H6697 – Information Entrepreneurship

By Group Trump:Alexander Bernard Halim G1001168KHo Lee WenG1001181ELee Ping Verena G0901687KSo Jami Florence G1001157DZhang LimingG1002507C

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1 Executive Summary

PLUS LiFe is a new company that aims to provide a one-stop online store for

plus-sizers from clothing to a lifestyle. PLUS LiFe website enables plus-sizers

to shop and buy quality and trendy apparels with matching accessories

anytime, anywhere, while receiving fashion and health tips. We will also be a

platform for local designers to showcase their designs under PLUS LiFe. The

company will be a partnership and managed by the five business owners -

Alexander Bernard Halim, Ho Lee Wen, Lee Ping Verena, So Jami Florence

and Zhang Liming.

Some 1.2 million Singaporeans made online purchases worth S$1.1 billion in

year 2010 and the number is expected to hit S$4.4 billion in 2015 according to

a survey by Paypal. Fashion remains one of the top products purchased

online, accounting S$143 million (13%) of the total online purchases. Similar

to other developed countries, Singaporeans have grown bigger and fatter as

compared to two decades ago. 10% of Singaporeans are obese. However,

plus-size apparels remain uncommon in Singapore and there are not many

physical and online shops that focus on plus-size apparels. There is only one

main competitor – Big AND Beautiful (BAB). Based on the current market

situation as well as the growing number of plus-sizers, there is definitely an

opportunity in the plus-size market.

PLUS LiFe website will be a one-stop retail platform for plus-sizers from

casual clothing, formal wear to a lifestyle. Our apparels will be from two

different sources – overseas suppliers and self-manufacture. Our main

apparels supply will be from China and we will also be working with a China

manufacturer to produce our own designs.

PLUS LiFe will be the fashion platform for local design students to showcase

their creative works and receive feedback and build up their design portfolio.

PLUS LiFe will market their designs under our designer collections. The

website will also provide our customers with the latest fashion news, tips on

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how to dress, what type of clothes will best complement body shape, health

tips, etc.

The primary target market of PLUS LiFe will be plus-sizers who are conscious

with their image and want to look good. PLUS LiFe will translate the latest

trends from the catwalk, celebrities and streets into affordable quality stylish

plus-size apparels. In the first two years, our concentration will be home-

based (Singapore) and on the Malaysia market. PLUS LiFe wishes to expand

its marketing efforts to enter the ASEAN market from year three onwards

starting from Indonesia and eventually moving towards the Asian market. We

will also be launching our plus-size men’s collection in the fourth year.

However, because of the low barrier to the market, we will expedite its

anticipation to enter the ASEAN market if competition increases.

To achieve the expansion plan and fully exploit the market, PLUS LiFe is

seeking SGD $400,000 as growth capital. Over the next 3 to 5 years, PLUS

LiFe would be able to generate significant earnings for its investors.

According to our estimate, PLUS LiFe is projecting a sales of SGD $ 243,750

in its first year and forecasting a yearly average growth of 35% for the next

five years. The average return of owners’ equity yearly is expected to be 1.32

Overview figures are shown as below:

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Figure 1-Total Revenue

Figure 2-Profit after Tax

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2 Company Summary

PLUS LiFe is an upmarket online store that will open for business in May.

PLUS LiFe aims to provide a new service for plus-sizers to shop and buy

quality and catwalk-trendy apparel, and, get firsthand information on fashion

and lifestyle. PLUS LiFe will also be a platform for local designers to

showcase their designs under PLUS LiFe

2.1 Company Ownership

PLUS LiFe is organized as a partnership among five persons, namely,

Alexander Bernard Halim, Ho Lee Wen, Lee Ping Verena, So Jami Florence

and Zhang Liming. Alexander will manage the website, Lee Wen takes care of

finances, Jami will handle all administrative and marketing functions. while

Liming will focus on our suppliers and manufacturers in China. Verena acts as

General Manager.

