Results for company name: FIN-NEWS

Decision Inputs for Quarter Number 4 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 4 Sales revenue ( 129,611 units at 100.00 ) Income from securities Cost of Goods Sold: Beginning Inventory: ( 16,138 at 70.64 ) Materials 1,725,000 0 -1,250,000 0 0 0 12,000 no 115,000 0 0

Direct Labor Total Direct Costs Warehousing Costs Depreciation: Mach. and Equip. Plant Other Overhead Costs Total Indirect Costs Production Costs ( 115,000 at 71.92 ) Goods Available for Sale ( 71.76 per unit ) Less: Ending Inventory ( 1,527 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%)

3,772,650 5,497,650 1,527 689,087 1,874,500 207,820 2,772,934

0 0 9,718 25,200 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 4 ASSETS Current Assets Cash Marketable Securities Accounts Receivable Inventory ( 1,527 units at 71.76 /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 570,547 0 3,579,332 14,180,750 17,760,082 27,954,314 1,200,718 200,000 8,683,937 109,579 10,194,232

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 0 1,200,000 1,770,547

0 0 300,000 300,000 2,070,547

0 18,177,460 7,706,307 25,883,768 27,954,314

Summary Data Quarter Number 4 HISTORICAL INFORMATION Common share price Quarterly EPS Price earnings ratio Actual unit price 89.24 Accumulated Wealth 1.39 Dividend Yield 16.03 Marketable Security Yield 107.59 Actual unit demand

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

46.23 Preferred dividend yield 25.49% Return on equity 8.00% Bond call premium 0 Unpaid preferred dividend/share

Short-term
1.80% INFORMATION FOR FUTURE QUARTERS:

2-year loan
3.11%

3-year loan
2.50%

5 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 0 0 300,000 118,314 106.01 120,000 112,000 207,820 646,250 44,712 1,563,500

6 105,233 97.71 90,000 112,000 207,820 646,250 44,712 1,242,000

0 0 0 300,000

First 2000

Units Cost/Unit Production costs per unit next quarter: Materials Units Labor cost Rates on funding in quarter 5 Short-term 2.06% Interest due next quarter: Short-term Intermediate Bonds Capital budgeting projects for next quarter: Life A B 2-yr 3-yr Cost 600,696 622,392 0 0 21,000 2-year loan 1.83% 3-year loan 1.61% 15 First 60,000 38.11 Machinery Next 40,000 28.11

First 2000 1

ber 4

Per unit price Advertising cost Sales discount

100 0 0.00%

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

0 0 yes

Preferred shares Common shares Common tender price

0 0 0

Dollar penalty

12,961,100 2,403 12,963,503

1,139,996

8,270,584 9,410,579 109,579 9,301,000 3,662,502 1,648,055

34,918

1,682,973 1,979,529 0 1,979,529 197,952

197,952 1,781,577 0 1,781,577 0 1,781,577

89.35 0.00% 1.20% 119,774

2.16% 27.53% 8.00% 0

Bonds
1.40%

Penalty loan
8.00%

7 106,702 99.02 90,000 57,000 207,820 357,500 44,712 1,242,000

8 102,614 106.42 65,000 57,000 207,820 357,500 44,712 888,250

0 0 0 300,000 0 0 300,000

Next 5000

Over 7000

Next 5000 3

Over 7000 8

44 Next 20,000 24.11

Plant Over 120,000 33

299

Bond 1.17%

Preferred 2.47%

Unit CapacityOverhead Saving Unit Labor sav., Qtr.5 100,000 120,000 11,278 -8,254 0.74 1.03

Change/Qtr. Labor Sav. 0 -0.01

Decision Inputs for Quarter Number 4

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

Investment Decisions
Short-term investment Machine units bought Project A $ 12,000 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 $ $ $ $ (1,250,000) Preferred shares Common shares Common tender price

