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Decision Inputs for Quarter Number 1

Company Operating Decisions


Units to be produced

###

Div. per common share

$0.10

Demand/price forecast

$0

Investment Decisions
Short-term investment
Machine units bought
Project A

200,000
0
no

Financing Decisions
Short-term loans
Two-year loans

$0
500,000

Three-year loans

$0

Ten-year bonds

$0

Special Options
Strike settlement (per hr.)

$0.00

Decision Inputs for Quarter Number 3


Company Operating Decisions
Units to be produced

###

Div. per common share

$0.00

Demand/price forecast

$0

Investment Decisions
Short-term investment
Machine units bought
Project A

$0
10,000
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans

999,999

Ten-year bonds

999,999

Special Options
Strike settlement (per hr.)

$0.00

Decision Inputs for Quarter Number 5


Company Operating Decisions
Units to be produced

###

Div. per common share

$0.10

Demand/price forecast

$0

Investment Decisions
Short-term investment
Machine units bought
Project A

00,000
20,000
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

00,000
$0

Special Options
Strike settlement (per hr.)

$0.00

Decision Inputs for Quarter Number 7

Company Operating Decisions


Units to be produced

90,000

Div. per common share

$0.15

Demand/price forecast

$0

Investment Decisions
Short-term investment
Machine units bought
Project A

$0
10,000
yes

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

00,000
$0

Special Options
Strike settlement (per hr.)

$0.00

er Number 1

Decision
Company Operating Decisions
Per unit price
Advertising cost
Sales discount

$100.00

Units to be produced

$0

Div. per common share

0.00%

Demand/price forecast
Investment Decisions

Risk of S-T investment

Short-term investment

Units of plant bought

Machine units bought

Project B

no

Project A
Financing Decisions

Preferred shares

Short-term loans

Common shares

Two-year loans

Common tender price

$0

Three-year loans
Ten-year bonds
Special Options

Dollar penalty

$0

Strike settlement (per hr.)

er Number 3

Decision
Company Operating Decisions
Per unit price
Advertising cost
Sales discount

$104.62

Units to be produced

$0

Div. per common share

0.00%

Demand/price forecast
Investment Decisions

Risk of S-T investment


Units of plant bought
Project B

0
25,000
no

Short-term investment
Machine units bought
Project A

Financing Decisions
Preferred shares

Short-term loans

Common shares

Two-year loans

Common tender price

$0

Three-year loans
Ten-year bonds
Special Options

Dollar penalty

$0

Strike settlement (per hr.)

ter Number 5

ter Number 7

Decision I
Company Operating Decisions
Per unit price
Advertising cost
Sales discount

$102.31
$0
0.00%

Units to be produced
Div. per common share
Demand/price forecast
Investment Decisions

Risk of S-T investme

Short-term investment

Units of plant bough

Machine units bought

Project B

no

Project A
Financing Decisions

Preferred shares

Short-term loans

Common shares

Two-year loans

Common tender pric

$0

Three-year loans
Ten-year bonds
Special Options

Dollar penalty

$0

Strike settlement (per hr.)

Decision I

Company Operating Decisions


Per unit price
Advertising cost
Sales discount

$115.00
$0
1.00%

Units to be produced
Div. per common share
Demand/price forecast
Investment Decisions

Risk of S-T investme

Short-term investment

Units of plant bough

Machine units bought

Project B

no

Project A
Financing Decisions

Preferred shares

Short-term loans

Common shares

Two-year loans

Common tender pric

$0

Three-year loans
Ten-year bonds
Special Options

Dollar penalty

$0

Strike settlement (per hr.)

Decision Inputs for Quarter Number 2

ecisions
100,000

Per unit price


$0.00
$0

$200,000

Advertising cost
Sales discount

Risk of S-T investment


20,000
no

$0
$0
$999,999

Units of plant bought


Project B

$102.31
$0
0.00%

0
20,000
no

Preferred shares

Common shares

Common tender price

$0

Dollar penalty

$0

Per unit price

$99.34

$999,999

$0.00

Decision Inputs for Quarter Number 4

ecisions
105,000
$0.00
$0

$0

Advertising cost
Sales discount

Risk of S-T investment


10,000
no

Units of plant bought


Project B

$0
0.00%

0
5,000
no

$0

Preferred shares

$0

Common shares

$0

Common tender price

$0

Dollar penalty

$0

$999,999

$0.00

Decision Inputs for Quarter Number 6

g Decisions
###

Per unit price


$0.10
$0

Advertising cost
Sales discount

$105.00
$0
1.00%

ons
500,000
25,000
yes

Risk of S-T investme

Units of plant bough

25,000

Project B

no

s
$0
$0
-$2,000,000

Preferred shares

Common shares

Common tender pric

$0

Dollar penalty

$0

$8,000,000

$0.00

Decision Inputs for Quarter Number 8

g Decisions
###

Per unit price


$0.15
$0

Advertising cost
Sales discount

$110.00
$0
1.00%

ons
400,000
12,500
no

Risk of S-T investme

Units of plant bough

12,500

Project B

no

s
$0
$0
$3,000,000

Preferred shares

Common shares

Common tender pric

$0

Dollar penalty

$0

$0

$0.00

Quarterly Performance Report


Quarter Number 1
Sales revenue ( 97,383 units at $100.00 )

$9,738,300

Income from securities

2,470

Cost of Goods Sold:


Beginning Inventory: ( 9,809 at $74.79 )
Materials
Direct Labor

$733,567
$1,500,000
3,500,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs

$5,000,000
$60,408
478,125
1,300,000
200,000
2,038,533

Production Costs ( 100,000 at $70.39 )

7,038,533

Goods Available for Sale ( $70.78 per unit )

$7,772,100

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

Penalty Loan Interest

Intermediate Term Loan Interest

92,749

Bond Interest

33,600

Bond Redemption Costs

Total Financial Charges

126,349

Operating Income Before Extraordinary Items


Extraordinary Items
Income Before Taxes
Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.10 per share )
Net Income Transferred to Retained Earnings

