Results for company name: FIN-NEWS

Decision Inputs for Quarter Number 3 Company Operating Decisions Units to be produced Div. per common share Demand/price forecast Investment Decisions Short-term investment Machine units bought Project A Financing Decisions Short-term loans Two-year loans Three-year loans Ten-year bonds Special Options Strike settlement (per hr.) 0 Quarterly Performance Report Quarter Number 3 Sales revenue ( 92,287 units at 100.00 ) Income from securities Cost of Goods Sold: Beginning Inventory: ( 8,425 at 70.14 ) Materials 1,500,000 0 0 0 0 0 40,000 no 100,000 0 0

Direct Labor Total Direct Costs Warehousing Costs Depreciation: Mach. and Equip. Plant Other Overhead Costs Total Indirect Costs Production Costs ( 100,000 at 70.68 ) Goods Available for Sale ( 70.64 per unit ) Less: Ending Inventory ( 16,138 units ) Cost of Goods Sold Gross Profit Selling and administrative expenses Financial Expenses: Short Term Bank Interest Penalty Loan Interest Intermediate Term Loan Interest Bond Interest Bond Redemption Costs Total Financial Charges Operating Income Before Extraordinary Items Extraordinary Items Income Before Taxes Income Tax (rate is 10%)

3,500,000 5,000,000 90,104 478,125 1,300,000 200,000 2,068,229

0 0 65,811 29,400 0

Income Tax (rate is 10%) Income After Taxes Preferred Stock Dividind Earnings to Common Stockholders Common Stock Dividends ( 0.00 per share ) Net Income Transferred to Retained Earnings Position Statement Quarter Number 3 ASSETS Current Assets Cash Marketable Securities Accounts Receivable Inventory ( 16,138 units at 70.64 /UNIT ) Total Current Assets Fixed Assets (net of depreciation Machinery and Equipment Plant Total Fixed Assets Total Assets LIABILITIES AND OWNER EQUITY Current Liabilities Accounts Payable Short Term Loans Payable 520,000 0 3,131,875 16,055,250 19,187,125 27,984,690 1,274,341 200,000 6,183,229 1,139,996 8,797,565

Short Term Penalty Loan Intermediate Term Debt Maturing Bonds Maturing Total Current Liabilities Long Term Liabilities Intermediate Loans: 2 years 3 years Bonds Total Long Term Liabilities Total Liabilities Owners' Equity Preferred Stock ( 0 shares ) Common Stock ( 1,280,000 shares ) Retained Earnings Total Equity Total Liabilities and Equity

0 1,250,000 1,200,000 2,970,000

312,500 0 600,000 912,500 3,882,500

0 18,177,460 5,924,730 24,102,188 27,984,690

Summary Data Quarter Number 3 HISTORICAL INFORMATION Common share price Quarterly EPS Price earnings ratio Actual unit price 70.84 Accumulated Wealth 0.81 Dividend Yield 21.8 Marketable Security Yield 98.68 Actual unit demand

Preferred stock price Return on investment Call premium: preferred Common tender or sell/sh Outstanding debt yields:

46.05 Preferred dividend yield 14.86% Return on equity 8.00% Bond call premium 0 Unpaid preferred dividend/share

Short-term
1.81% INFORMATION FOR FUTURE QUARTERS:

2-year loan
3.11%

3-year loan
2.50%

4 Units forecast Price per unit forecast Units of plant capacity Units of machine capacity Other overhead Depreciation: Machinery Projects Plant Principal repayment on debt: Short-term 2-year 3-year Bonds Warehouse fees: Units 0 312,500 0 300,000 116,722 106.43 140,000 115,000 200,000 644,375 0 1,874,500

