Sheet: TC, Exhibit 1Sheet: Ratio AnalysisSheet: Proforma Financial StatementsSheet: Proforma Ratio AnalysisExhibit 1 Financial Statements for Tire City, Inc. For years ending 12/31INCOME STATEMENT Net salesProportion of COGS to SalesAverageCost of sales0.5810227972889710.58452468680913780.57911082748351420.5815527705272077Gross ProfitProportion of SGA to SalesAverageSelling, general, and administrative expenses0.32008626001232290.31206091869319580.31784726653903420.3166648150815176DepreciationNet interest expensePre-tax incomeProportion of Income Taxes to Pre Tax IncomeAverageIncome taxes0.41176470588235290.45189664650907090.43735224586288420.43367119941810267Net incomeProportion of PAT paid as DividendsAverageDividends0.19871794871794870.200601805416248750.201680672268907570.20033347546770167BALANCE SHEETAssetsProportion of Cash to SalesAverageCash balances0.0313000616142945150.0299189388356669130.030036162518613060.030418387656191495Accounts receivableInventoriesProportion of Account Receivables to SalesAverageTotal current assets0.156808379544054220.152051093097519050.155371197617528180.15474355675303383Gross plant & equipmentAccumulated depreciationNet plant & equipmentTotal assetsLiabilitiesCurrent maturitiesAccounts payableAccrued expensesTotal current liabilitiesLong-term debtCommon stockRetained earningsTotal shareholders' equityTotal liabilitiesProfitabilityReturn on Sales0.048059149722735670.0489805944485384450.05062752605828547Return on Capital0.182755388940955940.201821862348178140.20641803989592367Return on Equity0.23867809057527540.245264452644526450.23728813559322035LiquidityCurrent Ratio2.02551903114186871.9229701596113812.0348042262274704Quick Ratio1.32050173010380621.28521859819569741.3542573026724674LeverageAssets / Equity2.01346389228886171.9242312423124231.7912263210368893Debt / Total Capital0.263589503280224960.202429149797570850.15177797051170858Interest Coverage12.14285714285714218.16037735849056723.5Activity RatiosSales / Assets2.4665653495440732.60227563283047842.6166091506178337Days Receivable57.2350585335797955.49864898059444656.71048713039779Days Inventory63.0911983032873856.3851067406286858.723920070526006Days PayableNA39.9491987444242537.63964480091664PurchasesData NA12106.013964.0In Thousands of DollarsINCOME STATEMENTASSUMPTIONSNet Sales20% Growth Per Annum28206.033847.2Cost of Sales58.2% of Sales16415.89219699.070399999997Gross Profit11790.10814148.1296Selling, General & Administrative Expenses31.7% of Sales8941.30210729.562399999999Average Relationship with SalesDepreciationAssumption Given in the CaseNet Interest ExpenseReconciledPre Tax Income2506.80600000000052969.5672000000013Income Taxes43.4% of PBT1087.95380400000021288.7921648000006Average Tax RateNet Income1418.85219600000031680.7750352000007Dividends20% of PAT283.77043920000006336.15500704000016Average Dividends Payout RatioBALANCE SHEETASSETSCash Balances3% of Sales846.181015.4159999999998Average of Relationship with SalesAccounts Receivables15.5% of Sales4371.935246.316Average Realtionship with SalesInventoriesAssumptions GivenTotal Current Assets6843.1100000000019407.732Gross Plant & EquipmentAssumptions GivenAccumulated Depreciation1996, Increase of $213Total Depreciation1997, Increase of $213 plusIncrease in Depfor 19975% of $2,4001941.02274.0333.02274.0Net Plant & Equipment4222.04289.0Total Assets11065.1113696.732LIABILITIESCurrent MaturitiesConstantBank DebtBalancing FigureAccounts Payable7% of Sales1776.9782132.3736Accrued Expenses7% of Sales1974.42000000000032369.304Total Current Liabilities4290.3985703.6776Long Term DebtDecreases by $125625.0500.0Common StockConstantRetained EarningsBeginning RE + PAT + Dividends5015.08175686359.701784960001Total Shareholders Equity6150.08175687494.701784960001Total Liabilities & Equity11065.1113698.37938496ProfitabilityReturn on Sales0.050303204850031920.049657727528421874Return on Capital0.22846251182820860.22474572329641818Return on Equity0.23070460720806010.22426176296605924LiquidityCurrent Ratio1.5949825633892241.6494151071932959Quick Ratio1.2162298229674731.0978411542756203LeverageAssets / Equity1.79918096011741141.8275219472355697Debt / Total Capital0.110699771149955720.07817677467041718Interest Coverage20.43260465116279426.59971724137932Activity RatiosSales / Assets2.54909350200766172.471188017696484Days Receivable56.5750000000000156.575Days Inventory36.1311465743073958.29158313988259Days Payable40.91864167644319434.06933532583905Purchases15850.89222845.070399999997