CALIFORNIA CHOPPER

Balance Sheet
2000 2001 2002 2003 2004
Cash 10.76 20.56 25.78 38.55 34.21
A/R 45.01 48.54 84.89 85.39 95.32
Inventory 17.12 79.66 82.69 79.3 53.88
Total Current Assets 72.89 148.76 193.36 203.24 183.41
Land, Plant and Equipment net 54.32 162.28 184.18 178.01 182.74
Other Assets 2.47 5.39 8.38 8.82 9.49
Total Assets 129.68 316.43 385.92 390.07 375.64
A/P 53.77 90.73 112.15 109.96 129.04
Current Portion of LT Debt 2.88 18.09 18.77 14.32 8.56
Total Current Liabilities 56.65 108.82 130.92 124.28 137.6
Long-term Debt 52.82 185.45 193.84 161.98 104.68
Shareholders' Equity 20.21 22.16 61.16 103.81 133.36
Total Liabilities and Equities 129.68 316.43 385.92 390.07 375.64

Income Statement
MAJOR 2000 2001 2002 2003 2004
Sales 287.14 299.45 725.45 793.34 814.55
CostofGoods Sold 209.69 210.45 506.91 559.53 595.34
Gross Profit 77.45 89 218.54 233.81 219.21
Selling and Admlnlstration 57.34 60.06 104.14 125.53 136.57
Depreciation 7.53 13.54 21.54 20.89 21.22
Operating Profit 12.58 15.4 92.86 87.39 61.42
Interest 9.41 12.53 35.51 24.67 17.96
Earnings Before Taxes 3.17 2.87 57.35 62.72 43.46
Taxes 1.01 0.92 18.35 20.07 13.91
Net lncome 2.16 1.95 39 42.65 29.55

tax rate 0.3186119874 0.3205574913 0.3199651264 0.3199936224 0.3200644271

2.16 1.95 39 42.65 29.55
2005
29.75
99.23
75.33
204.31
211.48
11.65
427.44
189.84
6.22
196.06
79.8
151.58
427.44
avg acount receivable

2005
856
629.43
226.57
160.23
26.54
39.8
13.01
26.79
8.57
18.22

0.3198954834
18.22
 CALIFORNIA CHOPPER
STATEMENT OF CASHFLOW
Entities 2001 2002 2003
Net income 1.95 39 42.65
Depreciation 13.54 21.54 20.89

Operating Activities
A/R -3.53 -36.35 -0.5
Inventory -62.54 -3.03 3.39
A/P 36.96 21.42 -2.19
Net cashflow from operating activities -29.11 -17.96 0.7

Investing Activities
Land, Plant and Equipment net -121.5 -43.44 -14.72
Other Assets -2.92 -2.99 -0.44
Net cashflow from investing activities -124.42 -46.43 -15.16

Financing Activities
Current Portion of LT Debt 15.21 0.68 -4.45
Long-term Debt 132.63 8.39000000000002 -31.86
Net cashflow from financing activities 147.84 9.07000000000001 -36.31

Total 9.8 5.22 12.77

Cash and cash equivalent at the start of the year 10.76 20.56 25.78
Cash and cash equivalent at the end of the year 20.56 25.78 38.55

Ratio Analysis
Entities 2000 2001 2002
Liquidity
Current Ratio 1.36702812 1.47693247784907 1.635339556
Cash Ratio 0.188935857 0.19691414604339 0.310186675
Asset Management
Inventory Turnover in Days 83.93 58.45 52.84
A/R Turnover in Days 57.01 33.57 39.17
A/P Turnover in Days 125.31 73.04 72.44
Cash Conversion Cycle 15.63 18.97 19.56
Fixed Assets Turnover 2.67 4.03 4.18
Total Asset Turnover 0.95 1.88 2.03
Long-term Debt Paying Ability
Debt Ratio 0.93 0.84 0.73
Times Interest Earned 1.23 2.62 3.54
Profitability
Gross Margin 29.72% 30.12% 29.47%
Operating Profit Margin 5.14% 12.80% 11.02%
Net Profit Margin 0.65% 5.38% 5.38%
ROA 4.69% 17.98% 15.32%
ROE 9.20% 93.61% 51.71%

Tax rate 0.318611987 0.3205574912892 0.319965126

100.00%
93.61%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00% 9.20%
0.00%
2000 2001

Vertical Analysis:
Income Statement
Entities 2000 2001 2002
Sales 100.00 100.00 100.00
Cost of Goods Sold 73.03 70.28 69.88
Gross Profit 26.97 29.72 30.12
Selling and Administration 19.97 20.06 14.36
Depreciation 2.62 4.52 2.97
Operating Profit 4.38 5.14 12.80
Interest 3.28 4.18 4.89
Earnings Before Taxes 1.10 0.96 7.91
Taxes 0.35 0.31 2.53
Net Income 0.75 0.65 5.38

Horizontal Analysis:
Income Statement
Entities 2000 2001 2002
Sales 100 104.287107334401 252.6467925
Cost of Goods Sold 100 100.362439792074 241.7425724
Gross Profit 100 114.912846998063 282.1691414
Selling and Administration 100 104.743634461109 181.6184165
Depreciation 100 179.814077025232 286.0557769
Operating Profit 100 122.41653418124 738.1558029
Interest 100 133.156216790648 377.3645058
Earnings Before Taxes 100 90.5362776025237 1809.148265
Taxes 100 91.0891089108911 1816.831683
Net Income 100 90.2777777777778 1805.555556