2.2 Start-up Summary

PLUS LiFe start-up costs are as follows: The five partners will come up with

an initial capital of 30,000 PLUS LiFe will start business with three months’

stock of clothes and accessories. As PLUS LiFe is an online business, the

majority of the assets will be in inventory.

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Balance Sheet YE00

Fixed assets $1,450.00Less: Accumulated depreciation $290.00Net fixed assets $1,160.00

Current assetsBank $90,968.27Stock (inventory) $40,625.00Total Current Assets $131,593.27

Total assets $132,753.27

Liabilities Creditors $48,750.00Total Liabilities $48,750.00

EquityShare capital $30,000.00Accumulated profit / (loss) $54,003.27Total equity $84,003.27

Total liabilities & equity $132,753.27

Figure 3-YE0 Balance Sheet

The purpose of this business plan is to raise SGD$400,000 as growth capital.

The funds are needed for the plans to expand the market to ASEAN

countries, followed by other Asian countries within the next 5 years. PLUS

LiFe also has plans to launch plus-size men’s apparel by the fourth year. The

funds will primarily be used in engaging local consultancy firms to conduct

market research and on marketing efforts. The usage breakdown of the

growth capital is as follows:

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Figure 4-Usage of Growth Capital

2.3 Company Location

PLUS LiFe’s office will be located at Blk 306A Punggol Drive #12-001

Singapore 560306. This is currently under Verena’s personal ownership.

Approved by the Housing Development Board’s Home Office Scheme, the

90m2 flat will be used as an office, as well as storage for PLUS LiFe’s

inventory.

3 Products

PLUS LiFe will mainly operate on women’s apparel, and the products will

include formal wear and casual clothes (see list below). We will strive to

provide a good combination of classical design and fashion character. The

source will be from mainland China, and we will be purchasing clothes directly

from local manufacturers and wholesalers, and in a variety of styles and

colors. Apart from apparel which will account the greatest percentage of our

business, we will also sell clothing accessories, including hats, scarves and

waistbands.

Adjustments to product design will be based on customer feedback and

suggestions, and sales reports, in order to build a constantly popular

selection.

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3.1 Product Description

PLUS LiFe will provide our customers with a wide range of clothes for every

occasion. Our goal is to establish a selection that caters to plus-sizers’

demand, and more importantly, deliver an extraordinary line of apparel that is

catwalk-worthy. Some of the products we will carry are listed below:

Products Description

Dress Evening dress / Casual

Shorts Knee Length / Short / Denim

Shirts Mini / Pencil / Mid Calf / Knee Length /

Long

Long Pants / Jeans Skinny / Straight

TopsBlouses / Casual / Tee Long Sleeve /

Tee Short Sleeve / Cardigans

Hats, Scarves, Waistbands A variety of styles and colors

3.2 Sourcing

The source of PLUS LiFe apparel will mainly be acquired from South China,

considering the relatively low production cost and the diversified product types

there.

We will hire a local based in Guang Dong province in China, as Guang

Dong is regarded as “the world factory” and has the lowest price

comparing with other parts of China. This person will be in charge of

routine contact issues with the local manufacturers and other suppliers for

us.

Most of our products will be made from the manufacturers to ensure

competitive prices and branding standards. We will get some of our

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products from regional wholesalers. We will place our monthly orders with

them and review new products regularly.

For the wholesale products, we will work directly with the manufacturer

and sales representatives to utilize product catalogs and tag with the

PLUS LiFe brand.

To promote the original works from Singapore local designers, designs

that stand out from the PLUS LiFe design competition will be put into the

production line. This will gradually form our unique collection.

We will work to solidify our relationships with the vendors so that we may

achieve cost-effectiveness.

