businessplan by wuyunqing

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									         CTR LIGHTING
            Business Plan

High Performance Electronic Ballasts


   Submitted to: Dr. Joseph Picone



      EE 4522: Senior Design II



 Department of Electrical Engineering



     Mississippi State University



           March 24, 2003


             Robin Kelley
           Travis Brignac
          Clinton Livingston
1.0 Executive Summary

CTR Lighting is a company committed to the production of high performance high
quality electronic ballasts. Our electronics ballast will be special because they will
provide the electronic ballast market with something new and innovative. Our ballasts
will operate at a frequency of 100kHz, which has not yet been seen in the fluorescent
lighting industry. This higher frequency will allow for higher efficiency of fluorescent
lamps, which will be very beneficial to our customers. This is very important to us
because customer satisfaction will allow our company to see substantial growth. In this
manner both the customer and our company will benefit.

1.1 Objectives

CTR Lighting has set low goals for sales in year one (2003). This being because the
electronic ballast industry is such a competitive market. It will take some time to build a
substantial customer base to improve profit margins. Years one and two (2003, 2004)
will be used mainly for marketing and building this customer base rather than for profits.
Once a large customer base has been established sales are expected to significantly
exceed costs to begin improving profit. Costs will be controlled to maintain projected
margins at these lowered sales levels. If sales exceed goals before expected, additional
production and increased marketing activity can be implemented. However, this
increase in production may call for additional capital to allow for the increased
production costs.

1.2 Mission

CTR Lighting is a company dedicated to providing quality electronic ballasts to its
customers. Our products will be manufactured in a modern manufacturing facility from
only high quality parts. We have a commitment to quality in our products and will do
everything possible to meet our customers' needs and desires. We intend to produce a
product that will increase lighting efficiency, and that will improve the overall electrical
efficiency of facilities with large electrical lighting needs. Our electronic ballasts will be
unprecedented in the fluorescent lighting industry. Our products will be marketed
mainly to large industrial suppliers whole will serve as the "middle men" between our
company and the consumer. However it is quite possible that some sales with be direct
to larger industrial facilities. We plan to market and sale our product in a professional
and ethical manner. We intend to grow the business and to establish our brand as a
product leader and innovator in the ballast industry. We intend to finance continued
growth both internally and externally and to develop and acquire new and additional
products once our marketing platform is established.

1.3 Keys to Success

The keys to success for CTR Lighting are:
    Product Quality: We are committed to manufacturing a high quality product that
      will meet the satisfaction of our customers. We believe that customer satisfaction
       will be a driving force behind the success of our business. This is why we will
       produce a product that will undoubtedly meet the wants and needs of our
       customers, not only in quality, but also in performance.
      Marketing: Reaching and appealing to customers in the only way to promote
       and insure the growth of a company. Our marketing strategy is simple. Appeal
       to the customers needs and sell a quality product. This will build a reputation
       that will insure customer growth and therefore insure growth of the company.
      Management: Then management staff is the backbone of any company.
       Management is the last stop for major decisions and therefore must be a strong
       and reliable unit. Our management staff will have the knowledge and insight into
       the product to make rash and logical decisions to promote the sell of our product.
       We will have a management staff that is dedicated to the growth of the company
       and will make significant personal sacrifices to guarantee the success of the
       company.

2.0 Company Summary

CTR Lighting was established in Starkville Mississippi in January 2003. We are
currently in the startup stage of our business. We plan to have about fifty employees.
These fifty employees include administration, engineering, production, and maintenance
personnel. Our facilities, located in Jackson, MS, occupy about 20,000 square feet,
which is mainly manufacturing space, but includes offices for engineering and
administration. CTR Lighting was established based a need for high-end electronic
ballasts in the fluorescent lighting industry. Our company will design and market high-
quality, high-performance electronic ballasts, that will break industry standards, due to
new technological advancements in switching power supplies. Our product will operate
with higher efficiency than current products and will be manufactured at lower costs.
The combination of these aspects will be the driving force behind the success of our
company. We are currently in the final testing, and approval of stages of our product.
We have also applied for a patent for our product and are currently waiting for the
results of this application.