5 111,171 106.47 120,000 100,000 200,000 571,250 0 1,563,500

0 312,500 0 300,000

First 2000

Units Cost/Unit Production costs per unit next quarter: Materials Units Labor cost Rates on funding in quarter 4 Short-term 1.80% Interest due next quarter: Short-term Intermediate Bonds Capital budgeting projects for next quarter: Life A B 2-yr 3-yr Cost 669,696 536,544 0 48,593 25,200 2-year loan 1.61% 3-year loan 1.42% 15 First 60,000 39 Machinery Next 40,000 29

First 2000 1

ber 3

Per unit price Advertising cost Sales discount

100 0 0.00%

Risk of S-T investment Units of plant bought Project B

0 0 no

Preferred shares Common shares Common tender price

0 0 0

Dollar penalty

9,228,700 2,361 9,231,061

590,964

7,068,229 7,659,192 1,139,996 6,519,196 2,711,864 1,461,435

95,211

1,556,646 1,155,219 0 1,155,218 115,521

115,521 1,039,697 0 1,039,697 0 1,039,697

70.95 0.00% 1.18% 93,506

2.17% 17.25% 8.00% 0

Bonds
1.40%

Penalty loan
8.00%

6 102,179 97.42 90,000 100,000 200,000 571,250 0 1,242,000

7 108,788 103.19 90,000 45,000 200,000 282,500 0 1,242,000

0 312,500 0 300,000 312,500 0 300,000

Next 5000

Over 7000

Next 5000 3

Over 7000 8

50 Next 20,000 25

Plant Over 120,000 33

341

Bond 1.03%

Preferred 2.16%

Unit CapacityOverhead Saving Unit Labor sav., Qtr.4 100,000 120,000 14,582 -7,820 0.83 0.89

Change/Qtr. Labor Sav. 0.03 0

Decision Inputs for Quarter Number 3

Company Operating Decisions
Units to be produced Div. per common share Demand/price forecast $ $ 100,000 Per unit price Advertising cost Sales discount

Investment Decisions
Short-term investment Machine units bought Project A $ 40,000 no Risk of S-T investment Units of plant bought Project B

Financing Decisions
Short-term loans Two-year loans Three-year loans Ten-year bonds $ $ $ $ Preferred shares Common shares Common tender price

Special Options
Strike settlement (per hr.) $ Dollar penalty

$ $

100.00 0%

0 0 no

$ $ $

Quarterly Performance Report

Quarter Number 3
Sales revenue ( 92,287 units at 100.00 ) Income from securities Cost of Goods Sold: Beginning Inventory: ( 8,425 at 70.14 ) Materials Direct Labor Total Direct Costs Warehousing Costs Depreciation: Mach. and Equip. Plant Other Overhead Costs Total Indirect Costs Production Costs ( 100,000 at 70.68 ) Goods Available for Sale ( 70.64 per unit ) Less: Ending Inventory ( 16,138 units ) Cost of Goods Sold Gross Profit Selling and administrative expenses Operating Income Before Interest and Taxes (EBIT) Financial Expenses: Short Term Bank Interest Penalty Loan Interest Intermediate Term Loan Interest Bond Interest Bond Redemption Costs Total Financial Charges Operating Income Before Extraordinary Items Extraordinary Items Income Before Taxes Income Tax (rate is 10%) Income After Taxes Preferred Stock Dividind Earnings to Common Stockholders Common Stock Dividends ( 0.00 per share ) Net Income Transferred to Retained Earnings $ $ $ $ $ $ $ $ $ 1,500,000 3,500,000 $ 90,104 478,125 1,300,000 200,000 $ 2,068,229 $ $ $ 7,068,229 7,659,193 1,139,996 5,000,000 9,228,700 2,362 590,964

