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Once you complete the Master Data Entry worksheet, Profit Planner™ looks at hundreds of results and tells you
where you need to either increase sales, decrease expenses, increase assets, reduce liabilities, correct cash flow
bottlenecks, or all of the foregoing.

The Trend Analysis of Key Indicators worksheet brings everything you entered into focus. It is here that Profit
Planner™ sifts through your data and renders an assessment of your business's health and where to go to correct or
tweak areas for greater profit.

You will find a large selection of bonus tools that "zero in" on making your business more efficient including Headcount
Analysis, Cash Flow Sensitivity Analysis, Payroll Analysis, Optimal Operating Analysis, Detailed Expense Estimates
Analysis, Budget System Analysis, and much more.

This product is designed for the small to medium size business owner or CFO. It is not rigorous and needs only basic
skills with spreadsheets.

Finally, this analysis system is open architecture. This allows you to customize it to suit the needs of your business.




                                   © Copyright, 2009, JaxWorks, All Rights Reserved.
                                                                                          Master Index
    Alphabetical Order                                                                                                                                                                              Workbook Order

•   Profit Planner Introduction   •   Cash Flow 8 Years                •   Breakeven Analysis (4)                 •   Ratios Introduction           •   Planned Expenses Input           •   Step Costs Graph
•   Master Index                  •   Cash Flow Sensitivity Analysis   •   Z-Score Explained                      •   Current Ratio                 •   Actual Expenses Input            •   Budget System
•   Master Data Entry             •   Cash Flow Sensitivity AR         •   Z-Score Analysis (1)                   •   Quick Ratio                   •   Expense Variances                •   Budget Summary
•   Master Data Instructions      •   Logit Analysis                   •   Z-Score (1) Chart                      •   Earnings Per Share            •   Expense Analysis (2)             •   Profit & Loss Chart
•   Chart of Accounts             •   H-Factor                         •   Z-Score Analysis (2)                   •   Gross Profit Margin           •   Total Expenses Chart (2)         •   Balance Sheet Chart
•   Trend Analysis                •   Springate                        •   Z-Score (2) Chart                      •   Net Profit Margin             •   Detailed Sales Estimates         •   Marketing Budget Plan
•   Dashboard                     •   Optimal Performance              •   Z-Score Analysis (3)                   •   Return on Assets              •   Sales Forecast Input             •   Marketing Budget Chart
•   Cover Sheet                   •   Payroll Analysis                 •   Z-Score (3) Chart                      •   Return on Equity              •   Sales Forecast Totals            •   Inputs & Assumptions
•   Executive Summary             •   Expense Analysis                 •   Current Summary Chart                  •   Average Collection Period     •   Sales Forecast Chart             •   Business Unit Expense Analysis
•   Comp. Income Statement        •   Expense Budget                   •   Sales Performance Chart                •   Inventory Turnover Ratio      •   Sales Projection Charts          •   Annual Operating Budget
•   Proforma Income               •   Sales vs. Expense                •   Total Expenses Chart                   •   Debt Ratio                    •   Linear Trendline Chart           •   Metrics Trend Chart
•   Comp. Balance Sheet           •   Breakdown of Costs               •   Materials Cost Chart                   •   Equity Ratio                  •   Logarithmic Trendline Chart      •   Budget vs. Actual
•   Proforma Balance              •   BE Adjusted                      •   G&A Expenses Chart                     •   Times Interest Earned Ratio   •   Polynomial Trendline Chart       •   Budget Scenario Analysis
•   Forecast Analysis             •   Breakeven 4 Periods              •   Sales Projection Chart                 •   Expanded Ratios               •   Power Trendline Chart            •   Headcount and Payroll Planning
•   Financial Summary             •   Breakeven Analysis               •   Profit Chart                           •   Daily Profit Tracking         •   Exponential Trendline Chart      •   Salary and Benefits Chart
•   Snapshot                      •   Breakeven Analysis (2)           •   Ownership Chart                        •   Weekly Profit Tracking        •   Moving Average Trendline Chart   •   Product Profitability Analysis
•   Cash Flow 4 Years             •   Breakeven Analysis (3)           •   Labor Expenses Chart                   •   Detailed Expense Estimates    •   Expenses vs. Sales Summary       •   Summary Metrics Chart




                                                                                 © Copyright, 2009, JaxWorks, All Rights Reserved.




                                                                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
Income Statement
                                                          Year              Year           Year          Year
Sales & Cost of Sales                                     2003              2004           2005          2006
          Gross Sales                                   $2,010,000        $2,560,000      $2,721,800    $3,285,454
          Discounts/Allowances                             ($50,000)        ($60,000)       ($70,000)     ($80,000)
          Net Sales                                     $1,960,000        $2,500,000      $2,651,800    $3,205,454
          Direct Material Cost                            $320,000          $427,600       $431,238      $432,513
          Direct Labor Cost                               $300,000          $315,000       $330,450      $346,364
          Other Direct Costs                              $125,000          $128,750       $132,613      $136,591
          Total Cost of Sales                             $745,000          $871,350       $894,301      $915,467

                                        Gross Profit    $1,215,000        $1,628,650      $1,757,500    $2,289,987

Expenses
            Fixed Expenses                                   0                0              0             0
            Executive Salaries                            $190,000          $191,000       $195,000      $195,000
            Advertising                                    $50,000           $51,500        $53,045       $54,636
            Auto & Truck Expenses                          $30,000           $30,900        $31,827       $32,782
            Depreciation                                    $5,000            $5,150        $45,305       $50,464
            Employee Benefits                               $3,000            $3,090         $3,183        $3,278
            Home Office Business Expenses                   $1,000            $1,030         $1,061        $1,093
            Insurance                                       $3,906            $3,754         $4,010        $3,994
            Bank Charges                                    $2,133            $2,197         $2,263        $2,331
            Legal & Professional Services                   $1,000            $1,330         $1,670        $2,020
            Meals & Entertainment                           $4,000            $4,120         $4,244        $4,371
            Office Expense                                  $6,000            $6,180         $6,365        $6,556
            Retirement Plans                                $1,000            $1,030         $1,061        $1,093
            Rent - Equipment                                $3,000            $3,090         $3,183        $3,278
            Rent - Office & Business Property               $8,750            $9,110         $9,544        $9,929
            Repairs                                         $1,000            $1,030         $1,061        $1,093
            Supplies                                        $1,000            $1,030         $1,061        $1,093
            Taxes - Business & Payroll                      $1,000            $1,030         $1,061        $1,093
            Travel                                          $6,230            $6,120         $6,010        $5,900
            Utilities                                      $11,974           $12,374        $14,186       $16,974
            Other Expenses                                      $0                $0             $0            $0
            Total Fixed Expenses                          $329,993          $335,065       $385,138      $396,977

            Variable Expenses                                0                0              0             0
            Office salaries                                $90,000          $102,700       $112,368      $118,647
            Employee benefits                              $43,000           $46,875        $47,970       $51,249
            Payroll taxes                                  $18,000           $18,540        $19,096       $19,669
            Sales and Marketing                            $14,000           $14,420        $14,853       $15,298
            Telephone and telegraph                         $6,000            $6,180         $6,365        $6,556
            Stationary and office supplies                  $2,110            $2,680         $3,005        $3,493
            Bad debts                                         $100              $103           $106          $109
            Postage                                         $5,557            $5,724         $5,895        $6,072
            Contributions                                       $0                $0             $0            $0
            Add Item                                            $0                $0             $0            $0
            Add Item                                            $0                $0             $0            $0
            Add Item                                            $0                $0             $0            $0
            Add Item                                            $0                $0             $0            $0
            Add Item                                            $0                $0             $0            $0
            Miscellaneous                                       $0                $0             $0            $0
            Total Variable Expenses                       $178,767          $197,222       $209,659      $221,095

                                                             0                0              0             0
            Operating expenses                            $508,760          $532,287       $594,797      $618,071
            Interest                                       $16,250           $16,738        $17,240       $17,757
            Depreciation                                   $32,500           $33,475        $34,479       $35,514
            Amortization                                    $1,250            $1,288         $1,326        $1,366
            Other                                               $0                $0             $0            $0
                                Total expenses            $558,760          $583,787       $647,842      $672,707

                             Operating income             $656,240        $1,044,863      $1,109,658    $1,617,279

Other income and expenses                                    0                0              0             0
          Gain (loss) on sale of assets                     $10,000          $10,300        $10,609       $10,927
          Other (net)                                       $20,000          $20,600        $21,218       $31,855
                                          Subtotal          $30,000          $30,900        $31,827       $42,782


                            Income before tax             $686,240        $1,075,763      $1,141,485    $1,660,061

                                   Income taxes           $205,872          $322,729       $342,445      $498,018

                                    Net income            $480,368          $753,034       $799,039     $1,162,043

                          Return On Ownership             $670,368          $944,034       $994,039     $1,357,043




Balance Sheet
ASSETS                                                     $0                $0              0            $0
Current Assets                                              0                 0              0             0
           Cash and cash equivalents                      $451,000          $464,530        $478,466      $492,820 ####
           Accounts receivable                            $350,000          $460,500        $871,315    $1,382,454
           Notes receivable                                 $1,200            $3,200          $3,000        $3,400
           Inventory                                      $400,000          $612,000        $824,360      $937,091
           Other current assets                            $10,000           $10,300         $10,609       $10,927
                           Total Current Assets         $1,212,200        $1,550,530      $2,187,750    $2,826,692

Fixed Assets                                                 0                0              0             0
           Land                                         $1,000,000        $1,030,000      $1,106,090    $1,109,273
           Buildings                                    $1,500,000        $1,045,000      $1,591,350    $1,739,091
           Equipment                                      $800,000          $824,000        $948,720      $874,182
                                          Subtotal      $3,300,000        $2,899,000      $3,646,160    $3,722,545
            Less-accumulated depreciation                 $400,000          $412,000        $424,360      $437,091
                            Total Fixed Assets          $2,900,000        $2,487,000      $3,221,800    $3,285,454

Intangible Assets                                            0                0              0             0
           Cost                                             $50,000          $51,500        $53,045       $54,636
           Less-accumulated amortization                    $20,000          $20,600        $21,218       $21,855
                        Total Intangible Assets             $30,000          $30,900        $31,827       $32,782

Other assets                                               $25,000           $25,750         $26,523       $27,318
                                    Total Assets        $4,167,200        $4,094,180      $5,467,899    $6,172,246


            LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities                                          0                0              0             0
           Accounts payable                               $600,000          $618,000       $636,540       $640,563
           Notes payable                                  $100,000          $103,000       $106,090       $109,273
           Current portion of long-term debt              $100,000          $103,000       $106,090       $109,273
           Income taxes                                    $30,000           $30,900        $31,827        $32,782
           Accrued expenses                                $90,000           $92,700        $95,481        $98,345
           Other current liabilities                       $16,000           $16,480        $16,974        $17,484
                      Total Current Liabilities           $936,000          $964,080       $993,002     $1,007,719

Non-Current Liabilities                                      0                0              0             0
          Long-term debt                                  $601,200          $624,200       $645,630      $668,308
          Deferred income                                 $100,000          $103,000       $106,090      $109,273
          Deferred income taxes                            $30,000           $30,900        $31,827       $32,782
          Other long-term liabilities                      $50,000           $51,500        $53,045       $54,636

                               Total Liabilities        $1,717,200        $1,773,680      $1,829,594    $1,872,718

Stockholders' Equity                                         0                0              0             0
          Capital stock issued                            $100,000          $100,000        $100,000      $100,000
          Number of shares issued                          100,000           100,000         100,000       100,000
          Additional paid in capital                      $950,000          $678,500      $1,853,045    $2,469,710
          Retained earnings                             $1,400,000        $1,542,000      $1,685,260    $1,729,818
                     Total Stockholders' Equity         $2,450,000        $2,320,500      $3,638,305    $4,299,528

                   Total Liabilities and Equity         $4,167,200        $4,094,180      $5,467,899    $6,172,246

            Amount sheet is out-of-balance                        $0                 $0           $0            $0




                                 © Copyright, 2009, JaxWorks, All Rights Reserved.
                                   Income Statement
                                                                                              Year             Year           Year         Year
                                   Sales & Cost of Sales                                      2003             2004           2005         2006
                                             Revenue                                       $2,010,000        $2,560,000      $2,721,800   $3,285,454
Chart of Accounts:                           Material Cost                                   $320,000          $427,600       $431,238     $432,513
Depending upon your choice as to business    Direct Labor Costs                              $300,000          $315,000       $330,450     $346,364
type, these descriptions change to conform
to the choice.                               Other Direct Costs                              $125,000          $128,750       $132,613     $136,591
                                             Total Cost of Revenue                           $745,000          $871,350       $894,301     $915,467
NOTE: See "Chart of Accounts" sheet for a
full explanation.                                                          Gross Profit    $1,215,000        $1,628,650      $1,757,500   $2,289,987

                                   Expenses
                                               Fixed Expenses                                 2003              2004          2005         2006
                                               Executive Salaries                            $190,000          $191,000       $195,000     $195,000
Chart of Accounts:                             Advertising                                    $50,000           $51,500        $53,045      $54,636
These items can be changed to your needs       Auto & Truck Expenses                          $30,000           $30,900        $31,827      $32,782
and are linked to all key sheets.              Depreciation                                    $5,000            $5,150        $45,305      $50,464
                                               Employee Benefits                               $3,000            $3,090         $3,183       $3,278
NOTE: See "Chart of Accounts" sheet for a      Home Office Business Expenses                   $1,000            $1,030         $1,061       $1,093
full explanation.                              Insurance                                       $3,906            $3,754         $4,010       $3,994
                                               Bank Charges                                    $2,133            $2,197         $2,263       $2,331
                                               Legal & Professional Services                   $1,000            $1,330         $1,670       $2,020
                                               Meals & Entertainment                           $4,000            $4,120         $4,244       $4,371
                                               Office Expense                                  $6,000            $6,180         $6,365       $6,556
                                               Retirement Plans                                $1,000            $1,030         $1,061       $1,093
                                               Rent - Equipment                                $3,000            $3,090         $3,183       $3,278
                                               Rent - Office & Business Property               $8,750            $9,110         $9,544       $9,929
                                               Repairs                                         $1,000            $1,030         $1,061       $1,093
                                               Supplies                                        $1,000            $1,030         $1,061       $1,093
                                               Taxes - Business & Payroll                      $1,000            $1,030         $1,061       $1,093
                                               Travel                                          $6,230            $6,120         $6,010       $5,900
                                               Utilities                                      $11,974           $12,374        $14,186      $16,974
                                               Other Expenses                                      $0                $0             $0           $0
                                               Total Fixed Expenses                          $329,993          $335,065       $385,138     $396,977

                                               Variable Expenses                              2003              2004          2005         2006
                                               Office salaries                                $90,000          $102,700       $112,368     $118,647
                                               Employee benefits                              $43,000           $46,875        $47,970      $51,249
                                               Payroll taxes                                  $18,000           $18,540        $19,096      $19,669
                                               Sales and Marketing                            $14,000           $14,420        $14,853      $15,298
                                               Telephone and telegraph                         $6,000            $6,180         $6,365       $6,556
                                               Stationary and office supplies                  $2,110            $2,680         $3,005       $3,493
                                               Bad debts                                         $100              $103           $106         $109
                                               Postage                                         $5,557            $5,724         $5,895       $6,072
                                               Contributions                                       $0                $0             $0           $0
                                               Add Item                                            $0                $0             $0           $0
                                               Add Item                                            $0                $0             $0           $0
                                               Add Item                                            $0                $0             $0           $0
                                               Add Item                                            $0                $0             $0           $0
                                               Add Item                                            $0                $0             $0           $0
                                               Miscellaneous                                       $0                $0             $0           $0
                                               Total Variable Expenses                       $178,767          $197,222       $209,659     $221,095

                                                                                              2003              2004          2005         2006
                                               Operating expenses                            $508,760          $532,287       $594,797     $618,071
                                               Interest                                       $16,250           $16,738        $17,240      $17,757
                                               Depreciation                                   $32,500           $33,475        $34,479      $35,514
                                               Amortization                                    $1,250            $1,288         $1,326       $1,366
                                               Other                                               $0                $0             $0           $0
                                                                   Total expenses            $558,760          $583,787       $647,842     $672,707

                                                                Operating income             $656,240        $1,044,863      $1,109,658   $1,617,279

                                   Other income and expenses                                  2003              2004          2005         2006
                                             Gain (loss) on sale of assets                     $10,000           $10,300       $10,609      $10,927
                                             Other (net)                                       $20,000           $20,600       $21,218      $31,855
                                                                             Subtotal          $30,000           $30,900       $31,827      $42,782


                                                               Income before tax             $686,240        $1,075,763      $1,141,485   $1,660,061

                                                                      Income taxes           $205,872          $322,729       $342,445     $498,018

                                                                       Net income            $480,368          $753,034       $799,039    $1,162,043

                                                             Return On Ownership             $670,368          $944,034       $994,039    $1,357,043




                                   Balance Sheet
                                   ASSETS                                                     Year             Year           Year         Year
                                   Current Assets                                             2003             2004           2005         2006
                                              Cash and cash equivalents                      $451,000          $464,530        $478,466     $492,820 ####
                                              Accounts receivable                            $350,000          $460,500        $871,315   $1,382,454
                                              Notes receivable                                 $1,200            $3,200          $3,000       $3,400
                                              Inventory                                      $400,000          $612,000        $824,360     $937,091
                                              Other current assets                            $10,000           $10,300         $10,609      $10,927
                                                              Total Current Assets         $1,212,200        $1,550,530      $2,187,750   $2,826,692

                                   Fixed Assets                                               2003              2004          2005         2006
                                              Land                                         $1,000,000        $1,030,000      $1,106,090   $1,109,273
                                              Buildings                                    $1,500,000        $1,045,000      $1,591,350   $1,739,091
                                              Equipment                                      $800,000          $824,000        $948,720     $874,182
                                                                             Subtotal      $3,300,000        $2,899,000      $3,646,160   $3,722,545
                                               Less-accumulated depreciation                 $400,000          $412,000        $424,360     $437,091
                                                               Total Fixed Assets          $2,900,000        $2,487,000      $3,221,800   $3,285,454

                                   Intangible Assets                                          2003              2004          2005         2006
                                              Cost                                             $50,000           $51,500       $53,045      $54,636
                                              Less-accumulated amortization                    $20,000           $20,600       $21,218      $21,855
                                                           Total Intangible Assets             $30,000           $30,900       $31,827      $32,782

                                   Other assets                                               $25,000           $25,750         $26,523      $27,318
                                                                       Total Assets        $4,167,200        $4,094,180      $5,467,899   $6,172,246


                                               LIABILITIES AND STOCKHOLDERS' EQUITY

                                   Current Liabilities                                        2003              2004          2005         2006
                                              Accounts payable                               $600,000          $618,000       $636,540      $640,563
                                              Notes payable                                  $100,000          $103,000       $106,090      $109,273
                                              Current portion of long-term debt              $100,000          $103,000       $106,090      $109,273
                                              Income taxes                                    $30,000           $30,900        $31,827       $32,782
                                              Accrued expenses                                $90,000           $92,700        $95,481       $98,345
                                              Other current liabilities                       $16,000           $16,480        $16,974       $17,484
                                                          Total Current Liabilities          $936,000          $964,080       $993,002    $1,007,719

                                   Non-Current Liabilities                                    2003              2004          2005         2006
                                             Long-term debt                                  $601,200          $624,200       $645,630     $668,308
                                             Deferred income                                 $100,000          $103,000       $106,090     $109,273
                                             Deferred income taxes                            $30,000           $30,900        $31,827      $32,782
                                             Other long-term liabilities                      $50,000           $51,500        $53,045      $54,636

                                                                  Total Liabilities        $1,717,200        $1,773,680      $1,829,594   $1,872,718

                                   Stockholders' Equity                                       2003              2004          2005         2006
                                             Capital stock issued                            $100,000          $100,000        $100,000     $100,000
                                             Number of shares issued                          100,000           100,000         100,000      100,000
                                             Additional paid in capital                      $950,000          $678,500      $1,853,045   $2,469,710
                                             Retained earnings                             $1,400,000        $1,542,000      $1,685,260   $1,729,818
                                                        Total Stockholders' Equity         $2,450,000        $2,320,500      $3,638,305   $4,299,528

                                                      Total Liabilities and Equity         $4,167,200        $4,094,180      $5,467,899   $6,172,246

                                               Amount sheet is out-of-balance                        $0                 $0           $0           $0




                                                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
Chart of Accounts - Explained
The chart of accounts is a listing of all the accounts in the general ledger, each account accompanied by a reference number. To set up a chart of accounts, one first
needs to define the various accounts to be used by the business. Each account should have a number to identify it. For very small businesses, three digits may
suffice for the account number, though more digits are highly desirable in order to allow for new accounts to be added as the business grows. With more digits, new
accounts can be added while maintaining the logical order. Complex businesses may have thousands of accounts and require longer account reference numbers. It is
worthwhile to put thought into assigning the account numbers in a logical way, and to follow any specific industry standards. An example of how the digits might be
coded is shown in this list:

Account Numbering
1000 - 1999: asset accounts
2000 - 2999: liability accounts
3000 - 3999: equity accounts
4000 - 4999: revenue accounts
5000 - 5999: cost of goods sold
6000 - 6999: expense accounts
7000 - 7999: other revenue (for example, interest income)
8000 - 8999: other expense (for example, income taxes)

By separating each account by several numbers, many new accounts can be added between any two while maintaining the logical order.

Defining Accounts
Different types of businesses will have different accounts. For example, to report the cost of goods sold a manufacturing business will have accounts for its various
manufacturing costs whereas a retailer will have accounts for the purchase of its stock merchandise. Many industry associations publish recommended charts of
accounts for their respective industries in order to establish a consistent standard of comparison among firms in their industry. Accounting software packages often
come with a selection of predefined account charts for various types of businesses.


There is a trade-off between simplicity and the ability to make historical comparisons. Initially keeping the number of accounts to a minimum has the advantage of
making the accounting system simple. Starting with a small number of accounts, as certain accounts acquired significant balances they would be split into smaller,
more specific accounts. However, following this strategy makes it more difficult to generate consistent historical comparisons. For example, if the accounting system
is set up with a miscellaneous expense account that later is broken into more detailed accounts, it then would be difficult to compare those detailed expenses with
past expenses of the same type. In this respect, there is an advantage in organizing the chart of accounts with a higher initial level of detail.


Some accounts must be included due to tax reporting requirements. For example, in the U.S. the IRS requires that travel, entertainment, advertising, and several
other expenses be tracked in individual accounts. One should check the appropriate tax regulations and generate a complete list of such required accounts.


Other accounts should be set up according to vendor. If the business has more than one checking account, for example, the chart of accounts might include an
account for each of them.


Account Order
Balance sheet accounts tend to follow a standard that lists the most liquid assets first. Revenue and expense accounts tend to follow the standard of first listing the
items most closely related to the operations of the business. For example, sales would be listed before non-operating income. In some cases, part or all of the
expense accounts simply are listed in alphabetical order.

Asset Accounts
Current Assets
1000 Petty Cash
1010 Cash on Hand (e.g. in cash registers)
1020 Regular Checking Account
1030 Payroll Checking Account
1040 Savings Account
1050 Special Account
1060 Investments - Money Market
1070 Investments - Certificates of Deposit
1100 Accounts Receivable
1140 Other Receivables
1150 Allowance for Doubtful Accounts
1200 Raw Materials Inventory
1205 Supplies Inventory
1210 Work in Progress Inventory
1215 Finished Goods Inventory - Product #1
1220 Finished Goods Inventory - Product #2
1230 Finished Goods Inventory - Product #3
1400 Prepaid Expenses
1410 Employee Advances
1420 Notes Receivable - Current
1430 Prepaid Interest
1470 Other Current Assets

Fixed Assets
1500 Furniture and Fixtures
1510 Equipment
1520 Vehicles
1530 Other Depreciable Property
1540 Leasehold Improvements
1550 Buildings
1560 Building Improvements
1690 Land
1700 Accumulated Depreciation, Furniture and Fixtures
1710 Accumulated Depreciation, Equipment
1720 Accumulated Depreciation, Vehicles
1730 Accumulated Depreciation, Other
1740 Accumulated Depreciation, Leasehold
1750 Accumulated Depreciation, Buildings
1760 Accumulated Depreciation, Building Improvements

Other Assets
1900 Deposits
1910 Organization Costs
1915 Accumulated Amortization, Organization Costs
1920 Notes Receivable, Non-current
1990 Other Non-current Assets

Liability Accounts
Current Liabilities
2000 Accounts Payable
2300 Accrued Expenses
2310 Sales Tax Payable
2320 Wages Payable
2330 401-K Deductions Payable
2335 Health Insurance Payable
2340 Federal Payroll Taxes Payable
2350 FUTA Tax Payable
2360 State Payroll Taxes Payable
2370 SUTA Payable
2380 Local Payroll Taxes Payable
2390 Income Taxes Payable
2400 Other Taxes Payable
2410 Employee Benefits Payable
2420 Current Portion of Long-term Debt
2440 Deposits from Customers
2480 Other Current Liabilities

Long-term Liabilities
2700 Notes Payable
2702 Land Payable
2704 Equipment Payable
2706 Vehicles Payable
2708 Bank Loans Payable
2710 Deferred Revenue
2740 Other Long-term Liabilities

Equity Accounts
3010 Stated Capital
3020 Capital Surplus
3030 Retained Earnings

Revenue Accounts
4000 Product #1 Sales
4020 Product #2 Sales
4040 Product #3 Sales
4060 Interest Income
4080 Other Income
4540 Finance Charge Income
4550 Shipping Charges Reimbursed
4800 Sales Returns and Allowances
4900 Sales Discounts

Cost of Goods Sold
5000 Product #1 Cost
5010 Product #2 Cost
5020 Product #3 Cost
5050 Raw Material Purchases
5100 Direct Labor Costs
5150 Indirect Labor Costs
5200 Heat and Power
5250 Commissions
5300 Miscellaneous Factory Costs
5700 Cost of Goods Sold, Salaries and Wages
5730 Cost of Goods Sold, Contract Labor
5750 Cost of Goods Sold, Freight
5800 Cost of Goods Sold, Other
5850 Inventory Adjustments
5900 Purchase Returns and Allowances
5950 Purchase Discounts

Expenses
6000 Default Purchase Expense
6010 Advertising Expense
6050 Amortization Expense
6100 Auto Expenses
6150 Bad Debt Expense
6200 Bank Fees
6250 Cash Over and Short
6300 Charitable Contributions Expense
6350 Commissions and Fees Expense
6400 Depreciation Expense
6450 Dues and Subscriptions Expense
6500 Employee Benefit Expense, Health Insurance
6510 Employee Benefit Expense, Pension Plans
6520 Employee Benefit Expense, Profit Sharing Plan
6530 Employee Benefit Expense, Other
6550 Freight Expense
6600 Gifts Expense
6650 Income Tax Expense, Federal
6660 Income Tax Expense, State
6670 Income Tax Expense, Local
6700 Insurance Expense, Product Liability
6710 Insurance Expense, Vehicle
6750 Interest Expense
6800 Laundry and Dry Cleaning Expense
6850 Legal and Professional Expense
6900 Licenses Expense
6950 Loss on NSF Checks
7000 Maintenance Expense
7050 Meals and Entertainment Expense
7100 Office Expense
7200 Payroll Tax Expense
7250 Penalties and Fines Expense
7300 Other Taxes
7350 Postage Expense
7400 Rent or Lease Expense
7450 Repair and Maintenance Expense, Office
7460 Repair and Maintenance Expense, Vehicle
7550 Supplies Expense, Office
7600 Telephone Expense
7620 Training Expense
7650 Travel Expense
7700 Salaries Expense, Officers
7750 Wages Expense
7800 Utilities Expense
8900 Other Expense
9000 Gain/Loss on Sale of Assets




                                                    © Copyright, 2009, JaxWorks, All Rights Reserved.




                                                         © Copyright, 2009, JaxWorks, All Rights Reserved.
                                                             The XYZ Company
                                         Trend Analysis of Key Indicators
                                                             The XYZ Company
                                                                   Year                  Year               Year               Year           Trend
 FINANCIAL INDICATORS                                              2003                  2004               2005               2006            2007                    Comments
                                                                     1                     2                      3              4              5
 Z Score: If Publicly Held                                                 2.40                 2.94                  3.04           3.51           3.83   Trend is Upward     1   GOOD
 (Higher is Better)                                          If Z is less than 1.8 then the firm is classified as Failed.

 Springate Analysis                                                        1.25                 1.93                  1.82           2.42           2.71   Trend is Upward     1   GOOD
 (Higher is Better)                                          If Z is less than 0.862 then the firm is classified as Failed.

 Logit Analysis                                                          58.42%             46.56%            20.78%              8.28%        -10.54%     Trend is Downward1      GOOD
 (Lower is Better)                                           If percentage is higher than 50% and trending higher-Not Good!

 Fulmer H-Factor Analysis                                                  2.62                 2.98                  3.28           3.82           4.15   Trend is Upward     1   GOOD
 (Higher is Better)                                          If H is less than 0 then the firm is classified as "failed"

 Breakeven Dollars                                              $636,455              $593,738            $668,999            $618,603       $634,875      Trend is Downward1      GOOD


 Income Ratios
 Turnover of Total Operating Assets                                       158%                 159%                   120%           112%           93%    Trend is Downward1      GOOD

 Net Sales to Net Worth                                                  80.99%            109.19%            73.53%             75.13%         71.39%     Trend is Downward1      GOOD

 Gross Margin on Net Sales                                               61.99%             65.15%            66.28%             71.44%         73.58%     Trend is Upward     1   GOOD

 Operating Income to Net Sales Ratio                                     33.48%             41.79%            41.85%             50.45%         54.64%     Trend is Upward     1   GOOD

 Profitability Ratios
 Earnings Per Share (EPS) Ratio                                   $4.80                 $7.53               $7.99              $11.62         $13.21       Trend is Upward     1   GOOD

 Net Profit Margin                                                       24.51%             30.12%            30.13%             36.25%         39.06%     Trend is Upward     1   GOOD

 Return on Total Assets                                                  11.53%             18.39%            14.61%             18.83%         20.37%     Trend is Upward     1   GOOD

 Return on Net Worth                                                     19.61%             32.45%            21.96%             27.03%         28.20%     Trend is Upward     1   GOOD


  Liquidity Ratios
 Acid Test (Quick Ratio)                                                   0.87                 0.97                  1.37           1.88           2.13   Trend is Upward     1   GOOD

 Current Ratio                                                             1.30                 1.61                  2.20           2.81           3.26   Trend is Upward     1   GOOD


  Activity Ratios
 Average Collection Period Computations
     Accounts Receivable                                           $350,000              $460,500         $871,315           $1,382,454
     Credit Sales                                                $2,010,000            $2,560,000       $2,721,800           $3,285,454
     Days Per Year                                                       365                   365              365                  365
     Credit sales per day                                            $5,507                $7,014           $7,457               $9,001
     Average Collection Period - Days                                  63.56                 65.66           116.85               153.58
 Average Collection Period Ratio                                       5.74                  5.56             3.12                 2.38             1.07   Trend is Downward1      GOOD

 Inventory Turnover                                                        1.86                 1.42                  1.08           0.98           0.59   Trend is Downward1      GOOD

 Days Sales in AR                                                         65.18                67.23          119.93             157.42        184.79      Trend is Upward     1   GOOD

 Receivables Turnover                                                      5.60                 5.43                  3.04           2.32           1.04   Trend is Downward1      GOOD

 Days Inventory                                                          195.97             256.36            336.45             373.62        443.86      Trend is Upward     1   GOOD

 Debt ratio                                                                0.41                 0.43                  0.33           0.30           0.26   Trend is Downward1      GOOD

 Other Key Ratios
 Net Sales to Inventory                                                    4.90                 4.08                  3.22           3.42           2.58   Trend is Downward1      GOOD

 Days Purchases in AP                                                    293.96             258.87            259.80             255.39        238.31      Trend is Downward1      GOOD

 Working Capital                                                    $276,200             $586,450       $1,194,748           $1,818,973     $2,278,247     Trend is Upward     1   GOOD

 Net Sales to Working Capital                                              7.10                 4.26                  2.22           1.76        (0.68)    Trend is Downward1      GOOD

 Total Assets to Net Sales                                                 2.13                 1.64                  2.06           1.93           1.89   Trend is Downward1      GOOD

 Net Sales to AR                                                           5.60                 5.43                  3.04           2.32           1.04   Trend is Downward1      GOOD

 Net Sales to Net Fixed Assets                                             0.68                 1.01                  0.82           0.98           1.05   Trend is Upward     1   GOOD

 Net Sales to Total Assets                                                 0.47                 0.61                  0.48           0.52           0.53   Trend is Upward     1   GOOD

 Amortization and Depreciation Expense to Net Sales                        0.02                 0.01                  0.01           0.01           0.01   Trend is Downward1      GOOD

 Gross Profit Percentage                                                 61.99%             65.15%            66.28%             71.44%         73.58%     Trend is Upward     1   GOOD

 Operating Expenses as % of Net Sales                                    28.51%             23.35%            24.43%             20.99%         18.95%     Trend is Downward1      GOOD

 Return on Net Sales                                                     24.51%             30.12%            30.13%             36.25%         39.06%     Trend is Upward     1   GOOD

 Income before tax to Net Worth                                          28.01%             46.36%            31.37%             38.61%         40.29%     Trend is Upward     1   GOOD

 Income before tax to Total Assets                                       16.47%             26.28%            20.88%             26.90%         29.10%     Trend is Upward     1   GOOD

 Retained Earning to Net Income                                      291.44%               204.77%          210.91%             148.86%       108.59%      Trend is Downward1      GOOD

 Times Interest Earned                                                    40.38                62.43              64.37           91.08        103.07      Trend is Upward     1   GOOD

 Interest Expense to Net Sales                                             0.01                 0.01                  0.01           0.01           0.00   Trend is Downward1      GOOD

 Current Liabilities to Net Worth                                          0.38                 0.42                  0.27           0.23           0.18   Trend is Downward1      GOOD

 Current Liabilities to Inventory                                          2.34                 1.58                  1.20           1.08           0.51   Trend is Downward1      GOOD

 AP to Net Sales                                                           0.31                 0.25                  0.24           0.20           0.17   Trend is Downward1      GOOD

