14. What is company's margin of safety in units for projected Year 16? 15. What is...

14. What is company's margin of safety in units for projected Year 16? 15. What is the company's margin of safety as a percentage for projected Year 16? not for the projected Year 16 relative to Year 15 and 16. Is the margin of safety as a percentage improving or by how much?

Eoxtrot Manufacturing Company, LLC Functional Format Income Statement Latest Operating Year Proforma for Year Year 15 15% Next Operating 16% ear 16 a units sold Average price per unit Sales revenue 100,000 $10,00 0,000 600,000 400,000 110,000 Less: cost of goods sold 100% s1,1 11,000 | 100% 650,000 Gross margin Less: marketing & selling expenses 461 ,00 240,000 80,000 141,000 9,380 40.0% 4 1 ,49% Less: general & administrative ex Net operating income Less: other expenses (interest) 70,000 100,000 Net income before taxes Less: allowance for income taxes Net income after taxes 89,780 29,627 39,486 $60, 1531 S92, 1 34-2929% 6.0153% Foxtrot Manufacturing Company, LLC Latest Operating Proforma for Selected Data from the Contribution Format Year 15 Income Statement Next Operating Year 16 550,000 Variable expenses Fixed expenses $500,000 S400,000 $420,000 Proforma for Year |Next Operating Foxtrot Manufacturing Company, LLC Latest Operating Year Fair Market Value Balance Sheets-Year End Year 15 15% 116% Year 16 120,000 Cash Short term securities Accounts receivable nvent Total: current assets S110,000 $75,000 100,000 80,000 300,000 300,000 Fixed assets Other/intangible assets Total assets $600,000 Accounts payable Notes payable Total liabilities 100,000 140,000 240,000 105,000 128,000 233,000 360,000 $600,000 Total liabilities & equity Page 4 of 6

Foxtrot Manufacturing Company LLC Cash Flow Statement Latest Operating Proforma for Next Year 15 Operating Year 16 Operating Activities Net Income Depreciation Other non-cash expenses Increase/decrease in accounts receivable Increase/decrease in inventories Increase/decrease in accounts payable $92,134 30,000 30,000 0 Subtotal: Net Cash from Operating Activities Long-term Investing Activities Purchase or sale of fixed assets Subtotal:Net Cash Used in Investing Activities 0 0 Financing Activities Increase/decrease in notes payable Increase/decrease in bonds outstanding -12,000 -12,000 0 0 0 -12,000 0 0 -12,000 Sale or repurchase of stock Subtotal: Net Cash from Financing Activities Summary Net Increase in Cash Cash & Equivalents at the Beginning of the Year Total: Cash & Equivalents at the End of the Year