Exhibit 2 Forecast (2)
Cartwright Lumber Company
Sales
Assets
Cash
Accounts Rec., net
Inventory
Current Assets
Property, net
Total Assets
Balance Sheet
$ 1,697 $ 2,013 $
2001
2002
$
58 $
48 $
171
222
239
326
468
596
126
140
$
594 $
736 $
forecast
2,694 $
2003
41 $
317
418
776
157
933 $
2,963 $
2004
59 $
219
474
753
207
960
3,200
2005
64
Balance Sheet
% of Sales
2001
2002
3.4%
2.4%
10.1%
11.0%
14.1%
16.2%
Days outstanding
Forecast
2003
2004
1.5%
2%
11.8%
15.5%
16%
7.4%
7.0%
5.8%
7.0%
7.3%
1.4%
9.5%
1.5%
9.5%
1.4%
8.5%
1.40%
2005
2%
2001
2002
2003
2004
37
40
43
27
27
35
35
Liabilities & Net Worth
Notes Payable Bank
Note Payable to Stark, curr. Portion
Notes Payable Trade
Accounts Payable
Accrued Expenses
Term Loan, curr. Portion
Current Liabilities
Term Loan
Total Liabilities
Net Worth
Total Liabilities & Net Worth
Plug
105
124
24
7
260
64
324
270
594
146
192
30
7
375
57
432
304
736
233
256
39
7
535
50
585
348
933
184
41
7
233
43
276
345
621
339
Exhibit 1
Cartwright Lumber Company
Income Statememt
Net Sales
Cost of Goods Sold:
Beginning Inventory
Purchases
Ending Inventory
Total Cost of Goods Sold
Gross Profit
Operating Expenses
Earnings Before Interest & Taxes
Interest Expense
Net Income Before Taxes
Provision for Income Taxes
Net Income
2001
1,697 $
2002
2,013 $
First
Quarter
2003
2004
2,694 $
718
183
1,278
239
1,222
239
1,524
326
1,437
326
2,042
418
1,950
418
660
556
522
475
425
50
13
37
6
31
576
515
61
20
41
7
34
744
658
86
33
53
9
44
196
175
21
10
11
2
9
Taxes
50,000
75,000
over 75,000
Total
Average Tax Rate
0.15
0.25
0.35
5.55
-
6.15
-
7.50
0.75
-
5.55
15%
6.15
15%
8.25
16%
1.65
1.65
15%
Notes
Exhibit 2
Cartwright Lumber Company
Balance Sheet
Assets
Cash
Accounts Rec., net
Inventory
Current Assets
Property, net
Total Assets
2001
58 $
171
239
468
126
594 $
2002
48 $
222
326
596
140
736 $
First
Quarter
2003
2004
41 $
31
317
345
418
556
776
932
157
162
933 $ 1,094
105
-
146
-
233
-
256
39
7
535
50
585
348
933
243
36
7
690
47
737
357
$ 1,094
Liabilities & Net Worth
Notes Payable Bank
Note Payable to Stark, curr. Portion
Notes Payable Trade
Accounts Payable
Accrued Expenses
Term Loan, curr. Portion
Current Liabilities
Term Loan
Total Liabilities
Net Worth
Total Liabilities & Net Worth
124
24
7
260
64
324
270
594
192
30
7
375
57
432
304
736
247
157
2005 Notes
Exhibit 1 % Sales
Cartwright Lumber Company
Income Statememt
Net Sales
Cost of Goods Sold:
Beginning Inventory
Purchases
Ending Inventory
Total Cost of Goods Sold
Gross Profit
Operating Expenses
Earnings Before Interest & Taxes
Interest Expense
Net Income Before Taxes
Provision for Income Taxes
Net Income
2001
1,697 $
2002
2,013 $
First
Quarter
2003
2004
2,694 $
718
183
1,278
239
1,222
239
1,524
326
1,437
326
2,042
418
1,950
418
660
556
522
475
425
50
13
37
6
31
576
515
61
20
41
7
34
744
658
86
33
53
9
44
196
175