 Total Liabilities to Net Worth (Debt Ratio)                             70.09%             76.44%            50.29%             43.56%         33.65%     Trend is Downward1      GOOD

 Net Worth to Total Liabilities                                            1.43                 1.31                  1.99           2.30           2.58   Trend is Upward     1   GOOD


 PAYROLL ANALYSIS

 CURRENT NUMBER OF EMPLOYEES                                                              37
 CURRENT SALES ANNUALIZED                                                              $3,399,968
 CURRENT COMPLETED PERIOD SALES                                                        $3,285,454
 CURRENT PAYROLL                                                                         $350,064
 QUARTER/YEAR PAYROLL ONE YEAR AGO                                                       $313,647

 SALES VOLUME REQUIRED, AT CURRENT PAYROLL LEVEL, TO PRODUCE PROFITS
 EQUAL TO THE PREVIOUS YEAR PROFITS . . . . . . . . . . . . . . . . . . . $3,666,922
 SALES DEFICIENCY = SALES REQUIRED MINUS CURRENT VOLUME
 SALES DEFICIENCY IS---------------                           ($266,954)

 GROSS PAYROLL ALLOWABLE
 UNDER PROJECTED CONDITIONS . . . . . . . . . . . . . . . . . . . . .$324,579

 GROSS PAYROLL BURDEN IS------                                      ($25,485)                                     -8.1%
                                                                                                                                                              Comments
 THE NUMBER OF NEEDED EMPLOYEES ON THE PAYROLL . . . . . . . . . . . . . . . . . . . . . . . . . . . . -3.01                                               Under-staffed       1   GOOD


 CASH FLOW ANALYSIS
                                                                   Year                  Year               Year               Year           Trend
Cash from operations                                               2003                  2004               2005               2006            2007                    Comments

 Net earnings (loss)                                                $480,368             $753,034          $799,039          $1,162,043     $1,321,378     Trend is Upward     1   GOOD
 Add-depreciation and amortization                                   $33,750              $34,763           $35,805             $36,880        $37,907     Trend is Upward     1   GOOD

                                 Net cash from operations           $514,118             $787,797          $834,845          $1,198,922     $1,359,286     Trend is Upward     1   GOOD

Cash provided (used) by
operating activities
 Accounts Receivable                                                $350,000             $460,500          $871,315          $1,382,454     $1,643,112     Trend   is Upward   1   GOOD
 Inventory                                                          $400,000             $612,000          $824,360            $937,091     $1,149,271     Trend   is Upward   1   GOOD
 Other current assets                                                $10,000              $10,300           $10,609             $10,927        $11,232     Trend   is Upward   1   GOOD
 Other non-current assets                                            $25,000              $25,750           $26,523             $27,318        $28,079     Trend   is Upward   1   GOOD
 Accounts payable                                                   $600,000             $618,000          $636,540            $640,563       $658,833     Trend   is Upward   1   GOOD
 Current portion of long-term debt                                  $100,000             $103,000          $106,090            $109,273       $112,318     Trend   is Upward   1   GOOD
 Income taxes                                                        $30,000              $30,900           $31,827             $32,782        $33,695     Trend   is Upward   1   GOOD
 Accrued expenses                                                    $90,000              $92,700           $95,481             $98,345       $101,086     Trend   is Upward   1   GOOD
 Other current liabilities                                           $16,000              $16,480           $16,974             $17,484        $17,971     Trend   is Upward   1   GOOD
 Distributions to shareholders                                            $0                   $0                $0                  $0             $0     Trend   is Upward   1   GOOD

                            Net cash used by operations          $1,621,000            $1,969,630       $2,619,719           $3,256,237     $3,755,597     Trend is Upward     1   GOOD

Investment transactions
Increases (decreases)
  Land                                                                      $0                   $0                    $0             $0             $0    Trend   is Upward   1   GOOD
  Buildings and improvements                                                $0                   $0                    $0             $0             $0    Trend   is Upward   1   GOOD
  Equipment                                                                 $0                   $0                    $0             $0             $0    Trend   is Upward   1   GOOD
  Intangible assets                                                         $0                   $0                    $0             $0             $0    Trend   is Upward   1   GOOD

                                Net cash from investments                   $0                   $0                    $0             $0             $0    Trend is Upward     1   GOOD

Financing transactions
Increases (decreases)
  Short term notes payable                                          $100,000             $103,000         $106,090             $109,273       $112,318     Trend   is Upward   1   GOOD
  Long term debt                                                    $601,200             $624,200         $645,630             $668,308       $690,523     Trend   is Upward   1   GOOD
  Deferred income                                                   $100,000             $103,000         $106,090             $109,273       $112,318     Trend   is Upward   1   GOOD
  Deferred income taxes                                              $30,000              $30,900          $31,827              $32,782        $33,695     Trend   is Upward   1   GOOD
  Other long-term liabilities                                        $50,000              $51,500          $53,045              $54,636        $56,159     Trend   is Upward   1   GOOD
  Capital invested                                                  $950,000             $678,500       $1,853,045           $2,469,710     $2,921,233     Trend   is Upward   1   GOOD

                                  Net cash from financing        $1,831,200            $1,591,100       $2,795,727           $3,443,982     $3,926,246     Trend is Upward     1   GOOD

                        Net increase (decrease) in cash             $724,318             $409,267       $1,010,853           $1,386,667     $1,529,935     Trend is Upward     1   GOOD

                            Cash at beginning of period             $451,000             $464,530          $478,466           $492,820       $506,553      Trend is Upward     1   GOOD

                           Cash at the end of period             $1,175,318              $873,797       $1,489,319           $1,879,487     $2,036,488     Trend is Upward    1    GOOD
                                                                                                                                                                              73
                                                                                                                                                                             73
                                                                                                                                                                           1.00




                                                              © Copyright, 2009, JaxWorks, All Rights Reserved.
                                                                                                                                                               For
                                                                                                                                         The XYZ Company
                                                                                                                                                     April 26, 2007



                                                                                                                                                    Current Financial Performance


                                                                                                                 $2,000,000

                                                                                                                                                                                                              Revenue
                                                                                                                 $1,500,000                                                                                   Cost of Sales
                                                                                                                                                                                                              Gross Profit
                                                                                                                                                                                                              Total Expenses
                                                                                                                 $1,000,000
                                                                                                                                                                                                              Profit
                                                                                                                                                                                                              Ownership

                                                                                                                     $500,000



                                                                                                                             $0




                                                                      Sales Performance                                                                                                                                                          Labor Expenses


                         $3,500,000                                                                                                                                                                 $450,000
                                                                                                                                                                                                    $400,000
                         $3,000,000
                                                                                                                                                                                                    $350,000
                         $2,500,000
                                                                                                                                                                                                    $300,000
                         $2,000,000                                                                                                                                                                 $250,000

                         $1,500,000                                                                                                                                                                 $200,000
                                                                                                                                                                                                    $150,000
                         $1,000,000
                                                                                                                                                                                                    $100,000
                            $500,000
                                                                                                                                                                                                         $50,000
                                  $0                                                                                                                                                                          $0
                                              2003                      2004                  2005                    2006                                                                                                   2003                 2004                 2005                            2006




                                                                        Materials Cost                                                                                                                                              General & Administrative Expenses


                         $350,000                                                                                                                                                                   $250,000

                         $340,000
                                                                                                                                                                                                    $200,000
                         $330,000

                         $320,000                                                                                                                                                                   $150,000

                         $310,000                                                                                                                                                                   $100,000
                         $300,000
                                                                                                                                                                                                         $50,000
                         $290,000

                         $280,000                                                                                                                                                                             $0
                                             2003                       2004                  2005                   2006                                                                                                    2003                 2004                 2005                            2006




                                                                       Total Expenses                                                                                                                                                                  Profit


                         $700,000                                                                                                                                                                   $1,800,000
                                                                                                                                                                                                    $1,600,000
                         $600,000
                                                                                                                                                                                                    $1,400,000
                         $500,000
                                                                                                                                                                                                    $1,200,000
                         $400,000                                                                                                                                                                   $1,000,000

                         $300,000                                                                                                                                                                        $800,000
                                                                                                                                                                                                         $600,000
                         $200,000
                                                                                                                                                                                                         $400,000
                         $100,000
                                                                                                                                                                                                         $200,000
                                 $0                                                                                                                                                                            $0
                                             2003                       2004                  2005                   2006                                                                                                      2003                2004                  2005                              2006




                                                                 Return On Ownership                                                                                                                                             Eight Period Sales Performance Projection

                                                                                                                                                                                                    $5,000,000
                         $1,400,000

                         $1,200,000                                                                                                                                                                 $4,000,000

                         $1,000,000
                                                                                                                                                                                                    $3,000,000
                            $800,000

                            $600,000                                                                                                                                                                $2,000,000

                            $400,000
                                                                                                                                                                                                    $1,000,000
                            $200,000

                                  $0                                                                                                                                                                           $0
                                              2003                      2004                  2005                    2006                                                                                                2003      2004        2005     2006        2007           2008             2009         2010




                  Breakeven Period 1                                                                            Breakeven Period 2                                                                  Breakeven Period 3                                                                       Breakeven Period 4
          $2,500,000                                                                                    $3,000,000                                                                          $3,000,000                                                                       $3,500,000
                                                                                                                                                                                                                                                                             $3,000,000
          $2,000,000                                                                                    $2,500,000                                                                          $2,500,000
                                                                                                                                                                                                                                                                             $2,500,000
                                                                                              Revenue




                                                                                                                                                                                  Revenue




                                                                                                                                                                                                                                                                   Revenue
Revenue




                                                                                                        $2,000,000                                                                          $2,000,000
          $1,500,000                                                                                                                                                                                                                                                         $2,000,000
                                                                                                        $1,500,000                                                                          $1,500,000
                                                                                                                                                                                                                                                                             $1,500,000
          $1,000,000                                                                                    $1,000,000                                                                          $1,000,000                                                                       $1,000,000
           $500,000                                                                                      $500,000                                                                            $500,000                                                                         $500,000

                                                                                                              $0                                                                                   $0                                                                                   $0
                $0
                                                                                                                 0
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                     0
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                         2
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                                 4
                                 5
                                      6
                                             7
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                                 Months                                                                                           Months                                                                                  Months                                                                                  Months
                  REVENUE         FIXED COSTS              TOTAL COSTS                                          REVENUE            FIXED COSTS             TOTAL COSTS                              REVENUE               FIXED COSTS           TOTAL COSTS                                      REVENUE              FIXED COSTS          TOTAL COSTS




                         Z-Score Analysis Publicly Held                                                                                            Z-Score Analysis Privately Held                                                                            Z-Score Analysis Small Business
                                                                                                                                                                1.88                                               1.88
  4.00                                                                                 3.51                               2.00                                                                                                           8.00                                                                                       7.02

                                                                                                                          1.80                                                              1.62
  3.50                                                          3.04                                                                                                                                                                     7.00
                                      2.94                                                                                                                                                                                                                                                                     5.89
                                                                                                                          1.60           1.35                                                                                                                                    5.26
  3.00                                                                                                                                                                                                                                   6.00
                  2.40                                                                                                    1.40
  2.50                                                                                                                                                                                                                                   5.00          4.09
                                                                                                                          1.20

  2.00                                                                                                                    1.00                                                                                                           4.00

                                                                                                                          0.80
  1.50                                                                                                                                                                                                                                   3.00
                                                                                                                          0.60
  1.00                                                                                                                                                                                                                                   2.00
                                                                                                                          0.40
  0.50                                                                                                                                                                                                                                   1.00
                                                                                                                          0.20

  0.00                                                                                                                    0.00                                                                                                           0.00

                                                 Periods                                                                                                                   Periods                                                                                                               Periods


                                              Z-Score Publicly Held                                                                                                      Z-Score Privately Held                                                                                              Z-Score Small Business




                                                                                          Income Chart Period 1                                                                                                    Income Chart Period 2
                                                            $2,500,000                                                                                                               $3,000,000



                                                                                                                                                Sales Revenue                        $2,500,000
                                                            $2,000,000                                                                                                                                                                                            Sales Revenue
                                                                                                                                                100.0%                                                                                                            100.0%
                                                                                                                                                Cost of Sales                        $2,000,000                                                                   Cost of Sales
                                                                                                                                                38.0%                                                                                                             34.9%
                                                            $1,500,000
                                                                                                                                                Gross Profit                                                                                                      Gross Profit
                                                                                                                                                                                     $1,500,000
                                                                                                                                                62.0%                                                                                                             65.1%
                                                            $1,000,000                                                                          Fixed Expenses                                                                                                    Fixed Expenses
                                                                                                                                                16.8%                                $1,000,000                                                                   13.4%

                                                                                                                                                Other Expenses                                                                                                    Other Expenses
                                                                $500,000                                                                        11.7%                                   $500,000                                                                  9.9%


                                                                          $0                                                                                                                       $0



                                                                                          Income Chart Period 3                                                                                                    Income Chart Period 4
                                                           $3,000,000                                                                                                                $3,500,000


                                                           $2,500,000                                                                                                                $3,000,000
                                                                                                                                                Sales Revenue                                                                                                     Sales Revenue
                                                                                                                                                100.0%                                                                                                            100.0%
                                                                                                                                                                                     $2,500,000
                                                           $2,000,000                                                                           Cost of Sales                                                                                                     Cost of Sales
                                                                                                                                                33.7%                                                                                                             28.6%
                                                                                                                                                                                     $2,000,000
                                                                                                                                                Gross Profit                                                                                                      Gross Profit
                                                           $1,500,000
                                                                                                                                                66.3%                                                                                                             71.4%
                                                                                                                                                                                     $1,500,000
                                                                                                                                                Fixed Expenses                                                                                                    Fixed Expenses
                                                           $1,000,000                                                                           14.5%                                                                                                             12.4%
                                                                                                                                                                                     $1,000,000
                                                                                                                                                Other Expenses                                                                                                    Other Expenses
                                                               $500,000                                                                         9.9%                                                                                                              8.6%
                                                                                                                                                                                        $500,000


                                                                         $0                                                                                                                        $0




                                                                                                                                                        Executive Summary
                                                                                                                                                        Current vs. Projected

                                                                                $4,000,000

                                                                                $3,500,000
                                                                                                                                                                                                                          1. Net Revenue
                                                                                $3,000,000
                                                                                                                                                                                                                          2. Cost of Revenue
                                                                                $2,500,000                                                                                                                                3. Gross Profit
                                                                                $2,000,000                                                                                                                                4. Total Operating Expenses
                                                                                                                                                                                                                          5. Operating Profit
                                                                                $1,500,000
                                                                                                                                                                                                                          6. Return on Ownership
                                                                                $1,000,000

                                                                                  $500,000

                                                                                                $0
                                                                                                                         2003                                           2007




                                 3.00                                                                                                                                                       2.00
                                 2.50
                                                                                                                                                                                            1.50
                                 2.00
                                 1.50                                                                                                                                                       1.00

                                 1.00
                                                                                                                                                                                            0.50
                                 0.50
                                 0.00                                                                                                                                                       0.00
                                                   2003                        2004                      2005                     2006                                                                      2003                        2004                  2005                           2006

                                                                                        Current Ratio                                                                                                                                     Acid Test (Quick Ratio)




                                 6.00                                                                                                                                                       180.00
                                                                                                                                                                                            160.00
                                 5.00
                                                                                                                                                                                            140.00
                                 4.00                                                                                                                                                       120.00
                                                                                                                                                                                            100.00
                                 3.00
                                                                                                                                                                                             80.00
                                 2.00                                                                                                                                                        60.00
                                                                                                                                                                                             40.00
                                 1.00
                                                                                                                                                                                             20.00
                                 0.00                                                                                                                                                         0.00
                                                   2003                        2004                      2005                     2006                                                                        2003                       2004                   2005                             2006

                                                                                 Receivables Turnover                                                                                                                                           Days Sales in AR




                                 2.00                                                                                                                                                       400.00
                                                                                                                                                                                            350.00
                                 1.50                                                                                                                                                       300.00
                                                                                                                                                                                            250.00
                                 1.00                                                                                                                                                       200.00
                                                                                                                                                                                            150.00
                                 0.50                                                                                                                                                       100.00
                                                                                                                                                                                             50.00
                                 0.00                                                                                                                                                         0.00
                                                   2003                        2004                      2005                     2006                                                                        2003                       2004                   2005                             2006

                                                                                  Inventory Turnover                                                                                                                                             Days Inventory




                                 74.00%                                                                                                                                                     40.00%
                                 72.00%                                                                                                                                                     35.00%
                                 70.00%                                                                                                                                                     30.00%
                                 68.00%
                                                                                                                                                                                            25.00%
                                 66.00%
                                                                                                                                                                                            20.00%
                                 64.00%
                                                                                                                                                                                            15.00%
                                 62.00%
                                 60.00%                                                                                                                                                     10.00%
                                 58.00%                                                                                                                                                      5.00%
                                 56.00%                                                                                                                                                      0.00%
                                                      2003                      2004                       2005                   2006                                                                        2003                       2004                   2005                             2006

                                                                                 Gross Profit Percentage                                                                                                                                        Net Profit Margin




                                 35.00%                                                                                                                                                     20.00%
                                 30.00%
                                 25.00%                                                                                                                                                     15.00%

                                 20.00%
                                                                                                                                                                                            10.00%
                                 15.00%
                                 10.00%                                                                                                                                                     5.00%
                                 5.00%
                                 0.00%                                                                                                                                                      0.00%
                                                      2003                      2004                       2005                   2006                                                                        2003                       2004                   2005                             2006

                                                                                      Return on Net Worth                                                                                                                                   Return on Total Assets




                                                                                                                                            © Copyright, 2009, JaxWorks, All Rights Reserved.
   Comprehensive Business Analysis
                                    For
                    The XYZ Company
                          6200 XYZ Drive
                     ABC, California 00000-0000




             Current Financial Performance

$2,000,000


                                                                   Revenue
$1,500,000
                                                                   Cost of Sales
                                                                   Gross Profit
                                                                   Total Expenses
$1,000,000                                                         Profit
                                                                   Ownership


 $500,000



       $0




                         Prepared by You


               © Copyright, 2009, JaxWorks, All Rights Reserved.
                                           The Executive Summary
                                                                  For
                                                      The XYZ Company
                                                             April 26, 2007

The Executive Summary of your business yields an overall picture of its financial health. We have extracted,
compiled, and entered into our analysis system all of the vital information that pertains to this specific business and
yielded this summary.

The primary objective of this summary is to zero in on all of the areas that might be detracting from the bottom line.



                                             Your                              Your
                                            Current                         Forecasted
                                             Year                              Year
           Category                          2003                                2007                                        Comments

1. Net Revenue                                         $1,960,000                  $3,641,354    The   trend in   this category is positive.
2. Cost of Revenue                                       $745,000                    $990,118    The   trend in   this category is positive.
3. Gross Profit                                        $1,215,000                  $2,561,236    The   trend in   this category is positive.
4. Total Operating Expenses                              $558,760                    $717,248    The   trend in   this category is positive.
5. Operating Profit                                      $656,240                  $1,843,988    The   trend in   this category is positive.
6. Return on Ownership                                   $670,368                  $1,518,878    The   trend in   this category is positive.
7. Current Ratio                                             1.30                        3.20    The   trend in   this category is positive.
8. Z-Score - Publicly Held                                    2.40                        3.83   The   trend in   this category is positive.




                                                                     Overall Rating:             You meet or exceed all industry standards.




 NUMBER OF EVALUATION CATEGORIES CONSIDERED=                                                                      8

 NUMBER OF EVALUATION CATEGORIES THAT MAY NEED ASSISTANCE =                                                       0

 PERCENTAGE OF EVALUATION CATEGORIES THAT MAY NEED ASSISTANCE =                                                   0%            0% to 20% is Best




                                                         Executive Summary
                                                         Current vs. Projected

                              $4,000,000

                              $3,500,000

                              $3,000,000                                                               1. Net Revenue
                                                                                                       2. Cost of Revenue
                              $2,500,000                                                               3. Gross Profit
                                                                                                       4. Total Operating Expenses
                              $2,000,000
                                                                                                       5. Operating Profit
                              $1,500,000                                                               6. Return on Ownership

                              $1,000,000

                               $500,000

                                     $0
                                            2003                          2007



                                                         Prepared by You



                                                © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                                            April 26, 2007


Comparative Income Statement - 4 Periods



         Sales Revenue     Cost of Sales   Gross Profit        Fixed Expenses          Other Expenses        Income Before Tax    Income Taxes         Net Income (Loss)




                                                    Year                                Year                             Year                          Year
                                                    2003                                 2004                             2005                          2006
Income Details                               $                  %                 $              %                 $             %               $               %
Gross Sales                                $2,010,000           102.55%       $2,560,000         102.40%       $2,721,800        102.64%     $3,285,454         100.00%
Discounts/Allowances                         ($50,000)           -2.55%         ($60,000)         -2.40%         ($70,000)        -2.64%       ($80,000)          -2.43%
Net Sales                                  $1,960,000           100.00%       $2,500,000         100.00%       $2,651,800        100.00%     $3,205,454           97.57%
  Direct Material Cost                      $320,000             16.33%         $427,600          17.10%         $431,238         16.26%      $432,513            13.49%
  Direct Labor Cost                         $300,000             15.31%         $315,000          12.60%         $330,450         12.46%      $346,364            10.81%
  Other Direct Costs                        $125,000                6.38%       $128,750             5.15%       $132,613            5.00%    $136,591               4.26%
Total Cost of Sales                         $745,000             38.01%         $871,350          34.85%         $894,301         33.72%      $915,467            28.56%
Gross Profit                               $1,215,000            61.99%       $1,628,650          65.15%       $1,757,500         66.28%     $2,289,987           71.44%


Expenses
Fixed Expenses
  Executive Salaries                        $190,000                9.69%       $191,000             7.64%       $195,000            7.35%    $195,000               6.08%
  Advertising                                $50,000                2.55%        $51,500             2.06%        $53,045            2.00%     $54,636               1.70%
  Auto & Truck Expenses                      $30,000                1.53%        $30,900             1.24%        $31,827            1.20%     $32,782               1.02%
  Depreciation                                   $5,000             0.26%         $5,150             0.21%        $45,305            1.71%     $50,464               1.57%
  Employee Benefits                              $3,000             0.15%         $3,090             0.12%         $3,183            0.12%       $3,278              0.10%
  Home Office Business Expenses                  $1,000             0.05%         $1,030             0.04%         $1,061            0.04%       $1,093              0.03%
  Insurance                                      $3,906             0.20%         $3,754             0.15%         $4,010            0.15%       $3,994              0.12%
  Bank Charges                                   $2,133             0.11%         $2,197             0.09%         $2,263            0.09%       $2,331              0.07%
  Legal & Professional Services                  $1,000             0.05%         $1,330             0.05%         $1,670            0.06%       $2,020              0.06%
  Meals & Entertainment                          $4,000             0.20%         $4,120             0.16%         $4,244            0.16%       $4,371              0.14%
  Office Expense                                 $6,000             0.31%         $6,180             0.25%         $6,365            0.24%       $6,556              0.20%
  Retirement Plans                               $1,000             0.05%         $1,030             0.04%         $1,061            0.04%       $1,093              0.03%
  Rent - Equipment                               $3,000             0.15%         $3,090             0.12%         $3,183            0.12%       $3,278              0.10%
  Rent - Office & Business Property              $8,750             0.45%         $9,110             0.36%         $9,544            0.36%       $9,929              0.31%
  Repairs                                        $1,000             0.05%         $1,030             0.04%         $1,061            0.04%       $1,093              0.03%
  Supplies                                       $1,000             0.05%         $1,030             0.04%         $1,061            0.04%       $1,093              0.03%
  Taxes - Business & Payroll                     $1,000             0.05%         $1,030             0.04%         $1,061            0.04%       $1,093              0.03%
  Travel                                         $6,230             0.32%         $6,120             0.24%         $6,010            0.23%       $5,900              0.18%
  Utilities                                  $11,974                0.61%        $12,374             0.49%        $14,186            0.53%     $16,974               0.53%
  Other Expenses                                    $0              0.00%               $0           0.00%               $0          0.00%             $0            0.00%
Total Fixed Expenses                        $329,993             16.84%         $335,065          13.40%         $385,138         14.52%      $396,977            12.38%


Variable Expenses
 Office salaries                             $90,000                4.59%       $102,700             4.11%       $112,368            4.24%    $118,647               3.70%
 Employee benefits                           $43,000                2.19%        $46,875             1.88%        $47,970            1.81%     $51,249               1.60%
 Payroll taxes                               $18,000                0.92%        $18,540             0.74%        $19,096            0.72%     $19,669               0.61%
 Sales and Marketing                         $14,000                0.71%        $14,420             0.58%        $14,853            0.56%     $15,298               0.48%
 Telephone and telegraph                         $6,000             0.31%         $6,180             0.25%         $6,365            0.24%       $6,556              0.20%
 Stationary and office supplies                  $2,110             0.11%         $2,680             0.11%         $3,005            0.11%       $3,493              0.11%
 Bad debts                                        $100              0.01%             $103           0.00%             $106          0.00%           $109            0.00%
 Postage                                         $5,557             0.28%         $5,724             0.23%         $5,895            0.22%       $6,072              0.19%
 Contributions                                      $0              0.00%               $0           0.00%               $0          0.00%             $0            0.00%
 Add Item                                           $0              0.00%               $0           0.00%               $0          0.00%             $0            0.00%
 Add Item                                           $0              0.00%               $0           0.00%               $0          0.00%             $0            0.00%
 Add Item                                           $0              0.00%               $0           0.00%               $0          0.00%             $0            0.00%
 Add Item                                           $0              0.00%               $0           0.00%               $0          0.00%             $0            0.00%
 Add Item                                           $0              0.00%               $0           0.00%               $0          0.00%             $0            0.00%


Total Variable Expenses                     $178,767                9.12%       $197,222             7.89%       $209,659            7.91%    $221,095               6.90%




Operating expenses                          $508,760             25.96%         $532,287          21.29%         $594,797         22.43%      $618,071            19.28%
    Interest                                 $16,250                0.83%        $16,738             0.67%        $17,240            0.65%     $17,757               0.55%
    Depreciation                             $32,500                1.66%        $33,475             1.34%        $34,479            1.30%     $35,514               1.11%
    Amortization                                 $1,250             0.06%         $1,288             0.05%         $1,326            0.05%       $1,366              0.04%
    Other                                           $0              0.00%               $0           0.00%               $0          0.00%             $0            0.00%
Total expenses                              $558,760             28.51%         $583,787          23.35%         $647,842         24.43%      $672,707            20.99%


Operating income                            $656,240             33.48%       $1,044,863          41.79%       $1,109,658         41.85%     $1,617,279           50.45%


Other income and expenses
 Gain (loss) on sale of assets               $10,000                0.51%        $10,300             0.41%        $10,609            0.40%     $10,927               0.34%
 Other (net)                                 $20,000                1.02%        $20,600             0.82%        $21,218            0.80%     $31,855               0.99%
Subtotal                                     $30,000                1.53%        $30,900             1.24%        $31,827            1.20%     $42,782               1.33%


Income before tax                           $686,240             35.01%       $1,075,763          43.03%       $1,141,485         43.05%     $1,660,061           51.79%


Income taxes                                $205,872             10.50%         $322,729          12.91%         $342,445         12.91%      $498,018            15.54%


Net income                                  $480,368             24.51%         $753,034          30.12%         $799,039         30.13%     $1,162,043           36.25%


Return On Ownership                         $670,368             34.20%         $944,034          37.76%         $994,039         37.49%     $1,357,043           42.34%




                                                          © Copyright, 2009, JaxWorks, All Rights Reserved.
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                           The XYZ Company
                                                 April 26, 2007

                           Pro Forma Income Statement
                                                                                                    Forecasted
                                                       Year            Year             Year           Year
REVENUE                                                2003            2004             2005           2006
Gross Sales                                         $2,010,000       $2,560,000       $2,721,800     $3,142,400
Discounts/Allowances                                  ($50,000)        ($60,000)        ($70,000)      ($80,000)
Net Sales                                           $1,960,000       $2,500,000       $2,651,800     $3,062,400

COST OF SALES                                          2003            2004             2005           2006
Direct Material Cost                                  $320,000         $427,600         $431,238       $504,184
Direct Labor Cost                                     $300,000         $315,000         $330,450       $345,600
Other Direct Costs                                    $125,000         $128,750         $132,613       $136,400
Total Cost of Sales                                   $745,000         $871,350         $894,301       $986,184
Gross Profit (Loss)                                 $1,215,000       $1,628,650       $1,757,500     $2,076,216

OPERATING EXPENSES                                     2003            2004             2005           2006
Executive Salaries                                    $190,000         $191,000        $195,000       $197,000
Advertising                                            $50,000          $51,500         $53,045        $54,560
Auto & Truck Expenses                                  $30,000          $30,900         $31,827        $32,736
Depreciation                                            $5,000           $5,150         $45,305        $58,789
Employee Benefits                                       $3,000           $3,090          $3,183         $3,274
Home Office Business Expenses                           $1,000           $1,030          $1,061         $1,091
Insurance                                               $3,906           $3,754          $4,010         $3,994
Bank Charges                                            $2,133           $2,197          $2,263         $2,328
Legal & Professional Services                           $1,000           $1,330          $1,670         $2,003
Meals & Entertainment                                   $4,000           $4,120          $4,244         $4,365
Office Expense                                          $6,000           $6,180          $6,365         $6,547
Retirement Plans                                        $1,000           $1,030          $1,061         $1,091
Rent - Equipment                                        $3,000           $3,090          $3,183         $3,274
Rent - Office & Business Property                       $8,750           $9,110          $9,544         $9,929
Repairs                                                 $1,000           $1,030          $1,061         $1,091
Supplies                                                $1,000           $1,030          $1,061         $1,091
Taxes - Business & Payroll                              $1,000           $1,030          $1,061         $1,091
Travel                                                  $6,230           $6,120          $6,010         $5,900
Utilities                                              $11,974          $12,374         $14,186        $15,057
Other Expenses                                              $0               $0              $0             $0
Office salaries                                        $90,000         $102,700        $112,368       $124,057
Employee benefits                                      $43,000          $46,875         $47,970        $50,918
Payroll taxes                                          $18,000          $18,540         $19,096        $19,642
Sales and Marketing                                    $14,000          $14,420         $14,853        $15,277
Telephone and telegraph                                 $6,000           $6,180          $6,365         $6,547
Stationary and office supplies                          $2,110           $2,680          $3,005         $3,493
Bad debts                                                 $100             $103            $106           $109
Postage                                                 $5,557           $5,724          $5,895         $6,064
Contributions                                               $0               $0              $0             $0
Total expenses                                        $558,760         $583,787        $647,842       $685,878

Operating income                                      $656,240       $1,044,863       $1,109,658     $1,390,338

Other income and expenses
Gain (loss) on sale of assets                           $10,000         $10,300         $10,609        $10,912
Other (net)                                             $20,000         $20,600         $21,218        $21,824
                                Subtotal                $30,000         $30,900         $31,827        $32,736


Income before tax                                     $686,240       $1,075,763       $1,141,485     $1,423,074

Income taxes                                          $205,872         $322,729        $342,445       $426,922

Net income                                            $480,368         $753,034        $799,039       $996,152

                                                Prepared by You




                                  © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                                          April 26, 2007


Comparative Balance Sheet - 4 Periods




Total Current Assets     Total Fixed Assets   Total Assets    Total Current Liabilities          Total Liabilities       Total Stockholders' Equity     Total Liabilities and Equity


                                                      Year                            Year                                   Year                               Year
                                                      2003                                2004                                2005                              2006
ASSETS                                           $            %                 $                    %                  $               %                $                 %
Current Assets
  Cash and cash equivalents                    $451,000        10.82%         $464,530                11.35%          $478,466              8.75%      $492,820                7.98%
  Accounts receivable                          $350,000           8.40%       $460,500                11.25%          $871,315           15.94%       $1,382,454            22.40%
  Notes receivable                               $1,200           0.03%         $3,200                   0.08%          $3,000              0.05%         $3,400               0.06%
  Inventory                                    $400,000           9.60%       $612,000                14.95%          $824,360           15.08%        $937,091             15.18%
  Other current assets                          $10,000           0.24%        $10,300                   0.25%         $10,609              0.19%       $10,927                0.18%
Total Current Assets                          $1,212,200       29.09%       $1,550,530                37.87%         $2,187,750          40.01%       $2,826,692            45.80%
Fixed Assets
  Land                                        $1,000,000       24.00%       $1,030,000                25.16%         $1,106,090          20.23%       $1,109,273            17.97%
  Buildings                                   $1,500,000       36.00%       $1,045,000                25.52%         $1,591,350          29.10%       $1,739,091            28.18%
  Equipment                                    $800,000        19.20%         $824,000                20.13%          $948,720           17.35%        $874,182             14.16%
  Subtotal                                    $3,300,000       79.19%       $2,899,000                70.81%         $3,646,160          66.68%       $3,722,545            60.31%
Less-accumulated depreciation                  $400,000           9.60%       $412,000                10.06%          $424,360              7.76%      $437,091                7.08%
Total Fixed Assets                            $2,900,000       69.59%       $2,487,000                60.74%         $3,221,800          58.92%       $3,285,454            53.23%
Intangible Assets
  Cost                                          $50,000           1.20%        $51,500                   1.26%         $53,045              0.97%       $54,636                0.89%
  Less-accumulated amortization                 $20,000           0.48%        $20,600                   0.50%         $21,218              0.39%       $21,855                0.35%
  Total Intangible Assets                       $30,000           0.72%        $30,900                   0.75%         $31,827              0.58%       $32,782                0.53%
Other assets                                    $25,000           0.60%        $25,750                   0.63%         $26,523              0.49%       $27,318                0.44%
Total All Other Assets                          $55,000           1.32%        $56,650                   1.36%         $58,350              1.40%       $60,100                1.44%
Total Assets                                  $4,167,200      100.00%       $4,094,180              100.00%          $5,467,899        100.00%        $6,172,246          100.00%


LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
 Accounts payable                              $600,000        14.40%         $618,000                15.09%          $636,540           11.64%        $640,563             10.38%
 Notes payable                                 $100,000           2.40%       $103,000                   2.52%        $106,090              1.94%      $109,273                1.77%
       Current portion of long-term debt       $100,000           2.40%       $103,000                   2.52%        $106,090              1.94%      $109,273                1.77%
  Income taxes                                  $30,000           0.72%        $30,900                   0.75%         $31,827              0.58%       $32,782                0.53%
  Accrued expenses                              $90,000           2.16%        $92,700                   2.26%         $95,481              1.75%       $98,345                1.59%
  Other current liabilities                     $16,000           0.38%        $16,480                   0.40%         $16,974              0.31%       $17,484                0.28%
Total Current Liabilities                      $936,000        22.46%         $964,080                23.55%          $993,002           18.16%       $1,007,719            16.33%


Non-Current Liabilities
  Long-term debt                               $601,200        14.43%         $624,200                15.25%          $645,630           11.81%        $668,308             10.83%
  Deferred income                              $100,000           2.40%       $103,000                   2.52%        $106,090              1.94%      $109,273                1.77%
  Deferred income taxes                         $30,000           0.72%        $30,900                   0.75%         $31,827              0.58%       $32,782                0.53%
  Other long-term liabilities                   $50,000           1.20%        $51,500                   1.26%         $53,045              0.97%       $54,636                0.89%
Total Liabilities                             $1,717,200       41.21%       $1,773,680                43.32%         $1,829,594          33.46%       $1,872,718            30.34%


Stockholders' Equity
  Capital stock issued                         $100,000           2.40%       $100,000                   2.44%        $100,000              1.83%      $100,000                1.62%
  Number of shares issued                      $100,000           2.40%       $100,000                   2.44%        $100,000              1.83%      $100,000                1.62%
  Additional paid in capital                   $950,000        22.80%         $678,500                16.57%         $1,853,045          33.89%       $2,469,710            40.01%
  Retained earnings                           $1,400,000       33.60%       $1,542,000                37.66%         $1,685,260          30.82%       $1,729,818            28.03%
Total Stockholders' Equity                    $2,450,000       58.79%       $2,320,500                56.68%         $3,638,305          66.54%       $4,299,528            69.66%


Total Liabilities and Equity                  $4,167,200      100.00%       $4,094,180              100.00%          $5,467,899        100.00%        $6,172,246          100.00%




                                                       © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                 April 26, 2007

                                    Pro Forma Balance Sheet

   ASSETS                                                  Year            Year        Year         Year
   Current Assets                                          2003            2004        2005         2006
             Cash and cash equivalents                     $451,000        $464,530    $478,466      $492,131
             Accounts receivable                           $350,000        $460,500    $871,315    $1,081,920
             Notes receivable                                $1,200          $3,200      $3,000       $4,267
             Inventory                                     $400,000        $612,000    $824,360    $1,036,480
             Other current assets                           $10,000         $10,300     $10,609       $10,912
                             Total Current Assets        $1,212,200      $1,550,530   $2,187,750   $2,625,710


   Fixed Assets                                            2003            2004         2005         2006
             Land                                        $1,000,000      $1,030,000   $1,106,090   $1,151,453
             Buildings                                   $1,500,000      $1,045,000   $1,591,350   $1,470,133
             Equipment                                     $800,000        $824,000     $948,720   $1,006,293
                                           Subtotal      $3,300,000      $2,899,000   $3,646,160   $3,627,880
              Less-accumulated depreciation                $400,000        $412,000     $424,360     $436,480
                               Total Fixed Assets        $2,900,000      $2,487,000   $3,221,800   $3,191,400


   Intangible Assets                                       2003            2004         2005         2006
              Cost                                          $50,000         $51,500     $53,045      $54,560
              Less-accumulated amortization                 $20,000         $20,600     $21,218      $21,824
                          Total Intangible Assets           $30,000         $30,900     $31,827      $32,736


   Other assets                                             $25,000         $25,750     $26,523      $27,280
                                      Total Assets       $4,167,200      $4,094,180   $5,467,899   $5,877,125



              LIABILITIES AND STOCKHOLDERS' EQUITY

   Current Liabilities                                     2003            2004         2005         2006
             Accounts payable                              $600,000        $618,000    $636,540     $654,720
             Notes payable                                 $100,000        $103,000    $106,090     $109,120
             Current portion of long-term debt             $100,000        $103,000    $106,090     $109,120
             Income taxes                                   $30,000         $30,900     $31,827      $32,736
             Accrued expenses                               $90,000         $92,700     $95,481      $98,208
             Other current liabilities                      $16,000         $16,480     $16,974      $17,459
                         Total Current Liabilities         $936,000        $964,080    $993,002    $1,021,363


   Non-Current Liabilities                                 2003            2004         2005         2006
            Long-term debt                                 $601,200        $624,200    $645,630     $668,107
            Deferred income                                $100,000        $103,000    $106,090     $109,120
            Deferred income taxes                           $30,000         $30,900     $31,827      $32,736
            Other long-term liabilities                     $50,000         $51,500     $53,045      $54,560

                                  Total Liabilities      $1,717,200      $1,773,680   $1,829,594   $1,885,886

   Stockholders' Equity                                    2003            2004         2005         2006
            Capital stock issued                           $100,000        $100,000     $100,000     $100,000
            Number of shares issued                         100,000         100,000      100,000     $100,000
            Additional paid in capital                     $950,000        $678,500   $1,853,045   $2,063,560
            Retained earnings                            $1,400,000      $1,542,000   $1,685,260   $1,827,680
                        Total Stockholders' Equity       $2,450,000      $2,320,500   $3,638,305   $3,991,240

                      Total Liabilities and Equity       $4,167,200      $4,094,180   $5,467,899   $5,877,125

                                                  Prepared by You




                                  © Copyright, 2009, JaxWorks, All Rights Reserved.
Forecast Analysis- 12 Fiscal Periods
                                                                                                             There are instances where 4 financial periods are not enough. This worksheet allows you to post additional periods
                                                                                                             up to 12. You will be overwriting forecast formulas, so, be sure you save a backup copy for recovery.
Income Statement
                                                                                                             Use this worksheet with the Financial Summary sheet that flags problem areas that are magified over time.
Manufacturer

                                                  Year           Year          Year             Year            Year            Year             Year          Year          Year           Year           Year            Year
                                                  2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
           Gross Sales                           $2,010,000    $2,560,000    $2,721,800      $3,285,454      $3,641,354      $4,040,170        $4,438,986    $4,837,803    $5,236,619     $5,635,435     $6,034,251      $6,433,067
           Discounts/Allowances                    ($50,000)     ($60,000)     ($70,000)       ($80,000)       ($90,000)      ($100,000)        ($110,000)    ($120,000)    ($130,000)     ($140,000)     ($150,000)      ($160,000)
           Net Sales                             $1,960,000    $2,500,000    $2,651,800      $3,205,454      $3,551,354      $3,940,170        $4,328,986    $4,717,803    $5,106,619     $5,495,435     $5,884,251      $6,273,067
           Direct Material Cost                    $320,000      $427,600      $431,238        $432,513        $488,132        $522,250          $556,367      $590,485      $624,603       $658,720       $692,838        $726,956
           Direct Labor Cost                       $300,000      $315,000      $330,450        $346,364        $361,589        $377,043          $392,497      $407,951      $423,405       $438,859       $454,313        $469,767
           Other Direct Costs                      $125,000      $128,750      $132,613        $136,591        $140,397        $144,261          $148,124      $151,988      $155,851       $159,715       $163,578        $167,442
           Total Cost of Sales                     $745,000      $871,350      $894,301        $915,467        $990,118      $1,043,553        $1,096,988    $1,150,423    $1,203,859     $1,257,294     $1,310,729      $1,364,164

                                  Gross Profit   $1,215,000    $1,628,650    $1,757,500      $2,289,987      $2,561,236      $2,896,617        $3,231,998    $3,567,379    $3,902,760     $4,238,141     $4,573,522      $4,908,903

Expenses
           Fixed Expenses                         2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
           Executive Salaries                     $190,000      $191,000      $195,000         $195,000        $197,500        $199,400         $201,300      $203,200      $205,100       $207,000       $208,900        $210,800
           Advertising                             $50,000       $51,500       $53,045          $54,636         $56,159         $57,704          $59,250       $60,795       $62,340        $63,886        $65,431         $66,977
           Auto & Truck Expenses                   $30,000       $30,900       $31,827          $32,782         $33,695         $34,623          $35,550       $36,477       $37,404        $38,332        $39,259         $40,186
           Depreciation                             $5,000        $5,150       $45,305          $50,464         $70,616         $88,270         $105,925      $123,580      $141,234       $158,889       $176,543        $194,198
           Employee Benefits                        $3,000        $3,090        $3,183           $3,278          $3,370          $3,462           $3,555        $3,648        $3,740         $3,833         $3,926          $4,019
           Home Office Business Expenses            $1,000        $1,030        $1,061           $1,093          $1,123          $1,154           $1,185        $1,216        $1,247         $1,278         $1,309          $1,340
           Insurance                                $3,906        $3,754        $4,010           $3,994          $4,046          $4,098           $4,150        $4,202        $4,254         $4,306         $4,358          $4,410
           Bank Charges                             $2,133        $2,197        $2,263           $2,331          $2,396          $2,462           $2,528        $2,594        $2,659         $2,725         $2,791          $2,857
           Legal & Professional Services            $1,000        $1,330        $1,670           $2,020          $2,355          $2,695           $3,035        $3,375        $3,715         $4,055         $4,395          $4,735
           Meals & Entertainment                    $4,000        $4,120        $4,244           $4,371          $4,493          $4,616           $4,740        $4,864        $4,987         $5,111         $5,235          $5,358
           Office Expense                           $6,000        $6,180        $6,365           $6,556          $6,739          $6,925           $7,110        $7,295        $7,481         $7,666         $7,852          $8,037
           Retirement Plans                         $1,000        $1,030        $1,061           $1,093          $1,123          $1,154           $1,185        $1,216        $1,247         $1,278         $1,309          $1,340
           Rent - Equipment                         $3,000        $3,090        $3,183           $3,278          $3,370          $3,462           $3,555        $3,648        $3,740         $3,833         $3,926          $4,019
           Rent - Office & Business Property        $8,750        $9,110        $9,544           $9,929         $10,326         $10,723          $11,120       $11,517       $11,914        $12,311        $12,708         $13,105
           Repairs                                  $1,000        $1,030        $1,061           $1,093          $1,123          $1,154           $1,185        $1,216        $1,247         $1,278         $1,309          $1,340
           Supplies                                 $1,000        $1,030        $1,061           $1,093          $1,123          $1,154           $1,185        $1,216        $1,247         $1,278         $1,309          $1,340
           Taxes - Business & Payroll               $1,000        $1,030        $1,061           $1,093          $1,123          $1,154           $1,185        $1,216        $1,247         $1,278         $1,309          $1,340
           Travel                                   $6,230        $6,120        $6,010           $5,900          $5,790          $5,680           $5,570        $5,460        $5,350         $5,240         $5,130          $5,020
           Utilities                               $11,974       $12,374       $14,186          $16,974         $18,080         $19,761          $21,442       $23,124       $24,805        $26,486        $28,167         $29,848
           Other Expenses                               $0            $0            $0               $0              $0              $0               $0            $0            $0             $0             $0              $0
           Total Fixed Expenses                   $329,993      $335,065      $385,138         $396,977        $424,549        $449,651         $474,754      $499,856      $524,959       $550,061       $575,163        $600,266


           Variable Expenses                      2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
           Office salaries                         $90,000      $102,700      $112,368         $118,647        $129,831        $139,392         $148,953      $158,514      $168,075       $177,636       $187,196        $196,757
           Employee benefits                       $43,000       $46,875       $47,970          $51,249         $53,734         $56,318          $58,902       $61,487       $64,071        $66,655        $69,239         $71,823
           Payroll taxes                           $18,000       $18,540       $19,096          $19,669         $20,217         $20,774          $21,330       $21,886       $22,443        $22,999        $23,555         $24,112
           Sales and Marketing                     $14,000       $14,420       $14,853          $15,298         $15,724         $16,157          $16,590       $17,023       $17,455        $17,888        $18,321         $18,753
           Telephone and telegraph                  $6,000        $6,180        $6,365           $6,556          $6,739          $6,925           $7,110        $7,295        $7,481         $7,666         $7,852          $8,037
           Stationary and office supplies           $2,110        $2,680        $3,005           $3,493          $3,941          $4,388           $4,836        $5,283        $5,731         $6,178         $6,626          $7,073
           Bad debts                                  $100          $103          $106             $109            $112            $115             $118          $122          $125           $128           $131            $134
           Postage                                  $5,557        $5,724        $5,895           $6,072          $6,241          $6,413           $6,585        $6,757        $6,929         $7,100         $7,272          $7,444
           Contributions                                $0            $0            $0               $0              $0              $0               $0            $0            $0             $0             $0              $0
           Add Item                                     $0            $0            $0               $0              $0              $0               $0            $0            $0             $0             $0              $0
           Add Item                                     $0            $0            $0               $0              $0              $0               $0            $0            $0             $0             $0              $0
           Add Item                                     $0            $0            $0               $0              $0              $0               $0            $0            $0             $0             $0              $0
           Add Item                                     $0            $0            $0               $0              $0              $0               $0            $0            $0             $0             $0              $0
           Add Item                                     $0            $0            $0               $0              $0              $0               $0            $0            $0             $0             $0              $0
           Miscellaneous                                $0            $0            $0               $0              $0              $0               $0            $0            $0             $0             $0              $0
           Total Variable Expenses                $178,767      $197,222      $209,659         $221,095        $236,540        $250,482         $264,424      $278,366      $292,308       $306,250       $320,192        $334,134


                                                  2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
           Operating expenses                     $508,760      $532,287      $594,797         $618,071        $661,089        $700,134         $739,178      $778,222      $817,267       $856,311       $895,355         $934,400
           Interest                                $16,250       $16,738       $17,240          $17,757         $18,252         $18,754          $19,256       $19,758       $20,261        $20,763        $21,265          $21,767
           Depreciation                            $32,500       $33,475       $34,479          $35,514         $36,503         $37,508          $38,512       $39,517       $40,521        $41,526        $42,530          $43,535
           Amortization                             $1,250        $1,288        $1,326           $1,366          $1,404          $1,443           $1,481        $1,520        $1,559         $1,597         $1,636           $1,674
           Other                                        $0            $0            $0               $0              $0              $0               $0            $0            $0             $0             $0               $0
                             Total expenses       $558,760      $583,787      $647,842         $672,707        $717,248        $757,838         $798,428      $839,018      $879,607       $920,197       $960,787       $1,001,376

                          Operating income        $656,240     $1,044,863    $1,109,658      $1,617,279      $1,843,988      $2,138,779        $2,433,570    $2,728,362    $3,023,153     $3,317,944     $3,612,735      $3,907,526


Other income and expenses                         2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
         Gain (loss) on sale of assets             $10,000       $10,300       $10,609          $10,927         $11,232         $11,541          $11,850       $12,159       $12,468        $12,777        $13,086         $13,395
         Other (net)                               $20,000       $20,600       $21,218          $31,855         $32,464         $36,082          $39,700       $43,318       $46,936        $50,554        $54,173         $57,791
                                      Subtotal     $30,000       $30,900       $31,827          $42,782         $43,695         $47,623          $51,550       $55,477       $59,404        $63,332        $67,259         $71,186

                                                  2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
                         Income before tax        $686,240     $1,075,763    $1,141,485      $1,660,061      $1,887,683      $2,186,402        $2,485,120    $2,783,839    $3,082,557     $3,381,276     $3,679,994      $3,978,712

                                Income taxes      $205,872      $322,729      $342,445         $498,018        $566,305        $655,921         $745,536      $835,152      $924,767      $1,014,383     $1,103,998      $1,193,614

                                  Net income      $480,368      $753,034      $799,039       $1,162,043      $1,321,378      $1,530,481        $1,739,584    $1,948,687    $2,157,790     $2,366,893     $2,575,996      $2,785,099

                       Return On Ownership        $670,368      $944,034      $994,039       $1,357,043      $1,518,878      $1,729,881        $1,940,884    $2,151,887    $2,362,890     $2,573,893     $2,784,896      $2,995,899


Balance Sheet
ASSETS                                            Year           Year          Year             Year            Year            Year             Year          Year          Year           Year           Year            Year
Current Assets                                    2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
         Cash and cash equivalents                $451,000      $464,530      $478,466         $492,820        $506,553        $520,492          $534,432      $548,371      $562,311       $576,251       $590,190        $604,130
         Accounts receivable                      $350,000      $460,500      $871,315       $1,382,454      $1,643,112      $1,993,930        $2,344,748    $2,695,565    $3,046,383     $3,397,201     $3,748,019      $4,098,837
         Notes receivable                           $1,200        $3,200        $3,000           $3,400          $4,300          $4,940            $5,580        $6,220        $6,860         $7,500         $8,140          $8,780
         Inventory                                $400,000      $612,000      $824,360         $937,091      $1,149,271      $1,331,634        $1,513,997    $1,696,361    $1,878,724     $2,061,087     $2,243,450      $2,425,813
         Other current assets                      $10,000       $10,300       $10,609          $10,927         $11,232         $11,541           $11,850       $12,159       $12,468        $12,777        $13,086         $13,395
                        Total Current Assets     $1,212,200    $1,550,530    $2,187,750      $2,826,692      $3,314,467      $3,862,537        $4,410,607    $4,958,676    $5,506,746     $6,054,816     $6,602,886      $7,150,955

Fixed Assets                                      2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
         Land                                    $1,000,000    $1,030,000    $1,106,090      $1,109,273      $1,162,318      $1,202,709        $1,243,099    $1,283,490    $1,323,881     $1,364,272     $1,404,663      $1,445,053
         Buildings                               $1,500,000    $1,045,000    $1,591,350      $1,739,091      $1,784,766      $1,911,128        $2,037,490    $2,163,852    $2,290,214     $2,416,576     $2,542,938      $2,669,301
         Equipment                                 $800,000      $824,000      $948,720        $874,182        $948,542        $983,268        $1,017,995    $1,052,721    $1,087,448     $1,122,174     $1,156,900      $1,191,627
                                      Subtotal   $3,300,000    $2,899,000    $3,646,160      $3,722,545      $3,895,625      $4,097,104        $4,298,584    $4,500,063    $4,701,543     $4,903,022     $5,104,501      $5,305,981
           Less-accumulated depreciation           $400,000      $412,000      $424,360        $437,091        $449,271        $461,634          $473,997      $486,361      $498,724       $511,087       $523,450        $535,813
                          Total Fixed Assets     $2,900,000    $2,487,000    $3,221,800      $3,285,454      $3,446,354      $3,635,470        $3,824,586    $4,013,703    $4,202,819     $4,391,935     $4,581,051      $4,770,167

Intangible Assets                                 2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
          Cost                                     $50,000       $51,500       $53,045          $54,636         $56,159         $57,704          $59,250       $60,795       $62,340        $63,886        $65,431         $66,977
          Less-accumulated amortization            $20,000       $20,600       $21,218          $21,855         $22,464         $23,082          $23,700       $24,318       $24,936        $25,554        $26,173         $26,791
                     Total Intangible Assets       $30,000       $30,900       $31,827          $32,782         $33,695         $34,623          $35,550       $36,477       $37,404        $38,332        $39,259         $40,186

Other assets                                        $25,000       $25,750       $26,523         $27,318         $28,079         $28,852           $29,625       $30,398       $31,170        $31,943        $32,716        $33,488
                                 Total Assets    $4,167,200    $4,094,180    $5,467,899      $6,172,246      $6,822,596      $7,561,481        $8,300,367    $9,039,253    $9,778,138    $10,517,024    $11,255,910    $11,994,795
Balance Sheet
           LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities                               2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
          Accounts payable                        $600,000      $618,000      $636,540         $640,563        $658,833        $672,856          $686,879      $700,902      $714,925       $728,948       $742,970        $756,993
          Notes payable                           $100,000      $103,000      $106,090         $109,273        $112,318        $115,409          $118,499      $121,590      $124,681       $127,772       $130,863        $133,953
          Current portion of long-term debt       $100,000      $103,000      $106,090         $109,273        $112,318        $115,454          $118,568      $121,659      $124,784       $127,886       $130,994        $134,090
          Income taxes                             $30,000       $30,900       $31,827          $32,782         $33,695         $34,636           $35,570       $36,498       $37,435        $38,366        $39,298         $40,227
          Accrued expenses                         $90,000       $92,700       $95,481          $98,345        $101,086        $103,868          $106,649      $109,431      $112,213       $114,995       $117,776        $120,558
          Other current liabilities                $16,000       $16,480       $16,974          $17,484         $17,971         $18,465           $18,960       $19,454       $19,949        $20,443        $20,938         $21,433
                    Total Current Liabilities     $936,000      $964,080      $993,002       $1,007,719      $1,036,220      $1,060,628        $1,085,037    $1,109,445    $1,133,853     $1,158,261     $1,182,669      $1,207,077

Non-Current Liabilities                           2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
         Long-term debt                            $601,200      $624,200      $645,630        $668,308        $690,523        $712,799          $735,074      $757,350      $779,625       $801,901       $824,176        $846,451
         Deferred income                           $100,000      $103,000      $106,090        $109,273        $112,318        $115,409          $118,499      $121,590      $124,681       $127,772       $130,863        $133,953
         Deferred income taxes                      $30,000       $30,900       $31,827         $32,782         $33,695         $34,623           $35,550       $36,477       $37,404        $38,332        $39,259         $40,186
         Other long-term liabilities                $50,000       $51,500       $53,045         $54,636         $56,159         $57,704           $59,250       $60,795       $62,340        $63,886        $65,431         $66,977
                               Sub-total           $781,200      $809,600      $836,592        $864,999        $892,695        $920,534          $948,373      $976,212    $1,004,051     $1,031,890     $1,059,729      $1,087,567
                             Total Liabilities   $1,717,200    $1,773,680    $1,829,594      $1,872,718      $1,928,916      $1,981,162        $2,033,409    $2,085,656    $2,137,903     $2,190,150     $2,242,397      $2,294,644

Stockholders' Equity                              2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
         Capital stock issued                      $100,000      $100,000      $100,000        $100,000        $100,000        $100,000          $100,000      $100,000      $100,000       $100,000       $100,000        $100,000
         Additional paid in capital                $950,000      $678,500    $1,853,045      $2,469,710      $2,921,233      $3,494,600        $4,067,968    $4,641,335    $5,214,703     $5,788,070     $6,361,438      $6,934,805
         Retained earnings                       $1,400,000    $1,542,000    $1,685,260      $1,729,818      $1,872,448      $1,985,719        $2,098,990    $2,212,262    $2,325,533     $2,438,805     $2,552,076      $2,665,347
                  Total Stockholders' Equity     $2,450,000    $2,320,500    $3,638,305      $4,299,528      $4,893,680      $5,580,319        $6,266,958    $6,953,597    $7,640,236     $8,326,874     $9,013,513      $9,700,152

                Total Liabilities and Equity     $4,167,200    $4,094,180    $5,467,899      $6,172,246      $6,822,596      $7,561,481        $8,300,367    $9,039,253    $9,778,138    $10,517,024    $11,255,910    $11,994,795

                    Altman Z-Score Analysis       2003           2004          2005             2006            2007            2008             2009          2010          2011           2012           2013            2014
                          Publicly Held Firm           2.40          2.94          3.04             3.51            3.83            4.17             4.52          4.86          5.21           5.55           5.89            6.24
                         Privately Held Firm           1.35          1.88          1.62             1.88            2.01            2.14             2.27          2.41          2.54           2.67           2.80            2.93
                  Service, Retail, Wholesale           4.09          5.26          5.89             7.02            7.92            8.86             9.81         10.75         11.69          12.64          13.58           14.52

                                                                                                             Prepared by You




                                                                                           © Copyright, 2009, JaxWorks, All Rights Reserved.
                                                                                      Financial Summary Analysis
*EBIT is Earnings Before Interest and Taxes
**Ownership is the Total Reward for being the owner=Owner Salary + Bonus + Net Income + Other


                                                       Year                 Year                     Year              Year                Year                   Year           Year              Year               Trend
                                                       2003                  2004                    2005                  2006             2007                   2008          2009               2010        ASSESSMENT
Income Statement                                                                                                                                                        Forecast
Net Sales                                          $1,960,000              $2,500,000           $2,651,800          $3,205,454            $3,641,354             $4,040,170   $4,438,986         $4,837,803       Upward
Cost of Goods Sold                                   $745,000                $871,350             $894,301            $915,467              $990,118             $1,043,553   $1,096,988         $1,150,423       Upward
Gross Profit (Margin)                              $1,215,000              $1,628,650           $1,757,500          $2,289,987            $2,651,236             $2,996,617   $3,341,998         $3,687,379       Upward
G&A                                                  $178,767                $197,222             $209,659            $221,095              $236,540               $250,482      $264,424          $278,366       Upward
Total Operating Expenses                             $558,760                $583,787             $647,842            $672,707              $717,248               $757,838      $798,428          $839,018       Upward
EBIT*                                                $686,240              $1,075,763           $1,141,485          $1,660,061            $1,887,683             $2,186,402   $2,485,120         $2,783,839       Upward
Net Income After                                     $480,368                $753,034             $799,039          $1,162,043            $1,321,378             $1,530,481   $1,739,584         $1,948,687       Upward
Ownership**                                          $670,368                $944,034             $994,039          $1,357,043            $1,518,878             $1,729,881   $1,940,884         $2,151,887       Upward
Balance Sheet                                                                                                                                                           Forecast
Current Assets                                     $1,212,200              $1,550,530           $2,187,750          $2,826,692            $3,314,467             $3,862,537   $4,410,607         $4,958,676       Upward
Inventory                                            $400,000                $612,000             $824,360            $937,091            $1,149,271             $1,331,634   $1,513,997         $1,696,361       Upward
Other Assets                                          $10,000                 $10,300              $10,609             $10,927               $11,232                $11,541       $11,850           $12,159       Upward
Total Assets                                       $4,167,200              $4,094,180           $5,467,899          $6,172,246            $6,822,596             $7,561,481   $8,300,367         $9,039,253       Upward
Current Liabilities                                  $936,000                $964,080             $993,002          $1,007,719            $1,036,220             $1,060,628   $1,085,037         $1,109,445       Upward
Non-current Liabilities                              $781,200                $809,600             $836,592            $864,999              $892,695               $920,534      $948,373          $976,212       Upward
Total Liabilities                                  $1,717,200              $1,773,680           $1,829,594          $1,872,718            $1,928,916             $1,981,162   $2,033,409         $2,085,656       Upward
Equity                                             $2,450,000              $2,320,500           $3,638,305          $4,299,528            $4,893,680             $5,580,319   $6,266,958         $6,953,597       Upward
Cash Flow                                                                                                                                                               Forecast
Net Cash Flow                                      $1,175,318               $873,797            $1,489,319          $1,879,487            $2,036,487             $2,309,290   $2,582,093         $2,854,896       Upward
Breakeven                                                                                                                                                               Forecast
Break-Even                                            $636,455              $593,738                 $668,999          $618,603            $634,875                $637,046      $639,217          $641,387   Upward
B/E %                                                   32.47%                23.75%                   25.23%            19.30%              15.68%                  11.87%         8.07%             4.26% Downward
DAY OF B/E                                                 119                    87                       92                70                  57                      43            29                16 Downward
DATE OF B/E                                              Apr 27                Mar 26                   Apr 01            Mar 10              Feb 26                  Feb 12        Jan 29            Jan 15 Downward
Key Ratios                                                                                                                                                              Forecast
Current Ratio                                             1.30                  1.61                  2.20                2.81                  3.20                   3.64          4.06              4.47      Upward
Quick Ratio                                               0.87                  0.97                  1.37                1.88                  2.09                   2.39          2.67              2.94      Upward
Debt Ratio                                                0.41                  0.43                  0.33                0.30                  0.28                   0.26          0.24              0.23     Downward
Asset Turnover                                            0.47                  0.61                  0.48                0.52                  0.53                   0.53          0.53              0.54      Upward
Net Income/Sales                                          0.25                  0.30                  0.30                0.36                  0.36                   0.38          0.39              0.40      Upward
Debt/Equity                                               0.70                  0.76                  0.50                0.44                  0.39                   0.36          0.32              0.30     Downward
Return on Assets                                          0.15                  0.24                  0.18                0.23                  0.23                   0.24          0.24              0.25      Upward
Working Capital                                       $276,200              $586,450            $1,194,748          $1,818,973            $2,278,247             $2,801,909   $3,325,570         $3,849,232      Upward
Sales/Working Capital                                     7.10                  4.26                  2.22                1.76                  1.60                   1.44          1.33              1.26     Downward
Market Value                                                                                                                                                            Forecast
Book Market Value                                  $2,450,000              $2,320,500           $3,638,305          $4,299,528            $4,893,680             $5,580,319   $6,266,957         $6,953,596       Upward
Plus Ownership**                                   $3,120,368              $3,264,534           $4,632,344          $5,656,570            $6,412,558             $7,310,200   $8,207,842         $9,105,483       Upward
Altman Z-Score Analysis                                                                                                                                                 Forecast
                       Publicly Held Firm                     2.40                  2.94                     3.04                 3.51             3.83                4.17          4.52               4.86      Upward
                      Privately Held Firm                     1.35                  1.88                     1.62                 1.88             2.01                2.14          2.27               2.41      Upward
                      Non-Manufacturing                       4.09                  5.26                     5.89                 7.02             7.92                8.86          9.81              10.75      Upward

*EBIT is Earnings Before Interest and Taxes
**Ownership is the Total Reward for being the owner=Owner Salary + Bonus + Net Income + Other




                                                Income Statement                                                                                                Balance Sheet
                                           Smoothing Forecast - 8 Periods                                                                                 Smoothing Forcast - 8 Periods




        2003        2004            2005           2006             2007             2008             2009          2010




                                                                                                                                   2003     2004          2005        2006    2007       2008        2009      2010


                                                                                                                                              Current Assets                         Inventory
                 Net Sales                     Cost of Goods Sold            Gross Profit (Margin)                                            Other Assets                           Total Assets
                 G&A                           Total Operating Expenses      EBIT*
                                                                                                                                              Current Liabilities                    Non-current Liabilities
                                                                                                                                              Total Liabilities                      Equity
                 Net Income After              Ownership**



                                                                                                             Prepared by You




                                                                                     © Copyright, 2009, JaxWorks, All Rights Reserved.
                  PROFIT                                     Net Profit $        Net Profit %
                  RATIOS                                              480,368           24.51%                                                                            Activity ratios
                                       Net Profit                                                                                                                                                            Inventory for
                                       Margin %                                  Operating Expenses                                         Inventory           400,000   x 365 divided by cost of sales =         196 days
                                                24.51%               ¸                  558,760                                                                                                              Average time to collect
                  Return on                                                                                                   Accounts Receivable               350,000   x 365 divided by credit sales =            65 days
                  Assets %                                   Sales
Return on                  11.53%              X                     1,960,000          ¸
Investment %                                                                                                                                            Sales
         29.56%                                                                                                                                            1,960,000      Liquidity Ratios
                                                                                                                                  Gross Profit                  _         a) Current Ratio =                        1.30
                                       Asset Turnover                ¸           Gross Profit %                                            1,215,000    Cost of Sales     Current Assets
                                                    0.47                                61.99%                                              ¸                   745,000   Current Liabilities
                         X                                                                                                        Sales                                   b) Acid Test =                            0.87
                                                                                                                                           1,960,000                      Current assets minus inventory
                                                               Total Assets                                                                                               Current Liabilities
                                                                     4,167,200
                                                                                                     Fixed Assets
                                                                                                                2,900,000
                  Leverage Ratio
                                   3                                 ¸                                          +
                                                                                                     Current Assets
                                                                                                                1,212,200
                                                             Investment
                                                                    1,625,000

                                                                                    =                           _
                                                                     +

                                       Total Liabilities   = Non-Current                +            Current Liabilities
                                             1,717,200                781,200                                       936,000
                                              ¸
                  Debt Ratio           Total Assets
                           41.21%            4,167,200




                                                                                            © Copyright, 2009, JaxWorks, All Rights Reserved.
 The XYZ Company
 6200 XYZ Drive
 ABC, California 00000-0000
 Phone: (000) 000-0000
 FAX: (000) 000-0000
 E-mail: someone@xyz.com

                                                     April 26, 2007


                     CASH FLOW STATEMENT - 4 YEARS
                                                              Year            Year               Year          Year
Cash from operations                                          2003            2004               2005          2006
 Net earnings (loss)                                         $480,368        $753,034            $799,039    $1,162,043
 Add-depreciation and amortization                            $33,750         $34,763             $35,805       $36,880

                        Net cash from operations             $514,118        $787,797            $834,845    $1,198,922

Cash provided (used) by
operating activities
 Accounts Receivable                                         $350,000        $460,500            $871,315    $1,382,454
 Inventory                                                   $400,000        $612,000            $824,360      $937,091
 Other current assets                                         $10,000         $10,300             $10,609       $10,927
 Other non-current assets                                     $25,000         $25,750             $26,523       $27,318
 Accounts payable                                            $600,000        $618,000            $636,540      $640,563
 Current portion of long-term debt                           $100,000        $103,000            $106,090      $109,273
 Income taxes                                                 $30,000         $30,900             $31,827       $32,782
 Accrued expenses                                             $90,000         $92,700             $95,481       $98,345
 Other current liabilities                                    $16,000         $16,480             $16,974       $17,484
 Distributions to shareholders                                     $0              $0                  $0            $0

                     Net cash used by operations           $1,621,000       $1,969,630       $2,619,719      $3,256,237

Investment transactions
Increases (decreases)
  Land                                                               $0              $0                 $0            $0
  Buildings and improvements                                         $0              $0                 $0            $0
  Equipment                                                          $0              $0                 $0            $0
  Intangible assets                                                  $0              $0                 $0            $0

                       Net cash from investments                     $0              $0                 $0            $0

Financing transactions
Increases (decreases)
  Short term notes payable                                   $100,000        $103,000          $106,090        $109,273
  Long term debt                                             $601,200        $624,200          $645,630        $668,308
  Deferred income                                            $100,000        $103,000          $106,090        $109,273
  Deferred income taxes                                       $30,000         $30,900           $31,827         $32,782
  Other long-term liabilities                                 $50,000         $51,500           $53,045         $54,636
  Capital invested                                           $950,000        $678,500        $1,853,045      $2,469,710

                            Net cash from financing        $1,831,200       $1,591,100       $2,795,727      $3,443,982

                 Net increase (decrease) in cash             $724,318        $409,267        $1,010,853      $1,386,667

