EXHIBIT 1

HOLLY FASHIONS' Income Statement -- t - t+3 (000s)

t
t+1
t+2
Sales
985
1040
1236
Cost of goods
748.6
774.8
928.2
Gross margin
236.4
265.2
307.8
Administrative
169.4
202.8
236.1
Depreciation
10.8
11.4
13.6
EBIT
56.2
51
58.1
Interest
7
6
5
EBT
49.2
45
53.1
Taxes
19.7
18.0
21.2
Net income
29.5
27.0
31.9

t+3
1305.1
978.8
326.3
249.3
14.4
62.6
4
58.6
23.4
35.2

EXHIBIT 2
Balance Sheet of the HOLLY FASHIONS company -- t - t+3
t
t+1
t+2
ASSETS
Cash
40.4
51.9
38.6
Receivables
153.2
158.9
175.1
Inventory
117
121.1
193.4
Other current assets
5.9
6.2
7.4
Current assets
316.5
338.1
414.5
Gross fixed
44.8
58.9
78.1
Accumulated depreciation
12
23.4
37
Net fixed
32.8
35.5
41.1
Total assets
349.3
373.6
455.6

10.6
224.8
191.9
7.8
435.1
96.4
51.4
45
480.1

LIABILITIES & NET WORTH

Accounts payable
Debt due
Accruals
Current liabilities
Long-term debt
Common stock
Retained earnings
Total L&NW

84.2
10
26.1
120.3
30
180
149.8
480.1

53.8
10
19.7
83.5
60
150
55.8
349.3

54.7
10
26
90.7
50
150
82.8
373.5

86.2
10
24.7
120.9
40
180
114.6
455.5

t+3

EXHIBIT 3
FINANCIAL RATIOS FOR THE HOLLY FASHION COMPANY -- t - t+3
t
t+1
t+2
t+3 Industry average t - t+3*
liquidity ratios
current
3.8
3.7
3.4
3.6
2.6
1.7
1.3
quick
2.4
2.4
1.8
2.0
1.6
0.8
0.6
leverage ratios
debt%
41%
38%
35%
31%
41%
57%
71%
times interest earned
8.0
8.5
11.6
15.7
7.4
3.9
1.3
activity ratios
inventory turnover
8.4
8.6
6.4
6.8
8.1
6
3.5
fixed assets turnover
30.0
29.3
30.1
29.0
40
25
12
total assets turnover
2.8
2.8
2.7
2.7
3.5
2.8
2
average collection period
56
55
51
62
41
50
68
day purchases outstanding (average payment
26
period)
25
** 33
31
18
25
32
profitability ratios
gross margin
24.0% 25.5% 24.9% 25.0%
28%
26%
24%
net profit margin
3.0%
2.6%
2.6%
2.7%
4.20%
3.10% 1.20%
return on equity
14.3% 11.6% 10.8% 10.7%
27.30% 19.50% 7.80%
return on total assets
8.5%
7.2%
7.0%
7.3%
11.80%
8.70% 3.40%
operating margin ***
6.8%
6.0%
5.8%
5.9%
9.90%
7.20% 3.10%

q1
worst

q2
bad

q3
good

q4
great