$ $ $ $ $

65,811 29,400 -

Position Statement
Quarter Number 3 ASSETS Current Assets

Cash Marketable Securities Accounts Receivable Inventory ( 16,138 units at 70.64 /UNIT ) Total Current Assets Fixed Assets (net of depreciation Machinery and Equipment Plant Total Fixed Assets Total Assets LIABILITIES AND OWNER EQUITY Current Liabilities Accounts Payable Short Term Loans Payable Short Term Penalty Loan Intermediate Term Debt Maturing Bonds Maturing Total Current Liabilities Long Term Liabilities Intermediate Loans: 2 years 3 years Bonds Total Long Term Liabilities Total Liabilities Owners' Equity Preferred Stock ( 0 shares ) Common Stock ( 1,280,000 shares ) Retained Earnings Total Equity Total Liabilities and Equity

$ $ $ $

1,274,341 200,000 6,183,229 1,139,996 $ 8,797,566

$ $

3,131,875 16,055,250 $ $ 19,187,125 27,984,691

$ $ $ $ $

520,000 1,250,000 1,200,000 $ 2,970,000

$ $ $

312,500 600,000 $ $ 912,500 3,882,500

$ $ $

18,177,460 5,924,730 $ $ 24,102,190 27,984,690

9,231,062

$ $ $ $

6,519,196 2,711,866 1,461,435 1,250,431

$ $ $ $ $ $ $ $ $ $

95,211 1,155,220 1,155,220 462,088 693,132 693,132 693,132

Summary Data
Quarter Number 3 HISTORICAL INFORMATION Common share price Quarterly EPS Price earnings ratio Actual unit price Preferred stock price Return on investment Call premium: preferred Common tender or sell/sh Outstanding debt yields: Short-term 1.810%

$ $ $ $

70.84 0.81 21.8 98.68 46.05 14.860% 8.000% 2-year loan 3.110% 3-year loan 2.500%

INFORMATION FOR FUTURE QUARTERS:

Units forecast Price per unit forecast Units of plant capacity Units of machine capacity Other overhead Depreciation: Machinery Projects Plant Principal repayment on debt: Short-term 2-year 3-year Bonds Warehouse fees: Units Cost/Unit Production costs per unit next quarter: 4 116,722 106.43 140,000 115,000 200,000 644,375 1,874,500 312,500 300,000 5 111,171 106.47 120,000 100,000 200,000 571,250 1,563,500 312,500 300,000 First 2000 1.00 Machinery Next 40,000 29.00 3-year loan 1.416%

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ 15.00 First 60,000 39.00 $ 2-year loan 1.609% $ $ 48,593

Materials $ Units Labor cost $ Rates on funding in quarter 4 Short-term 1.803% Interest due next quarter: Short-term Intermediate

Bonds Capital budgeting projects for next quarter: A B

25,200 Life 2-yr $ 3-yr $ Cost 669,696 536,544

Direct Labor Cost Table Range of Production 0 to 60,000 60,000 to 100,000 100,000 to 120,000 120,000 and up Warehousing Cost Table Inventory Levels 0 to 2,000 2000 to 7,000 7,000 and up

y Data

umber 3

Accumulated Wealth Dividend Yield Marketable Security Yield Actual unit demand Preferred dividend yield Return on equity Bond call premium Unpaid preferred dividend/share Bonds 1.400%

70.95 0.000% 1.181% 93506 2.170% 17.250% 8.000% $0.00 Penalty loan 8.000%

UTURE QUARTERS:
6 102,179 97.42 90,000 100,000 200,000 571,250 1,242,000 312,500 300,000 7 108,788 103.19 90,000 45,000 200,000 282,500 1,242,000 312,500 300,000 Over 7000 8.00 Plant Over 120,000 33.00 Preferred 2.163% Rs. 341.00

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ $ $ Bond 1.030%

Next 5000 3.00 $ 50.00 Next 20,000 25.00 $

Unit Capacity Overhead Saving Unit Labor sav., Qtr.4 Change/Qtr. Labor Sav. 100,000 $ 14,582.00 $ 0.83 $ 0.03 120,000 $ (7,820.00) $ 0.89 $ -

Direct Labor Cost Table Marginal Cost/Unit $ $ $ $ Warehousing Cost Table Marginal Cost/Unit $ $ $