2.1 Company Ownership

CTR Lighting is a privately owned and operated company. Ownership of the company
is divided evenly among the three individuals who founded the company.             These
individuals being: Robin Kelley, Clinton Livingston, and Travis Brignac. Each of these
individuals holds a degree in electrical engineering, and is responsible for the design of
the new electronic ballasts.
                                                  Start-Up Expenses     Start-Up
                                                  Investments

2.2 Start-Up Summary

We are currently in the final testing and              $300,000

approval stages of our product. We have also           $250,000
applied for a patent for our product and are
                                                       $200,000
currently waiting for the results of our patent
application. Total start-up expenses add to            $150,000


$201,000. These expenses will be covered by            $100,000

investments made by the owners, which sum               $50,000

to $300,000. This is more than enough to                        $0
cover start-up expenses and will give the                              Febuary

company some leeway on capital to spend.
                                                         Figure 2.2 Start-Up Expenses
                                                         vs. Investments



            Requirements


            Start-up Expenses
            Legal                                                      $10,000
            Stationery etc.                                             $2,000
            Brochures                                                   $5,000
            Consultants                                                 $2,000
            Insurance                                                   $5,000
            Rent                                                       $12,000
            Research and development                                   $10,000
            Expensed equipment                                              $0
            Custom Cad Software                                         $4,000
            Logo Design                                                 $1,000
            Management Salaries                                       $150,000
            Other                                                           $0
            Other                                                           $0
            Other                                                           $0
            Total Start-up Expenses                                   $201,000

            Start-up Assets Needed
            Cash Balance on Starting Date                                         0

            Start-up Inventory                                                   $0

            Other Current Assets                                                 $0
            Total Current Assets                                                  0

            Long-term Assets
            Total Assets                                                          0
            Total Requirements                                            0

            Funding

            Investment
            Investor 1                                            $100,000
            Investor 2                                            $100,000
            Investor 3                                            $100,000

            Total Investment                                      $300,000


            Current Liabilities
            Accounts Payable                                             $0
            Current Borrowing                                            $0
            Other Current Liabilities                                    $0
            Current Liabilities                                          $0

            Long-term Liabilities

            Total Liabilities                                             0


            Loss at Start-up                                              0
            Total Capital                                                 0
            Total Capital and Liabilities                                 0
                           Table 2.2 Start-Up Expense Table

3.0 Product Description

Our company will design and produce high-end electronic ballasts that will redefine
standards in the fluorescent lighting industry. This improved design of our electronic
ballast is primarily due to a technological breakthrough in the semiconductor market.
This breakthrough is the development of the Silicon Carbide (SiC) Schottky diode. The
significance of the SiC Schottky diode is that eliminates reverse recovery current during
its switching cycles, when applied in a switch mode power supply. An electronic ballast
is a switch mode power supply that powers a fluorescent lamp. Therefore, by
implementing the SiC Schottky diode into our electronic ballast, we have greatly
improved the performance of the device. Our product offers standard features seen in
other electronic ballasts such as size/weight, 120V/60Hz input voltage, efficiency, and
FCC temperature requirements, but there are several improvements that our ballast
introduces. These include:

      1.) Higher Power Factor Correction Switching Frequency (100 kHz)
             a.) Continuous Conduction Mode
             b.) Active Power Factor Correction
             c.) Smaller Passive Components
       2.) Higher Electro-Magnetic Interference (EMI) filtering frequency (100 kHz)
       3.) Higher DC/AC Inverter Output Frequency (100 kHz)
These features are what set our electronic ballast apart from other products of similar
nature.