21
10
11
2
9
Taxes
50,000
75,000
100,000
over 100,000
Total
Average Tax Rate
0.15
0.25
0.34
0.39
5.55
5.55
15%
6.15
6.15
15%
7.50
0.75
8.25
16%
1.65
1.65
15%
First
Quarter
2003
2004
100%
100%
2001
100%
2002
100%
11%
75%
14%
72%
12%
76%
16%
71%
12%
76%
16%
72%
58%
92%
77%
73%
25%
26%
24%
24%
1%
2%
1%
2%
1%
2%
1%
2%
2%
2%
2%
1%
Exhibit 2 % Sales
Clarkson Lumber Company
Sales
Assets
Cash
Accounts Rec., net
Inventory
Current Assets
Property, net
Total Assets
Balance Sheet
$ 1,697 $
2,013 $
2001
2002
$
58 $
48 $
171
222
239
326
468
596
126
140
$
594 $
736 $
First Quarter
2,694 $
718
2003
2004
41 $
31
317
345
418
556
776
932
157
162
933 $ 1,094
Balance Sheet
Days outstanding
First Quarter
2001
3.4%
10.1%
14.1%
2002
2.4%
11.0%
16.2%
2003
1.5%
11.8%
15.5%
7.4%
35.0%
7.0%
36.6%
5.8%
34.6%
2001
2002
2003
2004
36
51
40
58
42
56
43
70
(Acct. Rec/sales per day)
(Inventory/sales per day)
Liabilities & Net Worth
Notes Payable Bank
Note Payable to Stark, curr. Portion
Notes Payable Trade
Accounts Payable
Accrued Expenses
Term Loan, curr. Portion
Current Liabilities
Term Loan
Total Liabilities
Net Worth
Total Liabilities & Net Worth
105
124
24
7
260
64
324
270
594
146
192
30
7
375
57
432
304
736
233
-
247
157
256
39
7
535
50
585
348
933
243
36
7
690
47
737
357
$ 1,094
27
7.3%
1.4%
9.5%
1.5%
9.5%
1.4%
35
45
45
(Acct. Payable/Cost of Goods Sold per day)
40
Exhibit 1 Forecast
Cartwright Lumber Company
Income Statememt
10% $
Net Sales
Cost of Goods Sold:
Beginning Inventory
Purchases
Ending Inventory
Total Cost of Goods Sold
Gross Profit
Operating Expenses
Earnings Before Interest & Taxes
Interest Expense
Net Income Before Taxes
Provision for Income Taxes
Net Income
0.08
0.05
2001
1,697 $
2002
2,013 $
2003
2004
2005
2006
2,694 $ 2,963 $ 3,200 $ 3,360
183
1,278
239
1,222
239
1,524
326
1,437
326
2,042
418
1,950
475
425
50
13
37
6
31
576
515
61
20
41
7
34
744
658
86
33
53
9
44
418
2,223
474
2,166
474
2,400
512
2,362
512
2,520
538
2,495
797
770
27
30
(3)
(0.53)
(3) $
838
832
6
32
(26)
(4.43)
(22) $
866
874
(8)
34
(42)
(7.07)
(35)
(0.47)
(0.47)
15%
(3.91)
(3.91)
15%
(6.24)
(6.24)
15%
Taxes
50,000
75,000
over 75,000
Total
Average Tax Rate
0.15
0.25
0.35
5.55
5.55
15%
6.15
6.15
15%
7.50
0.75
8.25
16%
2001
75%
14%
72%
25%
0.77%
16%
Exhibit 1 Forecast
Forecast
2002
2003
2004
2005
2006
76%
16%
71%
76%
16%
72%
75%
16%
73%
75%
16%
72%
75%
16%
26%
24%
26%
26%
26%
0.99%
1.22%
1%
1%
1%
17%
17%
17%
17%
17%
Complete the forecast on the Cartwright Lumber
balance sheet with anticipated sales growth of 10%
Exhibit 2 Forecast
Cartwright Lumber Company
Sales
Assets
Cash
Accounts Rec., net
Inventory
Current Assets
Property, net
Total Assets
Balance Sheet
$ 1,697 $ 2,013 $
2001
2002
$
58 $
48 $
171
222
239
326
468
596
126
140
$
594 $
736 $
forecast
2,694 $
2003
41 $
317
418
776
157
933 $
3,225 $
2004
65 $
327
