Bubble and Bee Organic - Historical Financial Information

Balance Sheet Income Statement

2013 2014 2015 2016 2017 2014 2015 2016 2017
Assets Revenues 1,776,168 2,042,581 2,348,986 2,701,330
Current Assets Cost of Goods Sold 357,597 408,516.15 493,287 567,279
Cash 25,567 43,008 233,341 342,469 640,954 Gross Margin 1,418,571 1,634,065 1,855,699 2,134,051
Receivables 32,375 35,525 40,852 46,980 54,027 Expenses
Inventories 131,250 143,937 163,406 187,919 216,106 Selling 439,512 510,645 610,736 729,359
Total Current Assets 189,192 222,470 437,599 577,368 911,087 General & Administrative Variable 572,776 102,129 117,449 135,066
Fixed Assets General & Administrative Fixed 82,514 675,000 725,000 775,000
PP&E 395,785 470,185 470,185 570,185 570,185 Depreciation 95,221 95,221 105,221 105,221
Less Depreciation 120,221 207,442 302,663 407,884 513,105 Total Expenses 1,190,023 1,382,995 1,558,407 1,744,647
Total Fixed Assets 275,564 262,743 167,522 162,301 57,080 EBIT 228,548 251,069 297,292 389,404
Net Interest Expense 7,535 - - -
Total Assets 464,756 485,213 605,121 739,669 968,167 Taxable Income 221,013 251,069 297,292 389,404
Taxes - - - -
Liabilities & Shareholder's Equity Net Income 221,013 251,069 297,292 389,404
Current Liabilities Cash Flow Statement
Accounts Payable 44,625 53,286 81,703 93,959 108,053
Accrued Liabilities - - - - - Cash Provided (used) by Operations
Bank Loan 201,796 159,579 - - - Net Income 221,013 251,069 297,292 389,404
Total Current Liabilities 246,421 212,865 81,703 93,959 108,053 Plus Depreciation 95,221 95,221 105,221 105,221
Long Term Liabilities - - - - - Change in Working Capital
Total Liabilities 246,421 212,865 81,703 93,959 108,053 Decrease (increase) in Receivables (3,150) (5,327) (6,128) (7,047)
Decrease (increase) in Inventory (12,687) (19,469) (24,512) (28,188)
Shareholder's Equity Increase (decrease) in Accts. Payable 8,661 28,417 12,256 14,094
Member's Equity 150,000 150,000 175,000 175,000 175,000 Increase (decrease) in Accrued Liabilities - - - -
Retained Earnings 68,335 114,348 365,417 487,709 702,113 Cash Provided (used) by Operations 309,058 349,912 384,129 473,484
Total Shareholder's Equity 218,335 264,348 540,417 662,709 877,113 Cash Provided (used) by Investments
Additions to PP&E (74,400) - (100,000) -
Total Liabilities and Shareholder's Equity 464,756 477,213 622,121 756,669 985,167 Other Investments -
- 8,000 (17,000) (17,000) (17,000) Cash Provided (used) by Investments (74,400) - (100,000) -
Cash Provided (used) by Financing Activities
Base Case Assumptions 2014 2015 2016 2017 Additions (reductions) to Debt (42,217) (159,579) - -
1 Revenue Growth of about 15% per year 15% Net issues of Stock -
Unit Demand 126,869 143,339 161,999 183,141 (Dividends - Owner Draws) (175,000) - (175,000) (175,000)
Average Selling Price $ 14.00 $ 14.25 $ 14.50 $ 14.75 Cash Provided (used) by Financing Activities (217,217) (159,579) (175,000) (175,000)
2 COGS % as a % of Revenues 20% 21% 21% Net increase (decrease) in cash 17,441 190,333 109,129 298,484
3 Selling Expense as a % of Sales 25% 26% 27%
4 General and Administrative Expense
G&A as a % of Revenue 5% 5% 5%
Rent Option 675,000 725,000 775,000
Buy Option 600,000 650,000 700,000
Total Fixed G&A Expense 1,275,000 1,375,000 1,475,000
5 Depreciation Expense
Existing Equipment 95,221 95,221 95,221 95,221
Building - 30 years - 36,667 36,667 36,667
New Equipment - - 10,000 10,000
Total 95,221 131,888 141,888 141,888