3.2.1 Some of the major wholesale clothing centres in Guang Dong Province are

listed below:

The Baima Clothing Center is one of the largest clothing wholesalers in

Guang Dong Province, which was founded in 1991. It began the apparel

business in 1993. Baima has united regional wholesalers under one roof,

more than 2,000 manufactures from Pearl river delta region and Yangtze river

delta are located here. Currently, its market has crossed five continents

including North Europe, Middle East, Southeast Asia, North Africa and South

America, and the average annual deal values CNY3 billon.

(http://www.baima.com/).

The Guang Dong clothing Wholesale Network is one of the earliest entrants in

this industry. It mainly operates women apparel with Japanese and South

Korean Design. From 2003, it focused its business on online wholesale. The

product update frequency of it is high, and for each week, new design will go

into its sale collection. This will benefit our selection variety.

(http://www.cicicam.com/ ).

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3.3 Future Products

We plan to launch men’s collection in the fourth year, which will include tops,

pants, suits etc., to achieve and exceed our sales and profitability goals.

Besides, we will gradually add local student designers’ work to the product

line to create our own personal in-house label. Products will also be

expanded according to customers’ suggestions and feedback.

4 Market Analysis Summar y

The primary target customer of PLUS LiFe will be plus-size women in

Singapore, and then in the following years, as men’s collection will be added,

our target will incorporate men. Meanwhile, the market region will expand into

Malaysia, Indonesia and even other ASEAN countries, to increase our

customer base.

4.1 Market Segmentation

Plus-Size Women (age 18-25): This group is the youngest part in our

customer pool. It will be mainly college students. The latest trends from the

fashion industry will regularly be included into this stylish plus-size line,

considering their strong desire to follow the fashion.

Plus-Size Women (age 26-35): This community of women probably have

entered into the career for several years, so this product line will concentrate

on office dress, since plus-size formal wear could hardly be found in the

current market.

Plus-Size Women (age 36-45): As women in this age group are very likely to

gain weight and become a plus-sizer, this group will be our primary market

focus. Also considering their relatively larger purchasing power, comparing to

the former two groups, this collection line will carry a combination of smart

casual and formal office dress.

Because PLUS LiFe offers a variety of well-designed apparel and clothing

accessories, along with plus-size lifestyle information in our website, we think

that we will be able to create a recognized brand in the near future.

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Age 36-45 Age 26-35

Age 18-25

Figure 5-Market segmentation

4.2 Target Market Segment Strategy

The goal of PLUS LiFe is to serve the plus-size community that has difficulty

finding clothes suitable for them. Currently, plus-size apparel is not the main

focus for most designers and manufacturers, which leads to an under-tapped

market area.

4.2.1 Market Needs

There are several important needs in the plus-size apparel business that are

being either underserved or not met at all. PLUS LiFe plans to meet and

service those needs.

Generally, there is a size segment missing in most brands. Most of them

seldom provide a large assortment of sizes to accommodate the various

body shapes. Consequently, it is difficult for plus-sizers to shop for their

clothes. Many plus-sizers end up approaching tailors for fitted clothes.

Most plus-size products in the market are devoid of the latest fashion trends.

The plus-size customer profile is rarely attended to by retail businesses. As a

result, there are very few designers who specialize in plus-size design.

Our focus and attention will be concentrated to address all these needs, and

explore this potential market.

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4.2.2 Market Trends

Today, many people like shopping online for its convenience, according to a

survey (Paypal), Singaporeans spent S$1.1 billion for online shopping, of this

a large proportion goes to fashion. Women form the majority of fashion buyers

“Within a decade, the companies that do the best job of marketing to women

will dominate every significant product and service category" (Faith Popcorn),

which well reflects the boom trend of this business sector.

Apart from providing our clients with clothing, PLUS LiFe also intends to use

its website to promote the beauty of living the PLUS LiFe, by providing

firsthand information on fashion and lifestyle.

