Executive Summary reflection

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Balance Sheet

XYZ Inc. - Balance Sheet as of June 30, 2001 Horizontal analysis
June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01 June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01
Current Assets Current Assets
Cash 9,904 18,580 30,706 321,654 7,051 557,321 Cash 88% 210% 3148% -29% 5527%
Accounts receivable 29,370 81,372 185,667 329,550 649,832 526,027 Accounts receivable 177% 532% 1022% 2113% 1691%
Work in progress 5,538 17,329 32,983 15,000 29,678 30,000 Work in progress 213% 496% 171% 436% 442%
Prepaid Expenses 2,382 5,283 21,382 43,292 78,918 80,000 Prepaid Expenses 122% 798% 1717% 3213% 3259%
Total Current assets 47,194 122,564 270,738 709,496 765,479 1,193,348 Total Current assets 160% 474% 1403% 1522% 2429%
Capital Assets (note 1) Capital Assets (note 1)
Net capital assets 25,380 100,372 198,392 395,283 545,997 502,626 Net capital assets 295% 682% 1457% 2051% 1880%
Total Assets 72,574 222,936 469,130 1,104,779 1,311,476 1,695,974 Total Assets 207% 546% 1422% 1707% 2237%
Current Liabilities Current Liabilities
Bank indebtedness 125,000 Bank indebtedness -100%
Accounts payable 18,273 89,283 143,923 304,380 458,261 473,326 Accounts payable 389% 688% 1566% 2408% 2490%
Unearned/ deferred revenue 8,293 21,902 52,394 127,010 214,047 263,014 Unearned/ deferred revenue 164% 532% 1432% 2481% 3072%
Current portion long term debt 29,160 34,992 33,564 Current portion long term debt 20% 15%
Total Current Liabilities 26,566 111,185 196,317 460,550 832,300 769,904 Total Current Liabilities 319% 639% 1634% 3033% 2798%
Long Term Debt (note 2) 115,840 80,848 78,899 Long Term Debt (note 2) -30% -32%
Total Debt 26,566 111,185 196,317 576,390 913,148 848,803 Total Debt 319% 639% 2070% 3337% 3095%
Shareholders Equity Shareholders Equity
Common Shares 40,000 40,000 40,000 40,000 40,000 40,000 Common Shares 0% 0% 0% 0% 0%
Retained earnings 6,008 71,751 232,813 488,389 358,328 807,171 Retained earnings 1094% 3775% 8029% 5864% 13335%
Total Owners Equity 46,008 111,751 272,813 528,389 398,328 847,171 Total Owners Equity 143% 493% 1048% 766% 1741%
Total Liabilities & 72,574 222,936 469,130 1,104,779 1,311,476 1,695,974 Total Liabilities & 207% 546% 1422% 1707% 2237%
Shareholders Equity Shareholders Equity
TEAM ASSIGNMENT
Analyze it using the ratios analysis and prepare a report to the instructor using the following format:
1. Executive Summary to reflect what has been done, and what was observed from the research and analysis
2. Ratio Analysis to reflect the analysis of the figures in the financial statements using financial ratios, cash flow analysis, and trend analysis
3. Your understanding of the company's financial situation