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

$ $

100.00 0%

0 0 yes

$ $ $

Quarterly Performance Report

Quarter Number 4
Sales revenue ( 129,611 units at 100.00 ) Income from securities Cost of Goods Sold: Beginning Inventory: ( 16,138 at 70.64 ) Materials Direct Labor Total Direct Costs Warehousing Costs Depreciation: Mach. and Equip. Plant Other Overhead Costs Total Indirect Costs Production Costs ( 115,000 at 71.92 ) Goods Available for Sale ( 71.76 per unit ) Less: Ending Inventory ( 1,527 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 $ $ $ $ $ $ $ $ $ 1,725,000 3,772,650 $ 1,527 689,087 1,874,500 207,820 $ 2,772,934 $ $ $ 8,270,584 9,410,580 109,579 5,497,650 12,961,100 2,404 1,139,996

$ $ $ $ $

9,718 25,200 -

Position Statement
Quarter Number 4 ASSETS Current Assets

Cash Marketable Securities Accounts Receivable Inventory ( 1,527 units at 71.76 /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

$ $ $ $

1,200,718 200,000 8,683,937 109,579 $ 10,194,234

$ $

3,579,332 14,180,750 $ $ 17,760,082 27,954,316

$ $ $ $ $

570,547 1,200,000 $ 1,770,547

$ $ $

300,000 $ $ 300,000 2,070,547

$ $ $

18,177,460 7,706,307 $ $ 25,883,767 27,954,314

12,963,504

$ $ $ $

9,301,000 3,662,504 1,648,055 2,014,449

$ $ $ $ $ $ $ $ $ $

34,918 1,979,531 1,979,531 791,812 1,187,719 1,187,719 1,187,719

Summary Data
Quarter Number 4 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 1.803%

$ $ $ $

89.24 1.39 16.03 107.59 46.23 25.490% 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: 5 118,314 106.01 120,000 112,000 207,820 646,250 44,712 1,563,500 300,000 6 105,233 97.71 90,000 112,000 207,820 646,250 44,712 1,242,000 300,000 First 2000 1.00 Machinery Next 40,000 28.11 3-year loan 1.614%

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ 15.00 First 60,000 38.11 $ 2-year loan 1.834% $ $ -

Materials $ Units Labor cost $ Rates on funding in quarter 5 Short-term 2.055% Interest due next quarter: Short-term Intermediate

Bonds Capital budgeting projects for next quarter: A B

21,000 Life 2-yr $ 3-yr $ Cost 600,696 622,392

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 4

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%

89.35 0.000% 1.202% 119774 2.160% 27.530% 8.000% $0.00 Penalty loan 8.000%

UTURE QUARTERS:
7 106,702 99.02 90,000 57,000 207,820 357,500 44,712 1,242,000 300,000 8 102,614 106.42 65,000 57,000 207,820 357,500 44,712 888,250 300,000 Over 7000 8.00 Plant Over 120,000 33.00 Preferred 2.465% Rs. 299.00

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ $ $ Bond 1.174%

Next 5000 3.00 $ 44.00 Next 20,000 24.11 $

Unit Capacity Overhead Saving Unit Labor sav., Qtr.5 Change/Qtr. Labor Sav. 100,000 $ 11,278.00 $ 0.74 $ 120,000 $ (8,254.00) $ 1.03 $ (0.01)

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

38.11 28.11 24.11 33.00

Direct Labor Cost $ 4,382,650 $ 3,832,650 $ 3,772,650 $ 3,728,200

Warehouse Cost 1.00 $ 16,838 3.00 $ 46,515 8.00 $ 95,706

Beg. Inv Production Est. Sales Ending Inv

Production Plan for next 4 Quarters 5 6 16,228 16,838 115,000 100,000 114,390 105,674 16,838 11,165 Over Prod Limit Over Prod Limit Production Capacities

7 11,165 120,000 105,476 25,689

8 25,689 100,000 102,614 23,075 Over Prod Limit

Over Prod Limit

Plant Existing 1st Addition 2nd Addition Total Machines Existing 1st Addition 2nd Addition 3rd Addition Total