                     Cash at beginning of period             $451,000        $464,530            $478,466     $492,820

                    Cash at the end of period              $1,175,318        $873,797        $1,489,319      $1,879,487




                                                     Cash Flow


               $2,000,000
               $1,800,000
               $1,600,000
               $1,400,000
               $1,200,000
               $1,000,000
                 $800,000
                 $600,000
                 $400,000
                 $200,000
                      $0
                                 2003             2004               2005                 2006




                                                 Prepared by You




                                 © Copyright, 2009, JaxWorks, All Rights Reserved.
 The XYZ Company
 6200 XYZ Drive
 ABC, California 00000-0000
 Phone: (000) 000-0000
 FAX: (000) 000-0000
 E-mail: someone@xyz.com

                                                                                   April 26, 2007


                                               CASH FLOW STATEMENT - 8 YEARS
                                                          Year            Year              Year              Year            Year               Year          Year          Year
Cash from operations                                      2003            2004              2005              2006            2007               2008          2009          2010
 Net earnings (loss)                                     $480,368        $753,034          $799,039       $1,162,043        $1,321,378      $1,530,481       $1,739,584    $1,948,687
 Add-depreciation and amortization                        $33,750         $34,763           $35,805          $36,880           $37,907         $38,950          $39,994       $41,037

                        Net cash from operations         $514,118        $787,797          $834,845       $1,198,922        $1,359,286      $1,569,432       $1,779,578    $1,989,724

Cash provided (used) by
operating activities
 Accounts Receivable                                     $350,000        $460,500          $871,315       $1,382,454        $1,643,112      $1,993,930       $2,344,748    $2,695,565
 Inventory                                               $400,000        $612,000          $824,360         $937,091        $1,149,271      $1,331,634       $1,513,997    $1,696,361
 Other current assets                                     $10,000         $10,300           $10,609          $10,927           $11,232         $11,541          $11,850       $12,159
 Other non-current assets                                 $25,000         $25,750           $26,523          $27,318           $28,079         $28,852          $29,625       $30,398
 Accounts payable                                        $600,000        $618,000          $636,540         $640,563          $658,833        $672,856         $686,879      $700,902
 Current portion of long-term debt                       $100,000        $103,000          $106,090         $109,273          $112,318        $115,409         $118,499      $121,590
 Income taxes                                             $30,000         $30,900           $31,827          $32,782           $33,695         $34,623          $35,550       $36,477
 Accrued expenses                                         $90,000         $92,700           $95,481          $98,345          $101,086        $103,868         $106,649      $109,431
 Other current liabilities                                $16,000         $16,480           $16,974          $17,484           $17,971         $18,465          $18,960       $19,454
 Distributions to shareholders                                 $0              $0                $0               $0                $0              $0               $0            $0

                     Net cash used by operations       $1,621,000      $1,969,630        $2,619,719       $3,256,237        $3,755,597      $4,311,177       $4,866,757    $5,422,337

Investment transactions
Increases (decreases)
  Land                                                           $0               $0               $0                $0              $0                 $0            $0            $0
  Buildings and improvements                                     $0               $0               $0                $0              $0                 $0            $0            $0
  Equipment                                                      $0               $0               $0                $0              $0                 $0            $0            $0
  Intangible assets                                              $0               $0               $0                $0              $0                 $0            $0            $0

                       Net cash from investments                 $0               $0               $0                $0              $0                 $0            $0            $0

Financing transactions
Increases (decreases)
  Short term notes payable                               $100,000        $103,000          $106,090         $109,273          $112,318        $115,409         $118,499      $121,590
  Long term debt                                         $601,200        $624,200          $645,630         $668,308          $690,523        $712,799         $735,074      $757,350
  Deferred income                                        $100,000        $103,000          $106,090         $109,273          $112,318        $115,409         $118,499      $121,590
  Deferred income taxes                                   $30,000         $30,900           $31,827          $32,782           $33,695         $34,623          $35,550       $36,477
  Other long-term liabilities                             $50,000         $51,500           $53,045          $54,636           $56,159         $57,704          $59,250       $60,795
  Capital invested                                       $950,000        $678,500        $1,853,045       $2,469,710        $2,921,233      $3,494,600       $4,067,968    $4,641,335

                          Net cash from financing      $1,831,200      $1,591,100        $2,795,727       $3,443,982        $3,926,246      $4,530,543       $5,134,840    $5,739,137

                 Net increase (decrease) in cash         $724,318        $409,267        $1,010,853       $1,386,667        $1,529,935      $1,788,798       $2,047,661    $2,306,524

                     Cash at beginning of period         $451,000        $464,530          $478,466          $492,820        $506,553            $520,492     $534,432      $548,371

                     Cash at the end of period         $1,175,318        $873,797        $1,489,319       $1,879,487        $2,036,487      $2,309,290       $2,582,093    $2,854,896




                                                                                    Projected Cash Flow

                                                $3,000,000

                                                $2,500,000

                                                $2,000,000

                                                $1,500,000

                                                $1,000,000

                                                    $500,000

                                                         $0
                                                               2003      2004       2005       2006       2007       2008     2009        2010




                                                                                Prepared by You




                                                               © Copyright, 2009, JaxWorks, All Rights Reserved.
                    Cash Flow Sensitivity Analysis

% change in assumptions                         5.0%


                                            Most Likely          Pessimistic         Optimistic
Beginning Cash Balance                             $12,000              $12,000           $12,000
Cash Inflows (Income):
      Accounts Receivable Collections            $264,600               251,370           277,830
      Loan Proceeds                                    $0
      Cash Sales                                  $30,000                28,500            31,500
      Other:
      Enter description here                           $0
      Enter description here                           $0
      Enter description here                           $0
        Total Cash Inflows                       $294,600              $279,870          $309,330
Available Cash Balance                           $306,600              $291,870          $321,330
Cash Outflows (Expenses):
      Advertising                                   $15,456             $16,229           $14,683
      Bank Service Charges                               $0
      Cash Purchases                                   $893                   $938           $848
      Contingencies                                      $0
      Credit Card Fees                                   $0
      Delivery Charges                                   $0
      Deposits                                           $0
      Dues & Subscriptions                               $0
      Employee Benefits                              $7,022              $7,373            $6,671
      Health Insurance                                   $0
      Insurance                                      $2,276              $2,390            $2,162
      Interest                                           $0
      Inventory Purchases                                $0
      Lease Payments                                     $0
      Licenses & Permits                                 $0
      Miscellaneous                                     $70                 $74               $67
      Office Supplies                                $2,113              $2,219            $2,007
      Payroll                                       $30,000             $31,500           $28,500
      Payroll Taxes                                  $2,341              $2,458            $2,224
      Professional Fees                                  $0
      Rent or Lease                                  $2,000              $2,100            $1,900
      Repairs & Maintenance                          $1,301              $1,366            $1,236
      Sales tax                                          $0
      Services                                           $0
      Signs                                              $0
      Supplies                                           $0
      Taxes & Licenses                                   $0
      Utilities & Telephone                            $850                   $893           $808
      Other:
      Enter description here                             $0
      Enter description here                             $0
      Enter description here                             $0
        Subtotal                                   $64,322              $67,538           $61,106
Other Cash Out Flows:
      Capital Purchases                                  $0
      Building Construction                              $0
      Decorating                                         $0
      Fixtures & Equipment                               $0
      Install Fixtures & Equip.                          $0
      Remodeling                                         $0
      Lease Payments                                     $0
      Loan Principal                                     $0
      Owner's Draw                                   $6,000              $6,300            $5,700
      Other:
      Enter description here                            $0
      Enter description here                            $0
      Enter description here                            $0
        Subtotal                                   $6,000                $6,300            $5,700
        Total Cash Outflows                       $70,322               $73,838           $66,806
Ending Cash Balance                              $236,278              $218,032          $254,524




                          © Copyright, 2009, JaxWorks, All Rights Reserved.
           Cash Flow Sensitivity Analysis - Aged AR

100% Total Credit Sales                    $270,000
 60% 30 Days                               $162,000
 30% 60 Days                               $81,000
  5% 90 Days                               $13,500
  4% 120 Days                              $10,800
  1% Unrecoverable                         ($2,700)
      Total Projected Collections          $264,600


% change in assumptions                            5.0%


                                               Most Likely           Pessimistic         Optimistic
Beginning Cash Balance                                $12,000                  $12,000        $12,000
Cash Inflows (Income):
      Accounts Receivable Collections                $264,600                  251,370        277,830
      Loan Proceeds                                        $0
      Cash Sales                                      $30,000                   28,500         31,500
      Other:
      Enter description here                               $0
      Enter description here                               $0
      Enter description here                               $0
        Total Cash Inflows                           $294,600                 $279,870       $309,330
Available Cash Balance                               $306,600                 $291,870       $321,330
Cash Outflows (Expenses):
      Advertising                                      $15,456                 $16,229        $14,683
      Bank Service Charges                                  $0
      Cash Purchases                                      $893                   $938            $848
      Contingencies                                         $0
      Credit Card Fees                                      $0
      Delivery Charges                                      $0
      Deposits                                              $0
      Dues & Subscriptions                                  $0
      Employee Benefits                                 $7,022                  $7,373         $6,671
      Health Insurance                                      $0
      Insurance                                         $2,276                  $2,390         $2,162
      Interest                                              $0
      Inventory Purchases                                   $0
      Lease Payments                                        $0
      Licenses & Permits                                    $0
      Miscellaneous                                        $70                     $74            $67
      Office Supplies                                   $2,113                  $2,219         $2,007
      Payroll                                          $30,000                 $31,500        $28,500
      Payroll Taxes                                     $2,341                  $2,458         $2,224
      Professional Fees                                     $0
      Rent or Lease                                     $2,000                  $2,100         $1,900
      Repairs & Maintenance                             $1,301                  $1,366         $1,236
      Sales tax                                             $0
      Services                                              $0
      Signs                                                 $0
      Supplies                                              $0
      Taxes & Licenses                                      $0
      Utilities & Telephone                               $850                   $893            $808
      Other:
      Enter description here                                $0
      Enter description here                                $0
      Enter description here                                $0
        Subtotal                                      $64,322                  $67,538        $61,106
Other Cash Out Flows:
      Capital Purchases                                     $0
      Building Construction                                 $0
      Decorating                                            $0
      Fixtures & Equipment                                  $0
      Install Fixtures & Equip.                             $0
      Remodeling                                            $0
      Lease Payments                                        $0
      Loan Principal                                        $0
      Owner's Draw                                      $6,000                  $6,300         $5,700
      Other:
      Enter description here                                $0
      Enter description here                                $0
      Enter description here                                $0
        Subtotal                                       $6,000                   $6,300         $5,700
        Total Cash Outflows                           $70,322                  $73,838        $66,806
Ending Cash Balance                                  $236,278                 $218,032       $254,524




                          © Copyright, 2009, JaxWorks, All Rights Reserved.
                                 The Prediction of Corporate Failure
                                                 Logit Analysis: The Model
                                                     Chistine Zavgren

Bankruptcy prediction models are more generally known as measures of financial distress. The best-known, and most-widely
used, multiple discriminant analysis method is the one proposed by Edward Altman, Professor of Finance at the Stern
School of Business, New York University, The Z-Score Analysis or Zeta Model. Despite the positive results of his study,
Altman’s model had a key weakness: it assumed variables in the sample data to be normally distributed. "If all variables are
not normally distributed, the methods employed may result in selection of an inappropriate set of predictors". Chistine
Zavgren developed a model that corrected for this problem. Her model used logit analysis to predict bankruptcy. Due to its
use of logit analysis, her model is considered "more robust". Further, logit analysis actually provides a probability (in terms of
a percentage) of bankruptcy. Also, the probability calculated might be considered a measure of the effectiveness of
management, i.e. effective management will not lead a company to the verge of bankruptcy.



Application of the logit model requires four steps. First, a series of seven financial ratios are calculated. Second, each ratio is
multiplied by a coefficient unique to that ratio. This coefficient can be either positive or negative. Third, the resulting values
are summed together (y). Finally, the probability of bankruptcy for a firm is calculated as the inverse of (1 + ey) where "e" is
the base of natural logarithms."Explanatory variables with a negative coefficient increase the probability of bankruptcy
because they reduce ey toward zero, with the result that the bankruptcy probability function approaches 1/1, or 100 percent.
Likewise, independent variables with a positive coefficient decrease the probability of bankruptcy".




Logit Analysis developed by Christine Zavgren-Bankruptcy Predictor
Zavgren, C. 1983, The Prediction of Corporate Failure: The State of the Art, Journal of Accounting Literature

                                                        Year           Year           Year          Year
                                                        2003           2004           2005          2006
Cash                                                    $451,000       $464,530       $478,466      $492,820
Marketable Securities                                    $10,000        $10,300        $10,609       $10,927
Accounts Receivable                                     $350,000       $460,500       $871,315    $1,382,454
Inventory                                               $400,000       $612,000       $824,360      $937,091
Fixed Assets                                          $2,900,000     $2,487,000     $3,221,800    $3,285,454
Total Assets                                          $4,167,200     $4,094,180     $5,467,899    $6,172,246
Current Liabilities                                     $936,000       $964,080       $993,002    $1,007,719
Long Term Debt                                          $601,200       $624,200       $645,630      $668,308
Sales                                                 $1,960,000     $2,500,000     $2,651,800    $3,205,454
Income from Continuing Operations                       $656,240     $1,044,863     $1,109,658    $1,617,279

            Logit Analysis
                                                        Year           Year           Year          Year
                                                        2003           2004           2005          2006
Constant                                                  0.23883       0.23883        0.23883        0.23883
Inventories/Sales                                           -0.022        -0.026         -0.034         -0.032
Receivables/Inventory                                       -1.385        -1.191         -1.673         -2.335
Cash+Marketable Securities/Total Assets                     -1.193        -1.250         -0.964         -0.880
Quick Assets/Current Liabilities                             2.663         2.982          4.211          5.754
Income from CO/(Total Assets-Current Liab)                   0.099         0.162          0.121          0.152
Long-Term Debt/(Total Assets-Current Liab)                  -0.809        -0.867         -0.628         -0.563
Sales/(Net Working Capital+Fixed Assets)                     0.068         0.090          0.066          0.069
Sum of Coefficients * Ratios                                -0.340         0.138          1.338          2.404

            Probability of Bankruptcy                     58.42%         46.56%        20.78%          8.28%

                                                          Prepared by You




                                          © Copyright, 2009, JaxWorks, All Rights Reserved.
                          The Fulmer H-Factor Model
Fulmer, John G. Jr., Moon, James E., Gavin, Thomas A., Erwin, Michael J., "A Bankruptcy
Classification Model For Small Firms". Journal of Commercial Bank Lending (July 1984): pp. 25-37.

Fulmer used step-wise multiple discriminate analysis to evaluate 40 financial ratios applied to a sample
of 60 companies -30 failed and 30 successful. The average asset size of these firms was $455,000.


Fulmer reported a 98% accuracy rate in classifying the test companies one year prior to failure and an
81% accuracy rate more than one year prior to bankruptcy.

The model takes the following form:
H = 5.528 (V1) + 0.212 (V2) + 0.073 (V3) + 1.270 (V4) - 0.120 (V5) + 2.335 (V6) + 0.575 (V7) + 1.083
(V8) + 0.894 (V9) - 6.075


Fulmer H-Factor Analysis                          Year             Year          Year          Year
                                                  2003             2004          2005          2006
Retained Earnings/Total Assets        V1           0.335957        0.376632      0.308210       0.280257
Sales/Total Assets                    V2           0.470340        0.610623      0.484976       0.519333
EBIT/Equity                           V3           0.280098        0.463591      0.313741       0.386103
Cash Flow/Total Debt                  V4           0.684439        0.492646      0.814016       1.003614
Total Debt/Total Assets               V5           0.412075        0.433220      0.334606       0.303410
Current Liabilities/Total Assets      V6           0.224611        0.235476      0.181606       0.163266
Log Tangible Total Assets             V7           6.518514        6.462248      6.561836       6.570840
Working Capital/Total Debt            V8           0.160843        0.330640      0.653012       0.971301
Log EBIT/Interest                     V9           1.625623        1.808026      1.820942       1.970759

                                                        1.86             2.08        1.70            1.55
                                                        0.10             0.13        0.10            0.11
                                                        0.02             0.03        0.02            0.03
                                                        0.87             0.63        1.03            1.27
                                                       -0.05            -0.05       -0.04           -0.04
                                                        0.52             0.55        0.42            0.38
                                                        3.75             3.72        3.77            3.78
                                                        0.17             0.36        0.71            1.05
                                                        1.45             1.62        1.63            1.76
                                   Sum                  8.70             9.06        9.36            9.90
                                   Less               -6.075           -6.075      -6.075          -6.075
                                   H=                   2.62             2.98        3.28            3.82


If H is less than 0 then the firm is classified as "failed"

                                           Prepared by You




                             © Copyright, 2009, JaxWorks, All Rights Reserved.
                                  Springate Bankruptcy Predictor
                                                 Gordon L. V. Springate
This model was developed in 1978 at S.F.U. by Gordon L.V. Springate, following procedures developed by Altman in
the U.S. Springate used step-wise multiple discriminate analysis to select four out of 19 popular financial ratios that best
distinguished between sound business and those that actually failed.

The Springate model takes the following form:

           Z = 1.03A + 3.07B + 0.66C + 0.4D

           Z < 0.862; then the firm is classified as "failed"

WHERE      A = Working Capital/Total Assets

           B = Net Profit before Interest and Taxes/Total Assets

           C = Net Profit before Taxes/Current Liabilities

           D = Sales/Total Assets

This model achieved an accuracy rate of 92.5% using the 40 companies tested by Springate. Botheras tested the
Springate Model on 50 companies with an average asset size of $2.5 million and found an 88.0% accuracy rate. Sands
tested the Springate Model on 24 companies with an average asset size of $63.4 million and found an accuracy rate of
83.3%.




                                                                 Year          Year          Year         Year
                                                                 2003          2004         2005          2006
Working Capital                                                   276,200       586,450    1,194,748    1,818,973
Net Profit before interest and Taxes                              656,240     1,044,863    1,109,658    1,617,279
Total Assets                                                    4,167,200     4,094,180    5,467,899    6,172,246
Net Profit before Taxes                                           686,240     1,075,763    1,141,485    1,660,061
Current Liabilities                                               936,000       964,080      993,002    1,007,719
Sales                                                           1,960,000     2,500,000    2,651,800    3,205,454

            Analysis
                                                                 Year         Year          Year          Year
                                                                 2003         2004          2005          2006
Working Capital/Total Assets                                         0.07          0.14         0.22         0.29
Net Profit before interest and Taxes/Total Assets                    0.16          0.26         0.21         0.27
Net Profit before Taxes/Current Liabilities                          0.73          1.12         1.15         1.65
Sales/Total Assets                                                   0.47          0.61         0.48         0.52

                                                        Z=            1.25          1.93         1.82         2.42

            If Z is less than 2.675 then the firm is classified as Failed.


                                                        Prepared by You


                                       © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                                          April 26, 2007


                                                   Optimal Operating Analysis

Optimal Operating Statement (Potential Maximum Performance)                                 Projected Analysis                        Reset Spinners         Calculator


                              Potential Maximum        Compare with                        Projected Analysis                                 Current Year
                                 Performance              Year             Use the spinners and watch the bottom line change.
Manufacturer                   -$-           -%-          2003                Click Here for the Expense / Sales worksheet           200
Gross Sales                  $3,285,454     101.52%       $2,010,000         100%        Projected Sales               $2,010,000
                                                                                                                                     150
Discounts/Allowances           ($50,000)      -1.52%         ($50,000)                   Discounts/Allowances            ($50,000)
                                                                                                                                     100
Net Sales                    $3,205,454     100.00%       $1,960,000                     Net Sales                     $1,960,000
                                                                                                                                     50

Direct Material Cost          $432,513       13.49%         $320,000         100%        Projected Direct Materials     $320,000      0

Direct Labor Cost             $346,364       10.81%         $300,000         100%        Projected Direct Labor         $300,000
Other Direct Costs            $136,591        4.26%         $125,000         100%        Projected Other Direct         $125,000
Total Cost of Sales           $915,467       28.56%         $745,000                     Total Cost of Sales            $745,000
                                                                                                                                      Projections vs. Current Year
Gross Profit                 $2,289,987      71.44%       $1,215,000                     Gross Profit                  $1,215,000
                                                                                                                                     200

Total Fixed Expenses          $396,977       12.38%         $329,993         100%        Projected Fixed Expenses       $329,993     150

Total Variable Expenses       $221,095        6.90%         $178,767         100%        Projected Variable Expenses    $178,767     100

Operating expenses            $618,071       19.28%         $508,760                     Operating expenses             $508,760      50

Interest                       $17,757        0.55%          $16,250         100%        Interest                        $16,250       0

Depreciation                   $35,514        1.11%          $32,500         100%        Depreciation                    $32,500
Amortization                    $1,366        0.04%            $1,250        100%        Amortization                     $1,250
Other                                $0       0.00%                $0        100%        Other                                 $0          Maximum Potential
Total expenses                $672,707       20.99%         $558,760                     Total expenses                 $558,760
                                                                                         Other Income                    $30,000
                                                                                                                                     350
Operating income             $1,617,279      50.45%         $656,240                     Operating income               $656,240     300
                                                                                                                                     250
Income before tax            $1,660,061      51.79%         $686,240     Change in       Income before tax              $686,240     200
                                                                                                                                     150
Income taxes                  $336,690       10.50%         $205,872     Net Income      Income taxes                   $205,872
                                                                                                                                     100
Net income                   $1,162,043      36.25%         $480,368         0.00%       Net income                     $480,368      50
                                                                                                                                       0
Return On Ownership          $1,357,043      42.34%         $670,368          $0         Return On Ownership            $670,368


                                                                         Prepared by You




                                                         © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                                                                   April 26, 2007


                                                                      Comparative Payroll Analysis
                                                                                                                                                                             Reset Spinners             Calculator



                              Payroll Analysis                                                                                   Projected Payroll Analysis
                   This analysis uses simple direct proportions.                                                                               Projected Analysis
 Refer to it as a payroll performance snapshot in positive & negative situations.                                           Use the spinners to experiment with the payroll demand.


CURRENT NUMBER OF EMPLOYEES                                            37                                CURRENT NUMBER OF EMPLOYEES                                               37
CURRENT SALES ANNUALIZED (Weekly X 52 Weeks)                       $3,399,968                            CURRENT SALES ANNUALIZED (Weekly X 52 Weeks)                           $3,399,968            100%
CURRENT COMPLETED YEAR SALES                                       $3,285,454                            CURRENT COMPLETED YEAR SALES                                           $3,285,454            100%
CURRENT PAYROLL ANNUALIZED (Weekly X 52 Weeks)                       $350,064                            CURRENT PAYROLL ANNUALIZED (Weekly X 52 Weeks)                           $350,064            100%
PRIOR YEAR PAYROLL                                                   $313,647                            PRIOR YEAR PAYROLL                                                       $313,647            100%



SALES VOLUME REQUIRED, AT CURRENT PAYROLL LEVEL, TO PRODUCE PROFITS                                      SALES VOLUME REQUIRED, AT CURRENT PAYROLL LEVEL, TO PRODUCE PROFITS
EQUAL TO THE PREVIOUS YEAR PROFITS--------       $3,666,922                                              EQUAL TO THE PREVIOUS YEAR PROFITS--------          $3,666,922



SALES DEFICIENCY = SALES REQUIRED MINUS CURRENT VOLUME                                                   SALES DEFICIENCY = SALES REQUIRED MINUS CURRENT VOLUME
SALES DEFICIENCY IS---------------     ($266,954)                                                        SALES DEFICIENCY IS---------------        ($266,954)


GROSS PAYROLL ALLOWABLE                                                                                  GROSS PAYROLL ALLOWABLE
UNDER PROJECTED CONDITIONS-----                     $324,579                                             UNDER PROJECTED CONDITIONS-----                         $324,579


GROSS PAYROLL BURDEN IS------                        ($25,485)               OR            -8.1%         GROSS PAYROLL BURDEN IS------                           ($25,485)               OR                  -8.1%


THE NUMBER OF NEEDED EMPLOYEES ON THE PAYROLL . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                        -3.01            THE NUMBER OF EXCESS EMPLOYEES ON THE PAYROLL . . . . . . . . . . . . . . . . . . . . . . . . . . . . -3.01



                                                                                                Prepared by You




                                                                                © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


                                                                         April 26, 2007


Expense Analysis
Choose a Financial Period and Click The Respective Button
2003
2004                                       Reset Spinners                 Calculator

2005
2006                                 Projected            Actual             Change
Net Sales                              $1,960,000         $1,960,000                   $0

Total Expenses                         $1,303,760         $1,303,760                   $0

Operating Income                         $656,240           $656,240                   $0



                Type of                Actual                                  Change Expense
                Expense             Expense Value      To a Value of:           By Difference:           By Percentage   Percentage Of Actual Expenses
Net Sales                              $1,960,000         $1,960,000                   $0                      0.00%      60.05%

Direct Material Cost                     $320,000           $320,000                   $0                      0.00%       9.80%

Direct Labor Cost                        $300,000           $300,000                   $0                      0.00%       9.19%

Other Direct Costs                       $125,000           $125,000                   $0                      0.00%       3.83%

Executive Salaries                       $190,000           $190,000                   $0                      0.00%       5.82%

Advertising                               $50,000            $50,000                   $0                      0.00%       1.53%

Auto & Truck Expenses                     $30,000            $30,000                   $0                      0.00%       0.92%

Depreciation                               $5,000              $5,000                  $0                      0.00%       0.15%

Employee Benefits                          $3,000              $3,000                  $0                      0.00%       0.09%

Home Office Business Expenses              $1,000              $1,000                  $0                      0.00%       0.03%

Insurance                                  $3,906              $3,906                  $0                      0.00%       0.12%

Bank Charges                               $2,133              $2,133                  $0                      0.00%       0.07%

Legal & Professional Services              $1,000              $1,000                  $0                      0.00%       0.03%

Meals & Entertainment                      $4,000              $4,000                  $0                      0.00%       0.12%

Office Expense                             $6,000              $6,000                  $0                      0.00%       0.18%

Retirement Plans                           $1,000              $1,000                  $0                      0.00%       0.03%

Rent - Equipment                           $3,000              $3,000                  $0                      0.00%       0.09%

Rent - Office & Business Property          $8,750              $8,750                  $0                      0.00%       0.27%

Repairs                                    $1,000              $1,000                  $0                      0.00%       0.03%

Supplies                                   $1,000              $1,000                  $0                      0.00%       0.03%

Taxes - Business & Payroll                 $1,000              $1,000                  $0                      0.00%       0.03%

Travel                                     $6,230              $6,230                  $0                      0.00%       0.19%

Utilities                                 $11,974            $11,974                   $0                      0.00%       0.37%

Office salaries                           $90,000            $90,000                   $0                      0.00%       2.76%

Employee benefits                         $43,000            $43,000                   $0                      0.00%       1.32%

Payroll taxes                             $18,000            $18,000                   $0                      0.00%       0.55%

Sales and Marketing                       $14,000            $14,000                   $0                      0.00%       0.43%

Telephone and telegraph                    $6,000              $6,000                  $0                      0.00%       0.18%

Stationary and office supplies             $2,110              $2,110                  $0                      0.00%       0.06%

Interest                                  $16,250            $16,250                   $0                      0.00%       0.50%

Depreciation                              $32,500            $32,500                   $0                      0.00%       1.00%

Amortization                               $1,250              $1,250                  $0                      0.00%       0.04%

Bad debts                                   $100                $100                   $0                      0.00%       0.00%

Postage                                    $5,557              $5,557                  $0                      0.00%       0.17%

Contributions                                   $0                 $0                  $0                      0.00%       0.00%

Other Expenses                                  $0                 $0                  $0                      0.00%       0.00%

Total All Expenses                     $3,263,760         $3,263,760                   $0                          0%        100%



                                                                        Prepared by You




                                                     © Copyright, 2009, JaxWorks, All Rights Reserved.
                               Expense Budget
       Account              Budget             Actual          Difference ($)        Difference (%)
Labor
Office                          $25,000            $28,150                 $3,150            12.6%
Store                           $15,000            $16,260                 $1,260             8.4%
Salespeople                     $27,500            $23,220                ($4,280)          -15.6%
Others                          $12,000             $9,640                ($2,360)          -19.7%
Operations
Advertising                     $48,000            $37,260           ($10,740)              -22.4%
Bad Debts                        $4,000             $6,130             $2,130                53.3%
Cash Discounts                   $6,000             $9,260             $3,260                54.3%
Delivery Costs                   $3,400             $5,150             $1,750                51.5%
Depreciation                     $3,000             $2,570              ($430)              -14.3%
Dues and Subscriptions             $500               $370              ($130)              -26.0%
Employee Benefits               $14,000            $12,850            ($1,150)               -8.2%
Insurance                        $6,000             $4,520            ($1,480)              -24.7%
Interest                           $450               $440               ($10)               -2.2%
Legal and Auditing               $1,000             $1,300               $300                30.0%
Maintenance and Repairs          $1,500             $1,420               ($80)               -5.3%
Office Supplies                    $300               $370                $70                23.3%
Postage                            $125               $160                $35                28.0%
Rent or Mortgage                 $2,500             $3,570             $1,070                42.8%
Sales Expenses                   $1,200               $910              ($290)              -24.2%
Shipping and Storage               $600               $890               $290                48.3%
Supplies                           $250               $200               ($50)              -20.0%
Taxes                            $2,000             $1,320              ($680)              -34.0%
Telephone                          $250               $260                $10                 4.0%
Utilities                          $450               $450                 $0                 0.0%
Other                            $2,000             $2,460               $460                23.0%
Total Expenses                 $177,025           $169,130            ($7,895)               -4.5%




                      © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                                      April 26, 2007

                                       Increased Sales Versus Expense Reduction
                                                         How Expenses Impact On Profits

                                                                  Year                Year                  Year        Year         Total
                                                                 2003                2004                  2005        2006         Impact
A 2% reduction in expenses equals
an additional profit of.......................................    $29,593             $34,939              $37,055     $40,868      $142,455
          OR
at your present net profit of.................................. 480,368
                                                              $                    $753,034           $799,039       $1,162,043    $3,194,484
and your current net sales of................................$1,960,000           $2,500,000         $2,651,800      $3,205,454   $10,317,254
your current total costs are................................ $1,479,632           $1,746,966         $1,852,761      $2,043,411    $7,122,770
A cost reduction yields a new profit of.........… $509,961                         $787,974           $836,094       $1,202,911    $3,336,940

Therefore you would have to build an
additional sales volume of................................       $120,744           $115,995           $122,976       $112,734      $472,449
to equal the expense reduction.

The Conclusion: A reduction in expenses is far more efficient than building additional sales volume.