Vertical Analysis:
Balance Sheet
Entities 2000 2001 2002
Cash 8.30 6.50 6.68
A/R 34.71 15.34 22.00
Inventory 13.20 25.17 21.43
Total Current Assets 56.21 47.01 50.10
Land, Plant and Equipment net 41.89 51.28 47.72
Other Assets 1.90 1.70 2.17
Total Assets 100.00 100.00 100.00
A/P 41.46 28.67 29.06
Current Portion of LT Debt 2.22 5.72 4.86
Total Current Liabilities 43.68 34.39 33.92
Long-term Debt 40.73 58.61 50.23
Shareholders' Equity 15.58 7.00 15.85
Total Liabilities and Equities 100.00 100.00 100.00

Horizontal Analysis:
Balance Sheet
Entities 2000 2001 2002
Cash 100.00 191.08 239.59
A/R 100.00 107.84 188.60
Inventory 100.00 465.30 483.00
Total Current Assets 100.00 204.09 265.28
Land, Plant and Equipment net 100.00 298.75 339.06
Other Assets 100.00 218.22 339.27
Total Assets 100.00 244.01 297.59
A/P 100.00 168.74 208.57
Current Portion of LT Debt 100.00 628.13 651.74
Total Current Liabilities 100.00 192.09 231.10
Long-term Debt 100.00 351.10 366.98
Shareholders' Equity 100.00 109.65 302.62
Total Liabilities and Equities 100.00 244.01 297.59
 2004 2005
29.55 18.22
21.22 26.54

-9.93 -3.91
25.42 -21.45
19.08 60.8
34.57 35.44

-25.95 -55.28
-0.67 -2.16
-26.62 -57.44

-5.76 -2.34
-57.3 -24.88
-63.06 -27.22

-4.34 -4.46

38.55 34.21
34.21 29.75

2003 2004 2005 Comments

1.332921512 1.042078955 1.25 Poor

0.248619186 0.151739263 0.27 Poor

40.83 37.46 44.12 Good

40.49 41.48 32.45 Poor
73.26 92.46 60.23 Poor
8.05 -13.52 16.35 Good
4.30 4.12 3.72 Good
2.17 2.00 2.05 Good

0.64 0.65 0.54 Poor

3.42 3.06 9.33 Poor

26.91% 26.47% 32.00% Poor

7.54% 4.65% 14.00% Poor
3.63% 2.13% 8.50% Poor
10.91% 6.74% 17.46% Poor
24.92% 12.79% 38.25% Poor

0.319993622 0.320064427 0.319895483

ROE

51.71%

24.92%

2002 2003

2003 2004 2005

100.00 100.00 100.00
70.53 73.09 73.53
29.47 26.91 26.47
15.82 16.77 18.72
2.63 2.61 3.10
11.02 7.54 4.65
3.11 2.20 1.52
7.91 5.34 3.13
2.53 1.71 1.00
5.38 3.63 2.13

2003 2004 2005

276.2903113 283.676952 298.112419
266.836759 283.9143498 300.171682
301.8850872 283.0342156 292.5371207
218.9222183 238.1757935 279.4384374
277.4236388 281.8061089 352.4568393
694.6740859 488.2352941 316.3751987
262.1679065 190.8607864 138.2571732
1978.548896 1370.977918 845.1104101
1987.128713 1377.227723 848.5148515
1974.537037 1368.055556 843.5185185

2003 2004 2005

9.88 9.11 6.96
21.89 25.38 23.21
20.33 14.34 17.62
52.10 48.83 47.80
45.64 48.65 49.48
2.26 2.53 2.73
100.00 100.00 100.00
28.19 34.35 44.41
3.67 2.28 1.46
31.86 36.63 45.87
41.53 27.87 18.67
26.61 35.50 35.46
100.00 100.00 100.00

2003 2004 2005

358.27 317.94 276.49
189.71 211.78 220.46
463.20 314.72 440.01
278.83 251.63 280.30
327.71 336.41 389.32
357.09 384.21 471.66
300.79 289.67 329.61
204.50 239.99 353.06
497.22 297.22 215.97
219.38 242.89 346.09
306.66 198.18 151.08
513.66 659.87 750.02
300.79 289.67 329.61
 Formulas

Current Ratio= Current Assets/Current Liabilities

Cash Ratio= (Cash + Marketable Securities)/Current Liabilities

ITR in Days=365/(Cost of Goods Sold/Average Inventories)

A/R Turonver in Days=365/(Net Credit Sales/Average Accounts Receivable)
A/P Turonver in Days=365/(Cost of Goods Sold/Average Accounts Payable)
Cash Conversion Cycle= Inventory Turnover in Days-A/P Turnover in Days+A/R Turnover in Days
Fixed Assets Turnover=Net Sales/Average Capital Assets
Total Assets Turnover=Net Sales/Average Total Assets

Debt Ratio=Total Liabilities/Total Assets

Times Interest Earned=EBIT/Interest Expense

Gross Profit Margin=Gross Profit/Net Sales

Operating Profit Margin=Operating Income/Net Sales
Net Profit Margin=Net Income/Net Sales
Return on Assets=(Net Income+Interest(1-t))/Average Total Assets
Return on Equity=Net Income/Average Total Equity

24.92%

12.79%

2003 2004