Better Buys Inc.

Income Statement

Constant growth rate 6% Revenues

Percentage of Sales 64.83% Cost of Goods Sold
Calculated Gross Profit
Operating Expenses
Constant 2,000,000 Fixed Cash Operating Expenses
Percentage of Sales 16.1% Variable Cash Operating Expenses
Percentage of Fixed Assets in Period (t-1) 10.00% Depreciation Expense
Calculated Net Operating Income
Percentage of Investments in Period (t-1) 10.00% Nonoperating (other) Income
Calculated Earnings Before Interest and Taxes
Percentage of Total Liabilities in Period (t-1) 7.00% Interest Expense
Calculated Earnings Before Taxes
Tax rate x EBT 40.00% Taxes
Calculated Net Income
Policy Variable - fixed $ 200,000.00 Dividends Paid
Calculated Addition to Retained Earnings
 2011 2012
ues $ 33,125,000.00 $ 35,112,500.00
f Goods Sold $ (21,696,875.00) $ (22,472,000.00)
Profit $ 11,428,125.00 $ 12,640,500.00
ing Expenses
xed Cash Operating Expenses $ (2,000,000.00) $ (2,000,000.00)
ariable Cash Operating Expenses $ (5,300,000.00) $ (5,618,000.00)
epreciation Expense $ (1,343,750.00) $ (1,424,375.00)
perating Income $ 2,784,375.00 $ 3,598,125.00
erating (other) Income $ 300,000.00 $ 300,000.00
gs Before Interest and Taxes $ 3,084,375.00 $ 3,898,125.00
terest Expense $ (974,438.00) $ (860,855.00)
gs Before Taxes $ 2,109,937.00 $ 3,037,270.00
axes $ (843,975.00) $ (1,214,908.00)
come $ 1,265,962.00 $ 1,822,362.00
ividends Paid $ (200,000.00) $ (200,000.00)
on to Retained Earnings $ 1,065,962.00 $ 1,622,362.00
 FORECASTED PERIODS
2013 2014 2015 2016
$ 37,219,250.00 $ 39,452,405 $ 41,819,549 $ 44,328,722
$ (24,192,513.00) $ (25,578,309) $ (27,113,008) $ (28,739,788)
$ 13,026,737.00 $ 13,874,096 $ 14,706,541 $ 15,588,934

$ (2,000,000.00) $ (2,000,000) $ (2,000,000) $ (2,000,000)

$ (6,029,519.00) $ (6,338,687) $ (6,719,008) $ (7,122,148)
$ (1,509,838.00) $ (1,600,428) $ (1,696,453) $ (1,798,241)
$ 3,487,380.00 $ 3,934,981 $ 4,291,080 $ 4,668,545
$ 300,000.00 $ 300,000 $ 300,000 $ 300,000
$ 3,787,380.00 $ 4,234,981 $ 4,591,080 $ 4,968,545
$ (888,841.00) $ (885,724) $ (880,203) $ (862,697)
$ 2,898,539.00 $ 3,349,257 $ 3,710,877 $ 4,105,848
$ (1,159,416.00) $ (1,339,703) $ (1,484,351) $ (1,642,339)
$ 1,739,123.00 $ 2,009,554 $ 2,226,526 $ 2,463,509
$ (200,000.00) $ (200,000) $ (200,000) $ (200,000)
$ 1,539,123.00 $ 1,809,554 $ 2,026,526 $ 2,263,509
D PERIODS
2017 2018
$ 46,988,446 $ 49,807,752
$ (30,464,176) $ (32,292,026)
$ 16,524,270 $ 17,515,726

$ (2,000,000) $ (2,000,000)
$ (7,549,477) $ (8,002,446)
$ (1,906,135) $ (2,020,503)
$ 5,068,658 $ 5,492,777
$ 300,000 $ 300,000
$ 5,368,658 $ 5,792,777
$ (835,967) $ (799,112)
$ 4,532,691 $ 4,993,665
$ (1,813,076) $ (1,997,466)
$ 2,719,614 $ 2,996,199
$ (200,000) $ (200,000)
$ 2,519,614 $ 2,796,199
Better Buys Inc. Balance Sheet

ASSETS
Percentage of Revenues 2.0% Cash and Marketable Securities
Percentage of Revenues 21.4% Accounts Receivable
Percentage of Revenues 32.7% Inventories
Calculated Current Assets
Percentage of Revenues 43.0% Net Property, Plant, and Equipment
Policy Variable Constant Investments
Calculated Total Assets

LIABILITIES AND EQUITY

Percentage of Revenues 22.8% Accounts Payable
Percentage of Revenues 20.3% Short-term Debt
Calculated Current Liabilities
Policy Variable Balancing Term Long-term Liabilities
Calculated Total Liabilities
Percentage of Tax Liability 2.0% Deferred Income Taxes
Policy Variable Constant Common Stock
Calculated Retained Earnings
Calculated Total Owners' Equity
Calculated Total Liabilities and Owners' Equity

