Pro forma Income Statement.

September 1979 Through December 1979 (Thousand o Sales Cost of Sales and other Expenses Profit before taxes Taxes Profit after taxes Dividends Addition to retained earnings

t. September 1979 Through December 1979 (Thousand of Dollars) $7,537.00 $5,857.00 $1,680.00 771 $909.00 150 $759.00

Reduction in work-in-progress Inventories Reduction in raw material Inventories Four Months Purchases Depreciation Four Months Other Outlays Four Months Interest Total Cost

$1,320.00 $420.00 $2,400.00 $47.00 $1,600.00 $70.00 $5,857.00 Per Year

Depreciation - Straight Line For 8 years Per Month From September to December

- Straight Line 350 43.75 3.65 21.875

Projected Cash Budget September 1979 through January September Receipts Collection of Receivables Bank Loan Total Cash Inflow Expenditure Payments of Accounts Payable Other Operating outlays Capital Expenditure Tax Payments Interest Payments - Bank Loan Principal Payment - Bank Loan Dividend Total Cash Outflow Beginning Cash balance Net monthly cash flow Ending Cash Balance October

$684.00 $684.00

$1,323.00 350 $1,673.00

$948.00 400 181 15

$600.00 400 350 15

$1,544.00 $1,559.00 -860 $699.00

$1,365.00 $699.00 308 $1,007.00

ber 1979 through January 1080 November December January

$779.00 $779.00

$1,604.00 $1,604.00

$2,265.00 $2,265.00

$600.00 400

$600.00 400 181 20 1350 150 $2,701.00 $766.00 -1097 -$331.00

$600.00 400

20

$1,020.00 $1,007.00 -241 $766.00

$1,000.00 -$331.00 1265 $934.00

Pro Forma Balance Sheet , December 31,1979 (Thousands of Dollars) Cash Account Receivable Inventories Current Assets Gross Fixed Assets Accumulated Depreciation Net Fixed Assets Prepaid Expenses Total Accounts Payable Accruals Taxes Payable Current Liabilities Net Worth Total Liabilities and Net Worth

(Thousands of Dollars) -331.00 2,265.00 3,024.00 4,958.00 4,360.00 3,137.00 1,223.00 42.00 6,223.00 600.00 552.00 888.00 2,040.00 4,183.00 6,223.00