Month 0 1 2 3 4 5 6 Net Income $ 10,000.00 $ 120,000.00 $ 150,000.00 $ 25,000.00 $ 30,000.00 $ 18,000.00 Depreciation $ 20,000.00 $ 30,000.00 $ 30,000.00 $ 40,000.00 $ 50,000.00 $ 40,000.00 Capital Expenditures $ 10,000.00 $ - $ - $ 10,000.00 $ - $ - Levels of Working Capital A/R $ 20,000.00 $ 30,000.00 $ 40,000.00 $ 50,000.00 $ 70,000.00 $ 10,000.00 $ 60,000.00 Inventory $ 30,000.00 $ 20,000.00 $ 40,000.00 $ 50,000.00 $ 50,000.00 $ 40,000.00 $ 20,000.00 A/P $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 Changes in Working Cap A/R $ 15,000.00 $ 10,000.00 $ 10,000.00 Inventory $ (4,000.00) $ 19,000.00 $ 10,000.00 A/P $ 2,500.00 $ - Changes in Net W/C $ 13,500.00 $ 29,000.00 $ 20,000.00 Net Income $ 10,000.00 $ 120,000.00 $ 150,000.00 plus Depreciation $ 20,000.00 $ 30,000.00 $ 30,000.00 minus NWC $ 13,500.00 $ 29,000.00 $ 20,000.00 Cash Flow from Ops $ 16,500.00 $ 121,000.00 $ 160,000.00 minus Cap Ex $ 10,000.00 $ - $ - Change in Cash $ 6,500.00 $ 121,000.00

$ 160,000.00