6 Interest Rate on 20 year loan 5% 5% 5%

7 Tax Rate NA due to LLC 0% 0% 0%
8 Receivables as a % of Revenues 2% 2% 2%
9 Inventory as a % of Revenues 8% 8% 8%
10 Accounts Payable as a % Revenues 4% 4% 4%
11 Accrued Liabilities % of Sales
12 Equity only financing
13 Additions to PP&E 100,000 -
14 Dividends - Owner Draws if cash balance >50,000 175,000 175,000 175,000
15 Additions to Debt - Bank Loan -
16 (Reductions) to Debt - Bank Loan
17 Additions to Debt - Long Term Debt
18 (Reductions) to Debt - Long Term Debt
 365
Lill's RATIO ANALYSIS 2014 2015 2016

Liquidity Ratios
Current ratio 0.90 2.24 5.78
Quick ratio 0.30 1.20 3.78
Conversion Period Ratios
Inventory-to-sale Convestsion period 140.44 137.30 129.98
Sale-to cash Conversion Period 6.98 6.82 6.82
Purchase-to-payment Conversion Period 49.97 60.30 64.99
Cash conversion cycle 97.45 83.82 71.81
Leverage Ratios
Total debt to total assets 0.48 0.27 0.13
Interest coverage 42.97 N/A N/A
Profitability Ratios
Gross profit margin 0.80 0.80 0.79
Operating profit margin ### ### ###
Net profit margin ### ### ###
NOPAT margin ### ### ###
Efficiency and Return Ratios
Sales to total assets 3.74 3.75 3.49
Operating return on assets 0.48 0.46 0.44
Return on assets 0.47 0.46 0.44
Return on equity 0.92 0.62 0.49
DuPont and ROE
Net profit margin 0.12 0.12 0.13
Sales to tatal assets 3.74 3.75 3.49
Total assets to Total Equity 1.97 1.35 1.12
ROE 0.92 0.62 0.49

Analysis
 2017

7.37
5.37

129.98
6.82
64.99
71.81

0.12
N/A

0.79
###
###
###

3.16
0.46
0.46
0.51

0.14
3.16
1.11
0.51
Bubble and Bee Organic - Historical Financial Information
Balance Sheet Income Statement
2013 2014 2015 2016 2017 2014 2015 2016 2017
Assets Revenues 1,776,168 1,807,883 1,839,601 1,871,318
Current Assets Cost of Goods Sold 357,597 361,576.65 386,316 392,977
Cash 25,567 43,008 130,074 186,179 113,795 Gross Margin 1,418,571 1,446,307 1,453,284 1,478,341
Receivables 32,375 35,525 36,158 36,792 37,426 Expenses
Inventories 131,250 143,937 144,631 147,168 149,705 Selling 439,512 451,971 478,296 505,256
Total Current Assets 189,192 222,470 310,862 370,139 300,927 General & Administrative Variable 572,776 90,394 91,980 93,566
Fixed Assets General & Administrative Fixed 82,514 675,000 725,000 775,000
PP&E 395,785 470,185 470,185 570,185 570,185 Depreciation 95,221 95,221 105,221 105,221
Less Depreciation 120,221 207,442 302,663 407,884 513,105 Total Expenses 1,190,023 1,312,586 1,400,497 1,479,043
Total Fixed Assets 275,564 262,743 167,522 162,301 57,080 EBIT 228,548 133,721 52,787 (702)
Net Interest Expense 7,535 - - -
Total Assets 464,756 485,213 478,384 532,440 358,007 Taxable Income 221,013 133,721 52,787 (702)
Taxes - - - -
Liabilities & Shareholder's Equity Net Income 221,013 133,721 52,787 (702)
Current Liabilities Cash Flow Statement
Accounts Payable 44,625 53,286 72,315 73,584 74,853
Accrued Liabilities - - - - - Cash Provided (used) by Operations
Bank Loan 201,796 159,579 - - - Net Income 221,013 133,721 52,787 (702)
Total Current Liabilities 246,421 212,865 72,315 73,584 74,853 Plus Depreciation 95,221 95,221 105,221 105,221
Long Term Liabilities - - - - - Change in Working Capital
Total Liabilities 246,421 212,865 72,315 73,584 74,853 Decrease (increase) in Receivables (3,150) (633) (634) (634)
Decrease (increase) in Inventory (12,687) (694) (2,537) (2,537)
Shareholder's Equity Increase (decrease) in Accts. Payable 8,661 19,029 1,269 1,269
Member's Equity 150,000 150,000 175,000 175,000 175,000 Increase (decrease) in Accrued Liabilities - - - -
Retained Earnings 68,335 114,348 248,069 300,856 125,154 Cash Provided (used) by Operations 309,058 246,645 156,105 102,616
Total Shareholder's Equity 218,335 264,348 423,069 475,856 300,154 Cash Provided (used) by Investments
Additions to PP&E (74,400) - (100,000) -
Total Liabilities and Shareholder's Equity 464,756 477,213 495,384 549,440 375,007 Other Investments -
- 8,000 (17,000) (17,000) (17,000) Cash Provided (used) by Investments (74,400) - (100,000) -
Cash Provided (used) by Financing Activities
Base Case Assumptions 2014 2015 2016 2017 Additions (reductions) to Debt (42,217) (159,579) - -
1 Revenue Growth of about 15% per year 15% Net issues of Stock -
Unit Demand 126,869 126,869 126,869 126,869 (Dividends - Owner Draws) (175,000) - - (175,000)
Average Selling Price $ 14.00 $ 14.25 $ 14.50 $ 14.75 Cash Provided (used) by Financing Activities (217,217) (159,579) - (175,000)
2 COGS % as a % of Revenues 20% 21% 21% Net increase (decrease) in cash 17,441 87,066 56,105 (72,384)
3 Selling Expense as a % of Sales 25% 26% 27%
4 General and Administrative Expense
G&A as a % of Revenue 5% 5% 5%
Rent Option 675,000 725,000 775,000
Buy Option 600,000 650,000 700,000
Total Fixed G&A Expense 1,275,000 1,375,000 1,475,000
5 Depreciation Expense
Existing Equipment 95,221 95,221 95,221 95,221
Building - 30 years - 36,667 36,667 36,667
New Equipment - - 10,000 10,000
Total 95,221 131,888 141,888 141,888