120,000

90,000

90,000 90,000

120,000

90,000

65,000 65,000

112,000

112,000 -

57,000 20,000 77,000

112,000

112,000 Purchases

57,000 20,000 77,000

Plant Units Cost Machinery Units Cost Total Cost

$ $

$ $

$ $

$ $

Unit Sales Forecasts 4 Quarter 3 Quarter 2 Quarter 1 Quarter Exp. Sales 102,614 106,702 102,614

105,233 118,314 114,390

106,702 105,233 105,674

105,476

102,614

Unit Price Forecasts 4 Quarter 3 Quarter 2 Quarter 1 Quarter $ 99.02 $ 97.71 106.42 $ 99.02 106.42

$ $

$ 97.71 $ 106.01

Exp. Sales

103.52

98.10 Issuing Stock

101.24

106.42

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

89.24 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 5
Assumptions for next quarter (Not part of the decision set) Next Quarter 5 Units Sold (assumed) 114,390 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

5
114,390 $100.00 $ $ 6.75 $ 11,438,970 2,656 109,579

$ $ $ $ $ $

16,228 $ 1,725,000 3,772,650 $ 95,706 690,962 1,563,500 207,820 $ 115,000 $ 131,228 $ 16,838

5,497,650

2,557,988 70.05 $ 62.22 $ $

8,055,638 8,165,217 1,047,706

$ $ $ $ $

476,303 21,000 -

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

$ $ $ $

5,667,560 200,000 7,664,110 1,047,706 $ 14,579,376

$ $

2,888,370 12,617,250 $ $ 15,505,620 30,084,996

$ $ $ $ $

570,547 (300,000) 300,000 $ 570,547

$ $ $

75,000 $ $ 75,000 645,547

$ $ $

18,177,460 9,735,684 $ $ 27,913,144 28,558,691

11,441,626

$ $ $ $

7,117,511 4,324,115 1,571,949 2,752,166

penalty loan problem

$ $ $ $ $ $ $ $ $ $

497,303 2,254,863 2,254,863 225,486 2,029,377 2,029,377 2,029,377

cash problem

short term penalty loan problem debt schedule prob

6351455 $ 476,303 -5667559.9

Proforma Cash Budget

Quarter Number 5

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 $ $ $ $ $ 3,774,860 8,683,937 2,656 12,461,453 4,466,842 1,200,718 5,667,560

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 3,395,385 95,706 187,038 570,547

rter Number 5

$ $ $ $ 21,000 $ $ 1,571,949 $ TBA $ $ $ 225,486 $ $ $ $ $ $ $ 300,000 $ 75,000 TBA $ $ 7,994,611

Details of Debt at beginning of

Quarter Number 5
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 300,000 600,000 -

9 $ $

$ $

13 $ 4 $ 18 $ $

$ 300,000 $ $ 300,000 $

(300,000) (300,000)

0 $ 42 $ 10 $

75,000.00 75,000

$ $ $ $

300,000 300,000

Change in Debt for Next Quarter

$ $ $ $ 8 12 16 44 $ $ $ $ $ $ $ $ -

$ $ $ $

$ $ $ $

$ $ $ $

Proforma Totals $ $ $ $ 450,000

$ $ $ $

300,000 75,000

$ $ $ $

(300,000) 300,000

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

$ $ $ $

0.00% -

Long-term portion

$ $

$ $ $ $

$ $ $ $

75,000 75,000

$ $ $ $

$ $ $ $

$ $ $ $

75,000

Ratio Analysis
Qtr 4 Proforma Qtr 5 25.55 Times 23.72 Times

Liquidity Ratios
Current Ratio Quick Ratio 5.76 Times 5.70 Times

Efficiency Ratios
Inventory Turnover Days Sales in Inventory Account Receivable Turnover Average Collection Period Fixed Asset Turnover Total Asset Turnover 339.52 Times 1.06 days 5.97 Times 60.29 days 2.92 Times 1.85 Times 27.17 Times 13.25 days 5.97 Times 60.29 days 2.95 Times 1.52 Times

Leverage Ratios
Total Debt Ratio Long-Term Debt Ratio LTD to Total Capitalization Debt to Equity LTD to Equity 7.41% 1.07% 1.62% 0.08 Times 0.02 Times 2.15% 0.25% 0.41% 0.02 Times 0.00 Times

