Income Statements

Net Sales
Cost of sales
Gross profit
RD&E expenses
SG&A expenses
Amortization of intangibles
In-process R&D
Operating income (expenses)
Earnings before tax
Income taxes
Net earning

2005 A
$4,871.50
$1,718.50
$3,153.00
$284.70
$1,853.50
$48.80
$15.90
$950.10
$4.50
$954.60
$311.00
$643.60

2006 A
2007 E1
$5,405.60
$1,848.70
$3,556.90
$324.60
$2,061.70
$43.60
$52.70
$1,074.30
$29.50
$1,103.80
$326.10
$777.70

$6,000.22
$2,083.88
$3,916.34
$360.31
$2,288.49
$48.40
$58.50
$1,160.65
$0.00
$1,160.65
$348.20
$812.46

"@11% sales growth

$933.24 reflects an increase by 20% as required by t

2007 E2
$6,892.22
$2,393.67
4,498.55
$413.87
$2,628.70
$55.59
$67.19
1,333.20
$0.00
1,333.20
$399.96
$933.24

2005-2006
11%
8%
13%
14%
11%
-11%
231%
13%
556%
16%
5%
21%

"@28% sales growth

flects an increase by 20% as required by the company

% increase
2006-2007E1
2006-2007E2
11%
28%
13%
29%
10%
26%
11%
28%
11%
28%
11%
28%
11%
28%
8%
24%
-100%
-100%
5%
21%
7%
23%
4%
20%

Ratio to sales
2005
2006
0.35
0.65
0.06
0.38
0.01
0.00
0.20
0.00
0.20
0.06
0.13

0.34
0.66
0.06
0.38
0.01
0.01
0.20
0.01
0.20
0.06
0.14

Ratio to sales
2007 E1
0.35
0.65
0.06
0.38
0.01
0.01
0.19
0.00
0.19
0.06
0.14

2007 E2
0.35
0.65
0.06
0.38
0.01
0.01
0.19
0.00
0.19
0.06
0.14

Less
Less
Less
Less
Add

Revenue
COGS
Gross profit
Operating Expenses
Depreciation
PBT
Tax
PAT
Depreciation
Net Inflow

Company Growth
-$2,000.00

$892.00

$1,034.72

10.00% Npv @ 10 %
15.00% Npv @ 15 %
20.00% Npv @ 20 %
IRR
Pay Back Period

2007 P

2008 P

2009 P

2010 P

$2,883.76
$576.75
$2,307.01
$865.13
$69.01
$1,372.87
$411.86
$961.01
$69.01
$892.00

$3,345.16
$669.03
$2,676.13
$1,003.55
$80.05
$1,592.53
$477.76
$1,114.77
$80.05
$1,034.72

$3,880.39
$776.08
$3,104.31
$1,164.12
$92.86
$1,847.34
$554.20
$1,293.14
$92.86
$1,200.28

$4,501.25
$900.25
$3,601.00
$1,350.38
$107.72
$2,142.91
$642.87
$1,500.04
$107.72
$1,392.32

$1,392.32

$1,615.09

$1,873.50

20%
$1,200.28
$3,253.81
$2,396.75
$1,753.70
52%
2.1 years

2011 P

2012 P

$5,221.45
$1,044.29
$4,177.16
$1,566.44
$124.95
$2,485.78
$745.73
$1,740.04
$124.95
$1,615.09

$6,056.89
$1,211.38
$4,845.51
$1,817.07
$144.94
$2,883.50
$865.05
$2,018.45
$144.94
$1,873.50

Income Statements
Net Sales
Cost of sales
Gross profit
RD&E expenses
SG&A expenses
Amortization of intangibles
In-process R&D
Operating income (expenses)
Earnings before tax
Income taxes
Net earning

2005 A
$4,871.50
$1,718.50
$3,153.00
$284.70
$1,853.50
$48.80
$15.90
$950.10
$4.50
$954.60
$311.00
$643.60

2006 A
2007 E1
$5,405.60
$1,848.70
$3,556.90
$324.60
$2,061.70
$43.60
$52.70
$1,074.30
$29.50
$1,103.80
$326.10
$777.70

$6,000.22
$2,083.88
$3,916.34
$360.31
$2,288.49
$48.40
$58.50
$1,160.65
$0.00
$1,160.65
$348.20
$812.46

"@13% increase in exp

2007 E2
$6,000.22
$1,911.33
4,088.89
$360.31
$2,288.49
$48.40
$58.50
1,333.20
$0.00
1,333.20
$399.96
$933.24

2005-2006
11%
8%
13%
14%
11%
-11%
231%
13%
556%
16%
5%
21%

% increase
2006-2007E1
2006-2007E2
11%
11%
13%
3%
10%
15%
11%
11%
11%
11%
11%
11%
11%
11%
8%
24%
-100%
-100%
5%
21%
7%
23%
4%
20%

"@3% increase in expense

$933.24 reflects an increase by 20% as required by the company

Ratio to sales
2005
2006
0.35
0.65
0.06
0.38
0.01
0.00
0.20
0.00
0.20
0.06
0.13

0.34
0.66
0.06
0.38
0.01
0.01
0.20
0.01
0.20
0.06
0.14

Ratio to sales
2007 E1
0.35
0.65
0.06
0.38
0.01
0.01
0.19
0.00
0.19
0.06
0.14

2007 E2
0.32
0.68
0.06
0.38
0.01
0.01
0.22
0.00
0.22
0.07
0.16

Balance Shee

Assets

2005A

2006A

2007P

2007E

Cash & Marketable securites

Accounts receivables
Inventories
Deferred income taxes
Prepaid expenses
Total current assets

$1,056.50 $1,414.80 $1,740.20 $740.20

$770.30 $907.00 $1,115.61 $1,115.61
$563.50 $677.60 $833.45 $833.45
$383.10 $417.20 $513.16 $513.16
$96.70 $117.70 $144.77 $144.77
$2,870.10 $3,534.30 $4,347.19 $3,347.19

Property, plant & equipment, net

Other assets
Total assets

$831.00 $951.70 $1,123.01 $3,123.01

$1,291.40 $1,387.80 $1,637.60 $1,637.60
$4,992.50 $5,873.80 $6,931.08 $8,107.80

Balance Sheet

Liabilites

2005A

2006A

2007P

2007E

Accounts payable
Accrued compensation
Income taxes payable
Dividends payable
Accrued expenses & other
Current maturites of LTD
Total current liabilites

$206.50 $252.20 $272.38 $272.38

$252.90 $285.90 $308.77 $308.77
$207.30 $208.20 $224.86 $224.86
$44.60
$89.70
$96.88
$96.88
$490.10 $500.70 $540.76 $540.76
$47.40
$14.80
$15.98
$15.98
$1,248.80 $1,351.50 $1,459.62 $1,459.62

Long - term debt

Other liabilites
Shareholders equity
Total liabilites & equity

$184.20
$0.00
$0.00 $1,000.00
$259.30 $331.30 $390.93 $702.80
$3,300.20 $4,191.00 $4,945.38 $4,945.38
$4,992.50 $5,873.80 $6,931.08 $8,107.80