Pyramid Analysis Solution Year 1 Year 2 Year 3 Year 4

Balance Sheet
ASSETS
Current assets:
Cash 459,540 677,144 1,184,398 835,546
Accounts receivable 347,139 612,811 1,249,381 2,269,845
Inventories 134,523 255,907 396,267 682,400
Prepaid expenses 948,532 700,945 1,175,103 1,349,467
Other current assets 139,824 63,321 226,599 371,129
2,029,558 2,310,128 4,231,748 5,508,387
Non-current assets
Property, plant and equipment 139,824 487,579 705,955 1,334,648
Goodwill and intangible assets 114,955 248,114 584,443 1,204,099
Other non-current assets 0 8,339 4,546 404
2,284,337 3,054,160 5,526,692 8,047,538

LIABILITIES & SHAREHOLDERS' EQUITY

Current liabilities
Accounts payable 94,954 130,270 271,076 448,339
Accrued liabilities 144,912 287,629 690,442 1,238,602
Debt 17,846 271 349 0
Other short term liabilities 0 99,958 475,328 374,576
257,712 518,128 1,437,195 2,061,517
Non-current liabilities
Other long term liabilities 27,858 52,532 95,931 111,893
285,570 570,660 1,533,126 2,173,410
Shareholders' equity:
Total shareholders equity 1,998,767 2,483,500 3,993,566 5,874,128
2,284,337 3,054,160 5,526,692 8,047,538

Check 0.0 0.0 0.0 0.0

Income Statement
Revenue 2,065,845 3,037,103 6,009,395 11,065,186
Total Revenue 2,065,845 3,037,103 6,009,395 11,065,186
Cost of Revenue, Total 925,598 1,379,301 2,928,814 5,967,888
Gross Profit 1,140,247 1,657,802 3,080,581 5,097,298
Selling/General/Administrative Expenses, Tot 515,625 537,428 880,964 1,495,195
Research & Development 158,887 236,173 359,828 684,702
Depreciation/Amortization 49,951 76,879 108,112 194,803
Unusual Expenses (Income) 0 0 0 0
Other Operating Expenses, Total 0 0 0 0
Operating Income 415,784 807,322 1,731,677 2,722,598
Interest Expense 483 494 518 502
Income Before Tax 415,301 806,828 1,731,159 2,722,096
Income Tax - Total 106,863 227,373 516,653 907,747
Income After Tax 308,438 579,455 1,214,506 1,814,349
Total Extraordinary Items 0 0 0 0
Net Income 308,438 579,455 1,214,506 1,814,349

Cash Flow Statement

Operating activities
Net income 308,438 579,455 1,214,506 1,814,349
Depreciation and amortization 49,951 76,879 108,112 194,803
Net change in operating working capital (190,650) 197,450 (495,299) (1,001,169)
Other operating cash flow adjustments 80,212 (10,548) (57,625) (225,870)
247,951 843,236 769,694 782,113
Investing activities
Capital asset acquisitions (178,732) (424,634) (326,488) (823,496)
Capital asset disposal
Other investing cash flows 246,056 (110,536) (202,023) (490,002)
67,324 (535,170) (528,511) (1,313,498)
Financing activities
Increase (decrease) in debt 4,231 (17,575) 78 (349)
Increase (decrease) in equity (345,212) (94,722) 295,560 66,213
Dividends paid
Other financing cash flows 35,246 21,835 (29,567) 116,669
(305,735) (90,462) 266,071 182,533

Change in cash 9,540 217,604 507,254 (348,852)

Cash at beginning of year 450,000 459,540 677,144 1,184,398
Cash at end of year 459,540 677,144 1,184,398 835,546

Ratios
Income Statement
Gross Profit Ratio 55.2% 54.6% 51.3% 46.1%
Operating Profit Ratio 20.1% 26.6% 28.8% 24.6%
Net Profit Ratio 14.9% 19.1% 20.2% 16.4%

Tax Ratio 25.7% 28.2% 29.8% 33.3%

Interest Coverage Ratio 860.8 1,634.3 3,343.0 5,423.5

SG&A 24.96% 17.70% 14.66% 13.51%

R&D 7.69% 7.78% 5.99% 6.19%
Dep. & Amort. 2.42% 2.53% 1.80% 1.76%
Unusual Expenses 0.00% 0.00% 0.00% 0.00%
Other 0.00% 0.00% 0.00% 0.00%
Interest 0.02% 0.02% 0.01% 0.00%
Extraordinary Items 0.00% 0.00% 0.00% 0.00%

Balance Sheet
Quick Ratio 7.4 4.0 2.7 2.3
Current Ratio 7.9 4.5 2.9 2.7
Total Asset Turnover Ratio 0.9 1.0 1.1 1.4
Net Asset Turnover Ratio 1.0 1.2 1.5 1.8

Days in Period 365 365 365 365

Efficiency
Inventory Turnover Ratio 6.9 5.4 7.4 8.7
Inventory Days 53.0 67.7 49.4 41.7
Accounts Receivable Ratio 6.0 5.0 4.8 4.9
Accounts Receivable Days 61.3 73.6 75.9 74.9
Accounts Payable Ratio 9.7 10.6 10.8 13.3
Accounts Payable Days 37.4 34.5 33.8 27.4
PP&E Turnover Ratio 14.8 6.2 8.5 8.3
Working Capital Turnover 5.34 4.11 4.37 4.42
Cash Turnover 4.50 4.49 5.07 13.24