Income Statement

XYZ Inc. - Income Statement for Year ending June 30
Horizontal analysis
June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01
June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01
Revenues Revenues
Software Licensing & installation 215,510 958,424 1,657,981 2,909,272 3,879,383 4,544,000 Software Licensing & installation 345% 669% 1250% 1700% 2008%
Software Customization & Training 44,141 239,606 440,729 918,718 1,348,868 1,856,000 Software Customization & Training 443% 898% 1981% 2956% 4105%
Total Revenues 259,651 1,198,030 2,098,710 3,827,990 5,228,251 6,400,000 Total Revenues 361% 708% 1374% 1914% 2365%
Operating Expenses Operating Expenses
Selling expenses 105,621 265,771 634,819 1,102,560 1,788,000 2,004,000 Selling expenses 152% 501% 944% 1593% 1797%
Customization, installation & Training 54,247 296,654 542,872 698,800 892,000 1,090,000 Customization, installation & Training 447% 901% 1188% 1544% 1909%
Customer Support 77,767 120,631 244,440 336,000 420,000 Customer Support 55% 214% 332% 440%
General & Administrative 53,626 112,896 294,000 540,000 540,000 General & Administrative 111% 448% 907% 907%
Research & Development 65,840 220,693 247,212 737,760 1,080,000 926,000 Research & Development 235% 275% 1021% 1540% 1306%
Equipment Lease 4,000 36,000 88,934 279,096 279,096 Equipment Lease 800% 2123% 6877% 6877%
Rental 18,000 72,000 85,000 197,000 240,000 240,000 Rental 300% 372% 994% 1233% 1233%
Bad Debt 86,500 26,897 2,394 13,247 50,000 Bad Debt -69% -97% -85% -42%
Depreciation/Amortization 7,360 27,100 62,295 85,393 170,702 200,703 Depreciation/Amortization 268% 746% 1060% 2219% 2627%
Interest 11,600 19,267 8,997 Interest 66% -22%
Total operating expenses 251,068 1,104,111 1,868,622 3,462,881 5,358,312 5,758,796 Total operating expenses 340% 644% 1279% 2034% 2194%
Income before Taxes 8,583 93,919 230,088 365,109 - 130,061 641,204 Income before Taxes 994% 2581% 4154% -1615% 7371%
Provision for Taxes 2,575 28,176 69,026 109,533 - 0 192,361 Provision for Taxes 994% 2581% 4154% -100% 7370%
Net Income 6,008 65,743 161,062 255,576 - 130,061 448,843 Net Income 994% 2581% 4154% -2265% 7371%
Retained earning, Beginning of year 6,008 71,751 232,813 488,389 358,328 Retained earning, Beginning of year 1094% 3775% 8029% 5864%
Retained earning, End of Year 6,008 71,751 232,813 488,389 358,328 807,171 Retained earning, End of Year 1094% 3775% 8029% 5864% 13335%

