5 0% 0.00%
 % Change
2015 2016 2017 2018 2019 2020 2021 '12-'21
$308 $515 $552 $595 $911 $853 $884 275%
$0 $0 $0 $0 $0 $0 $0 -
$0 ($651) ($297) ($219) ($2,083) ($96) $0 -100%
$0 ($655) ($333) ($203) ($1,047) ($170) $0 -100%
$0 $0 $0 $0 $0 $0 $0 -
$0 $252 $148 $90 $439 $57 $0 -100%
$0 $0 $0 $0 $0 $0 $0 -
$309 ($539) $71 $264 ($1,780) $644 $885 148%
$0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 -
($308) $540 ($71) ($263) $1,780 ($643) ($884) 148%
$0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 -
($308) $540 ($71) ($263) $1,780 ($643) ($884) 148%
$0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 -
Additional Data
Tax Rate 40%
Cost of Capital 12%
Cost of Debt 8%
Scenario I - Maximizing Firm Value (ALL YES IN SCENARIO I - FORECAST) - R
Balance Sheet
(data in thousands of dollars) 2010 2011 2012 2013 2014
Minimum Cash Requirement $300 $300 $300 $300 $300
Cash & Equivalents (Shortfall) $0 $0 $0 $0 $0
Accounts Receivable $3,123 $3,096 $3,014 $2,219 $2,219
Inventories $2,357 $2,348 $2,305 $1,973 $1,973
Other CA $0 $0 $0 $0 $0
Total Current Assets $5,781 $5,744 $5,619 $4,493 $4,493
Net PP&E $40 $40 $40 $40 $40
Other FA $0 $0 $0 $0 $0
Total Assets $5,821 $5,784 $5,659 $4,533 $4,533

Accounts Payable $1,021 $1,055 $1,050 $886 $886

Acrued Expenses $0 $0 $0 $0 $0
Total Current Liabilities $1,021 $1,055 $1,050 $886 $886
Amount Borrowed from Credit Line $3,332 $3,200 $2,844 $1,645 $1,351
Total Liabilities $4,353 $4,255 $3,894 $2,531 $2,237
Common Stock $200 $200 $200 $200 $200
Retained Earnings $1,267 $1,329 $1,565 $1,802 $2,096
Total Stockholder's Equity $1,467 $1,529 $1,765 $2,002 $2,296
Total Liabilities & Equity $5,821 $5,784 $5,659 $4,533 $4,533

Income Statement
(data in thousands of dollars) 2010 2011 2012 2013 2014
Sales $10,000 $10,000 $10,000 $9,000 $9,000
Cost of Sales $9,560 $9,630 $9,350 $8,378 $8,378
EBIT $440 $370 $650 $622 $622
Interest Expense $180 $267 $256 $228 $132
Pre-Tax Income $260 $103 $394 $394 $490
Income Taxes $104 $41 $157 $158 $196
Net Income $156 $62 $236 $237 $294

Cash Cycle
(data in days) 2010 2011 2012 2013 2014
Accounts Receivables (days) '- 113 110 90 90
Inventories (days) '- 89 90 86 86
Accounts Payables (days) '- 40 41 39 39
Cash Cycle (days) '- 162 159 137 137
Cash Cycle (months) '- 5 5 5 5
Cash Flow
(data in thousands of dollars) 2010 2011 2012 2013 2014
Net Income '- $62 $236 $237 $294
Depreciation '- $0 $0 $0 $0
Change in Account Receivable '- ($27) ($82) ($795) $0
Change in Inventories '- ($9) ($43) ($332) $0
Change in Other CA '- $0 $0 $0 $0
Change in Account Payable '- $34 ($5) ($164) $0
Change in Accrued Expenses '- $0 $0 $0 $0
Cash Flow from Operations '- $133 $356 $1,199 $295
CAPEX '- $0 $0 $0 $0
Cash Flow from Investments '- $0 $0 $0 $0
Change in Credit Line '- ($132) ($356) ($1,199) ($294)
Equity Issuance '- $0 $0 $0 $0
Dividends '- $0 $0 $0 $0
Cash Flow from Financing '- ($132) ($356) ($1,199) ($294)
Net Cash Flow '- $0 $0 $0 $0
Beginning Excess Cash and Cash Equivalents'- $0 $0 $0 $0
Ending Cash and Equivalents '- $0 $0 $0 $0
RIO I - FORECAST) - Run # 2 Forecast
% Change CAGR₁₂₋₂₁
2015 2016 2017 2018 2019 2020 2021 '12-'21
$300 $300 $300 $300 $300 $300 $300 0% 0.00%
$0 $0 $0 $0 $0 $0 $0 - 0.00%
$2,219 $2,440 $2,563 $2,648 $4,331 $4,404 $4,404 46% 4.30%
$1,973 $2,319 $2,513 $2,647 $3,465 $3,607 $3,607 56% 5.10%
$0 $0 $0 $0 $0 $0 $0 - 0.00%
$4,493 $5,059 $5,376 $5,595 $8,097 $8,312 $8,312 48% 4.45%
$40 $40 $40 $40 $40 $40 $40 0% 0.00%
$0 $0 $0 $0 $0 $0 $0 - 0.00%
$4,533 $5,099 $5,416 $5,635 $8,137 $8,352 $8,352 48% 4.42%
- 0.00%
$886 $999 $1,084 $1,143 $585 $632 $632 -40% -5.48%
$0 $0 $0 $0 $0 $0 $0 - 0.00%
$886 $999 $1,084 $1,143 $585 $632 $632 -40% -5.48%
$1,042 $1,004 $700 $282 $2,329 $1,558 $583 -80% -16.15%
$1,928 $2,002 $1,784 $1,425 $2,914 $2,190 $1,215 -69% -12.14%
$200 $200 $200 $200 $200 $200 $200 0% 0.00%
$2,404 $2,897 $3,432 $4,011 $5,022 $5,961 $6,937 343% 17.99%
$2,604 $3,097 $3,632 $4,211 $5,222 $6,161 $7,137 304% 16.79%
$4,533 $5,099 $5,416 $5,635 $8,137 $8,352 $8,352 48% 4.42%