BALANCE CHECKER
 2011 2012 2013

Securities $ 650,000.00 $ 702,500.00 $ 744,385.00

$ 7,102,000.00 $ 7,408,738.00 $ 8,113,797.00
$ 10,643,000.00 $ 11,938,250.00 $ 12,282,353.00
$ 18,395,000.00 $ 20,049,488.00 $ 21,140,535.00
nd Equipment $ 14,243,750.00 $ 15,098,375.00 $ 16,004,278.00
$ 3,000,000.00 $ 3,000,000.00 $ 3,000,000.00
$ 35,638,750.00 $ 38,147,863.00 $ 40,144,813.00

TY
$ 8,281,250.00 $ 8,778,125.00 $ 8,800,100.00
$ 7,287,500.00 $ 7,724,750.00 $ 8,188,235.00
ties $ 15,568,750.00 $ 16,502,875.00 $ 16,988,335.00
$ 4,563,718.00 $ 4,504,195.00 $ 4,464,967.00
s $ 20,132,468.00 $ 21,007,070.00 $ 21,453,302.00
es $ 346,629.00 $ 358,778.00 $ 370,372.00
$ 10,000,000.00 $ 10,000,000.00 $ 10,000,000.00
$ 5,159,653.00 $ 6,782,015.00 $ 8,321,139.00
Equity $ 15,159,653.00 $ 16,782,015.00 $ 18,321,139.00
Owners' Equity $ 35,638,750.00 $ 38,147,863.00 $ 40,144,813.00

$ - $ - $ -
 FORECASTED PERIODS
2014 2015 2016 2017

$ 789,048 $ 836,391 $ 886,574 $ 939,769

$ 8,442,815 $ 8,949,384 $ 9,486,347 $ 10,055,527
$ 12,900,936 $ 13,674,993 $ 14,495,492 $ 15,365,222
$ 22,132,799.21 $ 23,460,767.16 $ 24,868,413.19 $ 26,360,517.98
$ 16,964,534 $ 17,982,406 $ 19,061,351 $ 20,205,032
$ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000
$ 42,097,333.36 $ 44,443,173.36 $ 46,929,763.76 $ 49,565,549.58

$ 8,995,148 $ 9,534,857 $ 10,106,949 $ 10,713,366

$ 8,008,838 $ 8,489,369 $ 8,998,731 $ 9,538,654
$ 17,003,986.56 $ 18,024,225.75 $ 19,105,679.29 $ 20,252,020.05
$ 4,565,487.51 $ 3,834,874.90 $ 2,943,656.24 $ 1,877,225.45
$ 21,569,474.06 $ 21,859,100.65 $ 22,049,335.53 $ 22,129,245.50
$ 397,166 $ 426,853 $ 459,700 $ 495,961
$ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000
$ 10,130,693 $ 12,157,220 $ 14,420,728 $ 16,940,343
$ 20,130,693.24 $ 22,157,219.63 $ 24,420,728.37 $ 26,940,342.70
$ 42,097,333.36 $ 44,443,173.36 $ 46,929,763.76 $ 49,565,549.58

$ - $ - $ - $ -
 2018

$ 996,155
$ 10,658,859
$ 16,287,135
$ 27,942,149.06
$ 21,417,334
$ 3,000,000
$ 52,359,482.56

$ 11,356,168
$ 10,110,974
$ 21,467,141.25
$ 619,888.60
$ 22,087,029.85
$ 535,911
$ 10,000,000
$ 19,736,542
$ 29,736,542.00
$ 52,359,482.56

$ -
Better Buys Inc. Statement of Cash Flow

Cash Flows from Operations

Net Income
Depreciation

(Increase) decrease in accounts receivable

(Increase) decrease in inventory

Increase (decrease) in accounts payable

Increase (decrease) in deferred income taxes
Cash provided by operations

Cash Flows from Investing Activities

(Increase) decrease in gross fixed assets
Cash flows from investing activities

Cash Flows from Financing Activities

Increase (decrease) in short-term debt
Increase (decrease) in long-term liabilities
Increase (decrease) in common stock
Dividends paid
Cash flows from financing activities

Change in Cash
 2011 2012 2013

$ 1,265,962.00 $ 1,822,362.00 $ 1,739,123.00

$ 1,343,750.00 $ 1,424,375.00 $ 1,509,838.00
$ 2,609,712.00 $ 3,246,737.00 $ 3,248,961.00
$ (450,500.00) $ (306,738.00) $ (705,059.00)
$ (642,000.00) $ (1,295,250.00) $ (344,103.00)
$ (1,092,500.00) $ (1,601,988.00) $ (1,049,162.00)
$ 468,750.00 $ 496,875.00 $ 21,975.00
$ 16,880.00 $ 12,149.00 $ 11,594.00
$ 2,002,842.00 $ 2,153,773.00 $ 2,233,368.00

$ (2,150,000.00) $ (2,279,000.00) $ (2,415,740.00)

$ (2,150,000.00) $ (2,279,000.00) $ (2,415,740.00)

$ 412,500.00 $ 437,250.00 $ 463,485.00

$ (39,342.00) $ (59,524.00) $ (39,229.00)

$ (200,000.00) $ (200,000.00) $ (200,000.00)

$ 173,158.00 $ 177,726.00 $ 224,256.00

$ 26,000.00 $ 52,499.00 $ 41,884.00