39.00 29.00 25.00 33.00

Direct Labor Cost $ 4,485,000 $ 3,935,000 $ 3,875,000 $ 3,835,000

Warehouse Cost 1.00 $ 16,171 3.00 $ 44,514 8.00 $ 90,370

Beg. Inv Production Est. Sales Ending Inv

Production Plan for next 4 Quarters 4 5 16,228 16,171 115,000 100,000 115,057 108,473 16,171 7,698

6 7,698 120,000 104,162 23,536

7 23,536 100,000 108,788 14,748 Over Prod Limit

Over Prod Limit Production Capacities Plant Existing 1st Addition 2nd Addition Total Machines Existing 1st Addition 2nd Addition 3rd Addition Total 140,000 120,000 90,000 90,000

140,000

120,000

90,000 90,000

115,000

100,000 -

100,000 20,000 120,000

115,000

100,000 Purchases

45,000 20,000 65,000

Plant Units Cost Machinery Units Cost Total Cost

$ $

$ $

$ $

$ $

Unit Sales Forecasts 4 Quarter 3 Quarter 2 Quarter 1 Quarter Exp. Sales 108,788 102,179 108,788

111,171 116,722 115,057

102,179 111,171 108,473

104,162

108,788

Unit Price Forecasts 4 Quarter 3 Quarter 2 Quarter 1 Quarter $ 97.42 $ 106.47 103.19 $ 97.42 103.19

$ $

$ 106.47 $ 106.43

Exp. Sales

106.44

103.76 Issuing Stock

99.15

103.19

Common Stock: Current Stock Price: # of Shares Outstanding: Current Common Stock Cash Value

70.84 1,200,000

$ 18,177,460.00

# of Shares Offered:

Per Share Reciepts $ Total Cash Inflow From Stock Issue: $ Total Shares Outstanding After Issue Decision: 1,200,000 Total Cash Value of Stock After Issue Decision: $ 18,177,460.00

Proforma Decisions for next quarter

Quarter Number 4
Assumptions for next quarter (Not part of the decision set) Next Quarter 4 Units Sold (assumed) 115,057 Price per unit (assumed) $ 100.00 Return of marketable securities 1.33%

Company Operating Decisions

Units to be produced Div. per common share Demand/price forecast $ 115,000 N/A Per unit price Advertising cost Sales discount

Investment Decisions
Short-term investment Machine units bought Project A $ 0 Risk of S-T investment Units of plant bought Project B

Financing Decisions
Short-term loans Two-year loans Three-year loans Ten-year bonds $ $ Preferred shares Common shares Common tender price

Special Options
Strike settlement (per hr.) N/A Dollar penalty

$100.00 N/A 0%

0 0

$ $ $

N/A

Proforma Quarterly Performance Report

Quarter Number:
Sales revenue Income from securities Cost of Goods Sold: Beginning Inventory: (units @ $ per unit) Materials Direct Labor Total Direct Costs Warehousing Costs Depreciation: Mach. and Equip. Plant Other Overhead Costs Total Indirect Costs Production Costs (units @ $ per unit) Goods Available for Sale (units @ $ per unit) Less: Ending Inventory Cost of Goods Sold Gross Profit Selling and administrative expenses Earnings before intrest and taxes (EBIT) Financial Expenses: Short Term Bank Interest Penalty Loan Interest Intermediate Term Loan Interest Bond Interest Bond Redemption Costs Total Financial Charges Operating Income Before Extraordinary Items Extraordinary Items Income Before Taxes Income Tax Income After Taxes Preferred Stock Dividends Earnings to Common Stockholders Common Stock Dividends Net Income Transferred to Retained Earnings

4
115,057 $100.00 $ $ 70.25 $ 11,505,670 2,656 1,139,996

$ $ $ $ $ $

16,228 $ 1,725,000 3,875,000 $ 90,370 644,375 1,874,500 200,000 $ 115,000 $ 131,228 $ 16,171

