2004 2005 2006

Sales $ 115,000 $ 147,000 $ 171,000

COGS $ 43,000 $ 50,000
Gross Margin $ 104,000 $ 121,000
Research and Development $ 15,000 $ 20,000
Sell, general & administrative $ 79,000 $ 92,000
Operating Income $ 10,000 $ 9,000
Interest expense $ 1,000 $ 2,000
Profit before tax $ 9,000 $ 7,000
Income tax $ 4,000 $ 2,000
Net Income $ 5,000 $ 5,000

Sales Growth Rate 21%

Profitability ratios 2005 2006 2007
Profit as % of Sales 3.40% 2.92% 2.44%
% increase/ decrease from 2005 2.34%
Tax Rate 44.44% 28.57% 37.50%
Capital $ 93,000 $ 118,000 $ 146,000
EBIAT $ 5,556 $ 6,429 $ 6,250
Return on Capital 5.97% 5.45% 4.28%
% increase/ decrease from 2005 3.57%
Return on Equity 8.20% 7.58% 7.04%
% increase/ decrease from 2005 10.47%
Activity Ratios 2005 2006 2007
Total asset turnover 1.58 1.45 1.40
% increase/ decrease from 2005 -0.046
Average Sales per day 402.74 468.49 561.64
Average Collection period(days) 104.29 113.13 108.61
% increase/ decrease from 2005 -5.56
Inventory Turnover Ratio 2.05 1.79 2.10
% increase/ decrease from 2005 0.504
Fixed Assets Turnover Ratio 16.33 14.25 15.77
% increase/ decrease from 2005 -2.78
Leverage Ratios 2005 2006 2007
Total Assets/Owner's Equity 1.52 1.79 2.06
Total liabilities/Total Assets 34.41% 44.07% 51.37%
Market Value of Equity on 2008 $ 175,000
Debt/market ratio 0.15 0.23 0.30
EBIT/Interest Expense 10 4.5 5
% increase/ decrease from 2005 30%
Average Purchases per day $ 117.81 $ 136.99 $ 172.60
Average Payment period(days) 42.44 43.80 40.56
Accounts payable % COGS 11.63% 12.00% 11.11%
% increase/ decrease from 2005 -3.52%
Liquidity Ratios 2005 2006 2007
Current Ratio 3.90 2.60 3.18
Quick Ratio 2.90 1.90 2.43
DuPont Analysis 2005 2006 2007
ROE 8.20% 7.58% 7.04%
Net Inc/Sales 0.034 0.029 0.024
Sales/TA 1.58 1.45 1.40
TA/Owner's Equity 1.52 1.79 2.06
 2007 2008 2005 2006
$ 205,000 $ 244,000 Cash $ 9,000 $ 10,000
$ 63,000 $ 74,000 Accounts Receivable $ 42,000 $ 53,000
$ 142,000 $ 170,000 Inventories $ 21,000 $ 28,000
$ 26,000 $ 28,000 Other Current Assets $ 10,000 $ 13,000
$ 106,000 $ 116,000 Total Current Assets $ 82,000 $ 104,000
$ 10,000 $ 26,000 Net property & Equipment $ 9,000 $ 12,000
$ 2,000 $ 2,000 Other $ 2,000 $ 2,000
$ 8,000 $ 24,000 Total Assets $ 93,000 $ 118,000
$ 3,000 $ 10,000
$ 5,000 14000 Notes Payable $ 3,000 $ 18,000
Accounts Payable $ 5,000 $ 6,000
Accrued Expenses $ 10,000 $ 13,000
Other Current Liabilities $ 3,000 $ 3,000
2008 Total Current liabilities $ 21,000 $ 40,000
5.74% Long term senior debt $ 10,000 $ 9,000
Subordinated convertible debt $ - $ -
41.67% Other liabilities $ 1,000 $ 3,000
$ 159,000
$ 15,167
9.54% Owner's equity $ 61,000 $ 66,000
Treasury stock $ - $ -
18.67% Owner's equity $ 61,000 $ 66,000
Total liabilities and equity $ 93,000 $ 118,000
2008
1.53

668.49
98.73

2.55

13.56

2008
2.12
52.83%

0.32
13

$ 202.74
29.59
 8.11%

2008
2.77
2.17
2008
18.67%
0.057
1.53
2.12
 2007 2008
$ 15,000 $ 18,000
$ 61,000 $ 66,000
$ 30,000 $ 29,000
$ 21,000 $ 20,000
$ 127,000 $ 133,000
$ 13,000 $ 18,000
$ 6,000 $ 8,000
$ 146,000 $ 159,000

$ 8,000 $ 10,000
$ 7,000 $ 6,000
$ 21,000 $ 28,000
$ 4,000 $ 4,000
$ 40,000 $ 48,000
$ 8,000 $ 7,000
$ 20,000 $ 20,000
$ 7,000 $ 9,000

$ 71,000 $ 85,000
$ - $ (10,000)
$ 71,000 $ 75,000
$ 146,000 $ 159,000