4.2.3 Industry Analysis

Economic, Cultural and Environmental Conditions

Holiday shopping, competitor marketing, the economy and the strength of the

dollar can all affect the performance of PLUS LiFe. On a macro-economic

level, consumer confidence, interest rates and inflation rates all have an

effect. Rising unemployment, political concerns and deflation also pose risks.

Positive Factors:

Clothing Industry Impact on PLUS LiFe

Very low interest rates Cost of financing low

Easy availability of consumer credit Higher ticket sizes on credit card

purchases

Relatively low unemployment, and very

low inflationStable employees & businesses

The appreciation of Singapore Dollar

against RMBEncourage import

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Negative Factors:

Clothing Industry Impact on PLUS LiFe

Weakening consumer confidence (still

influenced by global recession &

uncertainty)

Decreased sales

Slowly increasing unemployment Value and sale shopping

The appreciation of RMB Discourage export

4.3 Main Competitors

PLUS LiFe has one main online competitor in Singapore.

Big And Beautiful (B.A.B.) is specialises in operating plus-size women

apparel which started in 2008 in Singapore. Its physical shop is located in

New Bridge Road. To meet its increasing customer demand, it has launched a

website. Its products comprise of clothes, shoes and accessories. Apart from

selling clothes, B.A.B also feature and share interesting articles, like where to

shop, and where to have fun, to make the site informative.

In 2010, B.A.B held the campaign “Celebrating Curves” which is a six–month

stretch of events, workshops, fashion shows and photo exhibitions to promote

the beauty of plus-size life. In 2011, it has created a calendar that features

curvaceous ladies artistically nude. Its marketing strategy also includes

funding Singapore’s inaugural plus-size beauty pageant, “Miss & Ms Amazing

Beauty Pageant”.

5 Strategy and Implementation Summary

For an online business, a good strategy and its implementation is crucial to its

success. PLUS LiFe’s business is to be the online store for plus-sizers which

is a relatively unserved and undertapped market. Our vision is to steadily

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increase our market share and expand overseas with a focus on local

designer wear.

5.1 Competitive Edge

Our online store offers the convenience of hassle-free shopping in the

latest fashion styles from our local designers and specially sought goods

from China

The PLUS LiFe membership scheme will entitle members to a loyalty of

15% on the sixth purchase

PLUS LiFe will keep a personal record of customers’ purchases and then

make recommendations on the next visit to the website

5.2 Marketing Strategy

PLUS LiFe’s will be marketed as the one-stop website for plus-sizers for

trendy designer clothing. It will focus on the uniqueness of its collection,

which is based on local designers. For plus-sizers, the convenience of

shopping online for something that fits them easily, in latest trends, is no

longer a dream, it is a reality.

5.2.1 Pricing Strategy

PLUS LiFe aims to deliver affordable quality stylish apparels to plus-sizers.

The pricing will be in the middle to high range.To ensure average profit

margins of 21%, PLUS LiFe will aim to keep operating costs low, and maintain

the quality of apparel.

5.2.2 Promotion Strategy

There will be an initial soft launch of the website in May, followed by a major

launch a month later in-conjunction with the Great Singapore Sale.

A fashion show showcasing the “launch series” for plus-sizes on the

catwalk at the Singapore Fashion Week.

Ms Haryani Bte Othman, a personal friend and famous Singapore

Celebrity in both Mediacorp Suria television channel and theatre will don

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our classic collection. She has also agreed to be our spokesperson and

model for our line of plus-size apparel.

5.2.3 Distribution Strategy

The online website will be the “shop front” for our online customers. The

catalogue of the latest designs will be easily available through the online store

for ordering at customer’s convenience. Customer’s order will be delivered

within 3 working days. We have also spoken to the chain of 7-11 stores in

Singapore, who has agreed to be our point of distribution. Thus customers

can also have the option of picking up their products at these convenient pick-

up points in the neighbourhood.

5.2.4 Marketing Programmes

Our marketing programmes include having:

Sponsorship of Ms Haryani’s clothes for her television shows, thus

creating awareness of our unique collection

Quarterly fashion shows at the Arts House, showcasing our local

designers works using plus-size models.