% Change CAGR₁₂₋₂₁
2015 2016 2017 2018 2019 2020 2021 '12-'21
$9,000 $10,350 $11,223 $11,830 $15,733 $16,221 $16,221 62% 5.52%
$8,378 $9,445 $10,250 $10,809 $14,024 $14,470 $14,470 55% 4.97%
$622 $904 $972 $1,020 $1,709 $1,751 $1,751 169% 11.64%
$108 $83 $80 $56 $23 $186 $125 -51% -7.66%
$514 $821 $892 $964 $1,686 $1,565 $1,626 313% 17.06%
$206 $328 $357 $386 $675 $626 $650 314% 17.10%
$308 $493 $535 $578 $1,012 $939 $976 314% 17.09%

% Change CAGR₁₂₋₂₁
2015 2016 2017 2018 2019 2020 2021 '12-'21
90 86 83 82 100 99 99 -10% -1.16%
86 90 89 89 90 91 91 1% 0.12%
39 39 39 39 15 16 16 -61% -9.93%
137 137 134 133 175 174 174 9% 1.01%
5 5 4 4 6 6 6 20% 2.05%
 % Change
2015 2016 2017 2018 2019 2020 2021 '12-'21
$308 $493 $535 $578 $1,012 $939 $976 314%
$0 $0 $0 $0 $0 $0 $0 -
$0 $221 $123 $85 $1,683 $73 $0 -100%
$0 $346 $194 $134 $818 $142 $0 -100%
$0 $0 $0 $0 $0 $0 $0 -
$0 $113 $85 $59 ($558) $47 $0 -100%
$0 $0 $0 $0 $0 $0 $0 -
$309 $39 $304 $419 ($2,047) $771 $976 174%
$0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 -
($309) ($38) ($304) ($418) $2,047 ($771) ($975) 174%
$0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 -
($308) ($39) ($303) ($418) $2,047 ($771) ($976) 174%
$0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 -
Additional Data
Tax Rate 40%
WACC 12%
Interest Rate 8%
IMPACT OF Decision 5, 6 & 9 (Combined) (what happens when you choose 5 and ignore

Balance Sheet
(data in thousands of dollars) 2010 2011 2012 2013
Minimum Cash Requirement $0 $0 $0 $0
Cash & Equivalents (Shortfall) $0 $0 $0 $0
Accounts Receivable $0 $0 $0 $0
Inventories $0 $0 $0 $0
Other CA $0 $0 $0 $0
Total Current Assets $0 $0 $0 $0
Net PP&E $0 $0 $0 $0
Other FA $0 $0 $0 $0
Total Assets $0 $0 $0 $0

Accounts Payable $0 $0 $0 $0
Acrued Expenses $0 $0 $0 $0
Total Current Liabilities $0 $0 $0 $0
Amount Borrowed from Credit Line $0 $0 $0 $0
Total Liabilities $0 $0 $0 $0
Common Stock $0 $0 $0 $0
Retained Earnings $0 $0 $0 $0
Total Stockholder's Equity $0 $0 $0 $0
Total Liabilities & Equity $0 $0 $0 $0