                                 2
Try another percentage……………………………………………………

                                                                     Prepared by You




                                                       © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                        April 26, 2007

                        Breakdown of Operating Costs
TOTAL OPERATING COSTS
COMPARATIVE PERIODS                   Year          Year           Year        Year       Trend
                                      2003          2004           2005        2006       2007
Total For Period                      $745,000      $871,350        $894,301   $915,467   $990,118
1 DAY                                   $2,041        $2,387          $2,450     $2,508     $2,713
1 HOUR                                  $85.05        $99.47         $102.09    $104.51    $113.03
1 MINUTE                                 $1.42         $1.66           $1.70      $1.74      $1.88
LABOR EXPENSE
COMPARATIVE PERIODS                   Year          Year           Year        Year       Trend
                                      2003          2004           2005        2006       2007
Total For Period                      $300,000      $315,000        $330,450   $346,364   $361,589
1 DAY                                     $822          $863            $905      $949       $991
1 HOUR                                  $34.25        $35.96          $37.72     $39.54     $41.28
1 MINUTE                                 $0.57         $0.60           $0.63      $0.66      $0.69
MATERIAL EXPENSE
COMPARATIVE PERIODS                   Year          Year           Year        Year       Trend
                                      2003          2004           2005        2006       2007
Total For Period                      $320,000      $427,600        $431,238   $432,513   $488,132
1 DAY                                     $877        $1,172          $1,181     $1,185     $1,337
1 HOUR                                  $36.53        $48.81          $49.23     $49.37     $55.72
1 MINUTE                                 $0.61         $0.81           $0.82      $0.82      $0.93
OTHER EXPENSES
COMPARATIVE PERIODS                   Year          Year           Year        Year       Trend
                                      2003          2004           2005        2006       2007
Total For Period                      $125,000      $128,750        $132,613   $136,591   $140,397
1 DAY                                     $342          $353            $363      $374       $385
1 HOUR                                  $14.27        $14.70          $15.14     $15.59     $16.03
1 MINUTE                                 $0.24         $0.24           $0.25      $0.26      $0.27


                                        Prepared by You




                        © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                               April 26, 2007


                             B/E Adjusted By Reducing Expenses on Existing Sales Volume
                                              Adjusted                                            Current                        Total
                                              Expenses                                             Year                        Impact of
FOR THE PERIOD OF......                        2003                                               2003                        Reductions

BREAK-EVEN VOLUME (DOLLARS)……………………………………………………………
                                       $636,455                                                      $636,455                           $0
BREAK-EVEN POINT (PERCENT)……………………………………………………………
                                         32.47%                                                        32.47%                        0.00%
DATE OF BREAK-EVEN…………………………………………………………… Apr 27                                                        Apr 27                           0 Days Less

ON SALES VOLUME OF……………………………………………………………
                                     $1,960,000                                                    $1,960,000                 Profit Impact   Profit Impact
 WITH VARIABLE COSTS OF……………………………………………………………
                                      $943,767                                                      $943,767                      Over            Over
 AND FIXED EXPENSES OF……………………………………………………………
                                      $329,993                                                      $329,993                    1 Year          4 Years
                                      $686,240
 OPERATING PROFIT IS……………………………………………………………                                                         $686,240                             $0             $0
OPERATING PROFIT (%) IS……………………………………………………………
                                         35.01%                                                        35.01%
                                                                                                                                Impact           Impact
                                                                                                                                 Over             Over
SALES VOLUME REQUIRED                                                                                                           1 Year          4 Years
                                    $636,455 PER
BEFORE PROFIT BEGINS…………………………………………………………… YEAR                                                     $636,455    PER YEAR               $0              $0
                                     $53,038 PER MONTH                                                $53,038    PER MONTH              $0              $0
                                     $12,335 PER WEEK                                                 $12,335    PER WEEK               $0              $0
                                      $2,467 PER DAY                                                   $2,467    PER DAY                $0              $0
                                       $308 PER HOUR                                                    $308     PER HOUR               $0              $0
                                       $5.14 PER MINUTE                                                 $5.14    PER MINUTE          $0.00           $0.00

                                                              Prepared by You




                                              © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                 April 26, 2007

             Breakeven Analysis Dollars & Percentage - 4 Periods

                                                          Year            Year         Year          Year
                                                          2003            2004         2005          2006
ON SALES VOLUME OF...........                           $1,960,000      $2,500,000    $2,651,800    $3,205,454
BREAKEVEN VOLUME (DOLLARS)                                $636,455        $593,738      $668,999      $618,603
BREAKEVEN POINT (PERCENT)                                   32.47%          23.75%        25.23%        19.30%
DAYS REQUIRED TO BREAKEVEN                                      119              87            92            70
DATE OF BREAKEVEN                                            Apr 27          Mar 26        Apr 01        Mar 10


SALES VOLUME REQUIRED
BEFORE PROFIT BEGINS.........                             $636,455        $593,738     $668,999      $618,603
Per Month                                                  $53,038         $49,478      $55,750       $51,550
Per Week                                                   $12,240         $11,418      $12,865       $11,896
Per Day                                                     $1,744          $1,627       $1,833        $1,695
Per Hour                                                      $218            $203         $229          $212
Per Minute                                                   $3.63           $3.39        $3.82         $3.53




                                © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                                                   April 26, 2007


Breakeven Analysis - Period 1
       Revenues              Cost of Sales          Gross Profit        Fixed Exp.     Income Taxes     Net Income   Income Variance
             $1,960,000              $745,000          $1,215,000        $329,993         $205,872        $480,368               $0


                                 Breakeven Period 1                                                                   Income Chart Period 1
                                                                                                 $2,500,000

            $2,500,000                                                                                                                             Sales Revenue
                                                                                                                                                   100.0%
                                                                                                 $2,000,000                                        Cost of Sales 38.0%
            $2,000,000

                                                                                                                                                   Gross Profit
  Revenue




            $1,500,000
                                                                                                 $1,500,000                                        62.0%
                                                                                                                                                   Fixed Expenses
            $1,000,000                                                                                                                             16.8%
                                                                                                 $1,000,000                                        Other Expenses
             $500,000                                                                                                                              11.7%
                                                                                                                                                   Income Before Tax
                   $0                                                                                                                              35.0%
                                                                                                      $500,000
                         0

                             1

                                 2

                                     3

                                          4

                                                5

                                                    6

                                                         7

                                                             8

                                                                    9

                                                                        10

                                                                             11

                                                                                  12




                                                                                                                                                   Income Taxes
                                                Months                                                                                             10.5%

                         REVENUE         FIXED COSTS         TOTAL COSTS
                                                                                                           $0

Total Sales:                                           $1,960,000   Projected Sales:                      100%       Value of Projected Sales:             $1,960,000
Total Cost of Sales:                                    $745,000    Projected Cost of Sales:              100%       Value of Projected Cost of Sales:      $745,000
Total Fixed Expenses:                                   $329,993    Projected Fixed Expenses:             100%       Value of Projected Fixed Expenses:     $329,993


Breakeven Percentage:                                     32.47%    Breakeven Dollars                      $636,455 Breakeven Date                              A pr 27


                                                                                  Prepared by You




                                                           © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                                                  April 26, 2007


Breakeven Analysis - Period 2
       Revenues              Cost of Sales          Gross Profit       Fixed Exp.     Income Taxes     Net Income   Income Variance
             $2,500,000              $871,350         $1,628,650        $335,065         $322,729        $753,034               $0


                                 Breakeven Period 2                                                                  Income Chart Period 2
                                                                                                 $3,000,000
            $3,000,000                                                                                                                            Sales Revenue
                                                                                                 $2,500,000                                       100.0%
            $2,500,000                                                                                                                            Cost of Sales 34.9%
            $2,000,000                                                                           $2,000,000                                       Gross Profit
  Revenue




                                                                                                                                                  65.1%
            $1,500,000
                                                                                                                                                  Fixed Expenses
                                                                                                 $1,500,000                                       13.4%
            $1,000,000
                                                                                                                                                  Other Expenses 9.9%
             $500,000
                                                                                                 $1,000,000
                                                                                                                                                  Income Before Tax
                   $0                                                                                                                             43.0%
                         0

                             1

                                 2

                                       3

                                           4

                                                5

                                                    6

                                                         7

                                                               8

                                                                   9

                                                                       10

                                                                            11

                                                                                 12




                                                                                                     $500,000                                     Income Taxes
                                                 Months                                                                                           12.9%

                             REVENUE           FIXED COSTS         TOTAL COSTS                            $0

Total Sales:                                          $2,500,000     Projected Sales:                    100%       Value of Projected Sales:             $2,500,000
Total Cost of Sales:                                    $871,350     Projected Cost of Sales:            100%       Value of Projected Cost of Sales:      $871,350
Total Fixed Expenses:                                   $335,065     Projected Fixed Expenses:           100%       Value of Projected Fixed Expenses:     $335,065


Breakeven Percentage:                                    23.75%      Breakeven Dollars                    $593,738 Breakeven Date                              Mar 26


                                                                                 Prepared by You




                                                             © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                                                     April 26, 2007


Breakeven Analysis - Period 3
      Revenues                Cost of Sales         Gross Profit          Fixed Exp.     Income Taxes     Net Income   Income Variance
             $2,651,800              $894,301         $1,757,500           $385,138         $342,445        $799,039               $0


                                 Breakeven Period 3                                                                     Income Chart Period 3
                                                                                                   $3,000,000
            $3,000,000                                                                                                                               Sales Revenue
                                                                                                   $2,500,000                                        100.0%
            $2,500,000                                                                                                                               Cost of Sales 33.7%
            $2,000,000                                                                             $2,000,000
  Revenue




                                                                                                                                                     Gross Profit
                                                                                                                                                     66.3%
            $1,500,000
                                                                                                                                                     Fixed Expenses
                                                                                                   $1,500,000                                        14.5%
            $1,000,000
                                                                                                                                                     Other Expenses 9.9%
             $500,000
                                                                                                   $1,000,000
                                                                                                                                                     Income Before Tax
                   $0                                                                                                                                43.0%
                         0

                             1

                                 2

                                       3

                                           4

                                                5

                                                     6

                                                         7

                                                                8

                                                                      9

                                                                          10

                                                                               11

                                                                                    12




                                                                                                        $500,000                                     Income Taxes
                                                 Months                                                                                              12.9%

                             REVENUE           FIXED COSTS          TOTAL COSTS                              $0

Total Sales:                                          $2,651,800      Projected Sales:                      100%       Value of Projected Sales:             $2,651,800
Total Cost of Sales:                                     $894,301     Projected Cost of Sales:              100%       Value of Projected Cost of Sales:       $894,301
Total Fixed Expenses:                                    $385,138     Projected Fixed Expenses:             100%       Value of Projected Fixed Expenses:      $385,138


Breakeven Percentage:                                        25.23%   Breakeven Dollars                      $668,999 Breakeven Date                              A pr 01


                                                                                    Prepared by You




                                                             © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                                                                    April 26, 2007


Breakeven Analysis - Period 4
      Revenues               Cost of Sales          Gross Profit        Fixed Exp.       Income Taxes     Net Income    Income Variance
             $3,205,454              $915,467         $2,289,987         $396,977           $498,018       $1,162,043               $0


                                 Breakeven Period 4                                                                      Income Chart Period 4
                                                                                                   $3,500,000
            $3,500,000                                                                                                                                Sales Revenue
                                                                                                   $3,000,000                                         100.0%
            $3,000,000
                                                                                                                                                      Cost of Sales 28.6%
            $2,500,000                                                                             $2,500,000
                                                                                                                                                      Gross Profit
  Revenue




            $2,000,000                                                                                                                                71.4%
                                                                                                   $2,000,000
            $1,500,000                                                                                                                                Fixed Expenses
                                                                                                                                                      12.4%
            $1,000,000                                                                             $1,500,000                                         Other Expenses 8.6%
             $500,000
                                                                                                   $1,000,000                                         Income Before Tax
                   $0                                                                                                                                 51.8%
                         0

                             1

                                 2

                                       3

                                           4

                                                5

                                                     6

                                                          7

                                                               8

                                                                    9

                                                                         10

                                                                              11

                                                                                    12




                                                                                                                                                      Income Taxes
                                                                                                        $500,000                                      15.5%
                                                 Months
                             REVENUE           FIXED COSTS         TOTAL COSTS                               $0

Total Sales:                                          $3,205,454     Projected Sales:                       100%        Value of Projected Sales:             $3,205,454
Total Cost of Sales:                                     $915,467    Projected Cost of Sales:               100%        Value of Projected Cost of Sales:      $915,467
Total Fixed Expenses:                                    $396,977    Projected Fixed Expenses:              100%        Value of Projected Fixed Expenses:     $396,977


Breakeven Percentage:                                     19.30%     Breakeven Dollars                       $618,603 Breakeven Date                               Mar 10


                                                                                   Prepared by You




                                                             © Copyright, 2009, JaxWorks, All Rights Reserved.
                           Altman's Z-Scores Explained
Publicly Held Firms
Altman's model is probably the classic of this genre. The original data sample consisted
of 66 firms, half of which had filed for bankruptcy under Chapter 7. All businesses in the
database were manufacturers, and small firms with assets of less than $1 million were eliminated.

The Z-Score formula is as follows:
Z = 1.2X.sub.1 + 1.4X.sub.2 + 3.3X.sub.3 + 0.6X.sub.4 + 1.0X.sub.5

Where X.sub.1 = Working Capital/Total Assets.
Where X.sub.2 = Retained Earnings/Total Assets. This is a measure of cumulative
profitability that reflects the firm's age as well as earning power. Many studies have
shown failure rates to be closely related to the age of the business.

Where X.sub.3 = Earnings Before Income Taxes/Total Assets. This is a measure of
operating efficiency separated from any leverage effects. It recognizes operating
earnings as a key to long-run viability.

Where X.sub.4 = Market Value of Equity/Book Value of Debt. This ratio adds a market
dimension. Academic studies of stock markets suggest that security price changes
may foreshadow upcoming problems.

Where X.sub.5 = Sales/Total Assets. This is a standard turnover measure.
Unfortunately, it varies greatly from one industry to another.

Privately Held Firms.
If a firm's stock is not publicly traded, the X4 term (Market Value of Equity/Book Value
of Debt) cannot be calculated. To correct for this problem, the Z score can be re-
estimated using book values of equity. This provides the following score:

Z.sub.1 = .717X.sub.1 + .847X.sub.2 + 3.107X.sub.3 + .420X.sub.4 + .998X.sub.5

Nonmanufacturing-Small Business-Merchandising and Service firms Firms.
The X.sub.5 (Sales/Total Assets) ratio is believed to vary significantly by industry. It is likely
to be higher for merchandising and service firms than for manufacturers, since the former are
typically less capital intensive. Consequently, nonmanufacturers would have significantly higher
asset turnover and Z scores. The model is thus likely to underpredict certain sorts of bankruptcy.
To correct for this potential defect, Altman recommends the following correction that eliminates
the X.sub.5 ratio:

Z.sub.11 = 6.56X.sub.1 + 3.26X.sub.2 + 6.72X.sub.3 + 1.05X.sub.4




                           © Copyright, 2009, JaxWorks, All Rights Reserved.
             The Altman Z-Score Analysis - Publicly Held Firm
Check your Z-Score: How's your Fiscal Fitness?

Routinely used by Stockbrokers trying to determine if a company is a good investment, Bankers to
determine loan risk, and internally, by anyone who wants to take close look at their own company's
financial health.

Data Needed:(Linked From The "Master Data Entry" and Other Worksheets)
• Earnings before taxes
• Total assets
• Net Sales
• Market Value of Equity
• Total Liabilities
• Working Capital
• Retained Earnings

The worksheet will indicate:
The short-term potential for financial problems at your company.

The Expert
Edward I. Altman, Professor and Vice-Director of New York University's Salomon Center,
Leonard N. Stern School of Business.

Dr. Altman is known as the founding father of using statistical techniques to predict company failure.
He developed the Z-Score analysis almost 30 years ago, and is the author of several books, including
The Z-Score Bankruptcy Model: Past, Present, and Future (New York: John Wiley & Sons, 1977),
and Corporate Financial Distress and Bankruptcy, 2nd edition (New York: John Wiley & Sons, 1993).

The Analysis
The original data sample consisted of 66 firms, half of which had filed for bankruptcy under Chapter 7.
All businesses in the database were manufacturers, and small firms with assets of less than $1 million
were eliminated.

                             Altman's Z-score calculates five ratios:
1. return on total assets,
2. sales to total assets,
3. equity to debt,
4. working capital to total assets, and
5. retained earnings to total assets.

These ratios are then multiplied by a predetermined weight factor, and the results are added together.
The final number--the Z-score--yields a number between -4 and +8. Financially-sound companies show
Z-scores above 2.99, while those scoring below 1.81 are in fiscal danger, maybe even heading toward
bankruptcy. Scores that fall between these ends indicate potential trouble. In Altman's initial study
of 66 bankrupt companies, Z-scores for 95 % of these companies pointed to trouble or imminent
bankruptcy.

Although the numbers that go into calculating the Z-score (and a company's financial soundness)
are sometimes influenced by external factors, it provides a good quick analysis of where your company
stands compared to the competition, and a good tool for analyzing the ups and downs of your company's
financial stability over time.

The Altman Z-Score Analysis Process

                                                                               x Weight    x Weighted
          Ratio                                 Formula                         Factor       Ratio
Return on Total Assets              Earnings Before Interest and Taxes         Varies by    Varies by
                                               Total Assets                    Category     Category
Sales to Total Assets                            Net Sales                     Varies by    Varies by
                                               Total Assets                    Category     Category
Equity to Debt                            Market Value of Equity               Varies by    Varies by
                                              Total Liabilities                Category     Category
Working Capital to Total Assets               Working Capital                  Varies by    Varies by
                                               Total Assets                    Category     Category
Retained Earnings to Total Assets            Retained Earnings                 Varies by    Varies by
                                               Total Assets                    Category     Category


                                      Your Z-Score if Publicly Held Firm

                                  Year       Year    Year    Year
                                  2003      2004    2005     2006
Publicly Held Firm                2.40       2.94    3.04    3.51
KEY:
Z-SCORE ABOVE 2.99--YOU'RE IN GOOD SHAPE
Z-SCORE BETWEEN 2.99 and 1.81--WARNING SIGNS
Z-SCORE BELOW 1.81--BIG TROUBLE--COULD BE HEADING TOWARD BANKRUPTCY




                                  © Copyright, 2009, JaxWorks, All Rights Reserved.
       Z-Score Analysis Publicly Held



                            Z-Score Analysis - Publicly Held

4.00
                                                                     3.51
3.50
                                                          3.04
                                2.94
3.00
          2.40
2.50

2.00

1.50

1.00

0.50

0.00

                                           Periods

                                       Z-Score Publicly Held




                 © Copyright, 2009, JaxWorks, All Rights Reserved.
            The Altman Z-Score Analysis - Privately Held Firm
Check your Z-Score: How's your Fiscal Fitness?

Routinely used by Stockbrokers trying to determine if a company is a good investment, Bankers to
determine loan risk, and internally, by anyone who wants to take close look at their own company's
financial health.

Data Needed:(Linked From The "Master Data Entry" and Other Worksheets)
• Earnings before taxes
• Total assets
• Net Sales
• Market Value of Equity
• Total Liabilities
• Working Capital
• Retained Earnings

The worksheet will indicate:
The short-term potential for financial problems at your company.

The Expert
Edward I. Altman, Professor and Vice-Director of New York University's Salomon Center,
Leonard N. Stern School of Business.

Dr. Altman is known as the founding father of using statistical techniques to predict company failure.
He developed the Z-Score analysis almost 30 years ago, and is the author of several books, including
The Z-Score Bankruptcy Model: Past, Present, and Future (New York: John Wiley & Sons, 1977),
and Corporate Financial Distress and Bankruptcy, 2nd edition (New York: John Wiley & Sons, 1993).

The Analysis
The original data sample consisted of 66 firms, half of which had filed for bankruptcy under Chapter 7.
All businesses in the database were manufacturers, and small firms with assets of less than $1 million
were eliminated.

                             Altman's Z-score calculates five ratios:
1. return on total assets,
2. sales to total assets,
3. equity to debt,
4. working capital to total assets, and
5. retained earnings to total assets.

These ratios are then multiplied by a predetermined weight factor, and the results are added together.
The final number--the Z-score--yields a number between -4 and +8. Financially-sound companies show
Z-scores above 2.99, while those scoring below 1.81 are in fiscal danger, maybe even heading toward
bankruptcy. Scores that fall between these ends indicate potential trouble. In Altman's initial study
of 66 bankrupt companies, Z-scores for 95 % of these companies pointed to trouble or imminent
bankruptcy.

Although the numbers that go into calculating the Z-score (and a company's financial soundness)
are sometimes influenced by external factors, it provides a good quick analysis of where your company
stands compared to the competition, and a good tool for analyzing the ups and downs of your company's
financial stability over time.

                                                                         x Weight     x Weighted
           Ratio                                Formula                   Factor        Ratio
Return on Total Assets              Earnings Before Interest and Taxes   Varies by     Varies by
                                              Total Assets                Category     Category
Sales to Total Assets                           Net Sales                Varies by     Varies by
                                              Total Assets                Category     Category
Equity to Debt                            Market Value of Equity         Varies by     Varies by
                                              Total Liabilities           Category     Category
Working Capital to Total Assets              Working Capital             Varies by     Varies by
                                              Total Assets                Category     Category
Retained Earnings to Total Assets           Retained Earnings            Varies by     Varies by
                                              Total Assets                Category     Category


                                     Your Z-Score if Privately Held Firm

                                  Year       Year    Year    Year
                                  2003      2004    2005     2006
Privately Held Firm               1.35       1.88    1.62    1.88
KEY:
Z-SCORE ABOVE 2.90--YOU'RE IN GOOD SHAPE
Z-SCORE BETWEEN 2.90 and 1.23--WARNING SIGNS
Z-SCORE BELOW 1.23--BIG TROUBLE--COULD BE HEADING TOWARD BANKRUPTCY




                                  © Copyright, 2009, JaxWorks, All Rights Reserved.
  Z-Score Analysis Privately Held



                         Z-Score Analysis - Privately Held

2.00                          1.88                                1.88

1.80                                                   1.62
1.60
       1.35
1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00

                                         Periods

                                     Z-Score Privately Held




              © Copyright, 2009, JaxWorks, All Rights Reserved.
             The Altman Z-Score Analysis - Nonmanufacturing
Check your Z-Score: How's your Fiscal Fitness?

Routinely used by Stockbrokers trying to determine if a company is a good investment, Bankers to
determine loan risk, and internally, by anyone who wants to take close look at their own company's
financial health.

Data Needed:(Linked From The "Master Data Entry" and Other Worksheets)
• Earnings before taxes
• Total assets
• Net Sales
• Market Value of Equity
• Total Liabilities
• Working Capital
• Retained Earnings

The worksheet will indicate:
The short-term potential for financial problems at your company.

The Expert
Edward I. Altman, Professor and Vice-Director of New York University's Salomon Center,
Leonard N. Stern School of Business.

Dr. Altman is known as the founding father of using statistical techniques to predict company failure.
He developed the Z-Score analysis almost 30 years ago, and is the author of several books, including
The Z-Score Bankruptcy Model: Past, Present, and Future (New York: John Wiley & Sons, 1977),
and Corporate Financial Distress and Bankruptcy, 2nd edition (New York: John Wiley & Sons, 1993).

The Analysis
The original data sample consisted of 66 firms, half of which had filed for bankruptcy under Chapter 7.
All businesses in the database were manufacturers, and small firms with assets of less than $1 million
were eliminated.

                             Altman's Z-score calculates five ratios:
1. return on total assets,
2. sales to total assets,
3. equity to debt,
4. working capital to total assets, and
5. retained earnings to total assets.

These ratios are then multiplied by a predetermined weight factor, and the results are added together.
The final number--the Z-score--yields a number between -4 and +8. Financially-sound companies show
Z-scores above 2.99, while those scoring below 1.81 are in fiscal danger, maybe even heading toward
bankruptcy. Scores that fall between these ends indicate potential trouble. In Altman's initial study
of 66 bankrupt companies, Z-scores for 95 % of these companies pointed to trouble or imminent
bankruptcy.

Although the numbers that go into calculating the Z-score (and a company's financial soundness)
are sometimes influenced by external factors, it provides a good quick analysis of where your company
stands compared to the competition, and a good tool for analyzing the ups and downs of your company's
financial stability over time.

                                                                               x Weight    x Weighted
           Ratio                                Formula                         Factor       Ratio
Return on Total Assets              Earnings Before Interest and Taxes         Varies by    Varies by
                                               Total Assets                    Category     Category
Sales to Total Assets                           Net Sales                      Varies by    Varies by
                                               Total Assets                    Category     Category
Equity to Debt                            Market Value of Equity               Varies by    Varies by
                                              Total Liabilities                Category     Category
Working Capital to Total Assets              Working Capital                   Varies by    Varies by
                                               Total Assets                    Category     Category
Retained Earnings to Total Assets           Retained Earnings                  Varies by    Varies by
                                               Total Assets                    Category     Category


                 Your Z-Score if Small Business, Service, Retail Sales, or Wholesaler

                                                  Year             Year          Year        Year
                                                  2003             2004          2005        2006
Nonmanufacturing                                  4.09             5.26          5.89        7.02
KEY:
Z-SCORE ABOVE 2.6--YOU'RE IN GOOD SHAPE
Z-SCORE BETWEEN 2.6 and 1.11--WARNING SIGNS
Z-SCORE BELOW 1.11--BIG TROUBLE--COULD BE HEADING TOWARD BANKRUPTCY




                                  © Copyright, 2009, JaxWorks, All Rights Reserved.
Z-Score Analysis Nonmanufacturing



                        Z-Score Analysis - Nonmanufacturing

 8.00
                                                                   7.02
 7.00
                                                       5.89
 6.00                         5.26

 5.00
        4.09
 4.00

 3.00

 2.00

 1.00

 0.00

                                          Periods

                                     Z-Score Nonmanufacturing




               © Copyright, 2009, JaxWorks, All Rights Reserved.
     Current Financial Performance


                          Current Financial Performance



$2,000,000



$1,500,000



$1,000,000



 $500,000



       $0

 Revenue     Cost of Sales    Gross Profit      Total Expenses        Profit   Ownership




                  © Copyright, 2009, JaxWorks, All Rights Reserved.
             Sales Performance


                           Sales Performance

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

 $500,000

       $0
                   2003              2004              2005        2006
    Sales      $1,960,000        $2,500,000        $2,651,800    $3,205,454




             © Copyright, 2009, JaxWorks, All Rights Reserved.
           Total Expenses


                       Total Expenses

     $700,000

     $600,000

     $500,000

     $400,000

     $300,000

     $200,000

     $100,000

            $0
                     2003            2004            2005      2006
Total Expenses    $558,760        $583,787        $647,842   $672,707




       © Copyright, 2009, JaxWorks, All Rights Reserved.
            Materials Cost


                         Materials Cost

    $350,000

    $340,000

    $330,000

    $320,000

    $310,000

    $300,000

    $290,000

    $280,000
                     2003            2004             2005      2006
Materials Cost    $300,000        $315,000         $330,450   $346,364




        © Copyright, 2009, JaxWorks, All Rights Reserved.
General & Administrative Expenses


                  General & Administrative Expenses


  $250,000


  $200,000


  $150,000


  $100,000


   $50,000


       $0
                2003               2004               2005         2006
      G&A    $178,767           $197,222           $209,659      $221,095




             © Copyright, 2009, JaxWorks, All Rights Reserved.
Eight Period Sales Performance Projection


              Eight Period Sales Performance Projection
               $5,000,000


               $4,000,000


               $3,000,000


               $2,000,000


               $1,000,000


                          $0
                               2003 2004 2005 2006 2007 2008 2009 2010
        Sales Performance $2,01 $2,56 $2,72 $3,28 $3,64 $4,04 $4,43 $4,83




              © Copyright, 2009, JaxWorks, All Rights Reserved.
                               Profit


                                    Profit

$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
 $800,000
 $600,000
 $400,000
 $200,000
        $0
                    2003              2004              2005        2006
     Profit      $656,240         $1,044,863        $1,109,658    $1,617,279




              © Copyright, 2009, JaxWorks, All Rights Reserved.
  Return On Ownership


                   Return On Ownership

$1,400,000

$1,200,000

$1,000,000

 $800,000

 $600,000

 $400,000

 $200,000

        $0
                 2003             2004             2005      2006
Ownership     $670,368         $944,034         $994,039   $1,357,043




      © Copyright, 2009, JaxWorks, All Rights Reserved.
              Labor Expenses


                           Labor Expenses


$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
 $50,000
     $0
               2003               2004              2005         2006
   Labor    $320,000           $427,600          $431,238      $432,513




           © Copyright, 2009, JaxWorks, All Rights Reserved.
                                      Ratios - What are they?
This section produces 12 important financial ratios. These ratios are usually thought of as belonging to four basic
categories: profitability ratios, liquidity ratios, activity ratios, and leverage ratios:

Category                 Ratio
Profitability ratios     • Earnings Per Share
                         • Gross Profit Margin
                         • Net Profit Margin
                         • Return on Assets
                         • Return on Equity
Liquidity ratios         • Current Ratio
                         • Quick Ratio
Activity ratios          • Average Collection Period
                         • Inventory Turnover Ratio
Leverage ratios          • Debt Ratio
                         • Equity Ratio
                         • Times Interest Earned Ratio

This is by no means an exhaustive list of the ratios that have been developed to help analyze a company's financial
position and the way that it conducts business. It is, however, representative.

Analyzing Profitability Ratios
If you are considering investing money in a company, its profitability is a major concern. If the company intends to
pay dividends to its stockholders, those dividends must come out of its profits. If the company hopes to increase
its worth in the marketplace by enhancing or expanding its product line, then an important source of capital to
make improvements is its profit margin. There are several different, but related, means of evaluating a company's
profitability.

Analyzing Liquidity Ratios
The issue of liquidity, as you might expect, concerns creditors. Liquidity is a company's ability to meet its debts as
they come due. A company may have considerable total assets, but if those assets are difficult to convert to cash
it is possible that the company might be unable to pay its creditors in a timely fashion. Creditors want their loans to
be paid in the medium of cash, not in a medium such as inventory or factory equipment.

Analyzing Activity Ratios
There are various ratios that can give you insight into how well a company manages its operating and sales
activities. One primary goal-perhaps, the primary goal-of these activities is to produce income through effective
use of its resources. Two ways to measure this effectiveness are the Average Collection Period and the Inventory
Turnover rate.

Analyzing Leverage Ratios
The term "leverage" means the purchase of assets with borrowed money. Suppose that your company retails
office supplies. When you receive an order for business cards, you pay one of your suppliers 50 percent of the
revenue to print them for you. This is a variable cost: the more you sell, the greater your cost.

But if you purchase the necessary printing equipment, you could make the business cards yourself. So doing
would turn a variable cost into a fixed cost: no matter how many cards you sell, the cost of printing them is fixed at
however much you paid for the printing equipment. The more cards you sell, the greater your profit margin. This
effect is termed operating leverage.

If you borrow money to acquire the printing equipment, you are using another type of leverage, termed financial
leverage. The cost is still fixed at however much money you must pay, at regular intervals, to retire the loan. Again,
the more cards you sell, the greater your profit margin. But if you do not sell enough cards to cover the loan
payment, you could lose money. In that case, it might be difficult to find funds either to make the loan payments or
to cover your other expenses. Your credit rating might fall, making it more costly for you to borrow other money.


Leverage is a financial tool that accelerates changes in income, both positive and negative. A company's creditors
and investors are interested in how much leverage has been used to acquire assets. From the standpoint of
creditors, a high degree of leverage represents risk because the company might not be able to repay a loan. From
the investors' standpoint, if the return on assets is less than the cost of borrowing money to acquire assets, then
the investment is unattractive. The investor could obtain a better return in different ways-one way would be to loan
funds rather than to invest them in the company.

Summary
This workbook has some of the financial ratios that are important to understanding how, and how well, a company
conducts its business. There are variations on virtually every ratio discussed here, and there are ratios that were
not covered at all, but their principal forms follow the formulas illustrated.

Only occasionally can you calculate one of these indicators and gain immediate insight into a business operation.
More frequently, it is necessary to know the sort of business that a company conducts, because the marketplace
imposes different demands on different lines of business. Furthermore, you can usually understand one ratio by
considering it in the context of another ratio (the debt ratio and the return on assets is a good example of one ratio
providing the context for another).

Keep in mind that it's important to evaluate a financial ratio in terms of its trend over time, of a standard such as an
industry average, and in light of other ratios that describe the company's operations and financial structure.




                                   © Copyright, 2009, JaxWorks, All Rights Reserved.
Liquidity Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                              April 26, 2007

                                            Prepared by You



Current ratio                                      Year          Year            Year   Year
                                                   2003          2004            2005   2006
Current assets                                  $1,212,200 $1,550,530 $2,187,750 $2,826,692
Current liabilities                               $936,000   $964,080   $993,002 $1,007,719
Current ratio                                          1.30       1.61       2.20       2.81

Current Ratio
The current ratio compares a company's current assets (those that can be converted to cash
during the current accounting period) to its current liabilities (those liabilities coming due
during the same period). The usual formula is:

Current Ratio = Current Assets / Current Liabilities

The current ratio measures the company's ability to repay the principal amounts of its
liabilities.

The current ratio is closely related to the concept of working capital. Working capital is the
difference between current assets and current liabilities.

Is a high current ratio good or bad? Certainly, from the creditor's standpoint, a high current ratio
means that the company is well-placed to pay back its loans. Consider, though, the nature of
the current assets: they consist mainly of cash and cash equivalents. Funds invested in these
types of assets do not contribute strongly and actively to the creation of income. Therefore,
from the standpoint of stockholders and management, a current ratio that is very high means
that the company's assets are not being used to best advantage.




                             © Copyright, 2009, JaxWorks, All Rights Reserved.
Liquidity Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                                 April 26, 2007

                                               Prepared by You



Quick ratio                                            Year          Year           Year   Year
                                                       2003          2004           2005   2006
Current Assets                                     $1,212,200 $1,550,530 $2,187,750 $2,826,692
Inventory                                            $400,000   $612,000   $824,360   $937,091
Current Assets Less Inventory                        $812,200   $938,530 $1,363,390 $1,889,602
Current liabilities                                  $936,000   $964,080   $993,002 $1,007,719
Quick ratio                                               0.87       0.97       1.37       1.88

Quick Ratio
The quick ratio is a variant of the current ratio. It takes into account the fact that inventory,
while it is a current asset, is not as liquid as cash or accounts receivable. Cash is completely
liquid; accounts receivable can normally be converted to cash fairly quickly, by pressing for
collection from the customer. But inventory cannot be converted to cash except by selling it.
The quick ratio determines the relationship between quickly accessible current assets and
current liabilities:

Quick Ratio = (Current Assets - Inventory) / Current Liabilities

The quick ratio shows whether a company can meet its liabilities from quickly-accessible
assets.

In practice, a quick ratio of 1.0 is normally considered adequate, with this caveat: the credit
periods that the company offers its customers and those granted to the company by its creditor
must be roughly equal. If revenues will stay in accounts receivable for as long as 90 days, but
accounts payable are due within 30 days, a quick ratio of 1.0 will mean that accounts
receivable cannot be converted to cash quickly enough to meet accounts payable.

It is possible for a company to manipulate the values of its current and quick ratios by taking
certain actions toward the end of an accounting period such as a fiscal year. It might wait until
the start of the next period to make purchases to its inventory, for example. Or, if its business is
seasonal, it might choose a fiscal year that ends after its busy season, when inventories are
usually low. As a potential creditor, you might want to examine the company’s current and
quick ratios on, for example, a quarterly basis.

Both a current and a quick ratio can also mislead you if the inventory figure does not represent
the current replacement cost of the materials in inventory. There are various methods of
valuing inventory. The LIFO method, in particular, can result in an inventory valuation that is
much different from the inventory's current replacement value; this is because it assumes that
the most recently acquired inventory is also the most recently sold.

If your actual costs to purchase materials are falling, for example, the LIFO method could result
in an over-valuation of the existing inventory. This would tend to inflate the value of the
current ratio, and to underestimate the value of the quick ratio if you calculate it by subtracting
inventory from current assets, rather than summing cash and cash equivalents.




                                © Copyright, 2009, JaxWorks, All Rights Reserved.
Profitability Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                                April 26, 2007

                                              Prepared by You



Earnings Per Share (EPS) Ratio                        Year            Year               Year   Year
                                                      2003            2004               2005   2006
Net income                                           $480,368        $753,034       $799,039 $1,162,043
Shares of common stock outstanding                     100,000         100,000        100,000    100,000
EPS                                                     $4.80           $7.53          $7.99     $11.62

Earnings Per Share (EPS)
Depending on your financial objectives, you might consider investing in a company to obtain a
steady return on your investment in the form of regular dividend payments, or to obtain a profit
by owning the stock as the market value of its shares increases. These two objectives might
both be met, but in practice they often are not. Companies frequently face a choice of
distributing income in the form of dividends, or retaining that income to invest in research, new
products, and expanded operations. The hope, of course, is that the retention of income to
invest in the company will subsequently increase its income, thus making the company more
profitable and increasing the market value of its stock.

In either case, Earnings Per Share (EPS) is an important measure of the company's income.
Its basic formula is:

EPS = Income Available for Common Stock / Shares of Common Stock Outstanding

EPS is usually a poor candidate for vertical analysis, because different companies always
have different numbers of shares of stock outstanding. It may be a good candidate for
horizontal analysis, if you have access both to information about the company's income and
shares outstanding. With both these items, you can control for major fluctuations over time in
shares outstanding. This sort of control is important: it is not unusual for a company to
purchase its own stock on the open market to reduce the number of outstanding shares. So
doing increases the value of the EPS ratio, perhaps making the stock appear a more attractive
investment.