Cashflow Statement

XYZ Inc. - Balance Sheet as of June 30, 2001 XYZ Inc. - Income Statement for Year ending June 30 Cashflow Statement
June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01 June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01 June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01
Current Assets Cashflow from Operations
Cash 9,904 18,580 30,706 321,654 7,051 557,321 Revenues Net Income 65,743 161,062 255,576 - 130,061 448,843
Accounts receivable 29,370 81,372 185,667 329,550 649,832 526,027 Software Licensing & installation 215,510 958,424 1,657,981 2,909,272 3,879,383 4,544,000 Depreciation/Amortization 27,100 62,295 85,393 170,702 200,703
Work in progress 5,538 17,329 32,983 15,000 29,678 30,000 Software Customization & Training 44,141 239,606 440,729 918,718 1,348,868 1,856,000 ∆ Accounts receivable 52,002 104,295 143,883 320,282 - 123,805
Prepaid Expenses 2,382 5,283 21,382 43,292 78,918 80,000 Total Revenues 259,651 1,198,030 2,098,710 3,827,990 5,228,251 6,400,000 ∆ Work in progress 11,791 15,654 - 17,983 14,678 322
Total Current assets 47,194 122,564 270,738 709,496 765,479 1,193,348 ∆ Prepaid Expenses 2,901 16,099 21,910 35,626 1,082
∆ Accounts payable 71,010 54,640 160,457 153,881 15,065
Capital Assets (note 1) Operating Expenses Total Cashflow from Operations 230,547 414,045 649,236 565,108 542,210
Net capital assets 25,380 100,372 198,392 395,283 545,997 502,626 Selling expenses 105,621 265,771 634,819 1,102,560 1,788,000 2,004,000
Customization, installation & Training 54,247 296,654 542,872 698,800 892,000 1,090,000 Cashflow from Investing
Total Assets 72,574 222,936 469,130 1,104,779 1,311,476 1,695,974 Customer Support 77,767 120,631 244,440 336,000 420,000 ∆ Net capital assets 74,992 98,020 196,891 150,714 - 43,371
General & Administrative 53,626 112,896 294,000 540,000 540,000 Total Cashflow from Investing 74,992 98,020 196,891 150,714 - 43,371
Research & Development 65,840 220,693 247,212 737,760 1,080,000 926,000
Current Liabilities Equipment Lease 4,000 36,000 88,934 279,096 279,096 Cashflow from Financing
Bank indebtedness 125,000 Rental 18,000 72,000 85,000 197,000 240,000 240,000 ∆ Bank indebtedness - 0 - 0 - 0 125,000 - 125,000
Accounts payable 18,273 89,283 143,923 304,380 458,261 473,326 Bad Debt 86,500 26,897 2,394 13,247 50,000 ∆ Long Term Debt (note 2) - 0 - 0 115,840 - 34,992 - 1,949
Unearned/ deferred revenue 8,293 21,902 52,394 127,010 214,047 263,014 Depreciation/Amortization 7,360 27,100 62,295 85,393 170,702 200,703 ∆ Common Shares - 0 - 0 - 0 - 0 - 0
Current portion long term debt 29,160 34,992 33,564 Interest 11,600 19,267 8,997 Total Cashflow from Financing - 0 - 0 115,840 90,008 - 126,949
Total Current Liabilities 26,566 111,185 196,317 460,550 832,300 769,904 Total operating expenses 251,068 1,104,111 1,868,622 3,462,881 5,358,312 5,758,796
Net Cashflow 305,539 512,065 961,967 805,830 371,890
Long Term Debt (note 2) 115,840 80,848 78,899 Income before Taxes 8,583 93,919 230,088 365,109 - 130,061 641,204 Beginning cash 9,904 18,580 30,706 321,654 7,051
Ending cash 315,443 530,645 992,673 1,127,484 378,941
Total Debt 26,566 111,185 196,317 576,390 913,148 848,803 Provision for Taxes 2,575 28,176 69,026 109,533 - 0 192,361
Net Income 6,008 65,743 161,062 255,576 - 130,061 448,843
Shareholders Equity
Common Shares 40,000 40,000 40,000 40,000 40,000 40,000 Retained earning, Beginning of year 6,008 71,751 232,813 488,389 358,328
Retained earnings 6,008 71,751 232,813 488,389 358,328 807,171 Retained earning, End of Year 6,008 71,751 232,813 488,389 358,328 807,171
Total Owners Equity 46,008 111,751 272,813 528,389 398,328 847,171
Total Liabilities & 72,574 222,936 469,130 1,104,779 1,311,476 1,695,974
Shareholders Equity