Higher Power Factor Correction Switching Frequency: The switch mode power supply
industry has been limited up until this point to lower switching frequencies (20-50 kHz)
in their power factor correction (PFC) circuitry. This is because of the reverse recovery
current transient problems seen with the use of Si p-n junction diodes in the circuitry.
We have implemented the SiC Schottky diode into the power factor correction circuitry
of our ballast, which eliminates the reverse recovery transients. Therefore, we have
designed our ballast for a switching frequency of 100 kHz. This higher frequency will
allow for continuous conduction mode, which will increase the stability of the average
input current in the system. This will then improve the input power factor to >98%,
which is the Active power factor correction range. Also the higher switching frequency
will reduce the size of the passive components in the circuitry, which will reduce the
overall cost of production.

Higher EMI Filtering Frequency: The increased frequency of the power factor correction
circuitry calls for the design of an EMI filter that can operate at the frequency of 100
kHz. Our ballast is classified as a class "C" device and will meet conducted noise limits
specified by FCC part 15 (subject j) VDE 0871. The EMI filter will reduce noise
emissions caused by switching in the circuitry that would go back into the input lines.

Higher DC/AC Inverter Output Frequency: The output of the PFC circuitry of our
electronic ballast, as in other ballasts, is a boosted DC voltage. This is a characteristic
of boost topologies seen in switch mode
power supplies, such as electronic
ballasts. This DC voltage must then be
converted to AC by the use of a DC/AC
inverter to power the fluorescent lamp.
Currently in the ballast industry, most
inverters operate in a frequency range of
20-50 kHz.       We have designed our
DC/AC inverter to operate at 100 kHz,
since the EMI filter is designed to handle
100 kHz frequencies. This is significant
because as the frequency of the voltage
applied to the fluorescent bulb increases,
the efficiency of the bulb increase as
displayed in Figure 3.1.

These improvements on the electronic ballast will make for a very marketable and
profitable product, which will be very competitive in the electronic ballast industry. Also,
future advancements may be made on the initial design to even further improve the
performance of the ballasts.
4.0 Market Analysis Summary

The electronic ballast market is an extremely cost competitive market with room for
definite technological advancement. Electronic ballast manufactures at the present are
mainly competing with the same technology as one another. With a new and proven
design for reliable and more effective electronic ballasts, new standards can be set in
this highly competitive market.       Companies who provide these technological
advancements along with an effective marketing strategy will be the leading suppliers in
the newly transformed market.

4.1 Market Segmentation

The potential customers of CTR lighting are both domestic and foreign. Domestic
customers include large industrial suppliers or distributors, and some smaller customers
include larger industrial facilities, which will have direct access to our products. These
customers will make up only about an estimated 25% of sales while the other 75% will
go to the distributors and suppliers. The foreign market includes basically the same
segments as the domestic segments but fewer foreign companies will purchase
products directly from us. The foreign market will be mainly composed of the suppliers
and distributors.

The following chart illustrates the approximate percentage of sales to each of these
buying groups, and the expected growth of sales to these groups over a three-year
period. Initial concentration may change depending on market and demand.


         Market Analysis                                 Growth
         Potential Customers             Initial Sales     2000       2001       2002
         Domestic Distributors                   40%       2.5%            5%         5%
         Domestic Industries                     15%       2.5%       2.5%       2.5%
         Foreign Distributors                    40%            5%         7%         8%
         Foreign Industries                       5%            0%         1%         1%
         Other                                    0%       --         --         --
         Total                                 100%        10%       14.5%      15.5%


                                  Table 4.1 Market Analysis

4.2 Competition

Major manufacturers and marketers of electronic ballast include companies like Howard
Industries, General Electric, and others. We feel that feel that these major companies in
the industry will not take significant notice of the sales and marketing activities of CTR
Lighting until such time as that our sales reach $10 to $20 million. That sales level
marks the point at which a business is considered substantial enough for either
competitive activity or acquisition. This will give us significant time to establish a name
in the market. It is expected that CTR Lighting will have a defendable patent position in
its product but that cannot be assured at this time.

5.0 Strategy and Implementation Summary

Our strategy is based on the fact that we can deliver a product that no one else in the
electronic ballast industry can provide. This is our "foot in the door" of the fluorescent
lighting market. Because we can provide a product that no one else can we believe that
our product will be easily marketable and highly profitable with an established customer
base.