Note that the EPS can decline steadily throughout the year. Because, the number of shares
outstanding is constant throughout the year, the EPS changes are due solely to changes in
net income.

Many companies issue at least two different kinds of stock: common and preferred. Preferred
stock is issued under different conditions than common stock. Preferred stock is often callable
at the company's discretion, it pays dividends at a different (usually, higher) rate per share, it
might not carry voting privileges, and often has a higher priority than common stock as to the
distribution of liquidated assets if the company goes out of business.

Calculating EPS for a company that has issued preferred stock introduces a slight
complication. Because the company pays dividends on preferred stock before any distribution
to shareholders of common stock, it is necessary to subtract these dividends from net income:

EPS (Net Income - Preferred Dividends) / Shares of Common Stock Outstanding




                                     © Copyright, 2009, JaxWorks, All Rights Reserved.
Profitability Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                              April 26, 2007

                                            Prepared by You



Gross Profit Margin                                Year          Year            Year   Year
                                                   2003          2004            2005   2006
Sales                                           $1,960,000 $2,500,000 $2,651,800 $3,205,454
Cost of sales                                     $745,000   $871,350   $894,301   $915,467
Gross profit margin                                  62.0%      65.1%      66.3%      71.4%


Gross Profit Margin
The gross profit margin is a basic ratio that measures the added value that the market places
on a company's non-manufacturing activities. Its formula is:

Gross profit margin = (Sales - Cost of Goods Sold) / Sales

The cost of goods sold is, clearly, an important component of the gross profit margin. It is
usually calculated as the sum of the cost of materials the company purchases plus any labor
involved in the manufacture of finished goods, plus associated overhead.

The gross profit margin depends heavily on the type of business in which a company is
engaged. A service business, such as a financial services institution or a laundry, typically has
little or no cost of goods sold. A manufacturing, wholesaling, or retailing company typically has
a large cost of goods sold, with a gross profit margin that varies from 20 percent to 40 percent.

The gross profit margin measures the amount that customers are willing to pay for a
company's product, over and above the company's cost for that product. As mentioned
previously, this is the value that the company adds to that of the products it obtains from its
suppliers. This margin can depend on the attractiveness of additional services, such as
warranties, that the company provides. The gross profit margin also depends heavily on the
ability of the sales force to persuade its customers of the value added by the company.

This added value is, of course, created by other costs such as operating expenses. In turn,
these costs must be met largely by the gross profit on sales. If customers do not place
sufficient value on whatever the company adds to its products, there will not be enough gross
profit to pay for the associated costs. Therefore, the calculation of the gross profit margin helps
to highlight the effectiveness of the company's sales strategies and sales management.




                             © Copyright, 2009, JaxWorks, All Rights Reserved.
Profitability Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                              April 26, 2007

                                            Prepared by You



Net Profit Margin                                  Year          Year            Year   Year
                                                   2003          2004            2005   2006
Net Income                                        $480,368   $753,034   $799,039 $1,162,043
Sales                                           $1,960,000 $2,500,000 $2,651,800 $3,205,454
Net profit margin                                   24.51%     30.12%     30.13%     36.25%


Net Profit Margin
The net profit margin narrows the focus on profitability, and highlights not just the company's
sales efforts, but also its ability to keep operating costs down, relative to sales. The formula
generally used to determine the net profit margin is:

Net Profit Margin = Earnings After Taxes / Sales

When net profit margin falls dramatically from the first to the fourth quarters, a principal culprit
is cost of sales.

Another place to look when you see a discrepancy between gross profit margin and net profit
margin is operating expenses. When the two margins covary closely, it suggests that
management is doing a good job of reducing expenses when sales fall, and increasing
expenses when necessary to support production and sales in better times.




                             © Copyright, 2009, JaxWorks, All Rights Reserved.
Profitability Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                              April 26, 2007

                                            Prepared by You



Return on Assets                                   Year          Year            Year   Year
                                                   2003          2004            2005   2006
Net Income                                        $480,368   $753,034   $799,039 $1,162,043
Total assets                                    $4,167,200 $4,094,180 $5,467,899 $6,172,246
Return on assets                                     11.5%      18.4%      14.6%      18.8%


Return on Assets
One of management's most important responsibilities is to bring about a profit by effective use
of the resources it has at hand. One ratio that speaks to this question is return on assets.
There are several ways to measure this return; one useful method is:

Return on Assets = Net Income/ Total Assets

This formula will return the percentage earnings for a company in terms of its total assets. The
better the job that management does in managing its assets-the resources available to it-to
bring about profits, the greater this percentage will be.

It's normal to calculate the return on total assets on an annual basis, rather than on a quarterly
basis.




                             © Copyright, 2009, JaxWorks, All Rights Reserved.
Profitability Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                            April 26, 2007

                                          Prepared by You




Return on Equity                                 Year        Year         Year   Year
                                                 2003        2004         2005   2006
Net Income                                      $480,368   $753,034   $799,039 $1,162,043
Stockholder's equity                          $2,450,000 $2,320,500 $3,638,305 $4,299,528
Return on equity                                   19.6%      32.5%      22.0%      27.0%


Return on Equity
Another related profitability measure to Return on Assets is the Return on Equity. Again, there
are several ways to calculate this ratio; here, it is measured according to this formula:

Return on Equity = Net Income / Stockholder's Equity

You can compare return on equity with return on assets to infer how a company obtains the
funds used to acquire assets.

The principal difference between the formula for return on assets and for return on
equity is the use of equity rather than total assets in the denominator, and it is here
that the technique of comparing ratios comes into play. By examining the difference
between Return on Assets and Return on Equity, you can largely determine how the
company is funding its operations.

Assets are acquired through two major sources: creditors (through borrowing) and
stockholders (through retained earnings and capital contributions). Collectively, the retained
earnings and capital contributions constitute the company's equity. When the value of the
company's assets exceeds the value of its equity, you can expect that some form of financial
leverage makes up the difference: i.e., debt financing.

Therefore, if the Return on Equity ratio is much larger than the Return on Assets ratio, you can
infer that the company has funded some portion of its operations through borrowing.




                             © Copyright, 2009, JaxWorks, All Rights Reserved.
Activity Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                                    April 26, 2007

                                                  Prepared by You



Average Collection Period                                Year          Year            Year   Year
                                                         2003          2004            2005   2006
Accounts Receivable                                     $350,000   $460,500   $871,315 $1,382,454
Credit Sales                                          $2,010,000 $2,560,000 $2,721,800 $3,285,454
Days Per Year                                                 365        365        365        365
Credit sales per day                                      $5,507     $7,014     $7,457     $9,001
Average Collection Period - Days                            63.56      65.66     116.85     153.58
Average Collection Period Ratio                              5.74       5.56       3.12       2.38


Average Collection Period
You can obtain a general estimate of the length of time it takes to receive payment for goods or
services by calculating the Average Collection Period.
One formula for this ratio is:

Average Collection Period = Accounts Receivable / (Credit Sales / Days)

Where Days is the number of days in the period for which Accounts Receivable and Credit
Sales accumulate.

You should interpret the average collection period in terms of the company's credit policies. If,
for example, the company's policy as stated to its customers is that payment is to be received
within two weeks, then an average collection period of 30 days indicates that collections are
lagging. It may be that collection procedures need to be reviewed, or it is possible that one
particularly large account is responsible for most of the collections in arrears. It is also possible
that the qualifying procedures used by the sales force are not stringent enough.

The calculation of the Average Collection Period assumes that credit sales are distributed
roughly evenly during any given period. To the degree that the credit sales cluster at the end
of the period, the Average Collection Period will return an inflated figure. If you obtain a result
that appears too long (or too short), be sure to check whether the sales dates occur evenly
throughout the period in question.

Regardless of the cause, if the average collection period is over-long, it means that the
company is losing profit. The company is not converting cash due from customers into new
assets that can, in turn, be used to generate new income.




                                   © Copyright, 2009, JaxWorks, All Rights Reserved.
Activity Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                              April 26, 2007

                                            Prepared by You



Inventory Turnover Ratio                            Year            Year          Year        Year
                                                    2003            2004          2005        2006
Cost of Goods Sold                                 $745,000        $871,350       $894,301    $915,467
Average Inventory                                  $400,000        $612,000       $824,360    $937,091
Inventory Turnover                                      1.86            1.42           1.08        0.98


Inventory Turnover Ratio
No company wants to have too large an inventory (the sales force excepted: salespeople
prefer to be able to tell their customers that they can obtain their purchase this afternoon).
Goods that remain in inventory too long tie up the company's assets in idle stock, often incur
carrying charges for the storage of the goods, and can become obsolete while awaiting sale.

Just-in-Time inventory procedures attempt to ensure that the company obtains its inventory no
sooner than absolutely required in order to support its sales efforts. That is, of course, an
unrealistic ideal, but by calculating the inventory turnover rate you can estimate how well a
company is approaching the ideal.

The formula for the Inventory Turnover Ratio is:

Inventory Turnover = Cost of Goods Sold / Average Inventory

where the Average Inventory figure refers to the value of the inventory on any given day
during the period during which the Cost of Goods Sold is calculated. The higher an inventory
turnover rate, the more closely a company conforms to just-in-time procedures.

The figures for cost of goods sold and average inventory are taken directly from the Income
Statement's cost of sales and the Balance Sheet's inventory levels. In a situation where you
know only the beginning and ending inventory-for example, at the beginning and the ending of
a period-you would use the average of the two levels: hence the term "average inventory."

An acceptable inventory turnover rate can be determined only by knowledge of a company's
business sector. If you are in the business of wholesaling fresh produce, for example, you
would probably require an annual turnover rate in the 50s: a much lower rate would mean that
you were losing too much inventory to spoilage. But if you sell computing equipment, you
could probably afford an annual turnover rate of around 3 or 4, because hardware does not
spoil, nor does it become technologically obsolete more frequently than every few months.




                              © Copyright, 2009, JaxWorks, All Rights Reserved.
Leverage Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                              April 26, 2007

                                            Prepared by You



Debt ratio                                         Year          Year            Year   Year
                                                   2003          2004            2005   2006
Total Liabilities                               $1,717,200 $1,773,680 $1,829,594 $1,872,718
Total Assets                                    $4,167,200 $4,094,180 $5,467,899 $6,172,246
Debt ratio                                           41.2%      43.3%      33.5%      30.3%

Debt Ratio
The debt ratio is defined by this formula:

Debt ratio = Total Liabilities / Total assets

It is a healthy sign when a company's debt ratio is falls, although both stockholders and
potential creditors would prefer to see the rate of decline in the debt ratio more closely match
the decline in return on assets. As the return on assets falls, the net income available to make
payments on debt also falls. This company should probably take action to retire some of its
short-term debt, and the current portion of its long-term debt, as soon as possible.




                             © Copyright, 2009, JaxWorks, All Rights Reserved.
Leverage Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                              April 26, 2007

                                            Prepared by You



Equity ratio                                       Year          Year            Year   Year
                                                   2003          2004            2005   2006
Total Equity                                    $2,450,000 $2,320,500 $3,638,305 $4,299,528
Total Assets                                    $4,167,200 $4,094,180 $5,467,899 $6,172,246
Equity ratio                                         58.8%      56.7%      66.5%      69.7%

Equity Ratio
The equity ratio is the opposite of the debt ratio. It is that portion of the company's assets
financed by stockholders:

Equity Ratio = Total Equity / Total assets

It is usually easier to acquire assets through debt than to acquire them through equity. There
are certain obvious considerations: for example, you might need to acquire investment capital
from many investors; whereas you might be able to borrow the required funds from just one
creditor. Less obvious is the issue of priority.

By law, if a firm ceases operations, its creditors have the first claim on its assets to help repay
the borrowed funds. Therefore, an investor's risk is somewhat higher than that of a creditor,
and the effect is that stockholders tend to demand a greater return on their investment than a
creditor does on its loan. The stockholder's demand for a return can take the form of dividend
requirements or return on assets, each of which tend to increase the market value of their
stock.

But there is no "always" in financial planning. Because investors usually require a higher
return on their investment than do creditors, it might seem that debt is the preferred method of
raising funds to acquire assets. Potential creditors, though, look at ratios such as the return on
assets and the debt ratio. A high debt ratio (or, conversely, a low equity ratio) means that
existing creditors have supplied a large portion of the company's assets, and that there is
relatively little stockholder's equity to help absorb the risk.




                             © Copyright, 2009, JaxWorks, All Rights Reserved.
Leverage Ratios
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com
                                               April 26, 2007

                                             Prepared by You



Times Interest Earned Ratio                         Year          Year            Year   Year
                                                    2003          2004            2005   2006
EBIT                                               $686,240 $1,075,763 $1,141,485 $1,660,061
Interest charges                                    $16,250    $16,738    $17,240    $17,757
Times interest earned                                   42.2       64.3       66.2       93.5


Times interest Earned Ratio
One measure frequently used by creditors to evaluate the risk involved in loaning money to a
firm is the Times Interest Earned ratio. This is the number of times in a given period that a
company earns enough income to cover its interest payments. A ratio of 5, for example, would
mean that the amount of interest payments is earned 5 times over during that period.

The usual formula is:

Times Interest Earned = *EBIT / Total Interest Payments

*EBIT stands for Earnings Before Interest and Taxes.

The Times Interest Earned ratio, in reality, seldom exceeds 10. A value of 44.1 is very high,
although certainly not unheard of during a particularly good quarter. A value of 5.1 would
usually be considered strong but within the normal range.

Notice that this is a measure of how deeply interest charges cut into a company's income. A
ratio of 1, for example, would mean that the company earns enough income (after covering
such costs as operating expenses and costs of sales) to cover only its interest charges. There
would be no income remaining to pay income taxes (of course, in this case it's likely that there
would be no income tax liability), to meet dividend requirements or to retain earnings for future
investments.




                              © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com

                                              April 26, 2007


 EXPANDED FINANCIAL RATIOS
                      Description                          Year           Year          Year         Year
                                                           2003           2004          2005         2006
Amortization and Depreciation Expense to Net Sales            0.017          0.014         0.014         0.012
AP to Net Sales                                                 0.31           0.25          0.24         0.20
Current Liabilities to Inventory                                2.34           1.58          1.20         1.08
Current Liabilities to Net Worth                                0.38           0.42          0.27         0.23
Current Ratio                                                   1.30           1.61          2.20         2.81
Days Inventory                                               195.97         256.36        336.45        373.62
Days Purchases in AP                                         293.96         258.87        259.80        255.39
Days Sales in AR                                              65.18          67.23        119.93        157.42
Gross Profit Percentage                                     61.99%         65.15%        66.28%       71.44%
Income before tax to Net Worth                               28.01%         46.36%        31.37%       38.61%
Income before tax to Total Assets                            16.47%         26.28%        20.88%       26.90%
Interest Expense to Net Sales                                   0.01           0.01          0.01         0.01
Inventory Turnover                                              1.86           1.42          1.08         0.98
Net Sales to AR                                               65.18          67.23        119.93        157.42
Net Sales to Inventory                                          4.90           4.08          3.22         3.42
Net Sales to Net Fixed Assets                                   0.68           1.01          0.82         0.98
Net Sales to Net Worth                                          0.80           1.08          0.73         0.75
Net Sales to Total Assets                                       0.47           0.61          0.48         0.52
Net Sales to Working Capital                                    7.10           4.26          2.22         1.76
Net Worth to Total Liabilities                                  1.43           1.31          1.99         2.30
Operating Expenses as % of Net Sales                        28.51%         23.35%        24.43%       20.99%
Quick Ratio                                                     0.87           0.97          1.37         1.88
Retained Earning to Net Income                                 291%           205%          211%         149%
Return on Net Sales                                         24.51%         30.12%        30.13%       36.25%
Return on Net Worth                                         19.61%         32.45%        21.96%       27.03%
Return on Total Assets                                      11.53%         18.39%        14.61%       18.83%
Times Interest Earned                                         40.38          62.43         64.37         91.08
Total Assets to Net Sales                                       2.13           1.64          2.06         1.93
Total Liabilities to Net Worth                                  0.70           0.76          0.50         0.44
Working Capital                                            $276,200       $586,450    $1,194,748    $1,818,973
Z-Score - Stock is Publicly Held                                2.40           2.94          3.04         3.51

                                             Prepared by You




                              © Copyright, 2009, JaxWorks, All Rights Reserved.
Weekly Summary

                                      Sales         Cost of Goods       Gross Profit   Gross Margin
                                        $                 $                  $              %
                 April 25,   2005          $0.00              $0.00            $0.00          0.00%
                 April 26,   2005          $0.00              $0.00            $0.00          0.00%
                 April 27,   2005          $0.00              $0.00            $0.00          0.00%
                 April 28,   2005          $0.00              $0.00            $0.00          0.00%
                 April 29,   2005          $0.00              $0.00            $0.00          0.00%
                 April 30,   2005          $0.00              $0.00            $0.00          0.00%
                  May 1,     2005          $0.00              $0.00            $0.00          0.00%
Summary Totals                             $0.00              $0.00            $0.00          0.00%




                         © Copyright, 2009, JaxWorks, All Rights Reserved.
Weekly Profit Tracking and Year to Date Totals
Target Gross Margin %                                      20%

                                                   Date
Beginning Date:                                April 25, 2005

       Weeks               Dates                   Sales         Cost of Goods     Gross Profit   Gross Margin
Start Week 1               April 25,    2005           $0.00             $0.00            $0.00          0.00%
Week 2                       May 2,     2005           $0.00             $0.00            $0.00          0.00%
Week 3                       May 9,     2005           $0.00             $0.00            $0.00          0.00%
Week 4                     May 16,      2005           $0.00             $0.00            $0.00          0.00%
Week 5                     May 23,      2005           $0.00             $0.00            $0.00          0.00%
Week 6                     May 30,      2005           $0.00             $0.00            $0.00          0.00%
Week 7                       June 6,    2005           $0.00             $0.00            $0.00          0.00%
Week 8                     June 13,     2005           $0.00             $0.00            $0.00          0.00%
Week 9                     June 20,     2005           $0.00             $0.00            $0.00          0.00%
Week 10                    June 27,     2005           $0.00             $0.00            $0.00          0.00%
Week 11                       July 4,   2005           $0.00             $0.00            $0.00          0.00%
Week 12                     July 11,    2005           $0.00             $0.00            $0.00          0.00%
Week 13                     July 18,    2005           $0.00             $0.00            $0.00          0.00%
Week 14                     July 25,    2005           $0.00             $0.00            $0.00          0.00%
Week 15                   August 1,     2005           $0.00             $0.00            $0.00          0.00%
Week 16                   August 8,     2005           $0.00             $0.00            $0.00          0.00%
Week 17                  August 15,     2005           $0.00             $0.00            $0.00          0.00%
Week 18                  August 22,     2005           $0.00             $0.00            $0.00          0.00%
Week 19                  August 29,     2005           $0.00             $0.00            $0.00          0.00%
Week 20               September 5,      2005           $0.00             $0.00            $0.00          0.00%
Week 21             September 12,       2005           $0.00             $0.00            $0.00          0.00%
Week 22             September 19,       2005           $0.00             $0.00            $0.00          0.00%
Week 23             September 26,       2005           $0.00             $0.00            $0.00          0.00%
Week 24                  October 3,     2005           $0.00             $0.00            $0.00          0.00%
Week 25                 October 10,     2005           $0.00             $0.00            $0.00          0.00%
Week 26                 October 17,     2005           $0.00             $0.00            $0.00          0.00%
Week 27                 October 24,     2005           $0.00             $0.00            $0.00          0.00%
Week 28                 October 31,     2005           $0.00             $0.00            $0.00          0.00%
Week 29                November 7,      2005           $0.00             $0.00            $0.00          0.00%
Week 30               November 14,      2005           $0.00             $0.00            $0.00          0.00%
Week 31               November 21,      2005           $0.00             $0.00            $0.00          0.00%
Week 32               November 28,      2005           $0.00             $0.00            $0.00          0.00%
Week 33                December 5,      2005           $0.00             $0.00            $0.00          0.00%
Week 34              December 12,       2005           $0.00             $0.00            $0.00          0.00%
Week 35              December 19,       2005           $0.00             $0.00            $0.00          0.00%
Week 36              December 26,       2005           $0.00             $0.00            $0.00          0.00%
Week 37                  January 2,     2006           $0.00             $0.00            $0.00          0.00%
Week 38                  January 9,     2006           $0.00             $0.00            $0.00          0.00%
Week 39                 January 16,     2006           $0.00             $0.00            $0.00          0.00%
Week 40                 January 23,     2006           $0.00             $0.00            $0.00          0.00%
Week 41                 January 30,     2006           $0.00             $0.00            $0.00          0.00%
Week 42                 February 6,     2006           $0.00             $0.00            $0.00          0.00%
Week 43                February 13,     2006           $0.00             $0.00            $0.00          0.00%
Week 44                February 20,     2006           $0.00             $0.00            $0.00          0.00%
Week 45                February 27,     2006           $0.00             $0.00            $0.00          0.00%
Week 46                    March 6,     2006           $0.00             $0.00            $0.00          0.00%
Week 47                   March 13,     2006           $0.00             $0.00            $0.00          0.00%
Week 48                   March 20,     2006           $0.00             $0.00            $0.00          0.00%
Week 49                   March 27,     2006           $0.00             $0.00            $0.00          0.00%
Week 50                      April 3,   2006           $0.00             $0.00            $0.00          0.00%
Week 51                    April 10,    2006           $0.00             $0.00            $0.00          0.00%
Week 52                    April 17,    2006           $0.00             $0.00            $0.00          0.00%
          Year-To-Date Totals                          $0.00             $0.00            $0.00          0.00%




                               © Copyright, 2009, JaxWorks, All Rights Reserved.
Detailed Expense Estimates is a set of 5 worksheets that helps you manage monthly expenses for a broad range of cost
categories over the course of a year.

This set has five primary worksheets:
 1) Planned Expenses projects monthly expenses for the year and calculates monthly and cumulative expense totals.
 2) Actual Expenses records monthly expenses for the year and calculates monthly and cumulative expense totals.
 3) Expense Variances calculates the differences between planned and actual expenses.
 4) Expense Analysis provides a table and a chart that show actual expenses.
 5) Total Expenses provides a table and a chart that show planned and actual expenses along with any variances.

To use this set follow these steps:
   1. On the Planned Expenses worksheet, enter the expenses that you anticipate for each month of the year.
   2. On the Actual Expenses worksheet, record the expenses as they happen each month.
   3. Use the Expense Variances worksheet to review the differences on a monthly and cumulative basis.
   4. Use the Expense Analysis worksheet to review actual expenses by category.
   5. Use the Total Expenses worksheet to review planned and actual expenses and any variances, and to analyze trends.




                                   © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com



Detailed Expense Estimates

Planned Expenses
                                  Month        Month        Month        Month           Month             Month            Month           Month         Month         Month         Month         Month
                                    1            2            3            4               5                 6                7               8             9            10            11            12           Totals
 Employee Costs
  Wages                            $85,000      $85,000      $85,000      $87,500          $92,500           $95,833          $99,583       $103,333      $107,083      $110,833      $114,583      $114,583     $1,180,833
  Benefits                          22,950       22,950       22,950       23,625            24,975           25,875           26,888         27,900        28,912        29,925        30,937        30,937       318,825
  Subtotal                        $107,950     $107,950     $107,950     $111,125         $117,475         $121,708          $126,471       $131,233      $135,996      $140,758      $145,521      $145,521     $1,499,658

 Office Costs
  Office lease                      $9,800       $9,800       $9,800       $9,800            $9,800           $9,800           $9,800         $9,800        $9,800        $9,800        $9,800        $9,800      $117,600
  Gas                                              400          400          100                100              100                 100         100           100           100           400           400          2,300
  Electric                            300          300          300          300                300              300                 300         300           300           300           300           300          3,600
  Water                                   40           40           40           40              40                40                 40            40            40            40            40            40         480
  Telephone                           250          250          250          250                250              250                 250         250           250           250           250           250          3,000
  Internet access                     180          180          180          180                180              180                 180         180           180           180           180           180          2,160
  Office supplies                     200          200          200          200                200              200                 200         200           200           200           200           200          2,400
  Security                            600          600          600          600                600              600                 600         600           600           600           600           600          7,200
  Subtotal                         $11,370      $11,770      $11,770      $11,470          $11,470           $11,470          $11,470        $11,470       $11,470       $11,470       $11,770       $11,770      $138,740

 Marketing Costs
  Web site hosting                   $500         $500         $500         $500               $500             $500             $500           $500          $500          $500          $500          $500        $6,000
  Web site updates                     200         200          200           200               200            1,000               200           200           200            200          200          1,000        4,000
  Collateral preparation             5,000           0            0         5,000                 0                0             5,000             0             0          5,000            0              0       20,000
  Collateral printing                  200         200          200           200               200              200               200           200           200            200          200            200        2,400
  Marketing events                   2,000        2,000        2,000        5,000             2,000            2,000             2,000          5,000         2,000         2,000         2,000         5,000       33,000
  Miscellaneous expenses               200          200          200          200               200              200               200            200           200           200           200           200        2,400
  Subtotal                          $8,100       $3,100       $3,100      $11,100            $3,100           $3,900           $8,100         $6,100        $3,100        $8,100        $3,100        $6,900       $67,800

 Training/Travel
  Training classes                  $2,000       $2,000       $2,000       $2,000            $2,000           $2,000           $2,000         $2,000        $2,000        $2,000        $2,000        $2,000       $24,000
  Training-related travel costs      2,000        2,000        2,000        2,000             2,000            2,000            2,000          2,000         2,000         2,000         2,000         2,000        24,000
  Subtotal                          $4,000       $4,000       $4,000       $4,000            $4,000           $4,000           $4,000         $4,000        $4,000        $4,000        $4,000        $4,000       $48,000

Totals
Monthly Planned Expenses          $131,420     $126,820     $126,820     $137,695         $136,045         $141,078          $150,041       $152,803      $154,566      $164,328      $164,391      $168,191     $1,754,198
TOTAL Planned Expenses            $131,420     $258,240     $385,060     $522,755         $658,800         $799,878          $949,919      $1,102,723    $1,257,288    $1,421,617    $1,586,008    $1,754,198




                                                                                 © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com



Detailed Expense Estimates

Actual Expenses
                                  Month      Month      Month      Month           Month             Month            Month           Month        Month        Month        Month         Month
                                    1          2          3          4               5                 6                7               8            9           10           11            12           Totals
 Employee Costs
  Wages                            $85,000    $87,000    $95,000    $99,000         $104,000         $109,000          $114,000       $119,000     $124,000     $129,000     $134,000      $139,000     $1,338,000
  Benefits                          22,950     23,490     25,650     26,730           28,080           29,430            30,780         32,130       33,480       34,830       36,180        37,530        361,260
  Subtotal                        $107,950   $110,490   $120,650   $125,730         $132,080         $138,430          $144,780       $151,130     $157,480     $163,830     $170,180      $176,530     $1,699,260

 Office Costs
  Office lease                      $9,800     $9,800     $9,800     $9,800            $9,800           $9,800           $9,800         $9,800       $9,800       $9,800       $9,800        $9,800      $117,600
  Gas                                    4        430        385        230                87               88               89             90           91           92           93            94         1,773
  Electric                             288        278        268        299               306              290              274            258          242          226          210           194         3,133
  Water                                35         33         34         36                 34               36                  38          40           42           44             46            48          466
  Telephone                           224        235        265        245                245              220                 195         170          145          120             95            70        2,229
  Internet access                     180        180        180        180                180              180                 180         180          180          180          180           180          2,160
  Office supplies                     256        142        160        221                256              240                 224         208          192          176          160           144          2,379
  Security                            600        600        600        600                600              600                 600         600          600          600          600           600          7,200
  Subtotal                         $11,387    $11,698    $11,692    $11,611          $11,508           $11,454          $11,400        $11,346      $11,292      $11,238      $11,184       $11,130      $136,940

 Marketing Costs
  Web site hosting                    $500      $500       $500        $500              $500             $500              $500           $500         $500         $500         $500          $500       $6,000
  Web site updates                     200       200        200         200               200            1,500             1,933          2,583        3,233        3,883        4,533         5,183       23,850
  Collateral preparation             4,800         0          0       5,500                 0                0             4,569              0            0            0            0             0       14,869
  Collateral printing                  100        500        100        100               600              180               373            413          453          493          533           573        4,420
  Marketing events                   1,800      2,200      2,200      2,700             3,500            4,100             4,750          5,400        6,050        6,700        7,350         8,000       54,750
  Miscellaneous expenses               145        156        123        223               187              245               240            251          262          273          284           295        2,686
  Subtotal                          $7,545     $3,556     $3,123     $9,223            $4,987           $6,525          $12,366         $9,148      $10,499      $11,850      $13,201       $14,552      $106,575

 Training/Travel
  Training classes                  $1,600     $2,400     $1,400     $1,600            $1,200           $2,800           $4,400         $6,000       $7,600       $9,200      $10,800       $12,400       $61,400
  Training-related travel costs      1,200      2,200      2,400      3,133             3,733            4,333            4,933          5,533        6,133        6,733        7,333         7,933        55,600
  Subtotal                          $2,800     $4,600     $3,800     $4,733            $4,933           $7,133           $9,333        $11,533      $13,733      $15,933      $18,133       $20,333      $117,000

TOTAL Planned Expenses
Monthly Actual Expenses           $129,682   $130,344   $139,265   $151,297         $153,508         $163,542          $177,879       $183,157     $193,004     $202,851     $212,698      $222,545     $2,059,775
TOTAL Actual Expenses             $129,682   $260,026   $399,291   $550,588         $704,097         $867,639       $1,045,518       $1,228,676   $1,421,680   $1,624,531   $1,837,230    $2,059,775




                                                                           © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com



Detailed Expense Estimates

Expense Variances
                                  Month         Month        Month        Month           Month             Month            Month           Month         Month         Month         Month         Month
                                    1             2            3            4               5                 6                7               8             9            10            11            12           Totals
 Employee Costs
  Wages                                   $0     ($2,000)    ($10,000)    ($11,500)        ($11,500)         ($13,167)        ($14,417)       ($15,667)     ($16,917)     ($18,167)     ($19,417)     ($24,417)    ($157,167)
  Benefits                                 0        (540)      (2,700)      (3,105)           (3,105)           (3,555)          (3,893)        (4,230)       (4,568)       (4,905)       (5,243)       (6,593)      (42,435)
  Subtotal                                $0     ($2,540)    ($12,700)    ($14,605)        ($14,605)         ($16,722)        ($18,309)       ($19,897)     ($21,484)     ($23,072)     ($24,659)     ($31,009)    ($199,602)

 Office Costs
  Office lease                            $0            $0           $0           $0              $0                $0                 $0            $0            $0            $0            $0            $0             $0
  Gas                                     (4)        (30)            15       (130)               13                12                 11            10             9             8         307           306           527
  Electric                                12          22             32          1                (6)               10                 26            42            58            74          90           106           467
  Water                                    5             7            6            4                6                4                  2             0            (2)           (4)           (6)           (8)            14
  Telephone                               26            15        (15)             5                5               30                 55            80         105           130           155           180           771
  Internet access                        0               0            0          0                  0                0                  0             0             0             0             0             0              0
  Office supplies                      (56)             58           40        (21)               (56)             (40)               (24)           (8)            8            24            40            56             21
  Security                                 0             0            0            0                0                0                  0             0             0             0             0             0              0
  Subtotal                            ($17)         $72          $78         ($141)             ($38)             $16                 $70        $124          $178          $232          $586          $640        $1,800

 Marketing Costs
  Web site hosting                        $0            $0           $0           $0              $0                $0                 $0            $0            $0            $0            $0            $0             $0
  Web site updates                      0              0           0             0                 0              (500)          (1,733)        (2,383)       (3,033)       (3,683)       (4,333)       (4,183)      (19,850)
  Collateral preparation              200              0           0          (500)                0                 0              431              0             0         5,000             0             0         5,131
  Collateral printing                 100           (300)        100           100              (400)               20             (173)          (213)         (253)         (293)         (333)         (373)       (2,020)
  Marketing events                    200           (200)        (200)       2,300            (1,500)           (2,100)          (2,750)          (400)       (4,050)       (4,700)       (5,350)       (3,000)      (21,750)
  Miscellaneous expenses               55             44           77          (23)               13               (45)             (40)           (51)          (62)          (73)          (84)          (95)         (286)
  Subtotal                           $555          ($456)        ($23)      $1,877           ($1,887)         ($2,625)          ($4,266)       ($3,048)      ($7,399)      ($3,750)     ($10,101)      ($7,652)     ($38,775)

 Training/Travel
  Training classes                   $400          ($400)       $600          $400              $800             ($800)         ($2,400)       ($4,000)      ($5,600)      ($7,200)      ($8,800)     ($10,400)     ($37,400)
  Training-related travel costs       800           (200)       (400)       (1,133)           (1,733)           (2,333)          (2,933)        (3,533)       (4,133)       (4,733)       (5,333)       (5,933)      (31,600)
  Subtotal                          $1,200         ($600)       $200         ($733)            ($933)         ($3,133)          ($5,333)       ($7,533)      ($9,733)     ($11,933)     ($14,133)     ($16,333)     ($69,000)

TOTALS
Monthly Expense Variances           $1,738       ($3,524)    ($12,445)    ($13,602)        ($17,463)         ($22,464)        ($27,839)       ($30,354)     ($38,439)     ($38,523)     ($48,308)     ($54,355)    ($305,577)
TOTAL Expense Variances             $1,738       ($1,786)    ($14,231)    ($27,833)        ($45,297)         ($67,761)        ($95,599)      ($125,953)    ($164,392)    ($202,915)    ($251,222)    ($305,577)




                                                                                  © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com



Detailed Expense Estimates
Expense Category             Planned Expenses               Actual Expenses            Expense Variances        Variance Percentage
Employee Costs                        $1,499,658                     $1,699,260                    ($199,602)           -13%
Office Costs                             138,740                        136,940                        1,800             1%
Marketing Costs                           67,800                        106,575                      (38,775)           -57%
Training/Travel                           48,000                        117,000                      (69,000)          -144%
Totals                                $1,754,198                     $2,059,775                    ($305,577)           -17%

                      Planned Expenses                                                         Actual Expenses




                                                                                                                 Office Costs
                                         Office Costs                                                                 7%
                                              8%
                                                                                                                    Marketing Costs
                                          Marketing Costs                                                                5%
                                               4%
                                                                                                                     Training/Travel
                                          Training/Travel                                                                  6%
     Employee Costs                             3%
                                                                              Employee Costs
         85%                                                                      82%




                                         © Copyright, 2009, JaxWorks, All Rights Reserved.
                                                                       Monthly Expenses


            $250,000



            $200,000



            $150,000



            $100,000
Expenses




             $50,000



                  $0



            ($50,000)



           ($100,000)
                           1          2          3           4           5            6           7           8          9           10          11          12
             Planned    $131,420   $126,820   $126,820    $137,695    $136,045    $141,078    $150,041    $152,803    $154,566    $164,328    $164,391    $168,191
             Actual     $129,682   $130,344   $139,265    $151,297    $153,508    $163,542    $177,879    $183,157    $193,004    $202,851    $212,698    $222,545
             Variance    $1,738    ($3,524)   ($12,445)   ($13,602)   ($17,463)   ($22,464)   ($27,839)   ($30,354)   ($38,439)   ($38,523)   ($48,308)   ($54,355)

                                                                                          Month




                                                                 © Copyright, 2009, JaxWorks, All Rights Reserved.
The Detailed Sales set of worksheets help sales managers review the monthly sales pipeline over the course of a year. The
forecasting model in the template calculates weighted forecasts based on the probability of closing each sales opportunity.