Participating in the annual “Singapore Fashion Week”

Reaching out to our customers through social media platforms such as

Facebook and forums

Offering one-time discount coupons to generate traffic to website

Local fashion competitions to promote ourselves as a platform for local

designers to showcase their products

5.2.5 Positioning Statement

PLUS LiFe apparels showcases the beauty of the full-bodied women in the

latest fashion styles, enhancing a woman’s femininity.

5.3 Sales Strategy

A simple in-house CRM system has been designed to track each purchase of

our customer. Based on this, a profile of the customer’s interest and style is

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captured and maintained in our database. The merchandiser is then able to

retrieve and analyse the information and focus on the customer’s

requirements and the popular buys.

For our first-time customers, they will be offered a 7-day return/exchange

policy just like that of a physical store, allowing them to try our products with

ease of mind. For our loyal customers who already are familiar with our

quality and design, they are offered the membership programme on their sixth

purchase. This sixth purchase policy can be shortened to only three

purchases if they introduce another customer who buys from our online store.

5.3.1 Sales Forecast

The forecasted sales for PLUS LiFe is highlighted in the chart below. We

expect sales are projected at SGD $243,750.00 in the first year after

launching our online store in May. Growth is expected to increase by an

average of 25% yearly.

Figure 6-Sales Forecast

6 Web Plan Summary

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As a start up in the e-commerce market, PLUS LiFe wants to maximize the

investment on technology. We don’t want to spend too much on technology to

sell our product, and scalability is imperative. A big initial investment on

technology does not align with the growth projection of PLUS LiFe.

To achieve the web technology objective, we decided to go with an open

source solution, and finding a web hosting partner. We choose Magento as

our web site solution, and it’s hosted on Magento Go.

Magento is an open source ecommerce web application launched on March

31, 2008. It was created by Varien, building on components of the Zend

Framework.

Magento Go is a turnkey service for building and running an online store - no

hardware, software or coding is required. Magento Go offers several different

hosting plans. This will suit our needs from a start-up until our projected

growth for the next 5 years.

Using this technology & hosting services, there will be no initial investment in

hardware, software, and therefore, no need to hire a programmer.

7 Management Summary

As Plus-size is a start-up company, the initial composition of the company will

be small. With the limited resources, all works will be delegated amongst the

five partners according to their experiences and expertise.

7.1 The profiles of the partners are indicated below:

Alexander Bernard Halim

Mr Halim is a web-designer for the past 7 years. He has extensive training in

computer graphic packages and is well versed in programming and web

development languages and technologies. He has helped created websites

for online retailing for the past 3 years.

Ho Lee Wen

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Ms Ho is a successful financial controller who has served on several planning

and policy-making committees. Her experience is in directing and co-

ordinating financial planning and budget management. Her past portfolio also

includes preparation of financial outlooks and forecasts, establishing long and

short-term budget policies and procedures.

Lee Ping Verena

Ms Lee has been directing and managing her own business for the last five

years. Her ability to strategise effectively to chart business growth is the

driving force behind her successful business.

So Jami Florence

Ms So was the regional manager of a award-winning retail clothes chain in

Singapore. She brings with her experience in corporate and retail marketing

in the local context. She was involved in developing and maintaining highly

successful marketing campaigns that translated to steep increases in sale.

Zhang Liming

Ms Zhang is a knowledgeable top notch designer with a local boutique for the

last three years. She also has vast experience in merchandising and stock

management. Her experience and knowledge in China’s clothing

manufacturing and production industry proves to be a vital asset for PLUS

LiFe.

7.2 Organisation structure and Management Team

With only a start-up of five personnel, the organisation structure will be simple.

Verena Lee will act as General Manager and will be responsible for the overall

operational aspect of the company. Lee Wen will manage and make

decisions on financial matters at PLUS LiFe. Jami will be responsible for all

administrative, marketing and promotional functions. Liming will handle the

inventory, and take care of our suppliers and manufacturers in China.

