Sheet1Chemalite, Inc.Chemalite, Inc.Balance SheetPro Forma Balance SheetDec-03December 30Assets(Six Operating Months)(Full Year)Assumption200420052006Cash$ 113,00021%181,000Per CFS331,266587,753908,241Accounts receivable69,50013%$ 139,000% of Sales9.2%173,685217,025271,179Days sales outstanding.10.933.62Inventories55,00010%55,000Constant137,448171,746214,602COGS/Inventory3.55102.95Total current assets$ 237,50044%375,000$ 375,000642,400976,5241,394,022Machinery (net)201,87537%191,250Full Depreciation170,000148,750127,500Patent100,00019%100,000Full Amortation at beginning of year75,00050,00025,000Total assets$ 539,375100%666,250887,4001,175,2741,546,522LiabilitiesTotal liabilities$ - 00%0Bank loan paid off- 0- 0- 0Equity Common stock$ 500,00093%500,000No additional stock500,000500,000500,000No additional stockRetained earnings39,3757%166,250Net Income387,400675,2741,046,522no dividends paidTotal equity$ 539,375100%$ 666,250887,4001,175,2741,546,522Total L&E$ 539,375100%$ 666,250887,4001,175,2741,546,522- 0- 0- 0External Financing NeededChemalite, Inc.Chemalite, Inc.Chemalite, Inc.Income StatementIncome StatementPro Forma Income StatementYear Ending Dec-03Year Ending Dec-03Year Ending December 30Assumption (Six Operating Months)(Full Year)2,0042,0052,006Sales$ 754,500100%$ 1,509,000100%1,885,5422,356,0432,943,949Grow sales at 24.9% calculated Sust Growth RatioLess:Expenses (cash)Advertising22,5003%45,0003%56,22970,26087,792main status quo spendingManufacturing350,00046%700,00046%874,6721,092,9291,365,649Corporate80,00011%160,00011%199,925249,812312,148Interest7500%1,5000%- 0- 0- 0no debt due to cash on handMaterials195,00026%390,00026%487,317608,918760,862Prototypes23,7503%- 00%- 0- 0- 0Legal 7,5001%- 00%- 0- 0- 0679,50090%1,296,50086%1,618,1432,021,9192,526,451Total cash expensesExpenses (noncash)Depreciation10,6251%21,2501%21,25021,25021,250Amortization25,0003%25,0002%25,00025,00025,00035,6255%46,2503%46,25046,25046,250Total Expenses Non CashNet Income$ 39,3755%166,25011%221,150287,874371,248Chemalite, Inc.Chemalite, Inc.Cash Flow StatementPro Forma Cash Flow StatementYear June-04Year Ending December 30(Full Year)$ 2,004$ 2,005$ 2,006Cash from operationsNet Income$ 166,250$ 221,150$ 287,874$ 371,248Amortization25000$ 25,000$ 25,000$ 25,000Depreciation21250$ 21,250$ 21,250$ 21,250Prototype23750$ - 0$ - 0$ - 0A/R(139,000)$ (34,685)$ (43,340)$ (54,154)Inventory(55,000)$ (82,448)$ (34,298)$ (42,856)42,250$ 150,266$ 256,487$ 320,488Cash from investmentsMachines(212,500)212,500$ - 0$ - 0$ - 0Prototype(23,750)$ - 0$ - 0$ - 0(236,250)$ - 0$ - 0$ - 0Net Change (194,000)$ 150,266$ 256,487$ 320,488Beginning Cash375000$ 181,000$ 331,266$ 587,753Ending Cash$ 181,000$ 331,266$ 587,753$ 908,241ROE (net income / equity)ROE25.0%RR ( inverse of divident ratio)RR1Dvidend R (net earning / dividend) DR0Sustainable growth rate (ROE x RR)SGR25.0%
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