Converage Ratios
Times Interest Earned Cash Coverage Ratio 57.69 Times 131.11 Times 5.53 Times 10.07 Times

Profitablility Ratios
Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Total Assets Return on Equity Return on Common Equity 28.25% 15.54% 9.16% 17.00% 18.35% 18.35% 37.79% 24.05% 17.74% 26.98% 29.08% 29.08%

Du Pont Analysis of ROE

Net Profit Margin x Total Asset Turnover x Equity Multiplier ROE 9.16% 1.85 Times 1.08 Times 18.35% 17.74% 1.52 Times 1.02 Times 27.61%

Altman Z score
Factors NWC/Total Assets Retained Earnings/ Total Assets EBIT/Total Assets 0.3013 0.0425 0.2882 Weights 1.2 1.4 3.3

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

43.0997 1.8550 29.09

0.6 1

Weighted Average Cost of Capital

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

Value
$ $ $ $ $ $ $ 450,000 89,240,000 89,690,000

Weight
0.00% 0.00% 0.00% 0.50% 0.00% 99.50% 100%

Before Tax
2.06% 1.83% 1.61% 1.17% 2.47% 3.76%

After Tax
1.23% 1.10% 0.97% 0.70% 2.47% 3.76%

WACC
0.00% 0.00% 0.00% 0.00% 0.00% risk prem 3.74% 3.74%

WACC= 3.74%

1.29%

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 (600,696) 94,249 84,259 97,579 84,259 84,259 84,259 84,259 84,259 Cost $ $ 600,696 622,392 1 $ $ $ $ $ $ $ $ $ (85,100) (11,278) 75,087 21,291 2,129 19,162 75,087 94,249 1 $ $ $ $ $ $ $ $ $ (118,450) 8,254 51,866 58,330 5,833 52,497 51,866 104,363 Project B (622,392) 104,363 89,558 106,838 87,758 86,858 85,958 85,058 84,158 83,258 82,358 81,458 80,558 225,745 11.73% $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2 (74,000) (11,278) 75,087 10,191 1,019 9,172 75,087 84,259 2 (102,000) 8,254 51,866 41,880 4,188 37,692 51,866 89,558 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3 (88,800) (11,278) 75,087 24,991 2,499 22,492 75,087 97,579 3 (121,200) 8,254 51,866 61,080 6,108 54,972 51,866 106,838 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4 (74,000) (11,278) 75,087 10,191 1,019 9,172 75,087 84,259 4 (100,000) 8,254 51,866 39,880 3,988 35,892 51,866 87,758

$ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $ $ $ (5,718) $ 3.51%

Project Recommendation Project A NO Prroject B YES

nalysis

5 $ $ $ $ $ $ $ $ $ (74,000) (11,278) 75,087 10,191 1,019 9,172 75,087 84,259 5 $ $ $ $ $ $ $ $ $ (99,000) 8,254 51,866 38,880 3,888 34,992 51,866 86,858 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

6 (74,000) (11,278) 75,087 10,191 1,019 9,172 75,087 84,259 6 (98,000) 8,254 51,866 37,880 3,788 34,092 51,866 85,958 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

7 (74,000) (11,278) 75,087 10,191 1,019 9,172 75,087 84,259 7 (97,000) 8,254 51,866 36,880 3,688 33,192 51,866 85,058 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

8 (74,000) (11,278) 75,087 10,191 1,019 9,172 75,087 84,259 8 (96,000) 8,254 51,866 35,880 3,588 32,292 51,866 84,158 $ $ $ $ $ $ $ $ $ 9 (95,000) 8,254 51,866 34,880 3,488 31,392 51,866 83,258 $ $ $ $ $ $ $ $ $ 10 (94,000) 8,254 51,866 33,880 3,388 30,492 51,866 82,358

11 $ $ $ $ $ $ $ $ $ (93,000) 8,254 51,866 32,880 3,288 29,592 51,866 81,458 $ $ $ $ $ $ $ $ $

12 (92,000) 8,254 51,866 31,880 3,188 28,692 51,866 80,558

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