Financial Ratios

Compare to 2000 Compare to Industry
Short-Term Solvency (liquidity) June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01 Industry Averages
Current Ratio 1.7765 1.1023 1.3791 1.5405 0.9197 1.5500 + + 0.8100 Current Ratio = CA/CL
Quick Ratio 1.4784 0.8990 1.1022 1.4140 0.7892 1.4071 + + 0.7000 Quick Ratio = (CA-Inventory)/Cl
Cash Ratio 0.3728 0.1671 0.1564 0.6984 0.0085 0.7239 + Cash Ratio = Cash / CL
Net Working Capital 0.2842 0.0510 0.1586 0.2253 -0.0510 0.2497 + + 0.2000 NWC=( CA-CL)/TA
Interval Measure (days) 70.6822 41.5371 54.7074 76.9384 54.0598 84.2769 + Interval measure = CA/AVG daily operating cost
Inventory turnover 30.7712 47.6301 33.2259 57.7419 47.5924 46.9386 - Inventory Turnover = Cost of Goods sold / Inventory
Day's sales in inventory 11.8617 7.6632 10.9854 6.3212 7.6693 7.7761 - Day's Sales in Inventory Turnover= 365/Inventory turn over
Receivables turnover 8.8407 14.7229 11.3036 11.6158 8.0455 12.1667 - Recievable Turn over = Sales / Accounts Recievable
NWC turnover 12.5873 105.2843 28.2005 15.3768 -78.2426 15.1142 + + 6.1300 NWC Turnover = Sales/NWC
Fixed Asset turnover 10.2305 11.9359 10.5786 9.6842 9.5756 12.7331 + Fixed Asset Turnover = Sales / Net Fixed Assets
Total Asset turnover 3.5777 5.3739 4.4736 3.4649 3.9865 3.7736 - + 3.2800 Total Asset Turnover = Sales / Total Assets
Total debt ratio 0.3661 0.4987 0.4185 0.5217 0.6963 0.5005 + + 1.65 Total Debt Raio = (TA-TE)/TA
Debt/equity 0.5774 0.9949 0.7196 1.0908 2.2925 1.0019 + - 0.8600 Debt/Equity = TD/TE
Equity multiplier 1.5774 1.9949 1.7196 2.0908 3.2925 2.0019 + Equity Multiplier = TA/TE=1+D/E
Long-term debt ratio 0.0000 0.0000 0.0000 0.1798 0.1687 0.0852 + + 0.5700 Long term debt ratio=long term debt / (long term debt+TE)
Times interest earned 32.4749 -5.7505 72.2686 + Times + 1.7100 Times Interest earned = EBIT / Interest
Cash coverage ratio 39.8364 3.1094 94.5764 + Times Cash Coverage = (EBIT + Depreciation) / Interest
Profit margin 2.31% 5.49% 7.67% 6.68% -2.49% 7.01% + + 0.77% Profit Margin = Net Income / Sales
ROA 8.28% 29.49% 34.33% 23.13% -9.92% 26.47% + + 2.52% Return on Assets = Net Income / Total Assets
ROE 13.06% 58.83% 59.04% 48.37% -32.65% 52.98% + + 1.80% Return on Equity = Net Income / Total Equity
Assumptions:
Inventory = Work in progress and prepaid expenses
Net Capital assets = Net Fixed Assets
navjit: EBIT=Income before taxes n interest so add interest here as it has been deducted while calculating the operating expences