6 Interest Rate on 20 year loan 5% 5% 5%

7 Tax Rate NA due to LLC 0% 0% 0%
8 Receivables as a % of Revenues 2% 2% 2%
9 Inventory as a % of Revenues 8% 8% 8%
10 Accounts Payable as a % Revenues 4% 4% 4%
11 Accrued Liabilities % of Sales
12 Equity only financing
13 Additions to PP&E 100,000 -
14 Dividends - Owner Draws if cash balance >50,000 175,000 175,000 175,000
15 Additions to Debt - Bank Loan -
16 (Reductions) to Debt - Bank Loan
17 Additions to Debt - Long Term Debt
18 (Reductions) to Debt - Long Term Debt
 365
Lill's RATIO ANALYSIS 2014 2015 2016 2017

Liquidity Ratios
Current ratio 0.90 1.87 4.67 4.52
Quick ratio 0.30 0.81 2.45 4.17
Conversion Period Ratios
Inventory-to-sale Convestsion period 140.44 145.65 137.85 137.87
Sale-to cash Conversion Period 28.28 29.13 28.95 28.95
Purchase-to-payment Conversion Period 49.97 63.40 68.92 68.93
Cash conversion cycle 118.75 111.38 97.87 97.89
Leverage Ratios
Total debt to total assets 0.48 0.30 0.14 0.17
Interest coverage 42.97 N/A N/A N/A
Profitability Ratios
Gross profit margin 0.80 0.80 0.79 0.79
Operating profit margin ### ### ### ###
Net profit margin ### ### ### ###
NOPAT margin ### ### ### ###
Efficiency and Return Ratios
Sales to total assets 3.74 3.75 3.64 4.20
Operating return on assets 0.48 0.28 0.10 0.00
Return on assets 0.47 0.28 0.10 0.00
Return on equity 0.92 0.39 0.12 0.00
DuPont and ROE
Net profit margin 0.12 0.07 0.03 0.00
Sales to tatal assets 3.74 3.75 3.64 4.20
Total assets to Total Equity 1.97 1.40 1.12 1.15
ROE 0.92 0.39 0.12 0.00