The strategy used is based on a variation of an existing product with a very wide
market. There are many companies that produce and sell electronic ballasts, but none
of them produce an electronic ballast with the performance of our product. Our product
is set apart by the facts that:

      Supplies the fluorescent lamp with a voltage, which has an AC frequency of
       100kHz, which is higher than any presently manufacture ballast. It has been
       proven that as frequency of the voltage on the lamp increases then efficiency of
       the lamp increases
      Our product also has power factor correction circuitry, which operates at 100kHz.
       This allows for a better power factor and therefore a much more efficient ballast
       itself. Also the higher frequency allows for small components in the circuitry,
       which could lead to cheaper production costs and therefore lower retail costs.

5.1 Marketing Strategy

Our strategy for marketing will be to offer and promote a product that is one of the best
on the market. This will be especially beneficial to larger customers. Our product
improves immensely on the efficiency of the electronic ballast, and for larger customers
this increase in efficiency will be in great demand. As for small customers, efficiency of
their electrical systems is just as important but they may not be as eager to purchase
our product as the larger customers. This is why the larger customers and larger
industrial suppliers will be targeted first.

5.1.2 Pricing Strategy

Initial pricing of our product will be such that it will attract customers with the
understanding that the cost of the product, if satisfactory to their needs, will increase in
the future without being an extreme increase in price. This cost will be somewhat like a
promotional price. This will allow us to competitively penetrate the market and
demonstrate how reliable our product is, which will then in turn improve our image in the
market and increase our customer base. Our estimated cost of manufacturing for the
product is $10.00 per unit. This cost for manufacturing should decrease slightly in year
two, due to improvements in the efficiency of production. The initial retail cost of the
product is estimated to be about $20.00 per unit.

5.2 Sales Strategy

Initially all sales will be directed to large industrial suppliers which will provide a starting
customer base. At the beginning of year two, we will look to expand our customer base
to include larger industrial facilities, which can buy directly from our company. These
will be actual retail sales and will help to further promote the sale of our product. This
will call for the need to hire a sales manager and expanding the sales department since
in year three we will put more energy in profitability and not just the building of a larger
customer base. At the end of year two the customer base should be large enough to
provide for substantial profits in the ballast market. It is estimated that at least one year
will be required to penetrate the market and begin to attract larger customers.

The following table shows our present sales forecast. We are projecting sales at
$500,000 in test year 1 which represents 25,000 units sold via direct marketing. We are
predicting sales to increase to $550,000 in year two with an expanded customer base.
This reflects an increase to 27,500 units sold via increased marketing and customer
relations. The direct cost of sales is also estimated in the table below.

              Sales Forecast
              Sales                      2002        2003        2004
              Sales                        $0    $500,000    $550,000
              Other                        $0          $0           $0
              Total Sales                  $0 $500,000       $550,000


              Direct Cost of             2002        2003        2004
              Sales
              Sales                        $0    $200,000    $200,000
              Other                        $0          $0           $0
              Subtotal Direct              $0    $200,000    $200,000
              Cost of Sales
                                  Table 5.2 Sales Forecast

6.0 Management Summary

CTR Lighting will have a very small managerial staff during the start-up phase. This
staff will comprise of three positions, which will control the company for the time being.
The staff will then be expanded to meet the needs of the company when future growth
requires that this action be taken. The management staff for the company during the
start-up phase will be the designers of the new product line and the founders of the
company itself. These individuals will be responsible for the success of the company
during start-up and will strive to promote the growth of the company.

6.1 Management Staff

      Dr. Robin Kelley: President and Co-Founder. Dr. Kelley has a Doctorate in
       electrical engineering with an emphasis in electronics. Her skills and knowledge
       in this area made possible the design of this new device. Her dedication towards
       the success of the company can be exemplified through many personal
       sacrifices, and is the key reason for her position as president.
      Travis Brignac P.E.: Chief Operating Officer and Co-Founder. Mr. Brignac has a
       Masters in electrical engineering and is responsible for production in the facility.
       Mr. Brignac will manage operations during the start-up phase and will train a
       future successor for reduction in workload. His detailed knowledge of the
       production process is reasoning for his holding the position of chief operation
       officer.
      Clinton Livingston P.E. Chief Financial Officer and Co-Founder. Mr. Livingston
       holds a degree in electrical engineering and a Master’s in Business. He is the
       author of this business plan of this company, and his knowledge in the business
       area makes him ideal for this position. He has also has made contributions to
       the design of the pending product.