5,600,000

2,809,245 73.12 $ 72.77 $ $

8,409,245 9,549,241 1,176,758

$ $ $ $ $

476,303 48,593 25,200 -

1,200,000 shares outstanding

Position Statement
Quarter Number:
ASSETS Current Assets

Cash Marketable Securities Accounts Receivable Inventory Total Current Assets Fixed Assets (net of depreciation) Machinery and Equipment Plant Total Fixed Assets Total Assets LIABILITIES AND OWNER EQUITY Current Liabilities Accounts Payable Short Term Loans Payable Short Term Penalty Loan Intermediate Term Debt Maturing Bonds Maturing Total Current Liabilities Long Term Liabilities Intermediate Loans: 2 years 3 years Bonds Total Long Term Liabilities Total Liabilities Owners' Equity Preferred Stock ( 0 shares ) Common Stock ( 1,000,000 shares ) Retained Earnings Total Equity Total Liabilities and Equity

$ $ $ $

3,122,437 200,000 7,708,799 1,176,758 $ 12,207,994

$ $

2,487,500 14,180,750 $ $ 16,668,250 28,876,244

$ $ $ $ $

580,000 416,667 600,000 $ 1,596,667

$ $ $

104,167 300,000 $ $ 404,167 2,000,833

$ $ $

18,177,460 6,834,147 $ $ 25,011,607 27,012,440

11,508,326

$ $ $ $

8,372,483 3,135,843 1,575,284 1,560,559

penalty loan problem

$ $ $ $ $ $ $ $ $ $

550,096 1,010,463 1,010,463 101,046 909,417 909,417 909,417

cash problem

short term penalty loan problem debt schedule prob

6351455 $ 476,303 -3122437.2

Proforma Cash Budget

Quarter Number 4

Cash Inflows
Cash sales (33% of Sales) Accounts Receivable collected Income from Marketable Securities Extraordinary Gain Sales of Marketable Securities Issuance of: Short-Term Loans Penalty Loans Two-Year Loans Three-Year Loans Long-Term Debt Preferred Stock Common Stock Total Inflows Net Flow (total inflows total outflows) Beginning Cash Balance Ending Cash Balance $ $ $ $ $ $ $ $ $ $ TBA $ $ $ $ $ 3,796,871 6,183,229 2,656 9,982,756 1,848,096 1,274,341 3,122,437

ma Cash Budget Cash Outflows

Production Cash Flows Materials (90% cash) Direct Labor (90% cash) Warehousing Fees Other Overhead Charges (90% cash) Accounts Payable Payments Financial Expenses: Short-Term Loan Interest: Bank Shark Loan Inc. Intermediate-Term Loan Interest Bond Interest Bond Redemption Costs Selling and Administrative Expenses Machinery Purchased Capital Budgeting Projects Purchased Plant Additions Purchased Extraordinary Loss Income Tax Preferred Stock Dividends Common Stock Dividends Purchase of Marketable Securities Payments and Retirement of: Short-Term Loans Penalty Loans Two-Year Loans Three-Year Loans Debentures Preferred Stock Common Stock Total Outflows $ $ $ $ $ 1,552,500 3,487,500 90,370 180,000 520,000

rter Number 4

$ $ $ 48,593 $ 25,200 $ $ 1,575,284 $ TBA $ $ $ 101,046 $ $ $ $ $ $ 104,167 $ 300,000 $ 150,000 TBA $ $ 8,134,660

Details of Debt at beginning of

Quarter Number 4
Next Quarterley Current Portion Maturity Date Repayment $ $ -

Principle Short-term Debt $ Total 2yr Debt $ Total 3yr Debt $ $ $ Total 10yr Debt $ $ Total New Debt Short-term 2yr 3yr 10yr Debt Retirement Short-term 2yr 3yr 10yr Repayment Totals Short-term 2yr 3yr 10yr 600,000 600,000 312,500