Income Statement
(data in thousands of dollars) 2010 2011 2012 2013
Sales $0 $0 $0 $0
Cost of Sales $0 $0 $0 $0
EBIT $0 $0 $0 $0
Interest Expense $0 $0 $0 $0
Pre-Tax Income $0 $0 $0 $0
Income Taxes $0 $0 $0 $0
Net Income $0 $0 $0 $0

Cash Cycle
(data in days) 2010 2011 2012 2013
Accounts Receivables (days) #VALUE! 0 0 0
Inventories (days) #VALUE! 0 0 0
Accounts Payables (days) #VALUE! 0 0 0
Cash Cycle (days) #VALUE! 0 0 0
Cash Cycle (months) #VALUE! 0 0 0
Cash Flow
(data in thousands of dollars) 2010 2011 2012 2013
Net Income #VALUE! $0 $0 $0
Depreciation #VALUE! $0 $0 $0
Change in Account Receivable #VALUE! $0 $164 $1,590
Change in Inventories #VALUE! $0 $86 $664
Change in Other CA #VALUE! $0 $0 $0
Change in Account Payable #VALUE! $0 $0 $0
Change in Accrued Expenses #VALUE! $0 $0 $0
Cash Flow from Operations #VALUE! $0 ($0) $0
CAPEX #VALUE! $0 $0 $0
Cash Flow from Investments #VALUE! $0 $0 $0
Change in Credit Line #VALUE! $0 $0 $0
Equity Issuance #VALUE! $0 $0 $0
Dividends #VALUE! $0 $0 $0
Cash Flow from Financing #VALUE! $0 $0 $0
Net Cash Flow #VALUE! $0 $0 $0
Beginning Excess Cash and Cash Equivalents #VALUE! $0 $0 $0
Ending Cash and Equivalents #VALUE! $0 $0 $0
ns when you choose 5 and ignore 6 and 9)

% Change
2014 2015 2016 2017 2018 2019 2020 2021 '12-'21
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $430 $604 $738 $1,138 $1,162 $1,162 -
$0 $0 $310 $448 $517 $746 $774 $774 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $740 $1,052 $1,255 $1,884 $1,935 $1,935 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $740 $1,052 $1,255 $1,884 $1,935 $1,935 -
-
$0 $0 $139 $201 $232 $1,229 $1,239 $1,239 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $139 $201 $232 $1,229 $1,239 $1,239 -
$0 $0 $578 $811 $966 $699 $827 $918 -
$0 $0 $718 $1,013 $1,198 $1,928 $2,065 $2,156 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $22 $40 $56 ($44) ($129) ($221) -
$0 $0 $22 $40 $56 ($44) ($129) ($221) -
$0 $0 $740 $1,052 $1,255 $1,884 $1,935 $1,935 -

% Change
2014 2015 2016 2017 2018 2019 2020 2021 '12-'21
$0 $0 $1,350 $1,980 $2,287 $3,042 $3,136 $3,136 -
$0 $0 $1,313 $1,905 $2,194 $3,132 $3,222 $3,222 -
$0 $0 $37 $75 $93 ($91) ($87) ($87) -
$0 $0 $0 $47 $65 $77 $56 $66 -
$0 $0 $37 $29 $28 ($167) ($143) ($152) -
$0 $0 $15 $11 $11 ($68) ($57) ($61) -
$0 $0 $22 $17 $17 ($101) ($86) ($92) -

% Change
2014 2015 2016 2017 2018 2019 2020 2021 '12-'21
0 0 4 5 6 6 6 6 -
0 0 -1 0 0 0 -1 -1 -
0 0 0 0 0 24 23 23 -
0 0 3 4 5 -18 -17 -17 -
0 0 0 1 1 -1 -1 -1 -
 % Change
2014 2015 2016 2017 2018 2019 2020 2021 '12-'21
$0 $0 $22 $17 $17 ($101) ($86) ($92) -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 ($872) ($420) ($304) ($3,766) ($169) $0 -100%
$0 $0 ($1,001) ($527) ($337) ($1,865) ($312) $0 -100%
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $139 $63 $31 $997 $10 $0 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 ($578) ($233) ($155) $267 ($127) ($92) 11447400%
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $1 $578 $233 $155 ($267) $128 $91 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $579 $232 $155 ($267) $128 $92 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 $0 -
$0 $0 $0 $0 $0 $0 $0 $0 -
CAGR₁₂₋₂₁ Additional Data
Tax Rate 40%
#DIV/0! WACC 12%
0.00% Interest Rate 8%
#DIV/0!
#DIV/0!
0.00%
#DIV/0!
#DIV/0!
0.00%
#DIV/0!
0.00%
#DIV/0!
0.00%
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!

CAGR₁₂₋₂₁

#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!

CAGR₁₂₋₂₁

#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!