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TABLE 4 <br />FINANCIAL SUMMARY — CORPORATION <br />RUE Aver. 2011 -13 <br />Vegetable Sales Grower $19,466,866 <br />Vegetable Sales Purchased 872,478 <br />Other Revenue 264,657 <br />TOTAL $20,604,001 <br />Wages 6,532,567 <br />Equipment 1,748,707 <br />Rent — Land/Water/Buildings 910,675 <br />Other Cost Items 10,018,654 <br />TOTAL Cost Items $19,210,603 <br />Expense Items 1,191,067 <br />TOTAL All Expenses $20,401,670 <br />$202,331 <br />projected cash flow analysis (Schedule of Revenue and Expenditures) for a loan of <br />40,825 at 1.50% for the 20 year period of the loan is included in Appendix F. This <br />;,ludes paying off the existing farm loan in 2017. The analysis illustrates that the <br />.rtnership anticipates realizing a net income in excess of $2 million annually. <br />annual net income in excess of $2 million may raise the question as to why the <br />iership doesn't buy the water shares outright rather than apply for a CWCB loan. <br />reason for the CWCB loan is to allow Petrocco Farms to maintain a reasonably large <br />we in the Partnership as insurance to cover unforeseen circumstances such as hail <br />age, drought, operational cost increases, etc. Maintaining a large reserve fund is a <br />ervative business philosophy that will assure the long term viability of the over 100 - <br />old Petrocco Family Farm operation. <br />accordance with CWCB Policy #5, the Partnership, as a private unincorporated entity, <br />11 offer the water rights purchased as hard collateral to secure the CWCB loan. This <br />H provide a collateral value exceeding 110% of the loan amount ($840,825 x 110% _ <br />24,908). <br />i Opinion of Value of the 53 shares of the Fulton Ditch, and 8 shares of New Cache La <br />oudre Irrigating Company along with 6 shares of Cache La Poudre Reservoir Company, <br />provided by TZA Water Engineers, Inc., in Appendix E. The estimated total value of <br />purchased water rights ranges from $940,000 to $1,220,500. <br />10 <br />