9 $ $

104,167 $ 104,167 $

416,667 416,667

13 $ 4 $ 18 $ $

$ 300,000 $ $ 300,000 $

0 $ 42 $ 10 $

150,000.00 150,000

$ $ $ $

600,000 600,000

Change in Debt for Next Quarter

$ $ $ $ 7 11 15 43 $ $ $ $ $ $ $ $ -

$ $ $ $

$ $ $ $

$ $ $ $

Proforma Totals $ $ 625,000 $ 300,000 $ 1,050,000

$ $ $ $

104,167 300,000 150,000

$ $ $ $

416,667 600,000

Iterest on New Debt Debt offering premium Short-term 2yr 3yr 10yr

$ $ $ $

0.00% -

Long-term portion

$ $

104,167 104,167

$ $ $ $

$ $ $ $

300,000 300,000

$ $ $ $

$ $ $ $

$ $ $ $

104,167 300,000

Ratio Analysis
Qtr 3 Proforma Qtr 4 7.65 Times 6.91 Times

Liquidity Ratios
Current Ratio Quick Ratio 2.96 Times 2.58 Times

Efficiency Ratios
Inventory Turnover Days Sales in Inventory Account Receivable Turnover Average Collection Period Fixed Asset Turnover Total Asset Turnover 22.87 Times 15.74 days 5.97 Times 60.28 days 1.92 Times 1.32 Times 28.46 Times 12.65 days 5.97 Times 60.29 days 2.76 Times 1.59 Times

Leverage Ratios
Total Debt Ratio Long-Term Debt Ratio LTD to Total Capitalization Debt to Equity LTD to Equity 13.87% 3.26% 4.78% 0.16 Times 0.05 Times 6.93% 1.40% 2.18% 0.08 Times 0.02 Times

Converage Ratios
Times Interest Earned Cash Coverage Ratio 13.13 Times 31.81 Times 2.84 Times 7.42 Times

Profitablility Ratios
Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Total Assets Return on Equity Return on Common Equity 29.38% 13.55% 7.51% 9.91% 11.50% 11.50% 27.25% 13.56% 7.90% 12.60% 14.54% 14.54%

Du Pont Analysis of ROE

Net Profit Margin x Total Asset Turnover x Equity Multiplier ROE 7.51% 1.32 Times 1.16 Times 11.50% 7.90% 1.59 Times 1.08 Times 13.61%

Altman Z score
Factors NWC/Total Assets Retained Earnings/ Total Assets EBIT/Total Assets 0.2082 0.0248 0.1787 Weights 1.2 1.4 3.3