6.2 Management Team Gaps

Key management team gaps are the lack of a permanent C.O.O. and a skilled and
experience Human Relations director. These positions should be filled upon completion
of the first phase of the start-up plan.

6.3 Personnel Plan

Personnel needs, in year two and three, will allow for expansion of the company to
begin structuring of an executive board. This will allow for more stability internally in the
company. Candidates for the board member positions will be determined as the
positions are established. Also as the customer base increases the need for a more
extensive marketing department will become more pressing to accommodate to the
customers needs. There will also have to be some development of a more appropriate
human resources department to compensate for the growing number of personnel. No
permanent staffing decisions will be made until year two when the business plan is
revised going into rollout in year three. All salaries represent estimates at this time.

              Personnel Plan (salaries)             2003      2004       2005
              C.O.O.                             $20,000    $40,000   $40,000
              President                          $25,000    $45.000   $45,000
              VP Sales & Mkt.                         $0    $55,000   $55,000
              C.E.O.                                  $0        $0   $60,000
              CFO                               $20,000    $40,000   $40,000
              Total People                         3             4          5
                             Table 6.3 Management Salaries

7.0 Financial Plan

CTR Lighting’s financial plan for the first two years is really more of a marketing plan.
Because of the very high competitive nature of the fluorescent lighting industry, it is very
hard to attract customers to a new company. This is why our company plans to
emphasize marketing for the first 2 years rather than profit. This will allow the company
to build a much larger clientele list, which will then generate more profits for the
company. We plan to minimize production cost while still producing quality products
with quality parts. By producing high performance, high quality products, CTR lighting
will establish a reputable name in the electronic ballast market.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the
following table. They key assumptions are:

       We assume a medium-growth economy, without major recession.
       We assume of course that there are no unforeseen changes in technology to
        make products immediately obsolete.
       We assume access to equity capital and financing sufficient to maintain our
        financial plan as shown in the tables.

General Assumptions
                              2003      2004       2005
Plan Month                       1          2          3
Current Interest Rate        0.00%     0.00%      0.00%
Long-term Interest           9.00%     9.00%      9.00%
Rate
Tax Rate                     0.00%     0.00%      0.00%
Other                        0.00%     0.00%      0.00%
Calculated Totals
Payroll Expense          $65,000 $144,000 $240,000
             Table 7.1 General Assumptions
7.2 Break-even Analysis
The following chart shows the break-even analysis for the company. All figures are
estimated and are subject to change. What this shows is what the company must make
each month to break even. The chart compares the estimated monthly fixed cost to the
monthly revenue that will allow for breaking even.

Break-even Analysis:
Monthly Units Break-even                                         850
Monthly Revenue Break-even                                  $17,000


Assumptions:
Average Per-Unit Revenue                                     $20.00
Average Per-Unit Variable Cost                                 $8.00
Estimated Monthly Fixed Cost                                $16,667
            Table 7.2 Break Even Analysis

7.3 Projected Profit and Loss

P & L data is presented in the following table. All expenses estimated in this initial plan
are considered to be accurate but not firm. Flexibility is assumed as the plan progresses
through execution. Also, the assumption here is that we start we start with only
$300,000 in initial capital. If the company actually receives more than this, it may or may
not alter the sales forecast and increase advertising and promotion activity, but it will
serve as a buffer of cash reserve.        In addition year one is considered to start at
beginning of 2004. The present year (2003) is primarily for start up and preparation,
and should not see any sales.