516
907
226
1,133 $
3,200 $
2005
64 $
324
512
901
224
1,125 $
3,360
2006
67
341
538
946
235
1,181
Balance Sheet
% of Sales
2001
2002
3.4%
2.4%
10.1%
11.0%
14.1%
16.2%
Days outstanding
Forecast
2003
2004
1.5%
2%
11.8%
15.5%
16%
2005
2%
2006
2%
16%
16%
7.4%
7.0%
5.8%
7.0%
7.0%
7.0%
7.3%
1.4%
9.5%
1.5%
9.5%
1.4%
8.5%
1.40%
8.5%
1.40%
8.5%
1.40%
2001
2002
2003
2004
2005
2006
37
40
43
37
37
37
27
35
35
23
22
Liabilities & Net Worth
Notes Payable Bank
Note Payable to Stark, curr. Portion
Notes Payable Trade
Accounts Payable
Accrued Expenses
Term Loan, curr. Portion
Current Liabilities
Term Loan
Total Liabilities
Net Worth
Total Liabilities & Net Worth
Plug
105
124
24
7
260
64
324
270
594
146
192
30
7
375
57
432
304
736
233
256
39
7
535
50
585
348
933
465
-
200
45
7
718
43
761
345
1,106
27
465
-
465
-
196
45
8
714
35
749
324
1,072
47
9
521
26
547
289
836
52
345
Cartwright Lumber Company Income Statememt
Net Sales
Cost of Goods Sold:
Beginning Inventory
Purchases
Ending Inventory
Total Cost of Goods Sold
Gross Profit
Operating Expenses
Earnings Before Interest & Taxes
Interest Expense
Net Income Before Taxes
Provision for Income Taxes
Net Income
Cartwright Lumber Company
Sales
Assets
Cash
Accounts Rec., net
Inventory
Current Assets
Property, net
Total Assets
Liabilities & Net Worth
Notes Payable Bank
Note Payable to Stark, curr. Portion
Notes Payable Trade
Accounts Payable
Accrued Expenses
Term Loan, curr. Portion
Current Liabilities
Term Loan
Total Liabilities
Net Worth
Total Liabilities & Net Worth
Plug
10% $ 0.08
0.05
2001
2002
2003
2004
2005
2006
$ 1,697 $ 2,013 $ 2,694 $ 2,963 $ 3,200 $ 3,360
1,278
239
1,222
295
1,524
326
1,437
413
2,042
418
1,950
510
425
50
375
37
338
6
332
515
61
454
41
413
7
406
658
86
572
53
519
9
510
Balance Sheet
$ 1,697 $ 2,013 $ 2,694
2001
2002
2003
$
58 $
48 $
41
171
222
317
239
326
418
468
596
776
126
140
157
$
594 $
736 $
933
105
124
24
7
260
64
324
270
594
146
192
30
7
375
57
432
304
736
1,950
2,223
474
3,698
(735)
770
(1,505)
30
(1,535)
(260.97)
$ (1,274) $
474
2,400
512
2,362
512
2,520
538
2,495
838
832
6
32
(26)
(4.43)
(22) $
866
874
(8)
34
(42)
(7.07)
(35)
forecast
$ 3,225 $ 3,200 $ 3,360
2004
2005
2006
$
65 $
64 $
67
327
324
341
516
512
538
907
901
946
226
224
235
$ 1,133 $ 1,125 $ 1,181
233
-
465
-
256
39
7
535
50
585
348
933
200
45
7
718
43
761
345
$ 1,106
196
45
8
714
35
749
324
$ 1,072
47
9
521
26
547
289
836
345
27
465
-
52
2001
2002
2003
Forecast
2004
2005
2006
14%
72%
17%
16%
71%
21%
16%
72%
19%
75%
16%
125%
75%
16%
72%
75%
16%
3%
3%
3%
26%
26%
26%
2.18%
2.04%
1.97%
1%
1%
1%
2%
2%
2%
17%
17%
17%
Balance Sheet
% of Sales
2001
3.4%
10.1%
14.1%
2002
2.4%
11.0%
16.2%
2003
1.5%
11.8%
15.5%
Forecast
2004
2%
2005
2%
2006
2%
16%
16%
16%
7.4%
7.0%
5.8%
7.0%
7.0%
7.0%
7.3%
1.4%
9.5%
1.5%
9.5%
1.4%
8.5%
1.40%
8.5%
1.40%
8.5%
1.40%
465
-