Quarterly Performance Report


Quarter Number 3
Sales revenue ( 108,198 units at $104.62 )

11,319,675

Income from securities

Cost of Goods Sold:


Beginning Inventory: ( 8,198 at $70.13 )
Materials
Direct Labor

$574,909
$1,500,000
3,500,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs

$5,000,000
$0
598,125
1,300,000
200,000
2,098,125

Production Costs ( 100,000 at $70.98 )

7,098,125

Goods Available for Sale ( $70.92 per unit )

$7,673,033

Less: Ending Inventory ( 0 units )

Cost of Goods Sold


Gross Profit
Selling and administrative expenses

$1,565,984

Financial Expenses:
Short Term Bank Interest

$0

Penalty Loan Interest

650,655

Intermediate Term Loan Interest

103,238

Bond Interest

115,177

Bond Redemption Costs


Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income Tax (rate is 40%)

0
869,070

Income Tax (rate is 40%)


Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.00 per share )
Net Income Transferred to Retained Earnings

Quarterly Performance Report


Quarter Number 5
Sales revenue ( 104,362 units at $102.31 )

10,677,276

Income from securities

21,563

Cost of Goods Sold:


Beginning Inventory: ( 9,470 at $72.75 )
Materials
Direct Labor

$688,977
$1,500,000
3,500,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $74.57 )
Goods Available for Sale ( $74.41 per unit )

$5,000,000
$11,324
541,250
1,704,500
200,000
2,457,074
7,457,074
$8,146,051

Less: Ending Inventory ( 5,108 units )

380,104

Cost of Goods Sold


Gross Profit
Selling and administrative expenses

$1,533,864

Financial Expenses:
Short Term Bank Interest

$0

Penalty Loan Interest

81,378

Intermediate Term Loan Interest

400,523

Bond Interest

81,718

Bond Redemption Costs

Total Financial Charges

563,619

Operating Income Before Extraordinary Items


Extraordinary Items
Income Before Taxes
Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.10 per share )
Net Income Transferred to Retained Earnings

Quarterly Performance Report


Quarter Number 7

Quarter Number 7
Sales revenue ( 84,682 units at $115.00 )

$9,660,523

Income from securities

9,403

Cost of Goods Sold:


Beginning Inventory: ( 0 at $0.00 )
Materials
Direct Labor

$0
$1,350,000
3,062,400

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs

$4,412,400
$11,954
693,581
1,473,750
170,682
2,349,966

Production Costs ( 90,000 at $75.14 )

6,762,367

Goods Available for Sale ( $75.14 per unit )

$6,762,366

Less: Ending Inventory ( 5,318 units )

399,581

Cost of Goods Sold


Gross Profit
Selling and administrative expenses

$1,483,026

Financial Expenses:
Short Term Bank Interest
Penalty Loan Interest
Intermediate Term Loan Interest

$0
0
223,847

Bond Interest
Bond Redemption Costs
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.15 per share )
Net Income Transferred to Retained Earnings

432,961
0
656,808

Quarterly Performance Report


Quarter Number 2
Sales revenue ( 104,228 units at $102.31 )
$9,740,770

Income from securities


Cost of Goods Sold:
Beginning Inventory: ( 12,426 at $70.78 )
Materials
Direct Labor

$1,500,000
3,500,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $70.05 )
Goods Available for Sale ( $70.13 per unit )
Less: Ending Inventory ( 8,198 units )
6,892,608
$2,848,161

Cost of Goods Sold


Gross Profit
Selling and administrative expenses
Financial Expenses:
Short Term Bank Interest
Penalty Loan Interest

$26,584
478,125
1,300,000
200,000

Penalty Loan Interest


Intermediate Term Loan Interest
Bond Interest
Bond Redemption Costs
1,613,264
$1,234,898
0
$1,234,897
493,958
$740,939
0
$740,939
100,000
$640,939

Total Financial Charges


Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.00 per share )
Net Income Transferred to Retained Earnings

Quarterly Performance Report


Quarter Number 4
Sales revenue ( 95,530 units at $99.34 )
$11,319,675

Income from securities


Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 )
Materials
Direct Labor

$1,575,000
3,625,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 105,000 at $72.75 )
Goods Available for Sale ( $72.75 per unit )
Less: Ending Inventory ( 9,470 units )
7,673,033
$3,646,641

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

2,435,053
$1,211,588
0
$1,211,587
484,634

Total Financial Charges


Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income Tax (rate is 40%)

$36,760
556,875
1,645,500
200,000

484,634
$726,953
0
$726,953
0
$726,953

Income Tax (rate is 40%)


Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.00 per share )
Net Income Transferred to Retained Earnings

Quarterly Performance Report


Quarter Number 6
Sales revenue ( 105,108 units at $105.00 )
$10,698,838

Income from securities


Cost of Goods Sold:
Beginning Inventory: ( 5,108 at $74.41 )
Materials
Direct Labor

$1,500,000
3,410,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $73.19 )
Goods Available for Sale ( $73.25 per unit )

$0
751,817
1,473,750
183,497

Less: Ending Inventory ( 0 units )


7,765,946
$2,932,891

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

2,097,483

Total Financial Charges

$835,409

Operating Income Before Extraordinary Items

0
$835,408
334,163
$501,245
0
$501,245
100,000
$401,245

Extraordinary Items
Income Before Taxes
Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.10 per share )
Net Income Transferred to Retained Earnings

Quarterly Performance Report


Quarter Number 8

Quarter Number 8
Sales revenue ( 105,318 units at $110.00 )
$9,669,926

Income from securities


Cost of Goods Sold:
Beginning Inventory: ( 5,318 at $75.14 )
Materials
Direct Labor

$1,500,000
3,331,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $73.30 )
Goods Available for Sale ( $73.40 per unit )
Less: Ending Inventory ( 0 units )
6,362,786
$3,307,139

