Model Facts

This spreadsheet supports student analysis of the case, "Kota Fibres,

Ltd." (UVA -F-1359 v. 1.1)

Please note:

1) All worksheets have been protected to prevent any inadvertent errors

by students. To unprotect the worksheet press Control "u" and to protect
worksheet press Control "p" (use lower case).

2) This is a working model. Assumptions / Inputs presented can be

changed to vary the results.

3) As long as the default spreadsheet calculation is set as "automatic",

the impact of changing assumptions will be computed in real time.
Alternatively, the F9 function key may need to be invoked to recalculate
results. To set numerical calculation settings to automatic look under
tools, options, calculations menu.

Copyright © 2001 by the Trustees of the University of Virginia Darden School Foundation.

Page 1
Model Facts

Page 2
Exhibit 1
KOTA FIBRES, LTD.
Summary of monthly sales: Actual for 2000 and Forecast for 2001

2000 2001
(historical) (forecast)

January 2,012,400 2,616,120

February 2,314,260 2,892,825
March 3,421,080 4,447,404
April 7,043,400 8,804,250
May 12,074,400 13,885,560
June 15,294,240 17,588,376
July 14,187,420 16,315,533
August 7,144,020 8,572,824
September 4,024,800 5,031,000
October 3,421,080 4,447,404
November 2,716,740 3,531,762
December 2,213,640 2,767,050

Year 75,867,480 90,900,108

Supporting Calculations for Exhibit 1

HISTORICAL CYCLE 100 115 170

FORECAST CYCLE 130 125 130

TOTAL
2000 (historical) 75,867,480 2,012,400 2,314,260 3,421,080

2001 (forecast) 90,900,108 2,616,120 2,892,825 4,447,404

GROSS UP RATIO 1
 350 600 760 705 355 200 170 135 110
125 115 115 115 120 125 130 130 125

7,043,400 12,074,400 15,294,240 14,187,420 7,144,020 4,024,800 3,421,080 2,716,740 2,213,640

8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,767,050

Exhibit 2
KOTA FIBRES, LTD.
Historical Annual Income Statements ( in Rupees)

1999 2000 2001

(Actual) (Actual) (Forecast)

Gross Sales 64,487,358 75,867,480 #REF!

Excise Tax 9,673,104 11,380,122 #REF!
Net Sales 54,814,254 64,487,358 #REF!
Cost of Goods 44,496,277 53,865,911 #REF!
Gross Profits 10,317,978 10,621,447 #REF!
Operating Expenses 3,497,305 4,828,721 #REF!
Depreciation 769,103 908,608 #REF!
Interest Expense 910,048 1,240,066 #REF!
Profit Before Tax 5,141,521 3,644,052 #REF!
Income Tax 1,542,456 1,093,216 #REF!
Net Profit 3,599,065 2,550,837 #REF!
Exhibit 3
KOTA FIBRES, LTD.
Historical Balance Sheets (in Rupees)

2000 2001
(Actual) (Forecast)

Cash 762,323 750,000 750,000

Accounts Receivable 2,672,729 3,715,152 3,715,152
Inventories 1,249,185 2,225,373 2,225,373
Total Current Assets 4,684,237 6,690,525 6,690,525
Gross PP&E 10,095,646 11,495,646 11,495,646
Accumulated Depreciation 1,484,278 2,558,009 2,558,009
Net PP&E 8,611,368 8,937,637 8,937,637
Total Assets 13,295,604 15,628,161 15,628,161

Accounts Payable 759,535 1,157,298 1,157,298

Notes to Bank (Deposits at Bank) 684,102 #VALUE! 3,463,701
Accrued Taxes 0 #VALUE! -180,654
Total Current Liabilities 1,443,637 #VALUE! 4,440,345
Owners' Equity 11,851,967 #VALUE! 11,187,816
Total Liabilities and Equity 13,295,604 #VALUE! 15,628,161
 Current ratio 3.2447477329 1.506757921
Quick ratio 2.3794434515 1.01
Avaearge Collection period 15.1277092233 17.87367236
Gross Sales
Total asset turn over ratio 4.8502766537 4.85 Excise Tax
Debt to asset ratio 0.1085799969 0.2841246 Net Sales
Gross profit margin 0.1600000054 0.139999999 Cost of Goods
Return on assets 0.191855668 0.09 Gross Profits
Operating Expenses
Depreciation
Interest Expense
Profit Before Tax
Income Tax
Net Profit
 1999 2000 2001
(Actual) (Actual) (Forecast)