Analysis
Bubble and Bee Organic - Historical Financial Information
Balance Sheet Income Statement
2013 2014 2015 2016 2017 2014 2015 2016 2017
Assets Revenues 1,776,168 2,042,581 2,348,986 2,701,330
Current Assets Cost of Goods Sold 357,597 408,516.15 493,287 567,279
Cash 25,567 43,008 118,901 223,589 517,633 Gross Margin 1,418,571 1,634,065 1,855,699 2,134,051
Receivables 32,375 35,525 40,852 46,980 54,027 Expenses
Inventories 131,250 143,937 163,406 187,919 216,106 Selling 439,512 510,645 610,736 729,359
Total Current Assets 189,192 222,470 323,159 458,488 787,766 General & Administrative Variable 572,776 102,129 117,449 135,066
Fixed Assets General & Administrative Fixed 82,514 600,000 650,000 700,000
PP&E 395,785 470,185 1,570,185 1,670,185 1,670,185 Depreciation 95,221 131,888 141,888 141,888
Less Depreciation 120,221 207,442 339,330 481,218 623,106 Total Expenses 1,190,023 1,344,662 1,520,074 1,706,314
Total Fixed Assets 275,564 262,743 1,230,855 1,188,967 1,047,079 EBIT 228,548 289,402 335,625 427,737
Net Interest Expense 7,535 49,500 48,003 46,431
Total Assets 464,756 485,213 1,554,014 1,647,455 1,834,845 Taxable Income 221,013 239,902 287,622 381,306
Taxes - - - -
Liabilities & Shareholder's Equity Net Income 221,013 239,902 287,622 381,306
Current Liabilities Cash Flow Statement
Accounts Payable 44,625 53,286 81,703 93,959 108,053
Accrued Liabilities - - - - - Cash Provided (used) by Operations
Bank Loan 201,796 159,579 - - - Net Income 221,013 239,902 287,622 381,306
Total Current Liabilities 246,421 212,865 81,703 93,959 108,053 Plus Depreciation 95,221 131,888 141,888 141,888
Long Term Liabilities - - 960,060 928,623 895,614 Change in Working Capital
Total Liabilities 246,421 212,865 1,041,763 1,022,582 1,003,667 Decrease (increase) in Receivables (3,150) (5,327) (6,128) (7,047)
Decrease (increase) in Inventory (12,687) (19,469) (24,512) (28,188)
Shareholder's Equity Increase (decrease) in Accts. Payable 8,661 28,417 12,256 14,094
Member's Equity 150,000 150,000 175,000 175,000 175,000 Increase (decrease) in Accrued Liabilities - - - -
Retained Earnings 68,335 114,348 354,250 466,872 673,178 Cash Provided (used) by Operations 309,058 375,412 411,126 502,053
Total Shareholder's Equity 218,335 264,348 529,250 641,872 848,178 Cash Provided (used) by Investments
Additions to PP&E (74,400) (1,100,000) (100,000) -
Total Liabilities and Shareholder's Equity 464,756 477,213 1,571,014 1,664,455 1,851,845 Other Investments -
- 8,000 (17,000) (17,000) (17,000) Cash Provided (used) by Investments (74,400) (1,100,000) (100,000) -
Cash Provided (used) by Financing Activities
Base Case Assumptions 2014 2015 2016 2017 Additions (reductions) to Debt (42,217) 800,481 (31,437) (33,009)
1 Revenue Growth of about 15% per year 15% Net issues of Stock - - - -
Unit Demand 126,869 143,339 161,999 183,141 (Dividends - Owner Draws) (175,000) (175,000) (175,000)
Average Selling Price $ 14.00 $ 14.25 $ 14.50 $ 14.75 Cash Provided (used) by Financing Activities (217,217) 800,481 (206,437) (208,009)
2 COGS % as a % of Revenues 20% 21% 21% Net increase (decrease) in cash 17,441 75,893 104,689 294,044
3 Selling Expense as a % of Sales 25% 26% 27%
4 General and Administrative Expense
G&A as a % of Revenue 5% 5% 5%
Rent Option 675,000 725,000 775,000
Buy Option 600,000 650,000 700,000
Total Fixed G&A Expense 1,275,000 1,375,000 1,475,000
5 Depreciation Expense
Existing Equipment 95,221 95,221 95,221 95,221
Building - 30 years - 36,667 36,667 36,667
New Equipment - - 10,000 10,000
Total 95,221 131,888 141,888 141,888

6 Interest Rate on 20 year loan 5% 5% 5%

7 Tax Rate NA due to LLC 0% 0% 0%
8 Receivables as a % of Revenues 2% 2% 2%
9 Inventory as a % of Revenues 8% 8% 8%
10 Accounts Payable as a % Revenues 4% 4% 4%
11 Accrued Liabilities % of Sales
12 Equity only financing
13 Additions to PP&E 990,000 100,000 -
14 Dividends - Owner Draws if cash balance >50,000 - - 175,000
15 Additions to Debt - Bank Loan -
16 (Reductions) to Debt - Bank Loan (159,579) - -
17 Additions to Debt - Long Term Debt 990,000 - -
18 (Reductions) to Debt - Long Term Debt
 365
Lill's RATIO ANALYSIS 2014 2015 2016