Financial Ratios
Year
current ratio

Common-size Balance Sh
Year
Quick ratio

Common-size Income St.
Net Working Capital

Formulas
NWC turnover

Diagram Balance Sheet
Total Asset turnover

Diagram Income St.
Day's sales in inventory
Total debt ratio
Times interest earned
Cash coverage ratio
Profit margin
ROA
ROE
Year
current ratio
Year
Quick ratio
Net Working Capital
NWC turnover
Total Asset turnover
Day's sales in inventory
Total debt ratio
Times interest earned
Cash coverage ratio
Profit margin
ROA
ROE
June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01
Current Assets
Cash 13.65% 8.33% 6.55% 29.11% 0.54% 32.86%
Accounts receivable 40.47% 36.50% 39.58% 29.83% 49.55% 31.02%
Work in progress 7.63% 7.77% 7.03% 1.36% 2.26% 1.77%
Prepaid Expenses 3.28% 2.37% 4.56% 3.92% 6.02% 4.72%
Total Current assets 65.03% 54.98% 57.71% 64.22% 58.37% 70.36%
Capital Assets (note 1)
Net capital assets 34.97% 45.02% 42.29% 35.78% 41.63% 29.64%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Bank indebtedness 0.00% 0.00% 0.00% 0.00% 9.53% 0.00%
Accounts payable 25.18% 40.05% 30.68% 27.55% 34.94% 27.91%
Unearned/ deferred revenue 11.43% 9.82% 11.17% 11.50% 16.32% 15.51%
Current portion long term debt 0.00% 0.00% 0.00% 2.64% 2.67% 1.98%
Total Current Liabilities 36.61% 49.87% 41.85% 41.69% 63.46% 45.40%
Long Term Debt (note 2) 0.00% 0.00% 0.00% 10.49% 6.16% 4.65%
Total Debt 36.61% 49.87% 41.85% 52.17% 69.63% 50.05%
Shareholders Equity 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Common Shares 55.12% 17.94% 8.53% 3.62% 3.05% 2.36%
Retained earnings 8.28% 32.18% 49.63% 44.21% 27.32% 47.59%
Total Owners Equity 63.39% 50.13% 58.15% 47.83% 30.37% 49.95%
Total Liabilities & 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Shareholders Equity
June 30/96 June 30/97 June 30/98 June 30/99 June 30/00 June 30/01
Revenues
Software Licensing & installation 83.00% 80.00% 79.00% 76.00% 74.20% 71.00%
Software Customization & Training 17.00% 20.00% 21.00% 24.00% 25.80% 29.00%
Total Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Operating Expenses
Selling expenses 40.68% 22.18% 30.25% 28.80% 34.20% 31.31%
Customization, installation & Training 20.89% 24.76% 25.87% 18.26% 17.06% 17.03%
Customer Support 0.00% 6.49% 5.75% 6.39% 6.43% 6.56%
General & Administrative 0.00% 4.48% 5.38% 7.68% 10.33% 8.44%
Research & Development 25.36% 18.42% 11.78% 19.27% 20.66% 14.47%
Equipment Lease 0.00% 0.33% 1.72% 2.32% 5.34% 4.36%
Rental 6.93% 6.01% 4.05% 5.15% 4.59% 3.75%
Bad Debt 0.00% 7.22% 1.28% 0.06% 0.25% 0.78%
Depreciation/Amortization 2.83% 2.26% 2.97% 2.23% 3.26% 3.14%
Interest 0.00% 0.00% 0.00% 0.30% 0.37% 0.14%
Total operating expenses 96.69% 92.16% 89.04% 90.46% 102.49% 89.98%
Income before Taxes 3.31% 7.84% 10.96% 9.54% -2.49% 10.02%
Provision for Taxes 0.99% 2.35% 3.29% 2.86% 0.00% 3.01%
Net Income 2.31% 5.49% 7.67% 6.68% -2.49% 7.01%
Retained earning, Beginning of year 0.00% 0.50% 3.42% 6.08% 9.34% 5.60%
Retained earning, End of Year 2.31% 5.99% 11.09% 12.76% 6.85% 12.61%
RATIOS FORMULA PURPOSE
LIQUIDITY RATIOS
Working Capital Current Assets - Current Liabilities measures short term debt paying ability
Current Ratio Current Assets / Current Liabilities measures short term debt paying ability
Acid Test (quick ratio) Cash + short-term investments + net receivables / Current Liabilities Measures immediate short term liquidity
Cash Current Debt Coverage Ratio Cash provided by operating activities / average current liabilities Measures short-term debt-paying ability
Credit Risk Ratio Allowance for doubtful acconts / accounts receivable Measures overall credit risk
Receivables Turnover Ratio Met Credit Sales / Average net receivables Measures liquidity of receivables
Average Collection period 365 days / receivables turnover ratio Measures number of days inventory is on hand