64,487,358 75,867,480 0
9,673,104 11,380,122 0
54,814,254 64,487,358 0
44,496,277 53,865,911 0
10,317,978 10,621,447 0
3,497,305 4,828,721 0
769,103 908,608 0
910,048 1,240,066 0
5,141,521 3,644,052 0
1,542,456 1,093,216 0
3,599,065 2,550,837 0

10,317,978 0.27 0.38670837

0.16000001 0
EXHIBIT 8
KOTA FIBRES, LTD.
Monthly Forecast of Income Statements (in Rupees)
Pro Forma

January February March April May June July August September October November December

Gross Sales 2,616,120 2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,767,050
Excise Taxes 392,418 433,924 667,111 1,320,638 2,082,834 2,638,256 2,447,330 1,285,924 754,650 667,111 529,764 415,058
Net Sales 2,223,702 2,458,901 3,780,293 7,483,613 11,802,726 14,950,120 13,868,203 7,286,900 4,276,350 3,780,293 3,001,998 2,351,993
Cost of Goods Sold 1,928,080 2,132,012 3,277,737 6,488,732 10,233,658 12,962,633 12,024,548 6,318,171 3,707,847 3,277,737 2,602,909 2,039,316
Gross Profit 295,622 326,889 502,557 994,880 1,569,068 1,987,486 1,843,655 968,729 568,503 502,557 399,089 312,677
Operating Expenses #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Depreciation 84,130 84,130 87,047 87,047 87,047 89,964 89,964 89,964 92,880 92,880 92,880 95,797
Interest Expense (Income) (1) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Profit Before Taxes #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Income Taxes #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Net Profit #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

(1) Interest expense = Notes Payable * 14.5%/12 months.

Forecasted Monthly Balance Sheets for 2001 (in Rupees)