Market Value Equity/BV Debt Sales/ Total Assets Z-Score

18.2460 1.3194 13.14

0.6 1

Weighted Average Cost of Capital

Sources
Short Term Debt 2yr Debt 3yr Debt 10yr Debt Preferred Common TOTAL

Value
$ $ $ $ $ $ $ 625,000 300,000 1,050,000 70,840,000 72,815,000

Weight
0.00% 0.86% 0.41% 1.44% 0.00% 97.29% 100%

Before Tax
1.80% 1.61% 1.42% 1.03% 2.16% 3.30%

After Tax
1.08% 0.97% 0.85% 0.62% 2.16% 3.30%

WACC
0.00% 0.01% 0.00% 0.01% 0.00% risk prem 3.21% 3.23%

WACC= 3.23%

1.13%

NPV Analysis
Proj A Proj B Proj A minus minus minus = minus = plus = Proj B minus minus minus = minus = plus = Quarter 0 1 2 3 4 5 6 7 8 9 10 11 12 NPV IRR Life of Proj 2-yr 3-yr Quarter Sales Var Cost Fix Cost Depreciation Net Oper. Income Taxes Net Income Depreciation ATCF Quarter Sales Var Cost Fix Cost Depreciation Net Oper. Income Taxes Net Income Depreciation ATCF Project A (669,696) 107,400 98,895 117,615 104,295 106,995 109,695 112,395 115,095 Cost $ $ 669,696 536,544 1 $ $ $ $ $ $ $ $ $ (95,450) (14,582) 83,712 26,320 2,632 23,688 83,712 107,400 1 $ $ $ $ $ $ $ $ $ (102,350) 7,820 44,712 49,818 4,982 44,836 44,712 89,548 Project B (536,544) 89,548 77,533 93,553 77,533 77,533 77,533 77,533 77,533 77,533 77,533 77,533 77,533 251,057 12.83% $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2 (86,000) (14,582) 83,712 16,870 1,687 15,183 83,712 98,895 2 (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3 (106,800) (14,582) 83,712 37,670 3,767 33,903 83,712 117,615 3 (106,800) 7,820 44,712 54,268 5,427 48,841 44,712 93,553 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4 (92,000) (14,582) 83,712 22,870 2,287 20,583 83,712 104,295 4 (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533

$ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $ $ $ 87,131 $ 6.20%

Project Recommendation Project A NO Prroject B YES

nalysis

5 $ $ $ $ $ $ $ $ $ (95,000) (14,582) 83,712 25,870 2,587 23,283 83,712 106,995 5 $ $ $ $ $ $ $ $ $ (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

6 (98,000) (14,582) 83,712 28,870 2,887 25,983 83,712 109,695 6 (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

7 (101,000) (14,582) 83,712 31,870 3,187 28,683 83,712 112,395 7 (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

8 (104,000) (14,582) 83,712 34,870 3,487 31,383 83,712 115,095 8 (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533 $ $ $ $ $ $ $ $ $ 9 (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533 $ $ $ $ $ $ $ $ $ 10 (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533

11 $ $ $ $ $ $ $ $ $ (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533 $ $ $ $ $ $ $ $ $

12 (89,000) 7,820 44,712 36,468 3,647 32,821 44,712 77,533

Results for company name: FIN-NEWS

Decision Inputs for Quarter Number 1 Company Operating Decisions Units to be produced 100,000 Div. per common $0.10 share Demand/price forecast $0 Investment Decisions Short-term investment $200,000 Machine units bought0 Project A no Risk of S-T investment 0 Units of plant bought 0 Project B no Per unit price $100.00 Advertising cost $0

Sales discount 0.00%

Financing Decisions Short-term loans $0 Preferred shares Common shares 0 0

Two-year loans $2,500,000 Three-year loans $0 Ten-year bonds Special Options Strike settlement $0.00 (per hr.) Quarterly Performance Report Quarter Number 1 Sales revenue ( 97,383 units at $100.00 $9,738,300 ) Income from securities Cost of Goods Sold: Beginning Inventory: ( 9,809 at $74.79 $733,567 ) Materials $1,500,000 Direct Labor 3,500,000 Total Direct Costs $5,000,000 $0

Common tender price $0

Dollar penalty

$0

2,655$9,740,955

Total Direct Costs $5,000,000 Warehousing $60,408 Costs Depreciation: 478,125 Mach. and Equip. Plant 1,300,000 Other Overhead 200,000 Costs Total Indirect Costs 2,038,533 Production Costs ( 100,000 at $70.39 7,038,533 ) Goods Available for Sale ( $70.78 $7,772,100 per unit ) Less: Ending Inventory ( 12,426 units 879,492 ) Cost of Goods Sold Gross Profit Selling and administrative expenses $1,486,915 Financial Expenses: Short Term Bank Interest Penalty Loan Interest $0 0 6,892,608 $2,848,347

Intermediate Term Loan Interest 92,749 Bond Interest Bond Redemption Costs Total Financial Charges 33,600 0 126,349 1,613,264

