1

Operating Statements for Butler Lumber

Years Ending Dec. 31 1988-1990

In $ 1000

Column1 1988 1989

Net Sales USD 1,697.00 USD 2,013.00

Cost of Goods Sold

Beginning Inventory 183 239

Purchases 1278 1524

USD 1,461.00 USD 1,763.00

Ending Inventory 239 326

Total COGS USD 1,222.00 USD 1,437.00

Gross Profit USD 475.00 USD 576.00

Operating Expense 425 515

EBITDA USD 50.00 USD 61.00

Interest Expense 13 20

Net Income Before Taxes(PBT) USD 37.00 USD 41.00

Provision for Income Taxes 6 7

Net Income(PAT) USD 31.00 USD 34.00

2

3

Operating Statements for Butler Lumber Balance Sheets for Butler Lumber

Years Ending Dec. 31 1988-1990 at Dec. 31 1988-1990

In $ 1000 In $ 1000

1990 1991 (first quarter) Column1

USD 2,694.00 USD 718.00 Cash

A/c Recv., net

326 418 Inventory

2042 660 Current Assets

USD 2,368.00 USD 1,078.00 Property, net

418 556 Total Assets

USD 1,950.00 USD 522.00

USD 744.00 USD 196.00 Notes Payable, bank

658 175 Notes Payable, Mr. Stark

USD 86.00 USD 21.00

33 10 Notes Payable, Trade

USD 53.00 USD 11.00 A/c Payable

9 2 Accrued Expenses

USD 44.00 USD 9.00 Long Term Debt, Current Portion

Current Liabilities

Long Term Debt

Total Liabilities

Net Worth(SHF)

Total Liabilities + Net Worth

4

5

Balance Sheets for Butler Lumber

at Dec. 31 1988-1990

In $ 1000

1988 1989 1990 1991 (first quarter)

USD 58.00 USD 48.00 USD 41.00 USD 31.00

171 222 317 345

239 326 418 556

USD 468.00 USD 596.00 USD 776.00 USD 932.00

126 140 157 162

USD 594.00 USD 736.00 USD 933.00 USD 1,094.00

0 146 233 247

105 0 0 0

0 0 0 157

124 192 256 243

24 30 39 36

7 7 7 7

USD 260.00 USD 375.00 USD 535.00 USD 690.00

64 57 50 47

USD 324.00 USD 432.00 USD 585.00 USD 737.00

270 304 348 357

USD 594.00 USD 736.00 USD 933.00 USD 1,094.00

6

7

Different Ratios

Column1 1988 1989 1990 1991 (first quarter)

Current Ratio USD 1.80 USD 1.59 USD 1.45 USD 1.35

Debt/Equity Ratio 1.2 1.42105263 1.68103448 2.06442577030812

Debt/Assets USD 0.55 USD 0.59 USD 0.63 USD 0.67

Quick ratio 0.22 0.128 0.0766 0.0445

ROA 5.22% 4.62% 4.72% 0.82%

ROE 11.48% 11.18% 12.64% 2.52%

Internal Growth Rate 5.51% 4.84% 4.95% 0.83%

Sustainable Growth Rate 12.97% 12.59% 14.47% 2.59%

Interest Coverage Ratio 3.8462 3.0500 2.6061 2.1

account receivable to sales 0.1008 0.1103 0.1177 0.4805

Purchase/Payables 10.3065 7.9375 7.9766 2.7160

Inventory Turnover (cogs/inv) 5.7915 5.0867 5.2419 1.0719

Days Receivables 36.7796 40.2534 42.9491 175.3830

Days Payables 35.415 45.984 45.759 134.386

Number of days of inventory 63.024 71.755 69.631 340.527

Operating Cycle 99.803 112.009 112.580 515.910

Net operating Cycle 64.389 66.024 66.821 381.523

8

9

Operating Profit before interest / interest

10

11

1988 1989 1990

Opening Cash Balance 58 48

Operating Activities

PAT 31 34 44

Depreciation 0 0 0

Interest Paid 13 20 33

Other Income 0 0 0

Exceptional Item 0 0 0

Foreign Exchange (Gain)/Loss 0 0 0

Operating CashFlow before WC 44 54 77

(Inc)/Dec in Inventories -56 -87 -92

(Inc)/Dec in Receivables -51 -95

Inc/(Dec) in Notes Payable, bank 146 87

Inc/(Dec) in Notes Payable, Mr Stark -105 0

Inc/(Dec) in Notes Payable, trade 0 0

Inc/(Dec) in Accounts Payable 68 64

Inc/(Dec) in Accrued Expenses 6 9

Inc/(dec)in WC -23 -27

12

Cash from OperatingActivities 44 31 50

Investing Activities

Net (Pur)/Sale of Tangible Assets -14 -17

Cash from Investing Activities 0 -14 -17

Financing Activities

Net borrowings -7 -7

Interest Paid -13 -20 -33

Dividend( with tax)

Share Capital 0 0

Share Premium+ share app

Cash from Financing Activities -27 -40

Net Cash Flow -10 -7

Ending Balance 58 48 41

13

1991 (first quarter)

41

9

0

10

0

0

0

19

-138

-28

14

0

157

-13

-3

-11

14

8

-5

-5

-3

-10

0

-13

-10

31

15

Income Statement items as percentage of Sales

Column1 1988 1989 1990 1991 (first quarter) Column1

Net Sales 100.00% 100.00% 100.00% 100.00% Cash

Cost of Goods Sold 0.00% 0.00% 0.00% 0.00% A/c Recv., net

Beginning Inventory 10.78% 11.87% 12.10% 58.22% Inventory

Purchases 75.31% 75.71% 75.80% 91.92% Current Assets

86.09% 87.58% 87.90% 150.14% Property, net

Ending Inventory 14.08% 16.19% 15.52% 77.44% Total Assets

Total COGS 72.01% 71.39% 72.38% 72.70%

Gross Profit 27.99% 28.61% 27.62% 27.30% Notes Payable, bankOperating Expense 25.04% 25.58% 24.42% 24.37% Notes Payable, Mr. StarkInterest Expense 0.77% 0.99% 1.22% 1.39% Notes Payable, TradeNet Income Before Taxes 2.18% 2.04% 1.97% 1.53% A/c PayableProvision for Income Taxes 0.35% 0.35% 0.33% 0.28% Accrued ExpensesNet Income 1.83% 1.69% 1.63% 1.25% Long Term Debt, Current Portion

Current LiabilitiesLong Term DebtTotal LiabilitiesNet WorthTotal Liabilities + Net Worth

16

1988 1989 1990 1991 (first quarter)

3.42% 2.38% 1.52% 4.32%

10.08% 11.03% 11.77% 48.05%

14.08% 16.19% 15.52% 77.44%

27.58% 29.61% 28.80% 129.81%

7.42% 6.95% 5.83% 22.56%

35.00% 36.56% 34.63% 152.37%

0.00% 0.00% 0.00% 0.00%

0.00% 7.25% 8.65% 34.40%6.19% 0.00% 0.00% 0.00%0.00% 0.00% 0.00% 21.87%7.31% 9.54% 9.50% 33.84%1.41% 1.49% 1.45% 5.01%0.41% 0.35% 0.26% 0.97%

15.32% 18.63% 19.86% 96.10%3.77% 2.83% 1.86% 6.55%

19.09% 21.46% 21.71% 102.65%15.91% 15.10% 12.92% 49.72%35.00% 36.56% 34.63% 152.37%

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