January February March April May June July August September October November December 2000 2001
Assets (Actual) (Forecast)
Cash (1) 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000
Accounts Receivable (2) 2,773,349 3,291,542 5,012,144 10,301,737 17,997,155 24,748,757 25,697,603 17,191,189 9,003,739 6,295,049 5,029,249 3,715,152 Cash 762,323 750,000
Inventories (3) 2,308,135 5,850,125 11,855,841 17,637,315 19,666,227 14,469,652 6,815,272 3,883,970 2,950,257 1,854,837 1,639,892 2,225,373 Accounts Receivable 2,672,729 3,715,152
Total Current Assets 5,831,484 9,891,667 17,617,985 28,689,052 38,413,382 39,968,409 33,262,875 21,825,159 12,703,996 8,899,886 7,419,142 6,690,525 Inventories 1,249,185 2,225,373
Net Prop. Plant & Equip. (4) 8,527,237 8,443,107 8,706,060 8,619,013 8,531,966 8,792,002 8,702,038 8,612,075 8,869,194 8,776,314 8,683,434 8,937,637 Total Current Assets 4,684,237 6,690,525
Total Assets 14,358,721 18,334,774 26,324,045 37,308,065 46,945,348 48,760,411 41,964,914 30,437,233 21,573,190 17,676,200 16,102,575 15,628,161 Gross PP&E 10,095,646 11,495,646
Accumulated Depreciat 1,484,278 2,558,009
Liabilities and Owners' Equity Net PP&E 8,611,368 8,937,637
Accounts Payable (5) 1,614,553 4,010,818 6,805,539 8,842,088 8,142,024 3,883,534 1,935,531 1,614,553 1,110,950 690,358 1,039,007 1,157,298 Total Assets 13,295,604 15,628,161
Note Payable- Bank (6) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Accrued Taxes (7) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Total Current Liabilities #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Accounts Payable 759,535 1,157,298
Shareholders' Equity (8) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Notes to Bank (Deposits 684,102 3,463,701
Total Liabilities & Equity #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Accrued Taxes 0 -180,654
Total Current Liabiliti 1,443,637 4,440,345
Owners' Equity 11,851,967 11,187,816
(1) See Exhibit 9. Total Liabilities and 13,295,604 15,628,161
(2) See panel 1, Exhibit 10.
(3) See panel 2, Exhibit 10. 2,616,120 2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,767,050
(4) See panel 6, Exhibit 10. 2000 actual 2001 Forecasted January February March April May June July August September October November December
(5) See panel 3, Exhibit 10. Inventories 2,225,373 1,249,185 ### ### 11,855,841 17,637,315 19,666,227 14,469,652 6,815,272 3,883,970 ### ### ### ###
(6) Plug figure. Account receivables 3,715,152 2672729 ### ### 5,012,144 10,301,737 17,997,155 24,748,757 25,697,603 17,191,189 ### ### ### ###
(7) See panel 5, Exhibit 10. Accounts payable 1,157,298 759535 ### ### 6,805,539 8,842,088 8,142,024 3,883,534 1,935,531 1,614,553 ### 690,358 ### ###
(8) See panel 4, Exhibit 10. Net sales 90,900,108 75,867,480 ### ### 4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 ### ### ### ###
COGS 66,993,380 53,865,911 ### ### 3,277,737 6,488,732 10,233,658 12,962,633 12,024,548 6,318,171 ### ### ### ###
Gross Sales 90,900,108
Cash 762,323 0 750,000 Excise Tax 13,635,016 Inventory turnover 30.10433738 43.1208434667 0.835341 0.364439 0.27646598 0.36789796 0.52036711 0.895849692 1.764353308 1.62673021 1.256788 1.767129 1.587243 0.916393
Accounts Receivable 2,672,729 0 3,715,152 Net Sales 77,265,092 Inventory period 12.12449872 8.4645839612 436.9472 1001.54 1320.23476 992.122935 701.427883 407.43442035 206.8746653 224.376482 290.4229 206.5497 229.9584 398.3007
Inventories 1,249,185 0 2,225,373 Cost of Goods 66,993,380 Receivable turn over 24.46739945 28.3857734922 0.943307 0.878866 0.8873257 0.85463741 0.77154196 0.710677153 0.63490485 0.49867547 0.558768 0.706492 0.702244 0.744801
Total Current Assets 4,684,237 0 6,690,525 Gross Profits 10,271,712 Receivable period 14.91780934 12.8585539549 386.9365 415.3078 411.34839 427.081701 473.078615 513.594673 574.8892929 731.938954 653.223 516.6369 519.7621 490.0636
Gross PP&E 10,095,646 0 11,495,646 Operating Expenses 5,454,006 Operating cycle 27.04230806 21.323137916 823.8837 1416.848 1731.58315 1419.20464 1174.5065 921.02909335 781.7639582 956.315435 943.6459 723.1865 749.7205 888.3643
Accumulated Depreciation 1,484,278 0 2,558,009 Depreciation 1,073,731 Payable turnover 57.88775198 70.9195900729 1.194188 0.531565 0.4816278 0.73384618 1.25689358 3.337844547 6.212532093 3.91326324 3.337546 4.747877 2.505189 1.762135
Net PP&E 8,611,368 0 8,937,637 Interest Expense 1,835,620 Payable period 6.305306174 5.1466738545 305.6469 686.6512 757.846615 497.37944 290.398493 109.35200692 58.75221158 93.2725395 109.3618 76.87647 145.6976 207.1351
Total Assets 13,295,604 0 15,628,161 Profit Before Tax 1,908,355 Cash cyle 20.73700188 16.1764640615 518.2367 730.1967 973.736532 921.825197 884.108005 811.67708644 723.0117466 863.042896 834.2841 646.3101 604.0229 681.2293
Income Tax 572,506
Net Profit 1,335,848
Accounts Payable 759,535 0 1,157,298
Notes to Bank (Deposits at Bank) 684,102 0 3,463,701
Accrued Taxes 0 0 -180,654
Total Current Liabilities 1,443,637 0 4,440,345
Owners' Equity 11,851,967 0 11,187,816
Total Liabilities and Equity 13,295,604 0 15,628,161
 Cash Cycle of the firm
2001 Forecasted 2000 actual January February March April
Inventories 2,225,373 1,249,185 ### ### 11,855,841 17,637,315
Account receivables 3,715,152 2672729 ### ### 5,012,144 10,301,737
Accounts payable 1,157,298 759535 ### ### 6,805,539 8,842,088
Net sales 90,900,108 75,867,480 ### ### 4,447,404 8,804,250
COGS 66,993,380 53,865,911 ### ### 3,277,737 6,488,732

Inventory turnover 30.1043373834 43.1208434667 0.835341 0.364439 0.276465983 0.367897956

Inventory period 12.1244987176 8.4645839612 436.9472 1001.54 1320.234756 992.1229352
Receivable turn over 24.4673994496 28.3857734922 0.943307 0.878866 0.887325704 0.854637413
Receivable period 14.9178093386 12.8585539549 386.9365 415.3078 411.3483901 427.081701
Operating cycle 27.0423080562 21.323137916 823.8837 1416.848 1731.583146 1419.204636
Payable turnover 57.8877519844 70.9195900729 1.194188 0.531565 0.481627803 0.733846177
Payable period 6.3053061742 5.1466738545 305.6469 686.6512 757.8466145 497.3794395
Cash cyle 20.7370018819 16.1764640615 518.2367 730.1967 973.7365319 921.8251967
h Cycle of the firm
May June July August September October November December
### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ###
### ### ### ### ### 690,358 ### ###
### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ###

