Exhibit 1 Monthly Shipments at Selling Price (thousands of dollars)

Month
2012

2013

October
November
December
January
February
March
April
May

Eight months total

June
July
August
September

Forecast as of September
2012
6,508
6,219
6,250
6,074
5,996
6,291
6,515
6,832
50,685

Forecast as of May
2013

Actual
6,421
6,302
6,009
6,170
6,006
5,197
4,165
3,744
44,014

Twelve months total

6,759
6,645
6,478
6,433
26,315

12,681
7,374
7,201
7,394
34,650

Fiscal year total

77,000

78,664

2,350
3,088
5,438

3431.111

5,922
7,243

Exhibit 2 Balance Sheets, 2012-2013 (thousands of dollars)

August
Cash

2012
October

September

November

8,350

3,328

3,523

4,511

5,793

5,969

6,421

5,851

7,154
21,297

7,364
16,661

7,524
17,468

7,219
17,581

45,500

45,500

45,500

45,500

30,368

30,488

30,608

30,728

Net PP&E
Prepaid expenses
Total assets

15,132
242
36,671

15,012
58
31,731

14,892
23
32,383

14,772
45
32,398

Accounts payablec

4,977

5,197

5,347

5,352

5,000

5,000

5,000

252

174

331

1,500
1,651
8,380

1,542
1,651
13,394

1,542
1,651
13,714

1,542
1,200
13,425

Shareholders' equity

28,291

18,337

18,668

18,973

Total liabilities and equity

36,671

31,731

32,383

32,398

Accounts receivable

Inventory
Current assets
Gross PP&E
Accumulated depreciation

Notes payable, bank

Accrued taxesd
Other accrued expenses
Customer advance payments
Current liabilities

Selling term of net 30 days.

Depreciation of $120,000 per month.

Purchase terms of net 30 days.

Outstanding taxes on 2012 fiscal year income were due January 15, 2013. On December 15, 2011, March 15, 2012, June 15, 2012, and Sept
due. Taxes payable for 2013 were assumed to be $1,500,000 and would be paid on December 15, 2012, March 15, 2013, June 15, 2013, and
d

August

Liquidity
Current Ratio
Quick (Acid) Ratio
Solvency
Debt-Ratio
Times Interest Earned Ratio
Cash Coverage
Asset Management
Inventory Turnover
Days' Sales in Inventory

September

2.54
1.69
0.23
N/A
N/A

November

1.24
0.69

1.27
0.73

1.31
0.77

0.42

0.42
93.94
115.58

0.41
81.80
102.24

0.64
568.62

0.66
548.92

0.68
536.21

N/A
N/A
0.70
522.87

2012
October

Receivables Turnover
Days' sales in Receivable
Total Assets Turnover
Profitability
Profit Margin of Sales
ROA
ROE
Operating Income on Assets
Net Working Capital
Altman's Z Score

1.09
334.51
0.17

1.00
365.00
0.19

1.00
365.00
0.20

1.08
338.88
0.19

0.0467
0.0080
0.0104
0.0118
12,917.00 $

0.0412
0.0078
0.0134
0.0113
3,267.13 $

0.0516
0.0102
0.0177
0.0161
3,753.18 $

0.0483
0.0094
0.0160
0.0148
4,155.52

Exhibit 3 Income Statements, 2012-2013 (thousands of dollars)

Net sales
COGS
Gross profit
EBIT
Operating expenses
Depreciation and amortization
Interest expensea
Interest incomeb
Profit (loss) before tax
Income taxesc
Net income
Dividends

2012 August
2012 September 2012 October 2012 November
6,321
5,969
6,421
6,302
4,994
4,727
5,003
4,914
1,327
1,242
1,418
1,388
434
359
521
480
773
763
777
788
120
120
120
120
0
0
25
25
13
14
6
6
447
373
502
461
152
127
171
157
295
246
331
304
0

200

7,154
4,977

7,364
5,197

7,524
5,347

-4,727

-5,003

-4,914

7,364

7,524

7,219

(7,364)

(7,524)

(7,219)

a 6% annualized interest rate charged on outstanding bank loans.

b 2% annualized rate of return on beginning monthly cash balances.
c The federal tax rate on all earnings was 34%.