Alexander, our web expert will take care of the day-to-day management and

design of the website.

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7.3 Personnel Plan

Partners will receive dividend payouts from the 4th year onwards.

8 Financial Plan

The growth of PLUS LiFe will be moderate and the cash balance will always

be positive. Being a retail environment we will not be selling on credit. We will

accept paypal and interbank transfer. Marketing and advertising will be at 5%

to 6% of sales with the exception of year two and year three into the business.

We will continue to reinvest residual profits into company expansion, and

personnel.

8.1 Important Assumptions

All the goods cost will increase at inflation rate of 5% yearly and 30% of the

total goods cost will be on credit. PLUS LiFe will produce as well as import

plus-size clothing from overseas; targeting to design and manufacture 100%

of PLUS LiFe apparels by year 4.

YE00

YE01

YE02

YE03

YE04

M - ManufactureI - Import

M 25% 50% 50% 75%100

%

I 75% 50% 50% 25% 0%

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8.2 Key Financial Indicators

The following chart shows the benchmark figures for PLUS LiFe.

Figure 7-Benchmark

General Assumptions

YE00 YE01 YE02

Estimated Sales 75% 80% 85%

Qty of Purchased Goods 1250 3750 5000

Qty of Produced Goods 3750 3750 5000

Average Price / Goods $60.00 $69.50 $80.65

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8.3 Break-even Analysis

A break-even analysis table has been completed on the basis of average

costs/prices. With fixed costs of $6,093.41, $75.83 in average sales, and

$46.93 in average variable costs, we need $16,000.83 per month in sales to

break even.

Figure 8-Break-Even Analysis

Break-even Analysis

Monthly Units Break-even 467

Monthly Revenue Break-even $16,000.83

Assumptions:

Average Per-Unit Revenue $75.83

Average Per-Unit Variable Cost $46.93

Estimated Monthly Fixed Cost $6,093.41

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8.4 Projected Profit and Loss

The following chart and table will indicate projected profit and loss.

Figure 9-Profit Yearly

Pro Forma Profit and Loss

YE00 YE01 YE02

Sales $243,750.00 $457,625.00 $732,775.00

Cost of Sales $121,875.00 $229,625.00 $327,750.00

Gross Margin $121,875.00 $228,000.00 $405,025.00

Gross Margin % 50.00% 54.68% 59.08%

Expenses

Payroll $21,328.20 $39,900.00 $70,879.40

Website design &

maintenance$238.45 $238.45 $238.45

Internet, anti-virus

software$588.91 $588.91 $588.91

Photography $1,000.00 $1,000.00 $1,000.00

Models $0.00 $1,200.00 $1,200.00

Models makeup $800.00 $800.00 $800.00

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Marketing $10,000.00 $40,000.00 $50,000.00

Delivery $3,750.00 $6,000.00 $8,500.00

Freight Cost $8,625.00 $12,937.50 $17,250.00

Business Travel $10,000.00 $4,000.00 $4,000.00

Purchaser/Point of

contact$7,000.00 $8,280.00 $10,050.25

Stationery $100.00 $120.00 $150.00

Utilities $3,600.00 $3,600.00 $3,600.00

Depreciation $290.00 $290.00 $290.00

Other Expenses $551.17 $0.00 $0.00

Total Operating Expenses $67,871.73 $118,954.86 $168,547.01

Profit Before Taxes $54,003.27 $109,045.14 $236,477.99

Taxes Incurred $0.00 $0.00 $0.00

Net Profit $54,003.27 $109,045.14 $236,477.99

Net Profit/Sales 22.16% 23.83% 32.27%

8.5 Projected Cash Flow

The following table shows projected cash flow.