0.520367 0.89585 1.764353 1.62673 1.256788 1.767129 1.587243 0.916393

701.4279 407.4344 206.8747 224.3765 290.4229 206.5497 229.9584 398.3007
0.771542 0.710677 0.634905 0.498675 0.558768 0.706492 0.702244 0.744801
473.0786 513.5947 574.8893 731.939 653.223 516.6369 519.7621 490.0636
1174.506 921.0291 781.764 956.3154 943.6459 723.1865 749.7205 888.3643
1.256894 3.337845 6.212532 3.913263 3.337546 4.747877 2.505189 1.762135
290.3985 109.352 58.75221 93.27254 109.3618 76.87647 145.6976 207.1351
884.108 811.6771 723.0117 863.0429 834.2841 646.3101 604.0229 681.2293
EXHIBIT 9
KOTA FIBRES, LTD.
Schedule of Cash Receipts and Disbursements (in Rupees)

January February March April May June July August September October November December January February

Assume: Sales 2,616,120 2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,767,050 3,400,956 3,616,031
Purchases (1) 2,446,072 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 2,767,050 2,446,072 1,942,469 1,521,878 1,870,526 1,988,817
Debt Outstanding #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Receipts: Accts Rcvble Collected 2,515,500 2,374,632 2,726,802 3,514,657 6,190,142 10,836,774 15,366,686 17,079,239 13,218,449 7,156,094 4,797,562 4,081,147
New Borrowings (Repayments) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Disburs.: Accounts Paid (2) 1,591,054 2,446,072 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 2,767,050 2,446,072 1,942,469 1,521,878 1,870,526
Capital Expenditures 0 0 350,000 0 0 350,000 0 0 350,000 0 0 350,000
Interest Payments #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Excise Tax Paid 392,418 433,924 667,111 1,320,638 2,082,834 2,638,256 2,447,330 1,285,924 754,650 667,111 529,764 415,058
Operating Expenses #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Accrued Income Tax Paid 0 0 #VALUE! 0 0 #VALUE! 0 0 #VALUE! 0 0 #VALUE!
Wages 540,958 831,665 1,646,395 2,596,600 3,289,026 3,051,005 1,603,118 940,797 831,665 660,439 517,438 635,979
Dividends 0 0 500,000 0 0 500,000 0 0 500,000 0 0 500,000
Subtotal: Disbursements #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Receipts - Disbursements #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

BOP Cash Balance 762,323 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
EOP Cash Balance #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
(1) Equal to 55 percent of sales in period (T+2).
(2) Equal to purchases in period (T-1).
Exhibit 10
KOTA FIBRES, LTD.
Forecasted T-Accounts Supporting Financial Statements (in Rupees)

January February March April May June July August September October November December
1. Schedule of Accounts Receivable
Beginning of Period 2,672,729 2,773,349 3,291,542 5,012,144 10,301,737 17,997,155 24,748,757 25,697,603 17,191,189 9,003,739 6,295,049 5,029,249
Plus Sales 2,616,120 2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,767,050
Less Collections, Last Month (1) 885,456 1,046,448 1,157,130 1,778,962 3,521,700 5,554,224 7,035,350 6,526,213 3,429,130 2,012,400 1,778,962 1,412,705
Less Collections, Month before Last (2) 1,630,044 1,328,184 1,569,672 1,735,695 2,668,442 5,282,550 8,331,336 10,553,026 9,789,320 5,143,694 3,018,600 2,668,442
End of Period 2,773,349 3,291,542 5,012,144 10,301,737 17,997,155 24,748,757 25,697,603 17,191,189 9,003,739 6,295,049 5,029,249 3,715,152
(1) 40% of sales in period (T-1).
(2) 60% of sales in period (T-2).

2. Schedule of Inventories
Beginning of Period 1,249,185 2,308,135 5,850,125 11,855,841 17,637,315 19,666,227 14,469,652 6,815,272 3,883,970 2,950,257 1,854,837 1,639,892
Plus Purchases (1) 2,446,072 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 2,767,050 2,446,072 1,942,469 1,521,878 1,870,526 1,988,817
Plus Labor 540,958 831,665 1,646,395 2,596,600 3,289,026 3,051,005 1,603,118 940,797 831,665 660,439 517,438 635,979
Less Shipments (COGS) 1,928,080 2,132,012 3,277,737 6,488,732 10,233,658 12,962,633 12,024,548 6,318,171 3,707,847 3,277,737 2,602,909 2,039,316
End of Period 2,308,135 5,850,125 11,855,841 17,637,315 19,666,227 14,469,652 6,815,272 3,883,970 2,950,257 1,854,837 1,639,892 2,225,373
(1) Equal to 55 percent of sales in period (T+2).

