<PAGE>
EXHIBIT 12
PAPER WAREHOUSE, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
FOR THE SIX MONTHS ENDED JULY 28, 2000 AND JULY 30, 1999
AND FOR THE FIVE YEARS ENDED JANUARY 28, 2000
<TABLE>
<CAPTION>
($'S IN THOUSANDS) SIX MONTHS ENDED FISCAL YEAR ENDED
------------------- --------------------------------------
JULY 28, JULY 30, JANUARY 28, JANUARY 29, JANUARY 30,
RATIO OF EARNINGS TO FIXED CHARGES: 2000 1999 2000 1999 1998
-------- --------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Earnings:
Consolidated net (loss) earnings $ (106) $ (1,116) $ (4,448) $ (521) $ (207)
Extraordinary charge, net - - - - 110
Cumulative effect of accounting change, net - 108 108 - -
Income taxes (1) (57) (675) (2,970) (323) 22
-------- --------- ----------- ----------- -----------
Total (loss) earnings before extraordinary charge
and cumulative effect of accounting change (163) (1,683) (7,310) (844) (75)
Fixed Charges:
Interest expense 827 448 1,182 279 860
Interest portion of rental expense 1,699 1,575 3,281 2,378 1,779
----- ------ ------ ------ ------
Total fixed charges 2,526 2,023 4,463 2,657 2,639
Earnings available for fixed charges $2,363 $ 340 $ (2,847) $ 1,813 $ 2,564
====== ====== ========= ====== ======
Ratio of earnings before extraordinary charge and cumulative
effect of accounting change to fixed charges (2) - - - - -
====== ====== ========= ====== ======
</TABLE>
<TABLE>
<CAPTION>
($'s in thousands) FISCAL YEAR ENDED
------------------------------------
JANUARY 31, FEBRUARY 2,
RATIO OF EARNINGS TO FIXED CHARGES: 1997 1996
------------------ ----------------
<S> <C> <C>
Earnings:
Consolidated net (loss) earnings $ 808 $ 797
Extraordinary charge, net - -
Cumulative effect of accounting change, net - -
Income taxes (1) 500 494
------------------ ---------------
Total (loss) earnings before extraordinary charge
and cumulative effect of accounting change 1,308 1,291
Fixed Charges:
Interest expense 834 547
Interest portion of rental expense 1,436 1,046
------ -----
Total fixed charges 2,270 1,593
Earnings available for fixed charges $ 3,578 $ 2,884
======== =======
Ratio of earnings before extraordinary charge and cumulative
effect of accounting change to fixed charges (2) 1.58 1.81
======== =======
</TABLE>
(1) Prior to November 1997, the Company was taxed as an S-Corporation. This
amount reflects the pro forma provision for taxes as if the Company were
taxed as a C-Corporation
(2) For the six months ended July 28, 2000 and July 30, 1999, earnings were
not adequate to cover fixed charges by approximately $163,000 and $1.7
million, respectively. For the fiscal years ended January 28, 2000, January
29, 1999, and January 30, 1998 earnings were not adequate to cover fixed
charges by approximately $7.3 million, $844,000 and $75,000, respectively.