This set has three primary worksheets:
  1) Sales Forecast Input provides a data entry area for all of your sales opportunities for the year.
  2) Sales Forecast Totals calculates the values for your total weighted annual sales pipeline, your individual monthly sales
pipelines, and your cumulative monthly sales pipelines.
  3) Sales Forecast Chart displays a chart and table that show a forecast of your individual monthly sales and your cumulative
monthly sales.

Follow these steps:
 1. On the Sales Forecast Input worksheet, provide the following information for each item:
     Opportunity name
     Customer contact
     Geographical sales region
     Source of the lead, such as Web, Partner, E-Mail, or Trade Show
     Sales category, such as Product, Consulting, Training, or Mixture
     Forecasted amount of the sale, in dollars, for each opportunity
     Sales phase for the opportunity
     Month in which you expect the sale to close
     This worksheet automatically calculates the likelihood of the sale. As the opportunity progresses in the sales cycle,
     the probability of closure increases in the model.
 2. On the Sales Forecast Totals worksheet, review the individual and total weighted forecasts for each month.
 3. On the Sales Forecast Graph worksheet, review the chart of your forecasted sales volumes and sales trends.




                                     © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Detailed Sales Forecast
       Opportunity                Sales             Sales             Sales             Forecast             Sales       Probability     Forecast       Weighted
          Name                   Agent             Region            Category           Amount               Phase         of Sale         Close        Forecast
XYZ Company                  Sales Agent 1   US - Northeast        Products         $     150,000    Formal Approval     90%           January      $     135,000
XYZ Company                  Sales Agent 2   US - Southeast        Products         $     145,200    Opportunity         10%           February     $      14,520
XYZ Company                  Sales Agent 3   US - North Central    Products         $     162,500    Identified Need     20%           March        $      32,500
XYZ Company                  Sales Agent 4   US - South Central    Products         $     147,500    Sponsorship         30%           April        $      44,250
XYZ Company                  Sales Agent 5   US - Northwest        Products         $     148,000    Budget Validated    40%           May          $      59,200
XYZ Company                  Sales Agent 1   US - Southwest        Products         $     175,000    Needs Analysis      50%           June         $      87,500
XYZ Company                  Sales Agent 3   US - Northeast        Products         $     149,000    Solution Proposed   60%           July         $      89,400
XYZ Company                  Sales Agent 5   US - Southeast        Products         $     142,000    Written Proposal    70%           August       $      99,400
XYZ Company                  Sales Agent 3   US - North Central    Products         $     172,500    Verbal Approval     90%           October      $     155,250
XYZ Company                  Sales Agent 4   US - South Central    Products         $     163,500    Sponsorship         20%           November     $      32,700
XYZ Company                  Sales Agent 5   US - Northwest        Products         $     155,500    Formal Approval     100%          December     $     155,500
XYZ Company                  Sales Agent 4   US - Southwest        Products         $     166,000    Opportunity         10%           January      $      16,600
XYZ Company                  Sales Agent 3   US - Northeast        Products         $     180,000    Budget Validated    30%           March        $      54,000
XYZ Company                  Sales Agent 2   US - Southeast        Products         $     140,000    Solution Proposed   60%           May          $      84,000
XYZ Company                  Sales Agent 1   US - North Central    Products         $     155,000    Sponsorship         30%           June         $      46,500
XYZ Company                  Sales Agent 2   US - South Central    Products         $     173,200    Needs Analysis      50%           October      $      86,600
XYZ Company                  Sales Agent 5   US - Northwest        Products         $     146,500    Solution Proposed   60%           December     $      87,900
XYZ Company                  Sales Agent 4   US - Southwest        Products         $     156,750    Written Proposal    70%           November     $     109,725
XYZ Company                  Sales Agent 3   US - South Central    Products         $     162,000    Verbal Approval     90%           February     $     145,800
XYZ Company                  Sales Agent 4   US - South Central    Products         $     157,000    Formal Approval     100%          March        $     157,000
XYZ Company                  Sales Agent 3   US - Northwest        Products         $     173,000    Budget Validated    40%           April        $      69,200
XYZ Company                  Sales Agent 5   US - Southwest        Products         $     171,000    Needs Analysis      50%           August       $      85,500
XYZ Company                  Sales Agent 1   US - South Central    Products         $     168,000    Solution Proposed   60%           September    $     100,800
TOTAL                                                                               $    3,659,150                                                  $    1,948,845




                                                      © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Detailed Sales Forecast
    January          February         March       April         May            June              July                 August        September         October           November           December
    Forecast         Forecast        Forecast   Forecast      Forecast        Forecast         Forecast              Forecast        Forecast         Forecast           Forecast           Forecast
$      135,000   $         -     $        -     $     -   $         -     $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $      14,520   $        -     $     -   $         -     $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $     32,500   $     -   $         -     $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $  44,250 $         -     $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $      59,200   $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $         -     $      87,500    $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $         -     $         -      $          89,400    $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $         -     $         -      $             -      $          99,400   $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $         -     $         -      $             -      $             -     $       -     $       155,250   $            -     $            -
$          -     $         -     $        -     $     -   $         -     $         -      $             -      $             -     $       -     $           -     $         32,700   $            -
$          -     $         -     $        -     $     -   $         -     $         -      $             -      $             -     $       -     $           -     $            -     $        155,500
$       16,600   $         -     $        -     $     -   $         -     $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $     54,000   $     -   $         -     $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $      84,000   $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $         -     $      46,500    $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $         -     $         -      $             -      $             -     $       -     $        86,600   $            -     $            -
$          -     $         -     $        -     $     -   $         -     $         -      $             -      $             -     $       -     $           -     $            -     $         87,900
$          -     $         -     $        -     $     -   $         -     $         -      $             -      $             -     $       -     $           -     $        109,725   $            -
$          -     $     145,800   $        -     $     -   $         -     $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $    157,000   $     -   $         -     $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $  69,200 $         -     $         -      $             -      $             -     $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $         -     $         -      $             -      $          85,500   $       -     $           -     $            -     $            -
$          -     $         -     $        -     $     -   $         -     $         -      $             -      $             -     $   100,800   $           -     $            -     $            -
$      151,600   $     160,320   $    243,500   $ 113,450 $     143,200   $     134,000    $          89,400    $         184,900   $   100,800   $       241,850   $        142,425   $        243,400
$      151,600   $     311,920   $    555,420   $ 668,870 $     812,070   $     946,070    $       1,035,470    $       1,220,370   $ 1,321,170   $     1,563,020   $      1,705,445   $      1,948,845




                                                                              © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Detailed Sales Forecast

                                                                     Monthly Weighted Forecast

                   $2,500,000
Forecast Revenue




                   $2,000,000



                   $1,500,000



                   $1,000,000



                    $500,000



                             $-
                                     1          2          3          4           5            6            7               8            9           10           11           12

                   Monthly        $151,600   $160,320   $243,500   $113,450    $143,200     $134,000     $89,400        $184,900     $100,800     $241,850     $142,425     $243,400
                   Cumulative     $151,600   $311,920   $555,420   $668,870    $812,070     $946,070    $1,035,470      $1,220,370   $1,321,170   $1,563,020   $1,705,445   $1,948,845


                                                                                                   Month




                                                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
Baseline Revenue by Period from the Sales Forecast Totals worksheet
All amounts abbreviated by Divider Factor              This worksheet set makes it easy for you to create a projected revenue
                         Divider                       because formulas and other worksheet features are already set up for yo
  Month     Revenue
                         Factor
   1           151,600      1                          Process:
   2           160,320                                 1. This worksheet is linked to the Sales Forecast Totals worksheet.
   3           243,500
   4           113,450                                 2. Click the Linear, Logarithmic, Polynomial, Power, Exponential, or
   5           143,200                                 Average worksheet tabs to see a projected revenue charts.
   6           134,000
   7            89,400
   8           184,900
   9           100,800
   10          241,850
   11          142,425
   12          243,400




                              © Copyright, 2009, JaxWorks, All Rights Reserved.
                                         Revenue Forecast: Linear Trendline


          300,000




          250,000




          200,000
Revenue




          150,000




          100,000




           50,000




               0
                    1   2   3   4               5            6            7             8   9   10   11   12


                                                     Revenue     Period
                                                                      Linear(Revenue)




                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
                                      Revenue Forecast: Logarithmic Trendline


          300,000




          250,000




          200,000
Revenue




          150,000




          100,000




           50,000




               0
                    1   2   3   4              5             6            7             8   9   10   11   12


                                                                 Period
                                                      Revenue           Log.(Revenue)




                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
                                      Revenue Forecast: Polynomial Trendline


          300,000




          250,000




          200,000
Revenue




          150,000




          100,000




           50,000




               0
                    1   2   3   4              5             6              7           8   9   10   11   12


                                                                 Periods
                                                       Revenue             Poly.(Revenue)




                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
                                         Revenue Forecast: Power Trendline


          300,000




          250,000




          200,000
Revenue




          150,000




          100,000




           50,000




               0
                    1   2   3   4              5             6            7             8   9   10   11   12


                                                                 Period
                                                     Revenue           Power(Revenue)




                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
                                      Revenue Forecast: Exponential Trendline


          300,000




          250,000




          200,000
Revenue




          150,000




          100,000




           50,000




               0
                    1   2   3   4              5             6            7             8   9   10   11   12


                                                                 Period
                                                    Revenue            Expon.(Revenue)




                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
                                          Revenue Trendline: Moving Average


          300,000




          250,000




          200,000
Revenue




          150,000




          100,000




           50,000




               0
                    1   2   3   4              5             6            7             8     9   10   11   12


                                                                 Period
                                               Revenue            2 per. Mov. Avg.(Revenue)




                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Expenses/Sales Estimates vs Actuals
Category                             Estimations               Actual Results                     Variances          Variance Percentage
Sales                                       $3,659,150                    $2,699,260                     $959,890            26%
Expenses                                     1,754,198                     1,936,940                     (182,742)          -10%
Income                                      $1,904,952                      $762,320                   $1,142,632            60%

                              Estimations                                                                Actuals




                                                                                                  Expenses
                Expenses                                                                            36%
                  24%
                                             Income
                                               26%
                                                                                                                       Income
                                                                                                                         14%




                             Sales                                                                    Sales
                             50%                                                                      50%




                                              © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Step Costs Graph
                                        Step Costs Requirements                                                        User Input
Graph Title                                                                                                     Sales Representative Graph
Cost Name                                                                                                          Sales Representative
Relevant Activity Level per Sales Representative                                                                      Customer Calls
Annual Cost per Sales Representative                                                                                     $50,000
Maximum Customer Calls per Sales Representative                                                                           3,000
Maximum Expected Number of Customer Calls (Total)                                                                        100,000
Sales Representative Requirement for Maximum Expected Number of Customer Calls (Total)                                      34


                                                            Sales Representative Graph

                             $2,000,000
Total Sales Representative




                             $1,500,000

                             $1,000,000
          Costs




                              $500,000

                                    $0
                                                                                                                                  100,00 110,00
                                          0   10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
                                                                                                                                    0      0

                                                                                         Customer Calls




                                                            © Copyright, 2009, JaxWorks, All Rights Reserved.
The Budget System set of worksheets helps you assess key financial, operating, and competitive metrics as part of a monthly performance review. The template includes built-in formulas that
you can use to quickly generate an accurate and reliable snapshot of your organization's budgeted and actual monthly results.

This set comprises 12 worksheets:
 1) Budget Summary This worksheet captures financial metrics in the Profit and Loss Summary and the Balance Sheet Summary line items. The Operating Metrics Summary line item
    covers key line items such as production capacity. The Competitive Summary line item provides a comparison of your company against its known competitors.
 2) Profit & Loss Chart Selected data that you enter in the Profit and Loss Summary line items on the Budget Summary worksheet form a bar graph on the Profit & Loss Chart worksheet.
 3) Balance Sheet Chart Selected data that you enter in the Balance Sheet Summary line items on the Budget Summary worksheet are carried over to the Balance Sheet Chart worksheet.
    This worksheet displays a bar graph of your data for period-end cash flow; accounts receivable; inventory; property, plant, and equipment; accounts payable; and long-term liabilities.
 4) The Marketing Budget Plan worksheet lays out a list of possible expenditures for you to consider when creating your marketing budget. You can use all the categories in the template,
    or only a few, or you can add categories of your own. This worksheet makes it easy for you to create a budget plan, because formulas and other worksheet features are already set up for
you. When you enter or change quantities and prices, the totals are automatically adjusted.
 5) Marketing Budget Plan Chart
 6) Annual Operating Budget —Service Companies
      A) Inputs & Assumptions This worksheet documents key assumptions that affect the operating budget in general, such as the tax rate and straight-line depreciation period.
      B) Business Unit Expense Analysis This worksheet captures the bottom-up metrics that define the cost of the three primary operating areas of a services organization
          (service operations, sales and marketing, and general and administrative). Each area contains both a headcount and a cost model.
      C) Annual Operating Budget This worksheet is based on the inputs within the previous worksheet; the results are summarized in the pro forma financial statements
          (profit and loss, balance sheet, and cash flow summary).
      D) Trend Chart This worksheet visually depicts trends by quarter for key items including revenue, margin, ending cash balance, and ending total assets balance.
 7) The Budget vs. Actual Analysis worksheet helps to analyze a company's overall progress toward reaching financial goals. You can use this analysis to compare key line items from
    your income statement (profit-and-loss statement) and balance sheet with annual financial plans.
 8) The Budget Scenario Analysis set helps managers evaluate the impact of different business scenarios on key budget drivers that generate revenue. You can use them to enter data about
    the best-case, average-case, and worst-case scenarios on annual revenue. Find out whether the revenue assumptions associated with your annual budget are reasonable or whether
    mitigating strategies should be implemented to limit risks associated with the worst-case scenario.




                                                                    © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Budget Summary Report
                                                                              Monthly
Profit and Loss Summary                        May Actuals    May Targets     Variance            YTD Actuals            YTD Targets         YTD Variance                                 Notes
                                                                                                                                                               We exceeded our May revenue target by 9%, due to
Revenue                                          $1,200,000     $1,100,000        $100,000            $6,200,000             $6,000,000          $200,000      stronger execution in the West region.

Gross margin                                       $150,000       $160,000         ($10,000)             $640,000                 $750,000       ($110,000)

Gross margin percentage                          12.5%          14.5%           -2.0%                 10.3%                  12.5%              -2.2%

Sales from new products                            $200,000       $150,000          $50,000              $900,000                 $750,000       $150,000
Regional Sales Breakdown:

Northeast region                                   $400,000       $400,000                 $0         $2,200,000             $2,000,000          $200,000

Central region                                     $400,000       $400,000                 $0         $2,400,000             $2,000,000          $400,000

West region                                        $400,000       $300,000        $100,000            $1,600,000             $2,000,000          ($400,000)
Expenses & Margin:

SG&A expenses                                      $100,000       $120,000          $20,000              $500,000                 $600,000       $100,000

Pretax operating profit (loss)                      $50,000        $40,000          $10,000              $140,000                 $150,000        ($10,000)

Operating margin                                  4.2%           3.6%            0.5%                  2.3%                   2.5%              -0.2%

                                                                              Monthly
Balance Sheet Summary                          May Actuals    May Targets     Variance            YTD Actuals            YTD Targets         YTD Variance                                  Notes
                                                                                                                                                               Cash flow differential was due to cash settlement of legal
Period end cash flow                                $35,000        $50,000         ($15,000)              $35,000                  $50,000        ($15,000) dispute with Litware, Inc. on May 8.

Accounts receivable                                 $20,000        $22,000          ($2,000)              $20,000                  $22,000         ($2,000)

Inventory                                           $25,000        $30,000          ($5,000)              $25,000                  $30,000         ($5,000)

Total liquid assets                                 $75,000        $90,000         ($15,000)              $75,000                  $90,000        ($15,000)

Assets required by debt covenants                   $25,000        $25,000                 $0             $25,000                  $25,000                $0

Debt covenant buffer                                $50,000        $65,000         ($15,000)              $50,000                  $65,000        ($15,000)
Other Balance Sheet Items:
                                                                                                                                                               Differential due to purchase of new bursting machine in Plant
Property, plant, and equipment                      $80,000        $78,000             $2,000             $80,000                  $78,000            $2,000   B.

Accounts payable                                    $60,000        $60,000                 $0             $60,000                  $60,000                $0

Long-term liabilities                               $30,000        $31,000             $1,000             $30,000                  $31,000            $1,000

Shareholder equity                                 $300,000       $297,500             $2,500            $300,000                 $297,500            $2,500


                                                                              Monthly
Operating Metrics Summary                      May Actuals    May Targets     Variance            YTD Actuals            YTD Targets         YTD Variance                                 Notes
                                                                                                                                                               Quality issues were from incorrect paint applied on prod. line
Number of defects per 1,000 widgets produced      2.30           1.00           (1.30)                  1.46                  1.00              0.46           3; manager implemented new detective controls.

Production capacity—units per month              200,000        220,000        (20,000)             1,100,000              1,150,000           (50,000)

Days of sales outstanding                          35             25              (10)                   33                       25             (8)

Number of new orders                               19             15               4                     83                       75              8


Competitive Summary                            Competitor 1   Competitor 2   Competitor 3          Competitor 4          Competitor 5           Other                                   Notes
                                                                                                                                                               Market share increased due to strength of new product
Market share                                     20.0%          25.0%           15.0%                  5.0%                  15.0%              20.0%          sales.

Revenue (YTD)                                    $6,200,000     $7,000,000      $4,000,000            $1,500,000             $4,000,000         $6,000,000

New product introductions (YTD)                    $900,000       $500,000                 $0            $100,000                 $500,000                $0

Number of field salespeople (estimated)            15             20               15                    10                       15             N/A




                                                                              © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Profit and Loss Summary Chart
                                        Profit and Loss Summary


  $7,000,000

  $6,000,000

  $5,000,000
                                                                                                May Actuals
  $4,000,000
                                                                                                May Targets
  $3,000,000                                                                                    YTD Actuals
                                                                                                YTD Targets
  $2,000,000

  $1,000,000

          $0
                 Revenue     Gross margin    Sales from          SG&A             Pretax
                                            new products        expenses         operating
                                                                                profit (loss)




                                 © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Balance Sheet Summary Chart
                                         Balance Sheet Summary


  $90,000
  $80,000
  $70,000
  $60,000
  $50,000                                                                                            May Actuals
  $40,000                                                                                            May Targets

  $30,000
  $20,000
  $10,000
       $0
            Period end    Accounts    Inventory       Property,      Accounts         Long-term
             cash flow   receivable                  plant, and      payable           liabilities
                                                     equipment




                                  © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Marketing Budget Plan
                                      Estimated        Estimated             Estimated
Category                                                                                             Notes
                                      Quantity        Cost per Unit          Subtotal

Research                                                                                     fsdds
 Research firm fees                       2                 $2,300.00           $4,600.00
 Web research                             1                 $1,100.00           $1,100.00
 Independent research                     3                   $300.00             $900.00
 Other research                           2                   $250.00             $500.00

 Research Costs Total                                                          $7,100.00

Communications
 Promotional brochures                  5,000                   $0.15             $750.00
 Television                               5                 $4,000.00          $20,000.00
 Radio                                    13                  $350.00           $4,550.00
 Web                                      1                   $350.00             $350.00

 Communications Costs Total                                                  $25,650.00

Networking
 Memberships                              3                     $50.00            $150.00
 Affiliations                             2                     $20.00             $40.00
 Subscriptions                            2                     $32.00             $64.00

 Networking Costs Total                                                          $254.00

Event
Number of attendees                      50
 Meal (breakfast, lunch, or dinner)
  Food                                                           $23.00          $1,150.00
  Tax (10%)                                                       $2.30            $115.00
  Food and beverage gratuity (20%)                                $5.06            $253.00
 Meal Costs Subtotal                                                           $1,518.00

 List Services
   Valet services                         1                    $300.00             $300.00
   Entertainment #1                       1                    $800.00             $800.00
   Entertainment #2                       1                  $1,200.00           $1,200.00
   Other services                         1                    $200.00             $200.00
 List Service Costs Subtotal                                                   $2,500.00

 Audio/Visual Services
  Basic PA system and podium              1                      $0.00               $0.00
  Screen                                  1                      $0.00               $0.00
  XGA data/video projector rental         1                     $45.00              $45.00
  Wireless mouse                          1                     $12.00              $12.00
  Power strips                            1                      $0.00               $0.00
  Extension cords                         1                      $0.00               $0.00
  Lavalier microphone                     1                      $0.00               $0.00
  Labor and AV technicians                1                    $300.00             $300.00
  Tax (8.8%)                                                    $31.42              $31.42
 Audio/Visual Services Subtotal                                                  $388.42

 Additional Costs
  Invitation
                                                               $834.00             $834.00
   (printing and postage costs)
  Time & Expense (T&E)                                         $600.00             $600.00
  Company staff T&E                                            $200.00             $200.00
  Customer testimonial T&E                                     $100.00             $100.00
 Additional Costs Subtotal                                                     $1,734.00

 Giveaways
  Giveaway #1                            25                      $10.00            $250.00
  Giveaway #2                            25                       $5.00            $125.00
    Giveaway Subtotal                                                             $375.00

Event Costs Total                                                               $6,515.42

    Event Price per Person            $130.31

Promotions
   Product giveaways                    50                        $8.00            $400.00
   Product discounts                    300                       $3.00            $900.00
   Special offers                       200                       $2.50            $500.00

 Promotions Costs Total                                                         $1,800.00

Advertising
  Brochures (development and
                                        5,000                     $0.15            $750.00
  production)
  Mailings                             15,000                    $0.04             $600.00
  Postcards                            15,000                    $0.03             $450.00
  Television                             2                     $600.00           $1,200.00
  Radio                                  4                     $300.00           $1,200.00
  Newspapers                             6                     $220.00           $1,320.00
  Billboards                             2                     $556.00           $1,112.00
  Bus sides                              3                     $125.00             $375.00

 Advertising Costs Total                                                        $7,007.00

Public Relations
   Charity events                         3                    $200.00             $600.00
   Advertising                            4                    $200.00             $800.00
   Employee promotions                    6                    $200.00           $1,200.00
   Sponsorships                           3                    $200.00             $600.00

Public Relations Costs Total                                                    $3,200.00


ESTIMATED MARKETING GRAND TOTAL                                            $51,526.42




                                      © Copyright, 2009, JaxWorks, All Rights Reserved.
                                 Marketing Budget Plan

                          Public Relations
                                6%
                                                        Research
                                                          14%
    Advertising
      14%


                                                                                                  Research
                                                                                                  Communications
Promotions
   3%                                                                                             Networking
                                                                                                  Event
                                                                                                  Promotions
                                                                                                  Advertising
                                                                                                  Public Relations

              Event
              13%


                                                                                 Communications
             Networking                                                              50%
                0%




                                 © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Annual Operating Budget—Service Companies
General notes and assumptions
Document key financial planning assumptions here.




Key model inputs
Use this area to capture key general assumptions that carry throughout the model.

1. Fringe rate for labor                                                          25%

2. Number of years for straight-line depreciation                                  5

3. Tax rate                                                                       30%

4. Annual targeted revenue per employee                                         $270,000




                            © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Annual Operating Budget—Service Companies
A. Service operations
Service operations expenses                                                     Q1             Q2             Q3              Q4      Annual total    Notes
 Salaries                                                                 $491,250       $543,750       $562,500        $592,500        $2,190,000
 Benefits (such as health care, training, 401(k))                          122,810        135,940        140,630         148,130           547,510
 Net travel and entertainment                                               50,000         50,000         50,000          50,000           200,000
 Supplies                                                                   25,000         25,000         25,000          25,000           100,000
 General and miscellaneous                                                  25,000         25,000         25,000          25,000           100,000
Total service operations expenses                                         $714,060       $779,690       $803,130        $840,630        $3,137,510

Service operations headcount analysis by role                                  Number of full-time employees (FTEs)                                  Notes
 Vice president                                                                 1.00           1.00           1.00             1.00           4.00
 Director                                                                       2.00           3.00           3.00             4.00          12.00
 Manager                                                                        5.00           6.00           6.00             6.00          23.00
 Analyst                                                                       15.00          15.00          16.00            16.00          62.00
 TBD                                                                            0.00           0.00           0.00             0.00           0.00
 TBD                                                                            0.00           0.00           0.00             0.00           0.00
Total service operations headcount                                             23.00          25.00          26.00            27.00         101.00

Service operations labor expense breakdown by role                                Q1             Q2             Q3              Q4                    Notes
                                             Annual cost
 Vice president                                    $150,000                $37,500        $37,500        $37,500         $37,500          $150,000
 Director                                            120,000                60,000         90,000         90,000         120,000           360,000
 Manager                                              90,000               112,500        135,000        135,000         135,000           517,500
 Analyst                                              75,000               281,250        281,250        300,000         300,000         1,162,500
 TBD                                                       0                     0              0              0               0                 0
 TBD                                                       0                     0              0              0               0                 0
Service total operations labor expense                                    $491,250       $543,750       $562,500        $592,500        $2,190,000



B. Sales and marketing
Sales and marketing expenses                                                    Q1             Q2             Q3              Q4      Annual total    Notes
 Salaries                                                                 $441,250       $441,250       $520,000        $550,000        $1,952,500
 Benefits (such as health care, training, 401(k))                          110,310        110,310        130,000         137,500           488,120
 Marketing programs                                                         75,000         50,000         65,000          70,000           260,000
 Public relations                                                           15,000         15,000         15,000          15,000            60,000
 Travel and entertainment                                                  150,000        150,000        150,000         160,000           610,000
 Supplies                                                                   25,000         25,000         25,000          25,000           100,000
 General and miscellaneous                                                  25,000         25,000         25,000          25,000           100,000
Total sales and marketing expenses                                        $841,560       $816,560       $930,000        $982,500        $3,570,620

Sales and marketing headcount analysis by role                                 Number of full-time employees (FTEs)                                  Notes
 Vice president                                                                 2.00           2.00           2.00             2.00           8.00
 Director                                                                       2.00           2.00           2.00             3.00           9.00
 Marketing managers                                                             3.00           3.00           4.00             4.00          14.00
 Marketing analysts                                                             1.00           1.00           1.00             1.00           4.00
 Business development managers                                                  4.00           4.00           5.00             5.00          18.00
 Customer service                                                               4.00           4.00           5.00             5.00          18.00
 TBD                                                                            0.00           0.00           0.00             0.00           0.00
Total sales and marketing headcount                                            16.00          16.00          19.00            20.00          71.00

Sales and marketing labor expense breakdown by role                               Q1             Q2             Q3              Q4                    Notes
                                            Annual cost
 Vice president                                    $150,000                $75,000        $75,000        $75,000         $75,000          $300,000
 Director                                           120,000                 60,000         60,000         60,000          90,000           270,000
 Marketing managers                                 110,000                 82,500         82,500        110,000         110,000           385,000
 Marketing analysts                                  75,000                 18,750         18,750         18,750          18,750            75,000
 Business development managers                      130,000                130,000        130,000        162,500         162,500           585,000
 Customer service                                    75,000                 75,000         75,000         93,750          93,750           337,500
 TBD                                                      0                      0              0              0               0                 0
Total sales and marketing labor expense                                   $441,250       $441,250       $520,000        $550,000        $1,952,500



C. General and administrative
General and administrative expenses                                             Q1             Q2             Q3              Q4      Annual total    Notes
 Salaries                                                                 $581,250       $581,250       $581,250        $598,750        $2,342,500
 Benefits (such as health care, training, 401(k))                          145,310        145,310        145,310         149,690           585,620
 Depreciation                                                               32,600         33,050         33,650          34,250           133,550
 Rent                                                                            0              0              0               0                 0
 Insurance                                                                  12,000         12,000         12,000          12,000            48,000
 Professional services (not including subcontractors)                       10,000         20,000         10,000          10,000            50,000
 Dues and subscriptions                                                      5,000          5,000          5,000           5,000            20,000
 Bank charges                                                                2,000          2,000          2,000           2,000             8,000
 Telephone                                                                  25,000         25,000         25,000          25,000           100,000
 Recruiting                                                                 20,000         20,000         20,000          20,000            80,000
 Postage                                                                    10,000         10,000         10,000          10,000            40,000
 Interest expense                                                           10,000         10,000         10,000          10,000            40,000
 Nonbillable travel and entertainment                                       15,000         15,000         15,000          15,000            60,000
 Other supplies                                                             25,000         25,000         25,000          25,000           100,000
 Miscellaneous                                                               2,000          3,000          4,000           5,000            14,000
Total general and administrative expenses                                 $895,160       $906,610       $898,210        $921,690        $3,621,670

General and administrative headcount analysis by role                          Number of full-time employees (FTEs)                                  Notes
 Chief executive officer                                                        1.00           1.00           1.00             1.00           4.00
 Chief financial officer                                                        1.00           1.00           1.00             1.00           4.00
 Chief information officer                                                      1.00           1.00           1.00             1.00           4.00
 Vice president of human resources                                              1.00           1.00           1.00             1.00           4.00
 Administrative staff                                                           6.00           6.00           6.00             6.00          24.00
 Human resources director                                                       1.00           1.00           1.00             1.00           4.00
 Human resources staff                                                          3.00           3.00           3.00             3.00          12.00
 Information technology director                                                1.00           1.00           1.00             1.00           4.00
 Information technology manager                                                 2.00           2.00           2.00             2.00           8.00
 Information technology analyst                                                 3.00           3.00           3.00             4.00          13.00
 Finance director or controller                                                 2.00           2.00           2.00             2.00           8.00
 Finance and accounting                                                         2.00           2.00           2.00             2.00           8.00
 TBD                                                                            0.00           0.00           0.00             0.00           0.00
Total general and administrative headcount                                     24.00          24.00          24.00            25.00          97.00

General and administrative labor expense breakdown by role                        Q1             Q2             Q3              Q4                    Notes
                                               Annual cost
 Chief executive officer                             $300,000              $75,000        $75,000        $75,000         $75,000          $300,000
 Chief financial officer                               225,000              56,250         56,250         56,250          56,250           225,000
 Chief information officer                             200,000              50,000         50,000         50,000          50,000           200,000
 Vice president of human resources                     160,000              40,000         40,000         40,000          40,000           160,000
 Administrative staff                                   50,000              75,000         75,000         75,000          75,000           300,000
 Human resources director                               90,000              22,500         22,500         22,500          22,500            90,000
 Human resources staff                                  60,000              45,000         45,000         45,000          45,000           180,000
 Information technology director                       100,000              25,000         25,000         25,000          25,000           100,000
 Information technology manager                         90,000              45,000         45,000         45,000          45,000           180,000
 Information technology analyst                         70,000              52,500         52,500         52,500          70,000           227,500
 Finance director or controller                        120,000              60,000         60,000         60,000          60,000           240,000
 Finance and accounting                                 70,000              35,000         35,000         35,000          35,000           140,000
 TBD                                                         0                   0              0              0               0                 0
Total general and administrative labor expense                            $581,250       $581,250       $581,250        $598,750        $2,342,500

Depreciable assets                                                                Q1             Q2             Q3              Q4    Annual total    Notes
                                                    Beginning balance                    Additional purchases
 Buildings                                                   $600,000            $0             $0             $0                $0       $600,000
 Equipment                                                     20,000         2,000              0          4,000             4,000         30,000
 IT infrastructure                                             25,000         5,000          4,000          3,000             8,000         45,000
 Other                                                              0             0          5,000              0                 0          5,000
 Other                                                              0             0              0          5,000                 0          5,000
Total depreciable assets                                     $645,000        $7,000         $9,000        $12,000           $12,000       $685,000

Depreciation base                                            $645,000     $652,000       $661,000       $673,000        $685,000          $685,000




                                                                        © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Annual Operating Budget—Service Companies
Pro forma annual income statement
Headcount summary                                                Q1                    Q2                        Q3               Q4                             Notes
 Service operations                                                   23.00                  25.00                     26.00            27.00            27.00
 Sales and marketing                                                  16.00                  16.00                     19.00            20.00            20.00
 General and administrative                                           24.00                  24.00                     24.00            25.00            25.00
Total headcount                                                       63.00                  65.00                     69.00            72.00            72.00

 Revenues                                                       $4,500,000            $5,000,000                $5,200,000       $5,500,000       $20,200,000
 Cost of sales                                                   1,000,000             1,100,000                 1,200,000        1,300,000         4,600,000
Gross margin                                                    $3,500,000            $3,900,000                $4,000,000       $4,200,000       $15,600,000
 Margin contribution %                                          78%                   78%                       77%              76%               77%

Checkpoint: Revenue per employee from this budget                                                                                                    $280,556
Targeted revenue per employee                                                                                                                        $270,000

Expenses                                                         Q1                    Q2                        Q3               Q4                             Notes
 Service operations                                               $714,060              $779,690                  $803,130         $840,630        $3,137,510
 Sales and marketing                                               841,560               816,560                   930,000          982,500         3,570,620
 General and administrative                                        895,160               906,610                   898,210          921,690         3,621,670
Total expenses                                                  $2,450,780            $2,502,860                $2,631,340       $2,744,820       $10,329,800

Operating profit                                                $1,049,220            $1,397,140                $1,368,660       $1,455,180        $5,270,200