3. Schedule of Accounts Payable

Beginning of Period 759,535 1,614,553 4,010,818 6,805,539 8,842,088 8,142,024 3,883,534 1,935,531 1,614,553 1,110,950 690,358 1,039,007
+ Purchases (1) 2,446,072 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 2,767,050 2,446,072 1,942,469 1,521,878 1,870,526 1,988,817
- Payments (2) 1,591,054 2,446,072 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 2,767,050 2,446,072 1,942,469 1,521,878 1,870,526
End of Period 1,614,553 4,010,818 6,805,539 8,842,088 8,142,024 3,883,534 1,935,531 1,614,553 1,110,950 690,358 1,039,007 1,157,298
(1) Equal to 55 percent of sales in period (T+2).
(2) Equal to purchases in period (T-1).

4. Schedule of Shareholder's Equity

Beginning of Period 11,851,967 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Plus Net Profit #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Less Dividends 0 0 500,000 0 0 500,000 0 0 500,000 0 0 500,000
End of Period #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

5. Schedule of Accrued Taxes

Beginning of Period 0 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Plus Monthly Tax Expense (@ 30%) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Less Quarterly Tax Payments 0 0 #VALUE! 0 0 #VALUE! 0 0 #VALUE! 0 0 #VALUE!
End of Period #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

6. Schedule of Property, Plant and Equipment

Beginning Gross PP&E 10,095,646 10,095,646 10,095,646 10,445,646 10,445,646 10,445,646 10,795,646 10,795,646 10,795,646 11,145,646 11,145,646 11,145,646
Plus Capital Expenditures 0 0 350,000 0 0 350,000 0 0 350,000 0 0 350,000
Ending Gross PP&E 10,095,646 10,095,646 10,445,646 10,445,646 10,445,646 10,795,646 10,795,646 10,795,646 11,145,646 11,145,646 11,145,646 11,495,646
Monthly Depreciation Expense 84,130 84,130 87,047 87,047 87,047 89,964 89,964 89,964 92,880 92,880 92,880 95,797
Less Cumulative Depr'n. 1,568,408 1,652,539 1,739,586 1,826,633 1,913,680 2,003,643 2,093,607 2,183,571 2,276,451 2,369,332 2,462,212 2,558,009
Ending Net PP&E 8,527,237 8,443,107 8,706,060 8,619,013 8,531,966 8,792,002 8,702,038 8,612,075 8,869,194 8,776,314 8,683,434 8,937,637
Exhibit 11
KOTA FIBRES, LTD.
Assumptions

Debt Balance Summary

Jan '01 #VALUE!
June '01 #VALUE!
Dec '01 #VALUE!
Ratio of:
Income Tax/Profit Before Tax 30%
Excise Tax/Sales 15%
This Month Collections of Last Month's Sales 40%
This Month Collections of Month-before-Last Sales 60%
Purchases/ Sales two months later 55%
Wages/Purchases 34%
Annual Operating Expenses/Annual Sales 6.00%
Capital Expenditures (every third month) 350,000
Interest Rate on Borrowings (and deposits) 14.5%
Minimum Cash Balance 750,000
Depreciation/Gross PP&E (per year) 10%
(per month) 0.83%
Dividends Paid (every third month) 500,000
Exhibit 12
KOTA FIBRES, LTD.
Trend of Certain Financal Accounts by Month

January February March April May June July August September October November December

30,000,000 Sales 2,616,120 2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,767,050
A/R 2,773,349 3,291,542 5,012,144 10,301,737 17,997,155 24,748,757 25,697,603 17,191,189 9,003,739 6,295,049 5,029,249 3,715,152
Inv 2,308,135 5,850,125 11,855,841 17,637,315 19,666,227 14,469,652 6,815,272 3,883,970 2,950,257 1,854,837 1,639,892 2,225,373
25,000,000
A/P 1,614,553 4,010,818 6,805,539 8,842,088 8,142,024 3,883,534 1,935,531 1,614,553 1,110,950 690,358 1,039,007 1,157,298
n/p #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Sale
20,000,000 s
A/R
15,000,000 Inv
A/P
n/p
10,000,000

5,000,000

0
y ry il t r r r r
ar ch r ay ne ly us be e be be
nu ua ar Ap M Ju Ju g ob m
br M Au em ct e em
Ja Fe pt O ov ec
Se N D