Liquidity Ratios
Current ratio 0.90 1.85 4.45
Quick ratio 0.30 0.81 2.45
Conversion Period Ratios
Inventory-to-sale Convestsion period 140.44 137.30 129.98
Sale-to cash Conversion Period 6.98 6.82 6.82
Purchase-to-payment Conversion Period 49.97 60.30 64.99
Cash conversion cycle 97.45 83.82 71.81
Leverage Ratios
Total debt to total assets 0.48 0.62 0.64
Interest coverage 42.97 7.77 9.18
Profitability Ratios
Gross profit margin 0.80 0.80 0.79
Operating profit margin ### ### ###
Net profit margin ### ### ###
NOPAT margin ### ### ###
Efficiency and Return Ratios
Sales to total assets 3.74 2.00 1.47
Operating return on assets 0.48 0.28 0.21
Return on assets 0.47 0.24 0.18
Return on equity 0.92 0.60 0.49
DuPont and ROE
Net profit margin 0.12 0.12 0.12
Sales to tatal assets 3.74 2.00 1.47
Total assets to Total Equity 1.97 1.35 1.12
ROE 0.92 0.60 0.49

Analysis
 2017

6.17
4.17

129.98
6.82
64.99
71.81

0.58
11.48

0.79
###
###
###

1.55
0.25
0.22
0.51

0.14
1.55
1.11
0.51
Bubble and Bee Organic - Historical Financial Information
Balance Sheet Income Statement
2013 2014 2015 2016 2017 2014 2015 2016 2017
Assets Revenues 1,776,168 1,807,883 1,839,601 1,871,318
Current Assets Cost of Goods Sold 357,597 361,576.65 386,316 392,977
Cash 25,567 43,008 15,634 67,299 165,475 Gross Margin 1,418,571 1,446,307 1,453,284 1,478,341
Receivables 32,375 35,525 36,158 36,792 37,426 Expenses
Inventories 131,250 143,937 144,631 147,168 149,705 Selling 439,512 451,971 478,296 505,256
Total Current Assets 189,192 222,470 196,422 251,259 352,607 General & Administrative Variable 572,776 90,394 91,980 93,566
Fixed Assets General & Administrative Fixed 82,514 600,000 650,000 700,000
PP&E 395,785 470,185 1,570,185 1,670,185 1,670,185 Depreciation 95,221 131,888 141,888 141,888
Less Depreciation 120,221 207,442 339,330 481,218 623,106 Total Expenses 1,190,023 1,274,253 1,362,164 1,440,710
Total Fixed Assets 275,564 262,743 1,230,855 1,188,967 1,047,079 EBIT 228,548 172,054 91,120 37,631
Net Interest Expense 7,535 49,500 48,003 46,431
Total Assets 464,756 485,213 1,427,277 1,440,226 1,399,686 Taxable Income 221,013 122,554 43,117 (8,800)
Taxes - - - -
Liabilities & Shareholder's Equity Net Income 221,013 122,554 43,117 (8,800)
Current Liabilities Cash Flow Statement
Accounts Payable 44,625 53,286 72,315 73,584 74,853
Accrued Liabilities - - - - - Cash Provided (used) by Operations
Bank Loan 201,796 159,579 - - - Net Income 221,013 122,554 43,117 (8,800)
Total Current Liabilities 246,421 212,865 72,315 73,584 74,853 Plus Depreciation 95,221 131,888 141,888 141,888
Long Term Liabilities - - 960,060 928,623 895,614 Change in Working Capital
Total Liabilities 246,421 212,865 1,032,375 1,002,207 970,467 Decrease (increase) in Receivables (3,150) (633) (634) (634)
Decrease (increase) in Inventory (12,687) (694) (2,537) (2,537)
Shareholder's Equity Increase (decrease) in Accts. Payable 8,661 19,029 1,269 1,269
Member's Equity 150,000 150,000 175,000 175,000 175,000 Increase (decrease) in Accrued Liabilities - - - -
Retained Earnings 68,335 114,348 236,902 280,019 271,219 Cash Provided (used) by Operations 309,058 272,145 183,102 131,185
Total Shareholder's Equity 218,335 264,348 411,902 455,019 446,219 Cash Provided (used) by Investments
Additions to PP&E (74,400) (1,100,000) (100,000) -
Total Liabilities and Shareholder's Equity 464,756 477,213 1,444,277 1,457,226 1,416,686 Other Investments -
- 8,000 (17,000) (17,000) (17,000) Cash Provided (used) by Investments (74,400) (1,100,000) (100,000) -
Cash Provided (used) by Financing Activities
Base Case Assumptions 2014 2015 2016 2017 Additions (reductions) to Debt (42,217) 800,481 (31,437) (33,009)
1 Revenue Growth of about 15% per year 15% Net issues of Stock -
Unit Demand 126,869 126,869 126,869 126,869 (Dividends - Owner Draws) (175,000) - - -
Average Selling Price $ 14.00 $ 14.25 $ 14.50 $ 14.75 Cash Provided (used) by Financing Activities (217,217) 800,481 (31,437) (33,009)
2 COGS % as a % of Revenues 20% 21% 21% Net increase (decrease) in cash 17,441 (27,374) 51,665 98,176
3 Selling Expense as a % of Sales 25% 26% 27%
4 General and Administrative Expense
G&A as a % of Revenue 5% 5% 5%
Rent Option 675,000 725,000 775,000
Buy Option 600,000 650,000 700,000
Total Fixed G&A Expense 1,275,000 1,375,000 1,475,000
5 Depreciation Expense
Existing Equipment 95,221 95,221 95,221 95,221
Building - 30 years - 36,667 36,667 36,667
New Equipment - - 10,000 10,000
Total 95,221 131,888 141,888 141,888