Cost of Goods Sold


Gross Profit
Selling and administrative expenses
Financial Expenses:
Short Term Bank Interest
Penalty Loan Interest
Intermediate Term Loan Interest

$0
759,831
1,568,750
170,682

Bond Interest
Bond Redemption Costs
2,139,834
$1,167,305
0
$1,167,304
466,921
$700,383
0
$700,383
150,000
$550,383

Total Financial Charges


Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.15 per share )
Net Income Transferred to Retained Earnings

ormance Report
Number 2
$10,663,567
0

$10,663,567

$879,492

$5,000,000

2,004,709
7,004,709
$7,884,200
574,909
7,309,292
$3,354,274
$1,533,178

$0
330,902

330,902
101,336
100,937
0
533,175

2,066,353
$1,287,921
0
$1,287,921
515,169
$772,752
0
$772,752
0
$772,752

ormance Report
Number 4
$9,489,950
0

$0

$9,489,950

$5,200,000

2,439,135
7,639,135
$7,639,135
688,977
6,950,157
$2,539,792
$1,474,498

$0
591,036
84,061
138,763
0
813,860

2,288,357
$251,435
0
$251,434
100,574

100,574
$150,860
0
$150,860
0
$150,860

ormance Report
Number 6
$10,948,049
109,849

$380,104

$4,910,000

2,409,063
7,319,064
$7,699,168

$11,057,898

0
7,699,168
$3,358,729
$1,547,403

$0
0
283,881
504,799
0
788,680

2,336,082
$1,022,647
0
$1,022,647
409,058
$613,589
0
$613,589
100,000
$513,589

ormance Report
Number 8

Number 8
$11,492,300
9,590

$11,501,890

$399,581

$4,831,000

2,499,262
7,330,263
$7,729,843
0
7,729,843
$3,772,046
$1,574,615

$0
0
319,226

411,123
0
730,349

2,304,964
$1,467,082
0
$1,467,081
586,832
$880,249
0
$880,249
150,000
$730,249

Position Statement
Quarter Number 1
ASSETS
Current Assets
Cash

$120,485

Marketable Securities
Accounts Receivable
Inventory ( 12,426 units at $70.78 /UNIT )

200,000
6,524,661
879,492

Total Current Assets

$7,724,636

Fixed Assets (net of depreciation


Machinery and Equipment
Plant

$2,008,125
7,165,250

Total Fixed Assets

9,173,375

Total Assets

$16,898,011

LIABILITIES AND OWNER EQUITY


Current Liabilities
Accounts Payable

$520,000

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing

1,850,000

Bonds Maturing

1,200,000

Total Current Liabilities


Long Term Liabilities

$3,570,000

Long Term Liabilities


Intermediate Loans: 2 years

$937,500

3 years
Bonds

0
1,200,000

Total Long Term Liabilities

2,137,500

Total Liabilities

$5,707,500

Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

3,190,511

Total Equity

11,190,512

Total Liabilities and Equity

$16,898,011

Position Statement
Quarter Number 3
ASSETS
Current Assets
Cash
Marketable Securities
Accounts Receivable
Inventory ( 0 units at $70.92 /UNIT )
Total Current Assets
Fixed Assets (net of depreciation

$260,262
0
7,584,182
0
$7,844,444

Machinery and Equipment


Plant

$2,311,875
18,875,250

Total Fixed Assets

21,187,125

Total Assets

$29,031,569

LIABILITIES AND OWNER EQUITY


Current Liabilities
Accounts Payable
Short Term Loans Payable

$520,000
0

Short Term Penalty Loan

8,783,853

Intermediate Term Debt Maturing

1,916,664

Bonds Maturing

1,399,996

Total Current Liabilities

$12,620,513

Long Term Liabilities


Intermediate Loans: 2 years
3 years
Bonds

$312,500
1,083,332
2,325,002

Total Long Term Liabilities

3,720,834

Total Liabilities

$16,341,347

Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

4,690,222

Total Equity

12,690,219

Total Equity

12,690,219

Total Liabilities and Equity

$29,031,569

Position Statement
Quarter Number 5
ASSETS
Current Assets
Cash

$32,551

Marketable Securities
Accounts Receivable
Inventory ( 5,108 units at $74.41 /UNIT )

0
7,153,775
380,104

Total Current Assets

$7,566,430

Fixed Assets (net of depreciation


Machinery and Equipment
Plant

$2,633,750
17,340,250

Total Fixed Assets

19,974,000

Total Assets

$27,540,430

LIABILITIES AND OWNER EQUITY


Current Liabilities
Accounts Payable
Short Term Loans Payable
Short Term Penalty Loan
Intermediate Term Debt Maturing

$520,000
0
115,609
4,270,832

Intermediate Term Debt Maturing

4,270,832

Bonds Maturing

1,499,996

Total Current Liabilities

$6,406,437

Long Term Liabilities


Intermediate Loans: 2 years
3 years
Bonds

$0
5,416,666
2,475,001

Total Long Term Liabilities

7,891,666

Total Liabilities

$14,298,103

Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

5,242,327

Total Equity

13,242,328

Total Liabilities and Equity

$27,540,430

Position Statement
Quarter Number 7
ASSETS
Current Assets
Cash

$366,710

Marketable Securities

1,592,779

Accounts Receivable

1,304,950

Inventory ( 5,318 units at $75.14 /UNIT )

399,581

Total Current Assets

$3,664,018

Fixed Assets (net of depreciation


Machinery and Equipment
Plant

$4,287,000
23,367,750

Total Fixed Assets

27,654,750

Total Assets

$31,318,768

LIABILITIES AND OWNER EQUITY


Current Liabilities
Accounts Payable

$458,308

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing

1,979,165

Bonds Maturing

1,699,996

Total Current Liabilities

$4,137,469

Long Term Liabilities


Intermediate Loans: 2 years
3 years
Bonds

$0
3,750,000
9,125,001

Total Long Term Liabilities

12,875,001

Total Liabilities

$17,012,470

Owners' Equity
Preferred Stock ( 0 shares )