SOLVENCY RATIOS
Debt to Total Assets Ratio Total liabilities / Total assets Measures % of total assets provided by creditors
Times interest earned ratio Earnings before interest expense & income tax expense (EBIT) / Interest Expenses Measures ability to meet interest payments as they come due
Cash interest coverage ratio Earnings before interest expense & income tax expense & amortization (EBITDA) / Interest expense Measures ability to meet interest payments as they come due
Cash TOTAL DEBT coverage ratio Cash from operating activities / Average total liabilities Measures long-term debt-paying ability (cash)
Free Cash Flow Cash from operating activities - capital expenditures - dividends paid Measures cash available for paying more dividends or expanding operations
Capital expenditure ratio Cash provided by operating activities / capital expenditures Measures ability to generate sufficient cash to finance new capital assets
PROFITABILITY RATIOS
Profit Margin Ratio Net Earnings / Net Sales Measures net earnings generated by each dollar of sales
Return on assets ratio Net Earnings / Average Total Assets Measures overall profitability of assets
Average age of Capital Assets Accumulated Amortization / Amortization expense Measures average age of capital assets
Return on common shareholders' equity ratio Earnings available to common shareholders / average common shareholders' equity Measures profitability of shareholders' investment
Asset Turnover Ratio Net Sales / Average Total Assets Measures how efficiently assets are used to generate by each dollar of sales.
Gross Profit Ratio Gross Profit / Net Sales Measures margin between selling price and cost of goods sold
Operating Expenses to Sales Ratio Operating Expenses / Net Sales Measures the cost incurred to support each dollar of sales
Cash Return on Sales Ratio Cash provided by Operating Activities / Net Sales Measures the net cash flow generated by each dollar of sales.
Earnings per share Earnings available to common shareholders / average number of common shares outstanding Measures net earnings earned on each common share
Book Value per share Common Shareholders' Equity / Number of Common Shares outstanding Measures the equity (net assets) per common share
Cash Flow per share Net Cash Flow from all activities / Average number of common shares outstanding Measures net cash flow per common share
Price-earnings Ratio Share price / Earnings per share Measures relationship between market price per share and earnings per share
Payout Ratio Cash Dividends / Net Earnings Measures % of earnings distributed in the form of cash dividends
Dividend Yield Cash Dividends per common share / Year-end share price Measures rate of return earned from dividends
Cost of Goods Sold Cost of goods purchased + cost of goods on hand (beginning inventory) = cost of goods available then Cost of Goods available for sale - ending inventory = Cost of Goods Sold
Assets = liabilites + shareholder equity
Breakeven Point volume of sales rqd to generate zero profit Fixed costs / profit margin per unit
There are two key strategies to keep your breakeven point at a manageable level. The first is to increase the company's overall gross margin. Simply put, increase your profit level on every sale. The most obvious way to accomplish this is to raise prices, but for some companies and products that is not an option. Instead they should look to either decrease variable costs or concentrate more heavily on the products with the highest gross margin.