6 Interest Rate on 20 year loan 5% 5% 5%

7 Tax Rate NA due to LLC 0% 0% 0%
8 Receivables as a % of Revenues 2% 2% 2%
9 Inventory as a % of Revenues 8% 8% 8%
10 Accounts Payable as a % Revenues 4% 4% 4%
11 Accrued Liabilities % of Sales
12 Equity only financing
13 Additions to PP&E 100,000 -
14 Dividends - Owner Draws if cash balance >50,000 175,000 175,000 175,000
15 Additions to Debt - Bank Loan -
16 (Reductions) to Debt - Bank Loan
17 Additions to Debt - Long Term Debt
18 (Reductions) to Debt - Long Term Debt
 365
Lill's RATIO ANALYSIS 2014 2015 2016 2017

Liquidity Ratios
Current ratio 0.90 1.47 3.07 4.07
Quick ratio 0.30 0.46 1.07 2.07
Conversion Period Ratios
Inventory-to-sale Convestsion period 140.44 145.65 137.85 137.87
Sale-to cash Conversion Period 6.98 7.24 7.24 7.24
Purchase-to-payment Conversion Period 49.97 63.40 68.92 68.93
Cash conversion cycle 97.45 89.49 76.16 76.17
Leverage Ratios
Total debt to total assets 0.48 0.65 0.71 0.69
Interest coverage 42.97 #DIV/0! #DIV/0! #DIV/0!
Profitability Ratios
Gross profit margin 0.80 0.80 0.79 0.79
Operating profit margin ### ### ### ###
Net profit margin ### ### ### ###
NOPAT margin ### ### ### ###
Efficiency and Return Ratios
Sales to total assets 3.74 1.89 1.28 1.32
Operating return on assets 0.48 0.18 0.06 0.03
Return on assets 0.47 0.13 0.03 -0.01
Return on equity 0.92 0.36 0.10 -0.02
DuPont and ROE
Net profit margin 0.12 0.07 0.02 0.00
Sales to tatal assets 3.74 1.89 1.28 1.32
Total assets to Total Equity 1.97 2.83 3.31 3.15
ROE 0.92 0.36 0.10 -0.02
1. In what ways have B&Bs philosophy and the entrepreneurs personal values impacted decisions to grow and finance
their business?

Since B&B's philosophy is to finance their business by keeping ownership to protect their products and the business
model that Stephanie and Steve established, they managed their business with free cash flow and debts.

2. What are the pros and cons of B&Bs owners wanting to keep 100% control of their business?

Keeping 100% owneship will benefit Stephanie and Steve in terms of control in their business and stress. They would
not have to be forced to change their business model or make undesirable desicions because of another owner.
Moreover, There would be less pressure from external environment since no one could tell them what to do for their
business although that means they are responsible for all the decisions they make. The other disadvantage of keeping
100% ownership in B&B's case is that their growth speed might be slow from not having enough capital. If their
competitors were growing faster than them, the odds would be against them unless their products or services are
remarkably well enough to keep their customers.
ecisions to grow and finance

heir products and the business

ow and debts.

ness?

usiness and stress. They would

use of another owner.
them what to do for their
her disadvantage of keeping
nough capital. If their
products or services are