$0

Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

6,306,298

Total Equity
Total Liabilities and Equity

14,306,298
$31,318,768

Position Statement
Quarter Number 2
ASSETS
Current Assets
Cash
Marketable Securities
Accounts Receivable
Inventory ( 8,198 units at $70.13 /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

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

Position Statement
Quarter Number 4
ASSETS
Current Assets
Cash
Marketable Securities
Accounts Receivable
Inventory ( 9,470 units at $72.75 /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 ( 1,000,000 shares )
Retained Earnings
Total Equity

Total Equity
Total Liabilities and Equity

Position Statement
Quarter Number 6
ASSETS
Current Assets
Cash
Marketable Securities
Accounts Receivable
Inventory ( 0 units at $73.25 /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

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

Position Statement
Quarter Number 8
ASSETS
Current Assets
Cash
Marketable Securities
Accounts Receivable

Inventory ( 0 units at $73.40 /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 )

Preferred Stock ( 0 shares )


Common Stock ( 1,000,000 shares )
Retained Earnings
Total Equity
Total Liabilities and Equity

Position Statement
Quarter Number 2

$132,361
0
7,144,590
574,909
$7,851,857

$2,490,000
12,775,250
15,265,250
$23,117,107

$520,000
0
4,467,179
1,883,332
1,299,996
$8,170,507

$625,000
583,333
1,775,003
2,983,335
$11,153,841

$0
8,000,000
3,963,266
11,963,263
$23,117,107

Position Statement
Quarter Number 4

$236,414
0
6,358,267
688,977
$7,283,657

$2,215,000
19,044,750
21,259,750
$28,543,407

$540,000
0
7,978,999
1,916,664
1,499,996
$11,935,658

$0
916,666
2,850,001
3,766,666
$15,702,324

$0
8,000,000
4,841,083
12,841,082

12,841,082
$28,543,407

Position Statement
Quarter Number 6

$412,310
1,592,779
1,478,870
0
$3,483,957

$3,881,469
24,841,500
28,722,969
$32,206,926

$509,350
0
0
1,958,332

1,958,332
1,999,996
$4,467,678

$0
4,583,333
9,400,001
13,983,334
$18,451,011

$0
8,000,000
5,755,915
13,755,916
$32,206,926

Position Statement
Quarter Number 8

$494,544
1,192,779
1,552,387

0
$3,239,710

$4,177,169
26,536,500
30,713,669
$33,953,379

$500,168
0
0
3,499,998
1,399,996
$5,400,162

$0
4,666,667
8,850,001
13,516,667
$18,916,829

$0

$0
8,000,000
7,036,550
15,036,547
$33,953,379

Summary Data
Quarter Number 1
HISTORICAL INFORMATION
Common share price

.19

Quarterly EPS

.74

Price earnings ratio

12

Actual unit price

.00

Preferred stock price

.15

Return on investment

Call premium: preferred

##

Common tender or sell/sh

.00

Outstanding debt yields:


Short-term

2-year loan

2.98%

3.11%

INFORMATION FOR FUTURE QUARTERS:


2
Units forecast
Price per unit forecast

107,734
$100.80

Units of plant capacity

100,000

Units of machine capacity

100,000

Other overhead

200,000

Depreciation: Machinery

478,125

Projects

Plant

1,300,000

Principal repayment on debt:


Short-term

2-year

312,500

3-year

300,000

Bonds

300,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$39.00

Rates on funding in quarter 2


Short-term

2-year loan

1.96%

1.89%

Interest due next quarter:


Short-term

$0

Intermediate

$83,030

Bonds

$33,600

Capital budgeting projects for next quarter:


Life

Life
A

2-yr

3-yr

Summary Data
Quarter Number 2
HISTORICAL INFORMATION
Common share price

.73

Quarterly EPS

.77

Price earnings ratio

17

Actual unit price

.31

Preferred stock price

.62

Return on investment

Call premium: preferred

##

Common tender or sell/sh

.00

Outstanding debt yields:


Short-term

2-year loan

1.96%

3.11%

INFORMATION FOR FUTURE QUARTERS:


3
Units forecast
Price per unit forecast
Units of plant capacity

109,306
$103.63
100,000

Units of machine capacity

120,000

Other overhead

200,000

Depreciation: Machinery

598,125

Projects

Plant

1,300,000

Principal repayment on debt:


Short-term

2-year

312,500

3-year

383,333

Bonds

325,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$39.00

Rates on funding in quarter 3


Short-term

2-year loan

2.07%

2.01%

Interest due next quarter:


Short-term

$0

Intermediate

$83,638

Intermediate

$83,638

Bonds

$46,068

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Summary Data
Quarter Number 3
HISTORICAL INFORMATION
Common share price

.26

Quarterly EPS

.73

Price earnings ratio

21

Actual unit price

.62

Preferred stock price

.36

Return on investment

Call premium: preferred

##

Common tender or sell/sh

.00

Outstanding debt yields:


Short-term

2-year loan

2.07%

3.11%

INFORMATION FOR FUTURE QUARTERS:


4

Units forecast

98,414

Price per unit forecast

$99.13

Units of plant capacity

120,000

Units of machine capacity

105,000

Other overhead

200,000

Depreciation: Machinery

556,875

Projects

Plant

1,645,500

Principal repayment on debt:


Short-term

2-year

312,500

3-year

166,667

Bonds

350,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$39.00

Rates on funding in quarter 4


Short-term

2-year loan

2.46%

2.50%

2.46%

2.50%

Interest due next quarter:


Short-term

$0

Intermediate

$84,062

Bonds

$59,579

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Summary Data
Quarter Number 4
HISTORICAL INFORMATION
Common share price

.97

Quarterly EPS

.15

Price earnings ratio

50

Actual unit price

.34

Preferred stock price

.37

Return on investment

##

Call premium: preferred

##

Common tender or sell/sh

.00

Outstanding debt yields:


Short-term

2-year loan

2.46%

3.11%

INFORMATION FOR FUTURE QUARTERS:


5
Units forecast
Price per unit forecast

107,565
$101.56

Units of plant capacity

125,000

Units of machine capacity

100,000

Other overhead

200,000

Depreciation: Machinery

541,250

Projects
Plant

0
1,704,500

Principal repayment on debt:


Short-term

2-year

312,500

3-year

166,667

Bonds

375,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials
Units
Labor cost

$15.00
First 60,000
$39.00

Labor cost

$39.00

Rates on funding in quarter 5


Short-term

2-year loan

2.83%

2.95%

Interest due next quarter:


Short-term

$0

Intermediate

$70,965

Bonds

$81,718

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Summary Data
Quarter Number 5
HISTORICAL INFORMATION
Common share price

.45

Quarterly EPS

.50

Price earnings ratio

19

Actual unit price

.31

Preferred stock price

.29

Return on investment

##

Call premium: preferred

##

Common tender or sell/sh

.00

Outstanding debt yields:


Short-term

2-year loan

2.83%

3.11%

INFORMATION FOR FUTURE QUARTERS:


6
Units forecast
Price per unit forecast

112,661
$102.47

Units of plant capacity

100,000

Units of machine capacity

120,000

Other overhead

200,000

Depreciation: Machinery

661,250

Projects
Plant

0
1,473,750

Principal repayment on debt:


Short-term

2-year

312,500

3-year

833,333

Bonds

375,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:

Production costs per unit next quarter:


Materials

$15.00

Units

First 60,000

Labor cost

$39.00

Rates on funding in quarter 6


Short-term

2-year loan

2.74%

2.93%

Interest due next quarter:


Short-term

$0

Intermediate

$359,357

Bonds

$74,674

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Summary Data
Quarter Number 6
HISTORICAL INFORMATION
Common share price

.72

Quarterly EPS

.61

Price earnings ratio


Actual unit price

18
.96

Actual unit price

.96

Preferred stock price

.63

Return on investment

##

Call premium: preferred

##

Common tender or sell/sh

.00

Outstanding debt yields:


Short-term

2-year loan

2.74%

3.11%

INFORMATION FOR FUTURE QUARTERS:


7
Units forecast
Price per unit forecast
Units of plant capacity
Units of machine capacity

118,532
$105.64
100,000
90,000

Other overhead

183,497

Depreciation: Machinery

531,875

Projects
Plant

90,567
1,473,750

Principal repayment on debt:


Short-term

2-year

312,500

3-year

Bonds

575,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$38.06

Rates on funding in quarter 7


Short-term

2-year loan

2.55%

2.76%

Interest due next quarter:


Short-term

$0

Intermediate

$242,716

Bonds

$432,961

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Summary Data
Quarter Number 7
HISTORICAL INFORMATION

Common share price

.15

Quarterly EPS

.70

Price earnings ratio

14

Actual unit price

.27

Preferred stock price

.48

Return on investment

##

Call premium: preferred

##

Common tender or sell/sh

.00

Outstanding debt yields:


Short-term

2-year loan

2.55%

3.11%

INFORMATION FOR FUTURE QUARTERS:


8
Units forecast
Price per unit forecast

121,132
$107.91

Units of plant capacity

100,000

Units of machine capacity

100,000

Other overhead

170,682

Depreciation: Machinery

598,125

Projects
Plant

161,706
1,568,750

Principal repayment on debt:


Short-term

Short-term

2-year

312,500

3-year

Bonds

575,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$37.31

Rates on funding in quarter 8


Short-term

2-year loan

2.62%

2.84%

Interest due next quarter:


Short-term

$0

Intermediate

$214,129

Bonds

$411,123

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Summary Data
Quarter Number 8
HISTORICAL INFORMATION
Common share price

.52

Quarterly EPS

.88

Price earnings ratio

12

Actual unit price

.25

Preferred stock price

.49

Return on investment

Call premium: preferred

##

Common tender or sell/sh

.00

Outstanding debt yields:


Short-term

2-year loan

2.62%

3.11%

INFORMATION FOR FUTURE QUARTERS:


9
Units forecast
Price per unit forecast

123,404
$108.32

Units of plant capacity

100,000

Units of machine capacity

107,500

Other overhead

170,682

Depreciation: Machinery

656,875

Projects

161,706

Plant

1,568,750

Principal repayment on debt:


Short-term

2-year

3-year

250,000

Bonds

575,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$37.26

Rates on funding in quarter 9


Short-term

2-year loan

2.70%

2.88%

Interest due next quarter:


Short-term

$0

Intermediate

$300,315

Bonds

$389,285

Capital budgeting projects for next quarter:


Life

Life
A

2-yr

3-yr

Summary Data
Quarter Number 1

Accumulated Wealth

$36.29

Dividend Yield

1.08%

Marketable Security Yield

1.24%

Actual unit demand

97,383

Preferred dividend yield

3.11%

Return on equity

26.48%

Bond call premium

8.00%

Unpaid preferred dividend/shar

$0.00

3-year loan

Bonds

Penalty loan

2.50%

1.40%

8.00%

107,051

105,445

114,656

$104.73

$98.08

$101.85

100,000

100,000

80,000

100,000

75,000

60,000

200,000

200,000

200,000

478,125

384,375

311,250

Machinery

1,300,000

1,300,000

989,000

312,500

312,500

312,500

300,000

300,000

300,000

300,000

First 2000

Next 5000

Over 7000

$1.00

$3.00

$8.00

$48.00

Plant

Next 40,000

Next 20,000

Over 120,000

$29.00

$25.00

$33.00

3-year loan

Bond

Preferred

1.83%

1.73%

2.35%

Cost

Unit Capacity

Overhead Saving

Cost

Unit Capacity

Overhead Saving

$659,280

100,000

$15,340

$513,432

120,000

-$8,102

Summary Data
Quarter Number 2

Accumulated Wealth

$52.83

Dividend Yield

0.00%

Marketable Security Yield

1.30%

Actual unit demand

104,228

Preferred dividend yield

2.35%

Return on equity

25.84%

Bond call premium

8.00%

Unpaid preferred dividend/shar

$0.00

3-year loan

Bonds

Penalty loan

2.08%

1.50%

8.00%

98,139

103,736

90,118

$98.99
120,000

$101.27
100,000

$103.16
70,000

Machinery

95,000

80,000

80,000

200,000

200,000

200,000

504,375

431,250

431,250

1,645,500

1,334,500

1,013,000

312,500

312,500

312,500

83,333

83,333

83,333

325,000

325,000

325,000

First 2000

Next 5000

Over 7000

$1.00

$3.00

$8.00

$42.00

Plant

Next 40,000

Next 20,000

Over 120,000

$29.00

$25.00

$33.00

3-year loan

Bond

Preferred

1.96%

1.91%

2.48%

Cost

Unit Capacity

Overhead Saving

$629,400

100,000

$14,887

$472,560

120,000

-$8,958

Summary Data
Quarter Number 3

Accumulated Wealth

$60.36

Dividend Yield

0.00%

Marketable Security Yield

1.16%

Actual unit demand

110,746

Preferred dividend yield

2.48%

Return on equity

22.91%

Bond call premium

8.00%

Unpaid preferred dividend/shar

$0.00

3-year loan

Bonds

Penalty loan

2.03%

1.60%

8.00%

101,134
$101.54

Machinery

113,473

134,623

$103.16

$102.08

125,000

95,000

95,000

90,000

90,000

35,000

200,000

200,000

200,000

483,750

483,750

195,000

1,704,500

1,383,000

1,383,000

312,500

312,500

312,500

166,667

166,667

166,667

350,000

350,000

350,000

First 2000

Next 5000

Over 7000

$1.00

$3.00

$8.00

$46.00

Plant

Next 40,000

Next 20,000

Over 120,000

$29.00

$25.00

$33.00

3-year loan

Bond

Preferred

2.57%

2.92%

3.79%

2.57%

2.92%

3.79%

Cost

Unit Capacity

Overhead Saving

$570,456

100,000

$15,638

$395,544

120,000

-$9,986

Summary Data
Quarter Number 4

Accumulated Wealth

$30.08

Dividend Yield

0.00%

Marketable Security Yield

1.11%

Actual unit demand

95,530

Preferred dividend yield

3.79%

Return on equity

4.70%

Bond call premium

8.00%

Unpaid preferred dividend/shar

$0.00

3-year loan

Bonds

Penalty loan

2.03%

1.88%

118,165

116,386

128,718

$102.70

Machinery

8.00%

$106.65

$105.92

100,000

100,000

75,000

100,000

45,000

45,000

200,000

200,000

200,000

541,250

252,500

252,500

1,473,750

1,473,750

1,120,000

312,500

312,500

312,500

166,667

166,667

166,667

375,000

375,000

375,000

First 2000

Next 5000

Over 7000

$1.00

$3.00

$8.00

$48.00

Plant

Next 40,000

Next 20,000

Over 120,000

$29.00

$25.00

$33.00

$29.00

$25.00

$33.00

3-year loan

Bond

Preferred

3.12%

3.79%

4.93%

Cost

Unit Capacity

Overhead Saving

$607,992

100,000

$15,189

$391,632

120,000

-$8,139

Summary Data
Quarter Number 5

Accumulated Wealth

$37.66

Dividend Yield

1.07%

Marketable Security Yield

0.86%

Actual unit demand


Preferred dividend yield
Return on equity
Bond call premium

104,362
4.93%
15.14%
8.00%

Unpaid preferred dividend/shar

$0.00

3-year loan

Bonds

Penalty loan

3.77%

1.88%

8.00%

127,161

117,708

129,204

$107.90

$104.70

$107.91

100,000

75,000

75,000

65,000

65,000

60,000

200,000

200,000

200,000

372,500

372,500

350,000

1,473,750

1,120,000

1,120,000

312,500

312,500

833,333

833,333

833,333

375,000

375,000

375,000

First 2000

Next 5000

Over 7000

$1.00

$3.00

$8.00

Machinery

$51.00

Plant

Next 40,000

Next 20,000

Over 120,000

$29.00

$25.00

$33.00

3-year loan

Bond

Preferred

3.17%

4.00%

5.09%

Cost

Unit Capacity

Overhead Saving

$724,536

100,000

$16,503

$499,200

120,000

-$9,943

Summary Data
Quarter Number 6

Accumulated Wealth

$45.04

Dividend Yield

0.89%

Marketable Security Yield

0.76%

Actual unit demand

109,051

Actual unit demand

109,051

Preferred dividend yield

5.09%

Return on equity

17.84%

Bond call premium

8.00%

Unpaid preferred dividend/shar

$0.00

3-year loan

Bonds

