Exhibit 1: Financial StatementS for Tire City, Inc
For Years Ending 12/31 1993 1994 1995
INCOME STATEMENT
Net sales $ 16,230 $ 20,355 $ 23,505
Cost of sales 9,430 11,898 13,612
Gross profit 6,800 8,457 9,893
Selling, general, and administrative expenses 5,195 6,352 7,471
Depreciation 160 180 213
Net interest expenses 119 106 94
Pre-tax income 1326 1819 2115
Income taxes 546 822 925
Net income $ 780 $ 997 $ 1,190
Dividends $ 155 $ 200 $ 240
BALANCE SHEET
Asset
Cash $ 508 $ 609 $ 706
Accounts receivable 2545 3095 3652
Inventories 1630 1838 2190
Total current asssets 4683 5542 6548
Gross plans & equipment 3232 3795 4163
Accumulated depreciation 1335 1515 1728
Net plant & equipment 1897 2280 2435
Total assets $ 6,580 $ 7,822 $ 8,983
Liabilities
Current maturities of long-term debt $ 125 $ 125 $ 125
Accounts payable 1042 1325 1440
Accrued expenses 1145 1432 1653
Totol current liabilities 2312 2882 3218
Long-term debt 1000 875 750
Bank Debt
Total long term liabilities 1000 875 750
Total liabilities $ 3,312 $ 3,757 $ 3,968
Stockholder's Equity
Common stock 1135 1135 1135
Retained earnings 2133 2930 3880
Total shareholders' equity 3268 4065 5015
Total liabilities and stockholder's equity $ 6,580 $ 7,822 $ 8,983
Forecasted
1996 1997 1993 1994
$ 28,206 $ 33,847 given
16359 19631 58.10% 58.45%
11847 14216
8941 10729 32.01% 31.21%
213 333 5%
63 50 10% of remaining long-term 10.60%
2630 3103
1184 1396 41.18% 45.19%
$ 1,447 $ 1,707
$ 289 $ 341 20% average 19.87% 20.06%
$ 846 $ 1,015 3% of sale 3.13% 2.99%
4372 5246 15.5% of sale 15.68% 15.21%
1625 3155 given 1996, 1997= 93% of sale 10.04% 9.03%
6843 9416
6163 6563 2M in 1996 and 400K in 97
1941 2274
4222 4289
$ 11,065 $ 13,705
$ 125 $ 125
1777 2132 6.42% 6.51%
1974 2369 7.05% 7.04%
3876 4627
625 500 -125 each year
392 1040 existing and new debt at 10% interest
1017 1540
$ 4,893 $ 6,167
1135 1135 remains unchanged
5036.2 6403
6171.2 7538
$ 11,065 $ 13,705
Assumption Forecasted
1995 average 1996 1997
20.00% 20.00%
57.91% 58.16% 58.00% 58.00% 58.00%
31.78% 31.67% 31.70% 31.70% 31.70%
(2400x5%)+213
10.74% 10.67% 10.00% 10.00% 10.00%
43.74% 43.37% 45.00% 45.00% 45.00%
20.17% 20.03% 20.00% 20.00% 20.00%
3.00% 3.04% 3.00% 3.00% 3.00%
15.54% 15.47% 15.50% 15.50% 15.50%
9.32% 9.46% 9.32%
2000 400
6.13% 6.35% 6.30% 6.30% 6.30%
7.03% 7.04% 7.00% 7.00% 7.00%
Exhibit 2: TCI's Financial Performance
Forecasted
For Years Ending 12/31 1993 1994 1995 1996
Profitability
Return on Sale 4.81% 4.90% 5.1% 5.1%
Return on Assets 11.9% 12.7% 13.2% 13.1%
Return on Equity 23.9% 24.5% 23.7% 23.4%
Net profit margin 11.5% 11.8% 12.0% 12.2%
Liquidity
Current Ratio 2.03 1.92 2.03 1.77
Quick Ratio 1.32 1.29 1.35 1.35
Leverage
Debt to asset ratio 0.50 0.48 0.44 0.44
Debt to capital ratio 0.23 0.18 0.13 0.14
Debt to equity ratio 0.31 0.22 0.15 0.16
Intrest coverage ratio 12.1 18.2 23.5 42.7
Activity Ratio
Asset turnover 2.47 2.60 2.62 2.55
Recievable turnover 6.38 6.58 6.44 6.45
Inventory turnover 5.79 6.47 6.22 10.07
Payable turnover 9.14 9.70 8.89
Forecasted
1997
5.0% =net income / sales
12.5% =net income / total assets
22.6% =net income / total stockholders equity
12.0% =net income / net revenue
2.04 =current asset / current laibility
1.35 =(cash + short-term marketable securities + accounts receivable) / current liabilities
0.45 =total liabilities / total assets
0.17 =(notes payable + current portion of long-term debt + long-term debt) / debt to equity ratio
0.20 =(notes payable + current portion of long-term debt + long-term debt) / total shareholders equity
63.1 =earnings before interest and taxes / interest payments
2.47 = net sales / total asset
6.45 = net sales / average recievable
6.22 =COGS / average inventory
9.92 =(COGS + ending inventory - begining inventory) / average payable
bilities
o equity ratio
hareholders equity
