Butler Lumber Company Balance Sheet Dec.

1988 ASSETS Cash Accounts receivable, net Inventory CURRENT ASSETS Property, net TOTAL ASSETS LIABILITIES AND NET WORTH Notes payable, bank Notes payable, Mr. Stark Notes payable, trade Accounts payable Accrued expenses Long-term debt, current portion CURRENT LIABILITIES Long-term debt TOTAL LIABILITIES Net worth TOTAL LIABILITIES AND NET WORTH Income Statement Sales Cost of goods sold Beginning inventory Purchases Ending inventory Total cost of goods sold Gross profit Operating expenses Operating income Plus: Purchase discount Less: Interest expense Net income before taxes Provision for income taxes Net income 1697 183 1278 1461 239 1222 475 425 50 13 37 6 31 2013 239 1524 1763 326 1437 576 515 61 20 41 7 34 2694 326 2042 2368 418 1950 744 658 86 33 53 9 44 3600 146 105 124 24 7 260 64 324 270 594 192 30 7 375 57 432 304 736 256 39 7 535 50 585 348 933 10.00 1% 233 58 171 239 468 126 594 Dec. 1989 48 222 326 596 140 736 Dec. 1990 Assumptions 41 317 418 776 157 933 1.52% 12% 16% 6%

76%

72% 24% 2% 10.50%

a/ Purchases/sales Purchases 1991 - Q1 of 1991 Provision for income taxes

Average 75% 2062 15% 0 to 50000 25% 50000 to 75000 35% 75000 + 641 81 76% 76% 76%

Assets - Liabilties (without the Bank note) - Net worth Net Income

Projected Dec. 1991 54.79 424 559 1037 210 1247

641
0 Assumption 0 Assumption 75 52 7 775 43 818 429 1247

3600 418 2722 3140 559 2606 994 879 115 41 52 105 24 81

Butler Lumber Company Balance Sheet Funds Flow between 1988 and 1990 ASSETS Cash Accounts receivable, net Inventory CURRENT ASSETS Property, net TOTAL ASSETS LIABILITIES AND NET WORTH Notes payable, bank Notes payable, Mr. Stark Notes payable, trade Accounts payable Accrued expenses Long-term debt, current portion CURRENT LIABILITIES Long-term debt TOTAL LIABILITIES Net worth TOTAL LIABILITIES AND NET WORTH -17 146 179 308 31 339

233 -105 0 132 15 0 275 -14 261 78 339

Funds Flow Statement APPLICATIONS Increase in Accounts Receivables Increase in Inv. Increase in Property Notes payable, Mr. Starck Decrease in LT debt TOTAL APPLICATIONS SOURCES Decrease in Cash Notes payable, bank Increase in Accounts payable Increase in Accrued Expenses Increase in Net worth TOTAL SOURCES

146 179 31 105 14 475

17 233 132 15 78 475