Penalty loan

3.77%

3.80%

8.00%

10

133,519

128,059

98,872

$107.39

$104.66

$100.97

100,000

100,000

100,000

90,000

85,000

85,000

183,497

183,497

183,497

531,875

509,375

509,375

90,567

90,567

90,567

1,568,750

1,568,750

1,568,750

312,500

500,000

833,333

575,000

575,000

275,000

Machinery

Summary Data
Quarter Number 7

First 2000

Next 5000

Over 7000

$1.00

$3.00

$8.00

$53.00

Plant

Next 40,000

Next 20,000

Over 120,000

$28.06

$25.00

$33.00

3-year loan

Bond

Preferred

3.01%

3.87%

5.13%

Cost

Unit Capacity

Overhead Saving

$569,112

100,000

$12,815

$394,272

120,000

-$8,202

Accumulated Wealth

$40.63

Dividend Yield

1.47%

Marketable Security Yield

0.59%

Actual unit demand

115,856

Preferred dividend yield

5.13%

Return on equity

19.58%

Bond call premium

8.00%

Unpaid preferred dividend/shar

$0.00

3-year loan

Bonds

Penalty loan

3.77%

3.80%

8.00%

10

11

119,208

102,426

110,375

$107.87

$100.59

$101.17

100,000

100,000

75,000

95,000

95,000

75,000

170,682

170,682

170,682

575,625

575,625

455,625

161,706

161,706

161,706

1,568,750

1,568,750

1,255,000

Machinery

833,333

833,333

575,000

275,000

275,000

First 2000

Next 5000

Over 7000

$1.00

$3.00

$8.00

$52.00

Plant

Next 40,000

Next 20,000

Over 120,000

$27.31

$25.00

$33.00

3-year loan

Bond

Preferred

3.13%

4.05%

5.13%

Cost

Unit Capacity

Overhead Saving

$570,480

100,000

$15,686

$422,784

120,000

-$8,212

Summary Data
Quarter Number 8

Accumulated Wealth

$44.16

Dividend Yield

1.35%

Marketable Security Yield

0.80%

Actual unit demand

121,620

Preferred dividend yield

5.13%

Return on equity

23.42%

Bond call premium

8.00%

Unpaid preferred dividend/shar

$0.00

3-year loan

Bonds

Penalty loan

3.68%

3.80%

8.00%

10

11

12

103,229

96,799

98,361

$100.24

$105.25

$102.47

112,500

87,500

87,500

107,500

87,500

77,500

170,682

170,682

170,682

656,875

536,875

484,375

Machinery

161,706

161,706

161,706

1,805,625

1,491,875

1,491,875

1,083,333

1,083,333

1,083,333

275,000

275,000

275,000

First 2000

Next 5000

Over 7000

$1.00

$3.00

$8.00

$44.00

Plant

Next 40,000

Next 20,000

Over 120,000

$27.26

$25.00

$33.00

3-year loan

Bond

Preferred

3.11%

3.90%

5.20%

Cost

Unit Capacity

Overhead Saving

Cost

Unit Capacity

Overhead Saving

$453,312

100,000

$13,078

$673,152

120,000

-$10,364

$333.00

Unit Labor sav., Qtr.2

Change/Qtr. Labor Sav.

Unit Labor sav., Qtr.2

Change/Qtr. Labor Sav.

$0.82

$0.03

$0.85

-$0.01

$286.00

Unit Labor sav., Qtr.3

Change/Qtr. Labor Sav.

$0.78

$0.03

$0.78

-$0.02

$313.00

Unit Labor sav., Qtr.4

Change/Qtr. Labor Sav.

$0.71

$0.03

$0.65

-$0.03

$328.00

Unit Labor sav., Qtr.5

Change/Qtr. Labor Sav.

$0.75

$0.03

$0.65

-$0.01

$349.00

Unit Labor sav., Qtr.6

Change/Qtr. Labor Sav.

$0.90

$0.04

$0.83

-$0.03

$364.00

Unit Labor sav., Qtr.7

Change/Qtr. Labor Sav.

$0.70

$0.01

$0.65

-$0.01

$359.00

Unit Labor sav., Qtr.8

Change/Qtr. Labor Sav.

$0.71

$0.04

$0.70

-$0.01

$299.00

Unit Labor sav., Qtr.9

Change/Qtr. Labor Sav.

Unit Labor sav., Qtr.9

Change/Qtr. Labor Sav.

$0.56

$0.01

$1.12

-$0.04

N&N Company - Financial Decision and


Unit to be produced
Forecasted Price
Actual Sale Volume
Unit Price
Ending Inventory
Purchase of Plant Capacity
Purchase of Machine Capacity
Net Income
Short-Term Penalty Loans
Short-Term Investment
2 Year Loans
3 Year Loans
10 Year Bonds
Marketable Security Yield
Interest Rate - 2 Year Loans
Interest Rate - 3 Year Loans
Coupon
Penalty Loan
Stock Price
Dividend
Dividend Yield
Quarterly EPS
ROI
ROE
P/E Ratio

unit
$
unit
$
unit
unit
unit
$
$
$
$
$
$
%
%
%
%
%
$
$
%
$
%
%
time

Quarter1
100,000.00
100.00
97,383.00
100.00
12,426.00
0.00
0.00
640,939.00
0.00
200,000.00
2,500,000.00
1.24
3.11
2.50
1.40
8.00
36.29
0.10
1.08
0.74
17.54
26.48
12.21

- Financial Decision and Performance


Quarter2
100,000.00
100.00
104,228.00
102.31
8,198.00
20,000.00
20,000.00
772,752.00
4,467,179.00
-200,000.00
999,999.00
999,999.00
1.30
1.89
1.83
1.73
8.00
52.83
0.77
13.37
25.84
17.06

Quarter3
100,000.00
103.00
108,198.00
104.62
25,000.00
10,000.00
726,953.00
8,783,853.00
999,999.00
999,999.00
1.16
2.01
1.96
1.91
8.00
60.36
0.73
10.02
22.91
20.72

Quarter4
105,000.00
100.00
95,539.00
99.34
9,470.00
5,000.00
10,000.00
150,860.00
7,978,999.00
999,999.00
1.11
2.50
2.57
2.92
8.00
30.08
0.15
2.11
4.70
49.67

Quarter5
100,000.00
102.00
104,362.00
102.31
5,108.00
20,000.00
401,245.00
115,609.00
2,500,000.00
8,000,000.00
0.86
2.95
3.12
3.79
8.00
37.66
0.10
1.07
0.50
7.28
15.14
18.68

Q6
Cash
Short-Term Security

Q7

$412,310

$366,710

$1,592,779

$1,592,779

Q6

Q7

Total Liabilities

$18,451,011

Total Equities

$13,755,916

$14,306,298

1.34

1.19

D/E Ratio (time)