Inventory Calculation
Beginning Inventory
Purchases (AP)
COGS
Real End Inventory
Left Over Inventory

Accounts Receivable Calculation

Forecast as of September 2012

June
July

August

September

Sales
Customer Advanced Payments
Pro Forma Accounts Receivables

6759
0
6,759

6645
900
7,545

6478
600
7,078

6433
0
6,433

December

January

February

2013
March

April

Forecast
Projectedas of Septem
2013 June

May

4,239

4,878

5,182

3,962

6,277

4,994

11,980

6,009

6,170

5,606

5,197

3,365

3,744

7,277
17,525

7,097
18,145

7,529
18,317

8,371
17,530

11,234
20,876

12,163
20,901

6759
2,322
21,061

45,500

45,500

45,500

45,500

45,500

45,500

45,500

30,848

30,968

31,088

31,208

31,328

31,448

31,568

14,652
47
32,224

14,532
52
32,729

14,412
65
32,794

14,292
46
31,868

14,172
46
35,094

14,052
54
35,007

13,932
54
35,047

5,110

5,130

5,162

5,122

6,223

5,969

5,200

5,000

5,000

5,000

5,000

5,000

5,000

5,000

107

269

417

140

216

273

1,296

1,542
1,200
12,959

1,542
1,200
13,141

1,542
800
12,921

1,142
800
12,204

1,142
2,700
15,281

1,142
2,700
15,084

1,142
900
13,538

19,265

19,588

19,874

19,664

19,813

19,923

21,509

32,224

32,729

32,794

31,868

35,094

35,007

35,047

2012, June 15, 2012, and September 15, 2012, payments of 25% of each of the estimated tax for 2012 ($1,500,000) were
15, 2013, June 15, 2013, and September 15, 2013, in equal increments.

December

January

February

2013
March

April

May

1.35
0.79

1.38
0.84

1.42
0.83

1.44
0.75

1.37
0.63

1.39
0.58

0.40
61.31
77.27

0.40
71.75
88.74

0.39
55.35
70.11

0.38
35.31
49.20

0.44
36.80
54.97

0.43
17.40
28.87

0.65
565.73

0.68
537.99

0.62
585.70

0.49
747.59

0.29
1275.40

0.24
1543.64

1.00
365.00
0.19

1.00
365.00
0.19

1.07
340.69
0.18

1.00
365.00
0.16

1.24
294.89
0.12

0.0487
0.0091
0.0152
0.0143
4,566.18 $

0.0523
0.0099
0.0165
0.0155
5,003.92 $

0.0476
0.0087
0.0144
0.0137
5,396.79 $

0.0367
0.0060
0.0097
0.0096
5,326.29 $

0.0356
0.0042
0.0075
0.0069
5,594.53 $

2012 December 2013 January 2013 February

6,009
6,170
6,006
4,695
4,815
4,692
1,314
1,355
1,314
461
507
450
733
728
744
120
120
120
25
25
25
8
7
8
443
489
433
151
166
147
293
323
286

1.00
365.00
0.11
0.0295
0.0032
0.0055
0.0052
5,817.05

2013 March
5,197
4,087
1,110
305
685
120
25
9
289
98
191

2013 April
4,165
3,215
950
243
587
120
25
7
225
76
148

2013 May
3,744
2,876
868
182
566
120
25
10
167
57
111

Fiscal Year
Ending
09/30/2012
71,642
56,955
14,687
3,738
9,509
1,440
0
120
3,858
1,312
2,546

400

400

7,219
5,352

7,277
5,110

7,097
5,130

7,529
5,162

8,371
5,122

11,234
6,223

12,163
160

-4,695

-4,815

-4,692

-4,087

-3,215

-2,876

-10,001

7,277

7,097

7,529

8,371

11,234

12,163

2,322

(7,277)

(7,097)

(7,529)

(8,371)

(11,234)

(12,163)

Forecast as of May 2013

June
July

August

September

12681
0
12,681

7374
900
8,274

7201
600
7,801

7394
0
7,394

orecast as Projected
of September
2012
of May 2013
Projected
Projected Forecast
Projectedas Projected
Projected
2013 July 2013 Aug 2013 Sept 2013 June 2013 July 2013 Aug