Pro Forma Profit and Loss
                                  2003           2004           2005
Sales                                $0    $500,000       $550,000
Direct Costs of Goods                $0      $50,520        $45,000
Production Payroll                   $0             $0             $0
Lost Margin on Retail                $0             $0      $50,500
units
                            ------------   ------------   ------------
Cost of Goods Sold                   $0    $200,000       $200,000
Gross Margin                         $0      $50,000        $75,000
Gross Margin %                   0.00%           25%          37.5%
Expenses:
Payroll                             -----   $180,000       $240,000
Sales and Marketing and        $23,700      $100,000       $100,000
Other Expenses
Depreciation                    $1,500         $6,000         $6,000
Utilities                          $750        $6,000        $12,000
Insurance                       $2,250        $24,000        $30,000
Rent                            $1,500         $6,000         $6,000
Other                                 $0             $0             $0
Other                                 $0             $0             $0
Depreciation                    $3,249        $18,830        $18,830
Payroll Taxes                   $3,600        $28,800        $30,000
Other                                 $0             $0             $0
                             ------------   ------------   ------------
Total Operating Expenses       $54,549      $369,630       $442,830
Profit Before Interest and   ($54,549) ($130,370) ($107,170)
Taxes
Interest Expense                      $0             $0             $0
Taxes Incurred                        $0             $0             $0
Net Profit                   ($54,549) ($130,370) ($107,170)
Net Profit/Sales                 0.00%          26.1%          19.5%
Include Negative Taxes        FALSE     FALSE                 TRUE
             Table 7.3 Profit and Loss Chart

7.4 Projected Cash Flow

The following table and graph show the projected cash flow for the first three years of
company life. These are only estimated figures and could change during the course of
startup. As stated before the current year (2003) is primarily for startup and we do not
anticipate any sales in this year.

Pro Forma Cash Flow
                                   2003           2004           2005
Cash Received
Cash from Operations:
Cash Sales                            $0    $500,000       $550,000
Cash from Receivables                 $0             $0             $0
Subtotal Cash from                 $0    $500,000   $550,000
Operations


Additional Cash Received
Non Operating (Other)              $0         $0         $0
Income
Sales Tax, VAT, HST/GST            $0         $0         $0
Received
New Current Borrowing              $0    $220,000   $275,000
New Other Liabilities              $0         $0         $0
(interest-free)
New Long-term Liabilities          $0         $0         $0
Sales of Other Current             $0         $0         $0
Assets
Sales of Long-term Assets          $0         $0         $0
New Investment Received       $300,000        $0         $0
Subtotal Cash Received        $300,000   $220,000   $275,000


Expenditures                     2003       2004       2005
Expenditures from
Operations:
Cash Spending                      $0         $0         $0
Payment of Accounts            $47,217   $100,805   $126,140
Payable
Subtotal Spent on              $47,217   $100,805   $126,140
Operations


Additional Cash Spent
Non Operating (Other)              $0         $0         $0
Expense
Sales Tax, VAT, HST/GST            $0         $0         $0
Paid Out
Principal Repayment of             $0         $0         $0
Current Borrowing
Other Liabilities Principal        $0         $0         $0
Repayment
Long-term Liabilities                  $0          $0          $0
Principal Repayment
Purchase Other Current                 $0          $0          $0
Assets
Purchase Long-term Assets          $65,000         $0          $0
Dividends                              $0          $0          $0
Subtotal Cash Spent            $112,217       $100,805    $126,140


Net Cash Flow                  $187,783       $119,195    $148,860
Cash Balance
               Table 7.4 Projected Cash Flow

7.5 Projected Balance Sheet

Preliminary Balance Sheet is estimated.

