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Assumptions
1.Sales volume for 2007 will be $2.7m
2.The historical relations that prevailed in 2004-06 will continue in 2007.
1.Operating expense remains at 15.5% of sales
2.Interest expense is assumed to be flat at $31,000
3.Accounts receivable remains at 43 days of sales.
4.Inventory remains at 76 days of COGS
5.$24,000 of long-term debt principal is repaid during 2007
6.Cash, PP&E, Accrued expenses dollar balances are unchanged in 2007. In the case of PP&E this assumes that depreciation = capex in 2007.
3.COGs will be flat at 81.1% if Jones takes 100% of the discounts available in 2007 but will increase 2.0% to 83.1% in 2007 if Jones does not take the discounts available.
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