Leverage & Solvency

Debt to Equity 0.89% 0.01% 0.01% 0.00%
Debt to Capital 0.88% 0.01% 0.01% 0.00%
Debt to Tangible Net Worth 0.95% 0.01% 0.01% 0.00%
Total Liabilities to Equity 14.29% 22.98% 38.39% 37.00%
Total Assets to Equity 114% 123% 138% 137%
Debt to EBITDA 0.04 0.00 0.00 0.00
Capital Structure Impact 99.88% 99.94% 99.97% 99.98%
Acid Test 7.35 3.96 2.67 2.34

Rates of Return
Return on Equity 15.43% 23.33% 30.41% 30.89%
Return on Assets 13.50% 18.97% 21.98% 22.55%
Pyramid Analysis

Net Profit Ratio

Year 1 Year 2 Year 3 Year 4
14.93% 19.08% 20.21% 16.40%

Capital Structure Impact Tax Ratio

Year 1 Year 2 Year 3 Year 4 Year 5 Year 1
1.00 1.00 1.00 1.00 1.00 25.73%

Operating Profit Ratio

Year 1 Year 2 Year 3 Year 4
20.13% 26.58% 28.82% 24.61%

Gross Profit Ratio SG&A

Year 1 Year 2 Year 3 Year 4 Year 5 Year 1
55.20% 54.58% 51.26% 46.07% 44.03% 24.96%

Dep. & Amort. R&D

Year 1 Year 2 Year 3 Year 4 Year 5 Year 1
2.42% 2.53% 1.80% 1.76% 2.08% 7.69%

Other Unusual Expense

Year 1 Year 2 Year 3 Year 4 Year 5 Year 1
- - - - - -

Interest Extraordinary Item

Year 1 Year 2 Year 3 Year 4 Year 5 Year 1
0.02% 0.02% 0.01% 0.00% 0.00% -

Solvency Ratios
Year 1 Year 2 Year 3 Year 4
Total Liabiltiies to Equity 0.14 0.23 0.38 0.37
Debt to Equity 0.01 0.00 0.00 -
 Year 5

1,550,861
2,800,115
621,611
1,051,289
479,455
6,503,331

1,956,581
1,476,924
0
9,936,836

615,620
1,438,260
0
110,324
2,164,204

169,969
2,334,173

7,602,663
9,936,836

0.0

14,953,224
14,953,224
8,368,961
6,584,263
1,849,000
964,842
310,357
163,800
 0
3,296,264
100
3,296,164
809,366
2,486,798
0
2,486,798

2,486,798
310,357
(176,942)
(58,970)
2,561,243

(932,290)

(806,711)
(1,739,001)

0
(758,263)

651,336
(106,927)

715,315
835,546
1,550,861

44.0%
22.0%
16.6%

24.6%
32,962.6

12.37%
6.45%
2.08%
1.10%
0.00%
0.00%
0.00%

2.7
3.0
1.5
1.9

365

13.5
27.1
5.3
68.3
13.6
26.8
7.6
5.33
9.64

0.00%
0.00%
0.00%
30.70%
131%
0.00
100.00%
2.72

32.71%
25.03%
 Return on Equity
Year 1 Year 2 Year 3 Year 4 Year 5
15.43% 23.33% 30.41% 30.89% 32.71%

Total Assets to Equity Total Asset Turnover Ra

Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2
16.63% 1.14 1.23 1.38 1.37 1.31 0.90 0.99

Tax Ratio PP&E Turnover Ratio

Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
28.18% 29.84% 33.35% 24.55% 14.77 6.23 8.51 8.29 7.64

tio
Year 5
22.04%

SG&A Accounts Payable Ratio

Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
17.70% 14.66% 13.51% 12.37% 9.75 10.59 10.80 13.31 13.59

R&D Accounts Receivable R

Year 2 Year 3 Year 4 Year 5 Year 1 Year 2
7.78% 5.99% 6.19% 6.45% 5.95 4.96

Unusual Expenses Cash Turnover

Year 2 Year 3 Year 4 Year 5 Year 1 Year 2
- - - 1.10% 4.50 4.49

Extraordinary Items
Year 2 Year 3 Year 4 Year 5
- - - -

Liquidity Ratios
Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
0.31 Current Ratio 7.88 4.46 2.94 2.67 3.00
- Quick Ratio 7.35 3.96 2.67 2.34 2.72
Total Asset Turnover Ratio
Year 3 Year 4 Year 5
1.09 1.37 1.50

Working Capital Turnover

Year 1 Year 2 Year 3 Year 4 Year 5
5.34 4.11 4.37 4.42 5.33

Inventory Turnover Ratio

Year 1 Year 2 Year 3 Year 4 Year 5
6.88 5.39 7.39 8.75 13.46

Accounts Receivable Ratio

Year 3 Year 4 Year 5
4.81 4.87 5.34

Cash Turnover
Year 3 Year 4 Year 5
5.07 13.24 9.64