Operating Income Before Extraordinary Items$1,235,083 Extraordinary Items Income Before Taxes Income Tax (rate is 10%) Income After Taxes Preferred Stock Dividind Earnings to Common Stockholders 0 $1,235,083 123,508 $1,111,575 0 $1,111,575

Earnings to Common Stockholders

$1,111,575 100,000

Common Stock Dividends ( $0.10 per share )

Net Income Transferred to Retained Earnings$1,011,575 Position Statement Quarter Number 1 ASSETS Current Assets Cash $491,120

Marketable 200,000 Securities Accounts 6,524,661 Receivable Inventory ( 12,426 879,492 units at $70.78 /UNIT ) Total Current Assets $8,095,272 Fixed Assets (net of depreciation Machinery $2,008,125 and Equipment Plant 7,165,250

Total Fixed Assets 9,173,375 Total Assets $17,268,647 LIABILITIES AND OWNER EQUITY Current Liabilities Accounts $520,000 Payable Short Term Loans 0 Payable Short Term Penalty 0 Loan Intermediate 1,850,000 Term Debt Maturing Bonds Maturing 1,200,000 Total Current Liabilities $3,570,000 Long Term Liabilities

Long Term Liabilities Intermediate $937,500 Loans: 2 years 3 years 0 Bonds 1,200,000

Total Long Term Liabilities 2,137,500 Total Liabilities$5,707,500 Owners' Equity Preferred Stock ($0 0 shares ) Common Stock 8,000,000 ( 1,000,000 shares ) Retained Earnings 3,561,147 Total Equity ########

Total Liabilities $17,268,647 and Equity

Summary Data Quarter Number 1 HISTORICAL INFORMATION Common share $43.47 price Accumulated Wealth $43.57 Quarterly EPS $1.11 Dividend Yield 0.93% Price earnings ratio 9.78 Marketable Security 1.33% Yield Actual unit price $100.00 Actual unit demand 97,383 Preferred stock $32.15 price Preferred dividend 3.11% yield Return on investment 25.75% Return on equity 38.46% Call premium: preferred 8.00% Bond call premium 8.00% Common tender$0.00 or sell/sh Unpaid preferred $0.00 dividend/share Outstanding debt yields:

Short-term 2-year loan3-year loan

Bonds Penalty loan

2.98%

3.11%

2.50%

1.40%

8.00%

INFORMATION FOR FUTURE QUARTERS: 2 Units forecast 101,378 Price per unit $100.37 forecast Units of plant capacity 100,000 3 90,174 $96.43 100,000 4 124,132 $110.60 100,000 75,000 200,000 384,375 0 5 111,898 $104.80 80,000 60,000 200,000 311,250 0 989,000

Units of machine 100,000 capacity100,000 Other overhead 200,000 200,000

Depreciation: Machinery 478,125 478,125 Projects 0 0

Plant 1,300,000 1,300,000 1,300,000 Principal repayment on debt: Short-term 2-year 3-year Bonds 0 312,500 300,000 300,000 0 312,500 300,000 300,000 0 312,500 0 300,000

312,500 0 300,000

Warehouse fees: Units Cost/Unit First 2000 Next 5000 Over 7000 $1.00 $3.00 $8.00

Production costs per unit next quarter: Materials $15.00 Units Machinery $41.00 Plant $281.00

First 60,000Next 40,000 Next 20,000 Over 120,000 $29.00 $25.00 $33.00

Labor cost $39.00

Rates on funding in quarter 2 Short-term 2-year loan 3-year loan Bond Preferred

2.00%

1.95%

1.91%

1.84%

2.40%

Interest due next quarter: Short-term $0 Intermediate $83,030 Bonds $33,600

Capital budgeting projects for next quarter: Life A B 2-yr 3-yr Cost $437,664 $634,728 Unit Capacity OverheadUnit Saving LaborChange/Qtr. sav., Qtr.2 Labor Sav. 100,000 120,000 $14,147 -$7,395 $0.54 $1.05 $0.02 $0.00