Toy World Pro Forma Statements

Exhibit 1

Pro Forma Balance Sheets Under Seasonal Production, 1994 (thousands of dollars)
Actual
Dec. 31,
1993

Casha
Accounts receivableb
Inventoryc
Current assets
Net plant and equipmentd
Total assets
Accounts payablee
Notes payable, bankf
Accrued taxesg
Long-term debt, current portion
Current liabilities
Long-term debth
Seasonal Liabilities
Shareholders’ equity
Total liabilities and equity

Jan.

Feb.

Mar.

Apr.

May

July

Aug.

Sept.

Oct.

$200
2,905
586

$878
1,060
586

$1,526
260
586

$1,253
300
586

$1,054
300
586

$915
280
586

$696
280
586

$527
300
586

$200
1,780
586

$200
3,460
586

$200
3,980
586

$3,691
1,176

$2,524
1,176

$2,372
1,176

$2,139
1,176

$1,940
1,176

$1,781
1,176

$1,562
1,176

$1,413
1,176

$2,566
1,176

$4,246
1,176

$4,766
1,176

$4,867

$3,700

$3,548

$3,315

$3,116

$2,957

$2,738

$2,589

$3,742

$5,422

$5,942

$282
752
88
50

$36
0
31
50

$42
0
(23)
50

$48
0
(162)
50

$42
0
(251)
50

$42
0
(305)
50

$42
0
(394)
50

$48
0
(448)
50

$486
433
(352)
50

$552
1,741
(271)
50

$642
1,745
(126)
50

$1,172
400
3,295

$117
400
517
3,183

$69
400
469
3,079

($64)
400
336
2,979

($159)
400
241
2,875

($213)
400
187
2,770

($302)
375
73
2,665

($350)
375
25
2,564

$617
375
992
2,750

$2,072
375
2447
2,975

$2,311
375
2686
3,256

$4,867

$3,700

$3,548

$3,315

$3,116

$2,957

$2,738

$2,589

$3,742

$5,422

$5,942

a

Assumed maintenance of minimum $200,000 balance; includes excess cash in months when company is out of debt.

b

Assumed 60-day collection period.

c

June

Assumed inventories maintained at December 31, 1993 level for all of 1994.

d

Assumed equipment purchases equal to depreciation expense.
Assumed equal to 30% of the current month’s sales and related to material purchases of $3,000,000 for 1994 as against sales of $10 million. This represents a 30-day payment period. Since inventories are level, purchases will follow seasonal production and sales pattern.

e

f

Plug figure.

g

Taxes payable on 1993 income are due