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Figure 10-Cash Balance

Pro Forma Cash Flow

YE00 YE01 YE02

Cash Received $30,000.00 $50,000.00 $100,000.00

Cash from Operations

Cash Sales $243,750.00 $457,625.00 $732,775.00

Subtotal Cash from

Operations

$243,750.00 $457,625.00 $732,775.00

Expenditures YE00 YE01 YE02

Expenditures from

Operations

Suppliers $113,750.00 $214,125.00 $301,875.00

Operating expenses $45,702.36 $78,764.86 $97,377.61

Other expenses $551.17 $0.00 $0.00

Salaries $21,328.20 $39,900.00 $70,879.40

Additional Cash Spent

Purchase Long-term

Assets

$1,450.00 $0.00 $0.00

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Subtotal Cash Spent $182,781.73 $332,789.86 $470,132.01

Net Cash Flow $90,968.27 $265,803.41 $628,446.40

Assumption YE00 YE01 YE02

Dividend

**No dividend will be given to partners for the first 3 years.

$0.00 $0.00 $0.00

8.6 Projected Balance Sheet

The following table explains the projected balance sheet.

Pro Forma Balance Sheet

YE00 YE01 YE02

Assets

Current Assets

Cash$90,968.27

$265,803.

41

$628,446.4

0

Inventory$40,625.00

$47,250.0

0 $49,500.00

Total Current Assets$131,593.2

7

$313,053.

41

$131,593.2

7

Long-term Assets

Long-term Assets $1,450.00 $1,450.00 $1,450.00

Accumulated Depreciation $290.00 $580.00 $870.00

Total Assets$132,753.2

7

$313,923.

41

$678,526.4

0

Liabilities and Capital YE00 YE01 YE02

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Current Liabilities

Accounts Payable$48,750.00

$70,875.0

0 $99,000.00

Subtotal Current Liabilities$48,750.00

$70,875.0

0 $99,000.00

Long-term Liabilities $13,400 $10,100 $6,800

Total Liabilities $31,162 $32,591 $35,226

Share Capital$30,000.00

$80,000.0

0

$180,000.0

0

Earnings$54,003.27

$163,048.

41

$399,526.4

0

Total Liabilities and Capital$132,753.2

7

$313,923.

41

$678,526.4

0

Net Worth$35,253.27

$172,173.

41

$480,526.4

0

8.7 Business Ratios

Business ratios for the years of this plan are shown below

Ratio Analysis

YE00 YE01 YE02

Sales Growth 0.00% 46.74% 37.55%

Percent of Total Assets

Inventory 30.60% 15.05% 7.30%

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Other Current Assets 68.52% 84.67% 92.62%

Total Current Assets 99.13% 99.72% 99.91%

Long-term Assets 0.87% 0.28% 0.09%

Total Assets 100.00% 100.00% 100.00%

Current Liabilities 36.72% 22.58% 14.59%

Total Liabilities 36.72% 22.58% 14.59%

Net Worth 180.01% 203.81% 221.96%

Percent of Sales

Sales 75.00% 80.00% 85.00%

Gross Margin 50.00% 49.82% 55.27%

Selling, General & Administrative

Expenses32.72% 29.62% 27.09%

Advertising Expenses 4.84% 9.40% 7.23%

Profit Before Interest and Taxes 22.16% 23.83% 32.27%

Main Ratios

Current 2.7 4.4 6.8

Quick 1.9 3.8 6.3

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Total Debt to Total Assets 58.03% 29.16% 17.08%

Pre-tax Return on Net Worth 180.01% 218.09% 236.48%

Pre-tax Return on Assets 40.68% 34.74% 34.85%

Additional Ratios YE00 YE01 YE03

Net Profit Margin 22.16% 20.47% 23.03%

Return on Equity 180.00% 140.00% 130.00%

Activity Ratios

Inventory Turnover 16.00 11.86 16.67

Accounts Payable Turnover 1.1 1.4 1.4

Total Asset Turnover 1.8 1.5 1.1

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