APPENDIX A

Sample Financials

The following is a sample set of financials for an imaginary company.

INCOME STATEMENT (in thousands)
		Year ended Dec. 31, 2007
	Sales	$8,689
	Cost of goods sold	6,756
Gross profit		$1,933
	Selling, general, and admin. (SG&A)	1,061
	Depreciation	239
	Other income	19
EBIT		$ 652
	Interest expense	191
	Taxes	213
Net profit		$ 248

BALANCE SHEET (in thousands)
			Dec. 31, 2007	Dec. 31, 2006
Assets
	Cash and cash equivalents		$ 83	$ 72
	Accounts receivable		1,312	1,204
	Inventory		1,270	1,514
	Other current assets and accruals		85	67
Total current assets			2,750	2,857
	Property, plant, and equipment Other long-term assets		2,230 213	2,264 233
Total assets			$5,193	$5,354
Liabilities
	Accounts payable		$1,022	$1,129
	Credit line		100	150
	Current portion of long-term debt		52	51
Total current liabilities			1,174	1,330
	Long-term debt Other long-term liabilities		1,037 525	1,158 491
Total liabilities			$2,736	$2,979
Shareholders’ equity
	Common stock, $1 par value
		(100,000 authorized,
		74,000 outstanding in
		2007 and 2006)	$ 74	$ 74
	Additional paid-in capital		1,110	1,110
	Retained earnings		1,273	1,191
Total shareholders’ equity			$2,457	$2,375
Total liabilities and shareholders’ equity			$5,193	$5,354
2007 footnotes:
Depreciation			$239
Number of common shares (thousands)			74
Earnings per share			$3.35
Dividend per share			$2.24

CASH FLOW STATEMENT (in thousands)
		Year ended Dec. 31, 2007
Cash from operating activities
	Net profit	$248
	Depreciation	239
	Accounts receivable	(108)
	Inventory	244
	Other current assets	(18)
	Accounts payable	(107)
Cash from operations		$498
Cash from investing activities
	Property, plant, and equipment	($205)
	Other long-term assets	20
Cash from investing		($185)
Cash from financing activities
	Credit line	($ 50)
	Current portion of long-term debt	1
	Long-term debt	(121)
	Other long-term liabilities	34
	Dividends paid	(166)
Cash from financing		($302)
Change in cash		11
Cash at beginning		72
Cash at end		$ 83