 Other gains (losses)                                                     0                 21,000                    20,000           35,000          76,000
 Other income                                                         5,000                  5,000                     5,000            5,000          20,000

Total income                                                     1,054,220              1,423,140                 1,393,660       1,495,180         5,366,200

 Taxes                                        30.0%                316,270                426,940                   418,100         448,550         1,609,860

Net income                                                         737,950                996,200                   975,560       1,046,630         3,756,340




Pro forma annual balance sheet
Assets                                                           Q1                    Q2                        Q3               Q4            Annual total     Notes
                                         Beginning balance
 Cash                                                 50,000       808,550              1,823,800                 2,816,010       3,879,890         3,879,890
 Accounts receivable                                  40,000        40,000                 40,000                    40,000          40,000            40,000
 Other current assets                                 20,000        20,000                 20,000                    20,000          20,000            20,000
Total current assets                                 110,000       868,550              1,883,800                 2,876,010       3,939,890         3,939,890

 Depreciable assets                                   645,000      652,000                661,000                   673,000         685,000           685,000
 Accumulated depreciation                                   0       32,600                 65,650                    99,300         133,550           133,550
 Land                                                 640,000      640,000                640,000                   640,000         640,000           640,000
Net property, plant, and equipment                  1,285,000    1,259,400              1,235,350                 1,213,700       1,191,450         1,191,450

 Other assets                                        100,000       100,000                100,000                   100,000         100,000           100,000

Total assets                                    $1,495,000      $2,227,950           $3,219,150                $4,189,710        $5,231,340        $5,231,340

Liabilities and equity                                           Q1                    Q2                        Q3               Q4            Annual total     Notes
  Accounts payable                                   $20,000      $20,000                $20,000                   $20,000         $20,000           $20,000
  Accrued liabilities                                 10,000       10,000                 10,000                    10,000          10,000            10,000
  Other current liabilities                            10,000       10,000                 10,000                    10,000          10,000            10,000
Total current liabilities                            $40,000      $40,000                $40,000                   $40,000         $40,000           $40,000

 Long-term debt                                     $150,000     $145,000               $140,000                  $135,000        $130,000          $130,000
 Notes payable                                             0            0                      0                         0               0                 0
 Other long-term liabilities                            5,000        5,000                  5,000                     5,000           5,000             5,000
Total long-term liabilities                         $155,000     $150,000               $145,000                  $140,000        $135,000          $135,000

Total liabilities                                   $195,000     $190,000               $185,000                  $180,000        $175,000          $175,000

 Common stock                                   $1,000,000      $1,000,000            $1,000,000                $1,000,000       $1,000,000        $1,000,000
 Retained earnings                                 300,000         300,000               300,000                   300,000          300,000           300,000
 Cumulative net income                                   0         737,950             1,734,150                 2,709,710        3,756,340         3,756,340
Net equity                                      $1,300,000      $2,037,950            $3,034,150                $4,009,710       $5,056,340        $5,056,340

Total liabilities and equity                    $1,495,000      $2,227,950            $3,219,150                $4,189,710       $5,231,340        $5,231,340




Pro forma annual cash flow summary
Sources of funds                                                 Q1                    Q2                        Q3               Q4
 From operations                                                  $732,950               $970,200                  $950,560      $1,006,630
 Add depreciation                                                   32,600                 33,050                    33,650          34,250

 Net changes in balance sheet accounts
 Current assets                                                          0                         0                         0             0
 Current liabilities                                                     0                         0                         0             0

 Other sources of funds
 Other gains (losses)                                                    0                21,000                    20,000           35,000
 Other                                                               5,000                 5,000                     5,000            5,000
Total sources                                                     $770,550            $1,029,250                $1,009,210       $1,080,880

Uses of funds                                                    Q1                    Q2                        Q3               Q4
 Repurchase of stock                                                     0                      0                         0               0
 Debt retirement                                                    -5,000                 -5,000                    -5,000          -5,000
 Purchase of equipment and assets                                   -7,000                 -9,000                   -12,000         -12,000
 Other uses                                                              0                      0                         0               0
Total uses                                                        -$12,000               -$14,000                  -$17,000        -$17,000

 Net change in cash                                                758,550              1,015,250                   992,210       1,063,880

 Cumulative cash                                                   758,550              1,773,800                 2,766,010       3,829,890

Beginning balance                                                  $50,000              $808,550                $1,823,800       $2,816,010
Ending balance                                                    $808,550            $1,823,800                $2,816,010       $3,879,890




Summary trend data for chart                                     Q1                    Q2                        Q3               Q4
 Quarterly revenue                                               4,500,000              5,000,000                 5,200,000       5,500,000
 Quarterly margin                                                3,500,000              3,900,000                 4,000,000       4,200,000
 Quarterly net income (loss)                                       737,950                996,200                   975,560       1,046,630
 Quarterly cash flow                                               758,550              1,015,250                   992,210       1,063,880
 Quarterly total assets                                          2,227,950              3,219,150                 4,189,710       5,231,340




                                                                         © Copyright, 2009, JaxWorks, All Rights Reserved.
                                                     Quarterly Trend for Key Financial Metrics


6,000,000




5,000,000




4,000,000




3,000,000




2,000,000




1,000,000




       0
                           Q1                           Q2                                 Q3                            Q4


            Quarterly revenue   Quarterly margin             Quarterly net income (loss)           Quarterly cash flow    Quarterly total assets




                                                   © Copyright, 2009, JaxWorks, All Rights Reserved.
Budget vs. Actual Analysis
               Line Item                       January        February         March         Q1           April         May          June             Q2             July           August      September       Q3           October     November December            Q4           Annual        Variance Analysis Notes
            Profit-and-Loss
Revenue
 Budget                                    $      65,000 $       75,000 $        85,000 $    225,000 $      75,000 $     80,000 $     90,000 $        245,000 $        90,000 $       100,000 $    105,000 $    295,000 $      120,000 $    130,000 $    145,000 $    395,000 $     1,160,000
 Actual                                           60,000         70,000          88,000      218,000        95,000       65,000       88,000          248,000          95,000         110,000      100,000      305,000        115,000      120,000      165,000      400,000       1,171,000
 Variance (dollars)                        $      (5,000) $      (5,000) $        3,000 $     (7,000) $     20,000 $    (15,000) $    (2,000) $         3,000 $         5,000 $        10,000 $     (5,000) $    10,000 $       (5,000) $   (10,000) $    20,000 $      5,000 $        11,000
 Variance (percent)                                (7.69)         (6.67)           3.53        (3.11)        26.67       (18.75)       (2.22)            1.22            5.56           10.00        (4.76)        3.39          (4.17)       (7.69)       13.79         1.27            0.95
Cost of Goods Sold
 Budget                                    $      50,000 $       55,000 $        65,000 $    170,000 $      55,000 $     60,000 $     70,000 $        185,000 $        50,000 $        55,000 $     65,000 $    170,000 $       50,000 $     55,000 $     65,000 $    170,000 $       695,000
 Actual                                           45,000         55,000          63,000      163,000        45,000       55,000       63,000          163,000          45,000          55,000       63,000      163,000         45,000       55,000       63,000      163,000         652,000
 Variance (dollars)                        $       5,000 $            - $         2,000 $      7,000 $      10,000 $      5,000 $      7,000 $         22,000 $         5,000 $             - $      2,000 $      7,000 $        5,000 $          - $      2,000 $      7,000 $        43,000
 Variance (percent)                                10.00            0.00           3.08         4.12         18.18         8.33        10.00            11.89           10.00            0.00         3.08         4.12          10.00         0.00         3.08         4.12            6.19
Sales and Marketing Costs
 Budget                                    $       8,000 $         3,000 $        4,000 $     15,000 $       6,000 $      7,000 $      8,000 $         21,000 $         7,500 $         8,500 $      9,000 $     25,000 $        8,000 $     10,000 $      6,500 $     24,500 $        85,500
 Actual                                           10,000           4,000          3,000       17,000         5,000        6,500        7,500           19,000           8,000           8,000        8,500       24,500          9,000        9,000        4,500       22,500          83,000
 Variance (dollars)                        $      (2,000) $       (1,000) $       1,000 $     (2,000) $      1,000 $        500 $        500 $          2,000 $          (500) $          500 $        500 $        500 $       (1,000) $     1,000 $      2,000 $      2,000 $         2,500
 Variance (percent)                               (25.00)         (33.33)         25.00       (13.33)        16.67         7.14         6.25             9.52           (6.67)           5.88         5.56         2.00         (12.50)       10.00        30.77         8.16            2.92
Labor Costs
 Budget                                    $      35,000 $       40,000 $        40,000 $    115,000 $      40,000 $     40,000 $     45,000 $        125,000 $        45,000 $        45,000 $     50,000 $    140,000 $       50,000 $     55,000 $     55,000 $    160,000 $       540,000
 Actual                                           40,000         41,000          42,000      123,000        42,000       43,000       45,000          130,000          45,000          47,000       49,000      141,000         50,000       55,000       57,000      162,000         556,000
 Variance (dollars)                        $      (5,000) $      (1,000) $       (2,000) $    (8,000) $     (2,000) $    (3,000) $          - $        (5,000) $             - $       (2,000) $     1,000 $     (1,000) $            - $          - $    (2,000) $    (2,000) $      (16,000)
 Variance (percent)                               (14.29)         (2.50)          (5.00)       (6.96)        (5.00)       (7.50)        0.00            (4.00)           0.00           (4.44)        2.00        (0.71)          0.00         0.00        (3.64)       (1.25)          (2.96)
Sales, General, and Administrative Costs
 Budget                                    $      10,000 $       10,000 $        11,000 $     31,000 $      11,000 $     12,000 $     15,000 $         38,000 $        14,000 $        15,000 $     16,000 $     45,000 $       15,000 $     18,000 $     15,000 $     48,000 $       162,000
 Actual                                            9,000         10,000          12,000       31,000        15,000       13,000       14,000           42,000          13,500          14,500       15,500       43,500         14,000       22,000       15,500       51,500         168,000
 Variance (dollars)                        $       1,000 $             - $       (1,000) $          - $     (4,000) $    (1,000) $     1,000 $         (4,000) $          500 $           500 $        500 $      1,500 $        1,000 $     (4,000) $      (500) $    (3,500) $       (6,000)
 Variance (percent)                                10.00           0.00           (9.09)        0.00        (36.36)       (8.33)        6.67           (10.53)           3.57            3.33         3.13         3.33           6.67       (22.22)       (3.33)       (7.29)          (3.70)
Operating Income
 Budget                                    $        5,000 $         5,000 $       5,000 $     15,000 $      10,000 $     10,000 $     10,000 $         30,000 $        15,000 $        15,000 $     15,000 $     45,000 $        2,000 $     20,000 $     20,000 $     42,000 $       132,000
 Actual                                            (5,000)         (3,000)        2,000        (6,000)            -       5,000       12,000           17,000          12,000          16,000       18,000       46,000         21,000       25,000       24,000       70,000         127,000
 Variance (dollars)                        $     (10,000) $        (8,000) $     (3,000) $   (21,000) $    (10,000) $    (5,000) $     2,000 $        (13,000) $       (3,000) $        1,000 $      3,000 $      1,000 $       19,000 $      5,000 $      4,000 $     28,000 $        (5,000)
 Variance (percent)                              (200.00)        (160.00)        (60.00)     (140.00)      (100.00)      (50.00)       20.00           (43.33)         (20.00)           6.67        20.00         2.22         950.00        25.00        20.00        66.67           (3.79)


            Balance Sheet
Cash
  Budget                                   $      45,000 $       45,000 $        40,000 $     43,333 $      40,000 $     42,000 $     45,000 $         42,333 $        48,000 $        52,000 $     55,000 $     51,667 $       60,000 $     65,000 $     70,000 $     65,000 $        70,000
  Actual                                          43,000         42,000          41,000       42,000        38,000       40,000       41,000           39,667          45,000          48,000       53,000       48,667         58,000       66,000       72,000       65,333          72,000
  Variance (dollars)                       $      (2,000) $       (3,000) $       1,000 $     (1,333) $     (2,000) $    (2,000) $     (4,000) $        (2,667) $       (3,000) $      (4,000) $    (2,000) $    (3,000) $      (2,000) $     1,000 $      2,000 $        333 $         2,000
  Variance (percent)                               (4.44)          (6.67)          2.50        (3.08)        (5.00)       (4.76)        (8.89)           (6.30)          (6.25)         (7.69)       (3.64)       (5.81)         (3.33)        1.54         2.86         0.51            2.86
Inventory Value
  Budget                                   $     100,000 $      105,000 $       110,000 $    105,000 $     115,000 $    120,000 $    125,000 $        120,000 $       125,000 $       125,000 $    120,000 $    123,333 $      115,000 $    110,000 $    100,000 $    108,333 $       100,000
  Actual                                          95,000        100,000         105,000      100,000       105,000      112,000      118,000          111,667         122,000         125,000      121,000      122,667        116,000      108,000      102,000      108,667         102,000
  Variance (dollars)                       $      (5,000) $      (5,000) $       (5,000) $    (5,000) $    (10,000) $    (8,000) $    (7,000) $        (8,333) $       (3,000) $             - $     1,000 $       (667) $       1,000 $     (2,000) $     2,000 $        333 $         2,000
  Variance (percent)                               (5.00)         (4.76)          (4.55)       (4.76)        (8.70)       (6.67)       (5.60)           (6.94)          (2.40)           0.00         0.83        (0.54)          0.87        (1.82)        2.00         0.31            2.00
Accounts Receivable
  Budget                                   $      45,000 $       48,000 $        50,000 $     47,667 $      55,000 $     55,000 $     54,000 $         54,667 $        53,000 $        52,000 $     51,000 $     52,000 $       50,000 $     50,000 $     50,000 $     50,000 $        50,000
  Actual                                          47,000         48,000          49,000       48,000        51,000       53,000       54,000           52,667          55,000          54,000       53,000       54,000         51,000       50,000       49,500       50,167          49,500
  Variance (dollars)                       $       2,000 $            - $        (1,000) $       333 $      (4,000) $    (2,000) $         - $         (2,000) $        2,000 $         2,000 $      2,000 $      2,000 $        1,000 $          - $       (500) $       167 $          (500)
  Variance (percent)                                4.44            0.00          (2.00)        0.70         (7.27)       (3.64)        0.00             (3.66)          3.77            3.85         3.92         3.85           2.00         0.00        (1.00)        0.33           (1.00)
Net Capital Assets
  Budget                                   $     250,000 $      245,000 $       240,000 $    245,000 $     235,000 $    230,000 $    225,000 $        230,000 $       300,000 $       295,000 $    290,000 $    295,000 $      285,000 $    280,000 $    275,000 $    280,000 $       275,000
  Actual                                         250,000        245,000         240,000      245,000       235,000      230,000      225,000          230,000         325,000         320,000      315,000      320,000        310,000      305,000      300,000      305,000         300,000
  Variance (dollars)                       $            - $            - $             - $          - $           - $          - $          - $              - $       25,000 $        25,000 $     25,000 $     25,000 $       25,000 $     25,000 $     25,000 $     25,000 $        25,000
  Variance (percent)                                0.00           0.00            0.00         0.00          0.00         0.00         0.00             0.00            8.33            8.47         8.62         8.47           8.77         8.93         9.09         8.93            9.09
Accounts Payable
  Budget                                   $      25,000 $       28,000 $        32,000 $     28,333 $      34,000 $     35,000 $     36,000 $         35,000 $        35,000 $        34,000 $     33,000 $     34,000 $       32,000 $     31,000 $     30,000 $     31,000 $        30,000
  Actual                                          26,000         30,000          34,000       30,000        35,000       35,500       36,500           35,667          35,000          34,000       32,500       33,833         31,000       30,000       29,500       30,167          29,500
  Variance (dollars)                       $       1,000 $         2,000 $        2,000 $      1,667 $       1,000 $        500 $        500 $            667 $              - $             - $      (500) $      (167) $      (1,000) $    (1,000) $      (500) $      (833) $         (500)
  Variance (percent)                                4.00            7.14           6.25         5.88          2.94         1.43         1.39             1.90            0.00            0.00        (1.52)       (0.49)         (3.13)       (3.23)       (1.67)       (2.69)          (1.67)
Long-Term Debt Payable
  Budget                                   $     125,000 $       48,000 $        50,000 $     74,333 $      55,000 $     55,000 $     54,000 $         54,667 $        53,000 $        52,000 $     51,000 $     52,000 $       50,000 $     50,000 $     50,000 $     50,000 $        50,000
  Actual                                         125,000         48,000          49,000       74,000        51,000       53,000       54,000           52,667          55,000          54,000       53,000       54,000         51,000       50,000       49,500       50,167          49,500
  Variance (dollars)                       $            - $            - $       (1,000) $      (333) $     (4,000) $    (2,000) $          - $        (2,000) $        2,000 $         2,000 $      2,000 $      2,000 $        1,000 $           - $      (500) $       167 $          (500)
  Variance (percent)                                0.00           0.00           (2.00)       (0.45)        (7.27)       (3.64)        0.00            (3.66)           3.77            3.85         3.92         3.85           2.00         0.00        (1.00)        0.33           (1.00)




                                                                                                                                            © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Budget Scenario Analysis
                                                                             Scenario 1                  Scenario 2            Scenario 3
Budget Drivers
                                                                             (Best case)               (Average case)         (Worst case)
Probability of shipping on time                                                  98%                        95%                  90%
Number of new customer orders                                                   35,000                     30,000               25,000
Regional economic growth                                                        3.50%                      3.20%                2.00%
Competitive strength (products, pricing, promotion, placement)                    7                          8                    9
Probability of key supplier performance                                          99%                        95%                  90%


                                                                             Scenario 1                  Scenario 2            Scenario 3
Revenue Impact
                                                                             (Best case)               (Average case)         (Worst case)
Probability of shipping on time                                                  2.0%                       0.0%                 -5.0%
Number of new customer orders                                                    5.0%                       0.0%                 -5.0%
Regional economic growth                                                         2.0%                       0.0%                 -4.0%
Competitive strength (products, pricing, promotion, placement)                   2.0%                       0.0%                 -5.0%
Probability of key supplier performance                                          2.0%                       0.0%                 -5.0%

    Budgeted Annual Revenue Using Base Case Scenario                         $6,500,000


Budget Scenarios                                                               Results               Base Case Variance   Variance Percentage

Scenario 1: Best case                                                        $7,345,000                  $845,000               11.50%
Scenario 2: Average case                                                     $6,500,000                      —                     —
Scenario 3: Worst case                                                       $4,940,000                 ($1,560,000)            -31.58%


                                            Scenario Comparison - Annual Revenue




                  $8,000,000


                  $7,000,000


                  $6,000,000


                  $5,000,000


                  $4,000,000


                  $3,000,000


                  $2,000,000


                  $1,000,000


                           $0
                                Scenario 1: Best case       Scenario 2: Average case       Scenario 3: Worst case




                                                 © Copyright, 2009, JaxWorks, All Rights Reserved.
The XYZ Company
6200 XYZ Drive
ABC, California 00000-0000
Phone: (000) 000-0000
FAX: (000) 000-0000
E-mail: someone@xyz.com


Headcount and Payroll Planning
                                                                                                                       Annual                                                                         Annual
HEADCOUNT SUMMARY                         Q1           Q2              Q3              Q4         Annual total                         Q1 cost       Q2 cost        Q3 cost         Q4 cost
                                                                                                                       salary                                                                          cost
Executive
 Chief executive officer                       1.00         1.00          1.00            1.00              4.00        $300,000         $75,000        $75,000       $75,000           $75,000        $300,000
 Chief financial officer                       1.00         1.00          1.00            1.00              4.00         250,000          62,500         62,500        62,500            62,500         250,000
 Chief operating officer                       1.00         1.00          1.00            1.00              4.00         225,000          56,250         56,250        56,250            56,250         225,000
 Chief information officer                     1.00         1.00          1.00            1.00              4.00         225,000          56,250         56,250        56,250            56,250         225,000
 President                                     1.00         1.00          1.00            1.00              4.00         240,000          60,000         60,000        60,000            60,000         240,000
                                                                                                            0.00                               0              0             0                 0               0
 Total                                         5.00         5.00          5.00            5.00             20.00                        $310,000       $310,000      $310,000          $310,000      $1,240,000

Finance
  Vice president                               1.00         1.00          1.00            1.00              4.00        $200,000         $50,000        $50,000       $50,000           $50,000       $200,000
  Financial planning director                  1.00         1.00          1.00            1.00              4.00         125,000          31,250         31,250        31,250            31,250        125,000
  Financial analyst                            2.00         2.00          2.00            2.00              8.00         100,000          50,000         50,000        50,000            50,000        200,000
  Credit analyst                               1.00         1.00          1.00            1.00              4.00          70,000          17,500         17,500        17,500            17,500         70,000
  Advisor                                      1.00         1.00          1.00            1.00              4.00          85,000          21,250         21,250        21,250            21,250         85,000
                                                                                                            0.00                               0              0             0                 0              0
 Total                                         6.00         6.00          6.00            6.00             24.00                        $170,000       $170,000      $170,000          $170,000       $680,000

Human Resources
 Vice president                                1.00         1.00          1.00            1.00              4.00        $140,000         $35,000        $35,000       $35,000           $35,000       $140,000
 Director                                      1.00         1.00          1.00            1.00              4.00         100,000          25,000         25,000        25,000            25,000        100,000
 Senior human resource representative          2.00         2.00          2.00            2.00              8.00          80,000          40,000         40,000        40,000            40,000        160,000
 Benefits coordinator                          1.00         1.00          1.00            1.00              4.00          75,000          18,750         18,750        18,750            18,750         75,000
 Compensation manager                          2.00         2.00          2.00            2.00              8.00          75,000          37,500         37,500        37,500            37,500        150,000
 Human resource generalist                     2.00         2.00          2.00            2.00              8.00          65,000          32,500         37,500        37,500            37,500        145,000
 Payroll                                       1.00         1.00          1.00            1.00              4.00          65,000          16,250         16,250        16,250            16,250         65,000
 Trainer                                                                                                    0.00          65,000               0              0             0                 0              0
 Recruiter                                                                                                  0.00          65,000               0              0             0                 0              0
                                                                                                            0.00                               0              0             0                 0              0
 Total                                      10.00         10.00          10.00           10.00             40.00                        $205,000       $210,000      $210,000          $210,000       $835,000

Information Technology
  Vice president                               1.00         1.00          1.00            1.00              4.00        $140,000         $35,000        $35,000       $35,000           $35,000       $140,000
  Director                                     1.00         1.00          1.00            1.00              4.00         110,000          27,500         27,500        27,500            27,500        110,000
  Systems engineer                             2.00         2.00          2.00            2.00              8.00          90,000          45,000         45,000        45,000            45,000        180,000
  Systems analyst                              1.00         1.00          1.00            1.00              4.00          90,000          22,500         22,500        22,500            22,500         90,000
  Technician                                   1.00         1.00          2.00            2.00              6.00          80,000          20,000         20,000        40,000            40,000        120,000
  Support                                      2.00         2.00          2.00            2.00              8.00          75,000          37,500         37,500        37,500            37,500        150,000
  Architect                                    1.00         1.00          1.00            1.00              4.00          80,000          20,000         20,000        20,000            20,000         80,000
  Programmer                                   1.00         1.00          1.00            1.00              4.00          80,000          20,000         20,000        20,000            20,000         80,000
                                                                                                            0.00                               0              0             0                 0              0
 Total                                      10.00         10.00          11.00           11.00             42.00                        $227,500       $227,500      $247,500          $247,500       $950,000

Accounting
 Vice president                                1.00         1.00          1.00            1.00              4.00        $130,000         $32,500        $32,500       $32,500           $32,500       $130,000
 Controller                                    1.00         1.00          1.00            1.00              4.00          95,000          23,750         23,750        23,750            23,750         95,000
 Accounting manager                            1.00         1.00          1.00            1.00              4.00          75,000          18,750         18,750        18,750            18,750         75,000
 Accounts receivable                           1.00         1.00          1.00            1.00              4.00          55,000          13,750         13,750        13,750            13,750         55,000
 Accounts payable                              1.00         1.00          1.00            1.00              4.00          55,000          13,750         13,750        13,750            13,750         55,000
 Treasury                                      1.00         1.00          1.00            1.00              4.00          75,000          18,750         18,750        18,750            18,750         75,000
 General accountant                            1.00         1.00          1.00            1.00              4.00          55,000          13,750         13,750        13,750            13,750         55,000
                                                                                                            0.00                               0              0             0                 0              0
 Total                                         7.00         7.00          7.00            7.00             28.00                        $135,000       $135,000      $135,000          $135,000       $540,000

Sales
 Vice president                                1.00         1.00          1.00            1.00              4.00        $120,000         $30,000        $30,000       $30,000           $30,000        $120,000
 Regional director                             2.00         2.00          2.00            2.00              8.00         100,000          50,000         50,000        50,000            50,000         200,000
 Business development                          1.00         1.00          1.00            1.00              4.00          90,000          22,500         22,500        22,500            22,500          90,000
 Direct sales representative                   4.00         4.00          4.00            4.00             16.00          90,000          90,000         90,000        90,000            90,000         360,000
 Inside sales                                  1.00         1.00          1.00            1.00              4.00          75,000          18,750         18,750        18,750            18,750          75,000
 Sales operations                              1.00         1.00          1.00            1.00              4.00          75,000          18,750         18,750        18,750            18,750          75,000
 Channel sales representative                  1.00         1.00          1.00            1.00              4.00          80,000          20,000         20,000        20,000            20,000          80,000
                                                                                                            0.00                               0              0             0                 0               0
 Total                                      11.00         11.00          11.00           11.00             44.00                        $250,000       $250,000      $250,000          $250,000      $1,000,000

Operations
 Vice president                                1.00         1.00          1.00            1.00              4.00        $150,000         $37,500        $37,500       $37,500           $37,500       $150,000
 Director                                      1.00         1.00          1.00            1.00              4.00         100,000          25,000         25,000        25,000            25,000        100,000
 Manager                                       1.00         1.00          1.00            1.00              4.00          85,000          21,250         21,250        21,250            21,250         85,000
 Floor manager                                 5.00         5.00          5.00            5.00             20.00          65,000          81,250         81,250        81,250            81,250        325,000
 Assistant                                     1.00         1.00          1.00            1.00              4.00          45,000          11,250         11,250        11,250            11,250         45,000
                                                                                                            0.00                               0              0             0                 0              0
 Total                                         9.00         9.00          9.00            9.00             36.00                        $176,250       $176,250      $176,250          $176,250       $705,000

Marketing
 Vice president                                1.00         1.00          1.00            1.00              4.00        $135,000         $33,750        $33,750       $33,750           $33,750       $135,000
 Director                                      1.00         1.00          1.00            1.00              4.00         105,000          26,250         26,250        26,250            26,250        105,000
 Product manager                               1.00         1.00          1.00            1.00              4.00          90,000          22,500         22,500        22,500            22,500         90,000
 Market research                               1.00         1.00          1.00            1.00              4.00          75,000          18,750         18,750        18,750            18,750         75,000
 Market analyst                                1.00         1.00          1.00            1.00              4.00          75,000          18,750         18,750        18,750            18,750         75,000
 Product manager                               1.00         1.00          1.00            1.00              4.00          90,000          22,500         22,500        22,500            22,500         90,000
 Merchandiser                                  1.00         1.00          1.00            1.00              4.00          70,000          17,500         17,500        17,500            17,500         70,000
 Assistant                                     1.00         1.00          1.00            1.00              4.00          50,000          12,500         12,500        12,500            12,500         50,000
                                                                                                            0.00                               0              0             0                 0              0
 Total                                         8.00         8.00          8.00            8.00             20.00                        $172,500       $172,500      $172,500          $172,500       $690,000

Corporate totals                            66.00         66.00          67.00           67.00            254.00                      $1,646,250      $1,651,250    $1,671,250       $1,671,250      $6,640,000



KEY MODEL INPUTS
Fringe benefit percentage                    25.0%
Fiscal revenue                          $5,256,000



SUMMARY DATA BY DEPARTMENT
                                           Total number                                              Salary +                Variable                Variable            Stock-based
              Department                                           Total salary     Benefits                                                                                                          Total compensation
                                           of employees                                              benefits             compensation %               pay              compensation
 Executive                                       20                $1,240,000        $310,000       $1,550,000                15.0%                    $186,000                 $200,000                           $1,936,000
 Finance                                         24                   680,000         170,000          850,000                10.0%                    68,000.00               50,000.00                            968,000.00
 Human Resources                                 40                   835,000         208,750        1,043,750                 5.0%                    41,750.00                    0.00                          1,085,500.00
 Information Technology                          42                   950,000         237,500        1,187,500                 5.0%                    47,500.00                    0.00                          1,235,000.00
 Accounting                                      28                   540,000         135,000          675,000                 5.0%                    27,000.00                    0.00                            702,000.00
 Sales                                           44                 1,000,000         250,000        1,250,000                40.0%                   400,000.00                    0.00                          1,650,000.00
 Operations                                      36                   705,000         176,250          881,250                10.0%                    70,500.00                    0.00                            951,750.00
 Marketing                                       20                   690,000         172,500          862,500                 5.0%                    34,500.00                    0.00                            897,000.00

 Corporate Totals                                254               $6,640,000     $1,660,000        $8,300,000                                         $875,250            $250,000                                $9,425,250


                                           Total number
              Department
                                           of employees
                                                                    % of total    Total comp        % of total                        Key metrics:
 Executive                                       20                       7.9%    $1,936,000               20.5%                      Revenue/employee                $20,693
 Finance                                         24                       9.4%       968,000               10.3%                      Total compensation/employee     $37,107
 Human Resources                                 40                      15.7%     1,085,500               11.5%
 Information Technology                          42                      16.5%     1,235,000               13.1%                      Quarterly metrics:
 Accounting                                      28                      11.0%       702,000                7.4%                                       Salary       Benefits     Salary + benefits
 Sales                                           44                      17.3%     1,650,000               17.5%                          Q1          $1,646,250      $411,563       $2,057,813
 Operations                                      36                      14.2%       951,750               10.1%                          Q2           1,651,250       412,813        2,064,063
 Marketing                                       20                       7.9%       897,000                9.5%                          Q3           1,671,250       417,813        2,089,063
                                                                                                                                          Q4           1,671,250       417,813        2,089,063
 Corporate Totals                                254                    100.0%    $9,425,250              100.0%                                      $6,640,000    $1,660,000       $8,300,000




                                                                                  © Copyright, 2009, JaxWorks, All Rights Reserved.
                  Quarterly Analysis of Salary and Benefits

$2,500,000




$2,000,000




$1,500,000                                                                       Salary

                                                                                 Benefits

                                                                                 Salary + benefits
$1,000,000




 $500,000




       $0
             Q1                Q2                         Q3                Q4


                                          Quarter




                        © Copyright, 2009, JaxWorks, All Rights Reserved.
Product Profitability Analysis
Red Widgets
Inventory Movement                                             Q1                    Q2                  Q3           Q4           Annual
  Number of units in inventory—Beginning of period                  1,200                 1,100               1,300        1,600        1,200
  Production                                                          700                   800                 800          600        2,900
  Units sold                                                          800                   600                 500          750        2,650
  Number of units in inventory—End of period                        1,100                 1,300               1,600        1,450        1,450

Profitability Analysis                                        Q1                    Q2                   Q3           Q4           Annual
 Product revenue                                                $400,000             $425,000            $285,000     $395,000     $1,505,000

Cost of Goods Sold                                             Q1                    Q2                  Q3           Q4           Annual
 Material costs                                                  $90,000              $80,000             $80,000      $75,000      $325,000
 Labor costs                                                     120,000              120,000             115,000      110,000       465,000
 Logistics costs                                                  45,000               40,000              35,000       45,000       165,000
 Other direct costs                                                    0                    0                   0            0             0
 Total cost of goods sold                                       $255,000             $240,000            $230,000     $230,000      $955,000

 Gross margin                                                   $145,000             $185,000             $55,000     $165,000      $550,000
 Margin contribution percentage                                    36.3%                43.5%               19.3%        41.8%         36.5%

Indirect Product Costs                                         Q1                    Q2                  Q3           Q4           Annual
  Product marketing                                              $60,000               $60,000            $60,000      $60,000      $240,000
  Other indirect product costs                                    25,000                25,000             25,000       30,000       105,000
  Total other product costs                                      $85,000               $85,000            $85,000      $90,000      $345,000

 Quarterly product profit (loss)                                 $60,000             $100,000            ($30,000)     $75,000      $205,000

Summary Metrics                                                Q1                    Q2                  Q3           Q4           Annual
 Average sales price per unit sold                               $500.00               $708.33            $570.00      $526.67       $567.92
 Material cost per unit produced                                 $128.57               $100.00            $100.00      $125.00       $112.07
 Labor cost per unit produced                                    $171.43               $150.00            $143.75      $183.33       $160.34
 Profit per unit                                                 $200.00               $458.33            $326.25      $218.33       $295.51




                                                     © Copyright, 2009, JaxWorks, All Rights Reserved.
                                              Summary Metrics per Quarter

                       $800.00


                       $700.00


                       $600.00


                       $500.00

                       $400.00


                       $300.00


                       $200.00


                       $100.00

                          $0.00
                                       1                     2                           3            4         5

Average sales price per unit sold   $500.00              $708.33                     $570.00       $526.67   $567.92
Material cost per unit produced     $128.57              $100.00                     $100.00       $125.00   $112.07
Labor cost per unit produced        $171.43              $150.00                     $143.75       $183.33   $160.34
Profit per unit                     $200.00              $458.33                     $326.25       $218.33   $295.51




                                               © Copyright, 2009, JaxWorks, All Rights Reserved.
                                                              Copyright Notice
© 2009, JaxWorks
All rights reserved.
Specifications are subject to change without notice.

Profit Planner™ is a registered trademark of Jaxworks and affiliated companies. All other brands or products are trademarks or registered trademarks of
their respective holders and should be treated as such.

NOTICES REGARDING SOFTWARE, DOCUMENTS AND SERVICES.

IN NO EVENT SHALL JAXWORKS BE LIABLE FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES WHATSOEVER
RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING
OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF SOFTWARE, DOCUMENTS, PROVISION OF OR FAILURE TO PROVIDE SERVICES, OR
INFORMATION AVAILABLE FROM THIS PROGRAM.




                                    © Copyright, 2009, JaxWorks, All Rights Reserved.

				
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