Pro Forma Balance Sheet


Assets
Current Assets             2003          2004        2005
Cash                    $137,783       $4,528 $1,055,887
Other Current                $0              $0          $0
Assets
Total Current           $137,783       $4,528 $1,055,887
Assets
Long-term Assets
Long-term Assets         $65,000      $65,000     $65,000
Accumulated               $1,500       $7,500     $13,500
Depreciation
Total Long-term          $63,500      $57,500     $51,500
Assets
Total Assets            $201,283      $62,028 $1,107,387


Liabilities and
Capital
                           1996          1997        1998
Accounts Payable          $5,832    $13,977     $190,766
Current                      $0     $20,000     $295,000
Borrowing
Other Current                $0          $0          $0
Liabilities
Subtotal Current          $5,832    $33,977     $485,766
Liabilities


Long-term                    $0          $0          $0
Liabilities
Total Liabilities         $5,832    $33,977     $485,766


Paid-in Capital        $250,000    $250,000     $250,000
Retained                     $0    ($54,549) ($221,949)
Earnings
Earnings              ($54,549) ($167,400)      $593,570
Total Capital          $195,451     $28,051     $621,621
Total Liabilities      $201,283     $62,028 $1,107,387
and Capital
Net Worth              $195,451    $28,051      $621,621
                Table 7.5 Balance Sheet



7.6 Business Ratios

Business ratio estimates are preliminary and subject to change during the development
of the business plan, and the Industry Profile is based on Standard Industry Code, for
electronic devices.

Ratio Analysis
                               2003           2004         2005   Industry
                                                                    Profile
Sales Growth                  0.00%        100%            10%     -2.30%


Percent of Total Assets
Accounts Receivable           0.00%       0.00%        0.00%      22.80%
Inventory                    0.00%      0.00%     0.00%    26.00%
Other Current Assets         0.00%      0.00%     0.00%    26.30%
Total Current Assets        68.45%      7.30%    95.35%    75.10%
Long-term Assets            31.55%     92.70%     4.65%    24.90%
Total Assets                100.00%   100.00%    100.00% 100.00%


Current Liabilities          0.00%      0.00%     0.00%    35.50%
Long-term Liabilities        0.00%      0.00%     0.00%    14.20%
Total Liabilities            0.00%      0.00%     0.00%    49.70%
Net Worth                   100.00%   100.00%    100.00%   50.30%


Percent of Sales
Sales                       100.00%   100.00%    100.00% 100.00%
Gross Margin                 0.00%     73.81%    45.99%    37.50%
Selling, General &           0.00%    142.83%    31.30%    23.50%
Administrative
Expenses
Advertising Expenses         0.00%     24.74%    19.79%     1.60%
Profit Before Interest       0.00%     -69.02%   14.68%     2.70%
and Taxes


Main Ratios
Current                       23.63       0.13      2.17      2.27
Quick                         23.63       0.13      2.17      1.18
Total Debt to Total          2.90%     54.78%    43.87%    49.70%
Assets
Pre-tax Return on Net       -27.91%   -596.77%   95.49%     5.40%
Worth
Pre-tax Return on           -27.10%   -269.88%   53.60%    10.70%
Assets


Business Vitality Profile      1996      1997       1998   Industry
Sales per Employee               $0        $0         $0        $0
Survival Rate                                               0.00%
Additional Ratios             1996        1997       1998
Net Profit Margin           0.00%      -69.02%     14.68%    n.a
Return on Equity           -27.91%    -596.77%     95.49%    n.a


Activity Ratios
Accounts Receivable           0.00        0.00        0.00   n.a
Turnover
Collection Days                  0           0          0    n.a
Inventory Turnover            0.00        0.00        0.00   n.a
Accounts Payable              9.10       28.90       18.05   n.a
Turnover
Payment Days                    49         107        130
Total Asset Turnover          0.00        3.91        3.65   n.a


Debt Ratios
Debt to Net Worth             0.03        1.21        0.78   n.a
Current Liab. to Liab.        1.00        1.00        1.00   n.a


Liquidity Ratios
Net Working Capital       $131,951    ($29,449)   $570,121   n.a
Interest Coverage             0.00        0.00        0.00   n.a


Additional Ratios
Assets to Sales                n.a.       0.26        0.27   n.a
Current Debt/Total             3%         55%         44%    n.a
Assets
Acid Test                    23.63        0.13        2.17   n.a
Sales/Net Worth               0.00        8.65        6.50   n.a
Dividend Payout                0.00       0.00        0.00   n.a
                      Table 7.6 Business Ratios

								
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