The second way to manage the breakeven point is simply to cut overhead. Nobody likes to do it, but if the company fails, then all holdings will be lost anyway. If managed early enough, a company can cut the fat without touching an ounce of the bone. Often there is plenty of unnecessary overhead to be cut without touching a single employee. How many dotcom jobs could have been saved if companies had simply served generic coffee every morning instead of specially imported European blends? We all want our companies to be happy, comfortable places, but paying attention to our breakeven points can help alert us when it's time to give up some of our toys and which, if any, we can afford to keep.
June 30/06 June 30/07 June 30/08 June 30/09 June 30/10 June 30/11
Current Assets
Cash 0.00 8,676.00 12,126.00 290,948.00 -314,603.00 550,270.00
Accounts receivable 0.00 52,002.00 104,295.00 143,883.00 320,282.00 123,805.00
Work in progress 0.00 11,791.00 15,654.00 -17,983.00 14,678.00 322.00 3.46
Prepaid Expenses 0.00 2,901.00 16,099.00 21,910.00 35,626.00 1,082.00
Total Current assets 0.00 75,370.00 148,174.00 438,758.00 55,983.00 427,869.00
Capital Assets (note 1)
Net capital assets 0.00 74,992.00 98,020.00 196,891.00 150,714.00 -43,371.00
Total Assets 0.00 150,362.00 246,194.00 635,649.00 206,697.00 384,498.00
Current Liabilities
Bank indebtedness 0.00 0.00 0.00 125,000.00 -125,000.00
Accounts payable 0.00 71,010.00 54,640.00 160,457.00 153,881.00 15,065.00
Unearned/ deferred revenue 0.00 13,609.00 30,492.00 74,616.00 87,037.00 48,967.00
Current portion long term debt 0.00 0.00 0.00 29,160.00 5,832.00 -1,428.00
Total Current Liabilities 0.00 84,619.00 85,132.00 264,233.00 371,750.00 -62,396.00
Long Term Debt (note 2) 0.00 0.00 0.00 115,840.00 -34,992.00 -1,949.00
Total Debt 0.00 84,619.00 85,132.00 380,073.00 336,758.00 -64,345.00
Shareholders Equity
Common Shares 0.00 0.00 0.00 0.00 0.00 0.00
Retained earnings 0.00 65,743.00 161,062.00 255,576.00 -130,061.00 448,844.00
Total Owners Equity 0.00 65,743.00 161,062.00 255,576.00 -130,061.00 448,844.00
Total Liabilities & 0.00 150,362.00 246,194.00 635,649.00 206,697.00 384,499.00
Shareholders Equity
June 30/06 June 30/07 June 30/08 June 30/09 June 30/10 June 30/11
Revenues
Software Licensing & installation 0.00 742,914.00 699,557.00 1,251,291.00 970,111.00 664,617.00
Software Customization & Training 0.00 195,465.00 201,123.00 477,989.00 374,410.00 562,872.00
Total Revenues 0.00 938,379.00 900,680.00 1,729,280.00 1,344,521.00 1,227,489.00
Percentage growth compare to last Year 461.40% 175.18% 182.40% 136.58% 122.41%
Operating Expenses
Selling expenses 0.00 160,150.00 369,048.00 467,741.00 685,440.00 216,000.00
Customization, installation & Training 0.00 242,407.00 246,218.00 155,928.00 193,200.00 198,000.00
Customer Support 0.00 77,767.00 42,864.00 123,809.00 91,560.00 84,000.00
General & Administrative 0.00 53,626.00 59,270.00 181,104.00 246,000.00 0.00
Research & Development 0.00 154,853.00 26,519.00 490,548.00 342,240.00 -154,000.00
Equipment Lease 0.00 4,000.00 32,000.00 52,934.00 190,162.00 0.00
Rental 0.00 54,000.00 13,000.00 112,000.00 43,000.00 0.00
Bad Debt 0.00 86,500.00 -59,603.00 -24,503.00 10,853.00 36,753.00
Depreciation/Amortization 0.00 19,740.00 35,195.00 23,098.00 85,309.00 30,000.00
Interest 0.00 0.00 0.00 11,600.00 7,667.00 -10,270.00
Total operating expenses 0.00 853,043.00 764,511.00 1,594,259.00 1,895,431.00 400,483.00
Percentage growth compare to last Year 439.77% 169.24% 185.32% 154.74% 107.47%
Income before Taxes 0.00 85,336.00 136,169.00 135,021.00 -550,910.00 827,006.00
0.00 0.00 0.00 0.00 0.00 0.00
Provision for Taxes 0.00 25,601.00 40,850.00 40,507.00 -165,274.00 248,102.00
Net Income 0.00 59,735.00 95,319.00 94,514.00 -385,636.00 578,904.00
Percentage growth compare to last Year 1094.26% 244.99% 158.68% -150.89% 445.10%
Retained earning, Beginning of year 0.00 6,008.00 65,743.00 161,062.00 255,576.00 -130,060.00
Retained earning, End of Year 0.00 65,743.00 161,062.00 255,576.00 -130,060.00 448,844.00
Customization, installation & Training
Customer Support
General & Administrative