Projected
2013 Sept

14,284

15,872

10,356

3,225

11,655

13,395

7,408

7,545

7,078

6,433

12,681

8,274

7,801

7,394

1,706
23,535

1,227
24,176

595
17,384

2,322
18,228

1,706
21,635

1,227
22,422

595
15,397

47,900

47,900

47,900

45,500

47,900

47,900

47,900

31,698

31,828

31,958

31,568

31,688

31,818

31,948

16,202
54
39,791

16,072
54
40,302

15,942
54
33,380

13,932
54
32,214

16,212
54
37,901

16,082
54
38,558

15,952
54
31,403

5,200

5,200

5,200

5,200

5,200

5,200

5,200

7,400

7,400

5,000

7,400

7,400

1,583

1,757

1,919

921

1,528

1,749

1,580

1,142
0
15,325

1,142
0
15,499

1,142
0
8,261

1,142
900
13,163

1,142
0
15,270

1,142
0
15,491

1,142
0
7,922

22,066

22,403

22,719

21,104

21,539

21,953

21,211

37,391

37,902

30,980

34,267

36,809

37,444

29,133

Eight Months
Total
44,014
34,297
9,717
3,149
5,608
960
200
60
3,009
1,023
1,986
400

2,322

1,706

1,227

5200

5200

5200

-5,816

-5,679

-5,832

1,706

1,227

595

Exhibit 3 Income Statements, 2012-2013 (thousands of dollars)

Fiscal Year
Ending
09/30/2012
2012 October
71,642
6,421
56,955
5,003
14,687
1,418
3,738
521
9,509
777
1,440
120

2012 August
6,321
4,994
1,327
434
773
120

2012
September
5,969
4,727
1,242
359
763
120

25

Interest income
Profit (loss) before tax

13
447

14
373

120
3,858

6
502

Income taxesc
Net income

152
295

127
246

1,312
2,546

171
331

Dividends
Addition to Retained Earnings

0
295

200
46

400
2,146

0
331

Net sales
COGS
Gross profit
EBIT
Operating expenses
Depreciation and amortization
Interest expensea
b

6% annualized interest rate charged on outstanding bank loans.

2% annualized rate of return on beginning monthly cash balances.

The federal tax rate on all earnings was 34%.

0.7900648632 0.791924946

0.7949945563 0.7791621243

2012
November
6,302
4,914
1,388
480
788
120

2012
December
6,009
4,695
1,314
461
733
120

2013
January
6,170
4,815
1,355
507
728
120

2013
Eight Months
February
2013 March 2013 April 2013 May
Total
6,006
5,197
4,165
3,744
44,014
4,692
4,087
3,215
2,876
34,297
1,314
1,110
950
868
9,717
450
305
243
182
3,149
744
685
587
566
5,608
120
120
120
120
960

25

25

25

25

25

25

25

200

6
461

8
443

7
489

8
433

9
289

7
225

10
167

60
3,009

157
304

151
293

166
323

147
286

98
191

76
148

57
111

1,023
1,986

0
304

0
293

0
323

0
286

400
-209

0
148

0
111

400
1,586

0.77975246 0.781328008 0.78038898 0.781218781 0.78641524 0.77190876 0.7681624 0.779229336

0.778542094

Average COGS:

0.788688468

Forecast as of September 2012

Projected Projected
2013 June 2013 July

Forecast as of May 2013

Projected Projected Projected Projected

2013 Aug 2013 Sept 2013 June 2013 July

Projected
2013 Aug

6,759

6,645

6,478

6,433

12,681

7,374

7,201

5,040
1,719
849
750
120

5241

5109

5074

10001

5816

5679

1,404
524
750
130

1,369
489
750
130

1,359
479
750
130

2,680
1,810
750
120

1,558
678
750
130

1,522
642
750
130

25

37

37

25

37

37

20
844

24
511

26
478

17
497

4
1,789

19
660

22
627

287
557

174
337

163
316

169
328

608
1,181

224
436

213
414

0
557

0
337

0
316

1200
-872

0
1,181

0
436

0
414

Projected
2013 Sept
7,394

5832
1,562
682
750
130
0
12
694
236
458
1200
-742