Financial Statements Appleseed Enterprises Inc. Expansion Alternatives--Purchase Opti on Cash Flow Analysis (in $ thousands) Purchase Option Initial Year 1 $120 131 (24) Year 2 $230 150 (58) Year 3 $465 160 (140) Year 4 $656 198 (223) Yea r 5 $788 195 (268) Year 6 $920 182 (313) Year 7 $1,035 168 (352) 1. Cash Flow from Operations (added to cash flow) ................................. Depreciation (added back to cash flow) ............................................... ... Taxes (subtracteed from cash flow) ................................................... ... 2. Capital Spending: Purchase assets of Chips-R-Us, Inc. including old factory building and equipment ................................................. (1,125) Repair old Chips-R-Us factory building ............................................. ... Refurbish old potato-chip-making machines ....................................... ... Purchase and install new fancy packaging machinery ........................... Purchase and install state-of-the-art QC laboratory .............................. 0 (275) (200) (75) (50) 0 (150) (75) 0 0 0 (50) (5) 0 0 0 (50) (5) 0 0 0 (10) (5) 0 0 0 (10) (5) 0 0 0 (10) (5) 0 0 --