Q6
Cost of Debt
Tax Rate
Div. of Preferred Stock
Cost of Equity
Proportion of Debt
Proportion of Equity
WACC

$17,012,470

Q7
4.00%
40.00%
5.09%
6.18%
56.60%
43.40%
4.04%

3.87%
40.00%
5.13%
6.39%
53.64%
46.36%
4.21%

Q8

Q9

$494,544

$491,370

$1,192,779

$592,779

Q8

Q9

$18,916,829

$19,741,329

$15,036,547

$15,680,656

1.26

1.26

Q8

Q9
4.05%
40.00%
5.13%
6.21%
55.05%
44.95%
4.13%

3.90%
40.00%
5.30%
6.70%
55.10%
44.90%
4.30%

Q6
0
1
2
3
4
5
6
7
8
9
10
11
12
NPV

Q7
0
1
2
3
4
5
6
7
8
9
10
11
12
NPV

A
B
-$724,536.00
-$499,200.00
$4,906,503.00
$4,873,057.00
$4,910,503.00
$4,870,057.00
$4,914,503.00
$4,867,057.00
$4,918,503.00
$4,864,057.00
$4,922,503.00
$4,861,057.00
$4,926,503.00
$4,858,057.00
$4,930,503.00
$4,855,057.00
$4,934,503.00
$4,852,057.00
$4,849,057.00
$4,846,057.00
$4,843,057.00
$4,840,057.00
### $9,952,135.47
### $9,452,935.47

A
B
-$569,112.00
-$394,272.00
$4,993,318.00
$4,967,301.00
$4,994,318.00
$4,966,301.00
$4,995,318.00
$4,965,301.00
$4,996,318.00
$4,964,301.00
$4,997,318.00
$4,963,301.00
$4,998,318.00
$4,962,301.00
$4,999,318.00
$4,961,301.00
$5,000,318.00
$4,960,301.00
$4,959,301.00
$4,958,301.00
$4,957,301.00
$4,956,301.00
### $9,755,933.42
### $9,361,661.42

Q8
0
1
2
3
4
5
6
7
8
9
10
11
12
NPV

Q9
0
1
2
3
4
5
6
7
8
9
10
11
12
NPV

A
B
-$570,480.00
-$422,784.00
$5,085,004.00
$5,060,106.00
$5,089,004.00
$5,059,706.00
$5,091,404.00
$5,059,306.00
$5,093,804.00
$5,058,906.00
$5,096,204.00
$5,058,506.00
$5,098,604.00
$5,058,106.00
$5,101,004.00
$5,057,706.00
$5,103,404.00
$5,057,306.00
$5,056,906.00
$5,056,506.00
$5,056,106.00
$5,055,706.00
###
###
### $9,704,222.33

A
B
-$570,480.00
-$673,152.00
$5,072,396.00
$5,104,954.00
$5,073,396.00
$5,100,954.00
$5,074,396.00
$5,096,954.00
$5,075,396.00
$5,092,954.00
$5,076,396.00
$5,088,954.00
$5,077,396.00
$5,084,954.00
$5,078,396.00
$5,080,954.00
$5,079,396.00
$5,076,954.00
$5,072,954.00
$5,068,954.00
$5,064,954.00
$5,060,954.00
### $9,811,896.34
### $9,138,744.34

Q6
A

Material
Overhead
60000
40000
Labor
Total Cost
Sale
Profit

15
200000
39
29

0
183497

Q7
1500000
183497
38.1
28.1
3410000
5093497
10000000
4906503

Q6
B

Material
Overhead
60000
40000
Labor
Total Cost
Sale
Profit

15
200000
39
29

0
209943

Q7
1500000
209943
38.17
28.17
3417000
5126943
10000000
4873057

Q7
A

Material
Overhead
60000
40000
Labor
Total Cost
Sale
Profit

15
183497
38.06
28.06

0
170682

Material
Overhead
60000
40000
Labor
Total Cost
Sale
Profit

15
183497
38.06
28.06

0
191699

1500000
209943
38.2
28.2
3420000
5129943
10000000
4870057

Q8
1500000
170682
37.36
27.36
3336000
5006682
10000000
4993318

Q7
B

1500000
183497
38.06
28.06
3406000
5089497
10000000
4910503

1500000
170682
37.35
27.35
3335000
5005682
10000000
4994318
Q8

1500000
191699
37.41
27.41
3341000
5032699
10000000
4967301

1500000
191699
37.42
27.42
3342000
5033699
10000000
4966301

Q8
A

Material
Overhead
60000
40000
Labor
Total Cost
Sale
Profit

15
170682
37.31
27.31

0
154996

Q9
1500000
154996
36.6
26.6
3260000
4914996
10000000
5085004

Q8
B

Material
Overhead
60000
40000
Labor
Total Cost
Sale
Profit

15
170682
37.31
27.31

0
178894

Q9
1500000
178894
36.61
26.61
3261000
4939894
10000000
5060106

Q9
A

Material
Overhead
60000
40000
Labor
Total Cost
Sale
Profit

15
170682
37.26
27.26

0
157604

Material
Overhead
60000
40000
Labor
Total Cost
Sale
Profit

15
170682
37.26
27.26

0
181046

1500000
154996
36.56
26.56
3256000
4910996
10000000
5089004

1500000
178894
36.61
26.62
3261400
4940294
10000000
5059706

Q10
1500000
157604
36.7
26.7
3270000
4927604
10000000
5072396

Q9

1500000
157604
36.69
26.69
3269000
4926604
10000000
5073396
Q10

1500000
181046
36.14
26.14
3214000
4895046
10000000
5104954

1500000
181046
36.18
26.18
3218000
4899046
10000000
5100954

Q8

Q9
1500000
183497
38.02
28.02
3402000
5085497
10000000
4914503

Q8

Q10
1500000
183497
37.98
27.98
3398000
5081497
10000000
4918503

Q9
1500000
209943
38.23
28.23
3423000
5132943
10000000
4867057

Q9

Q10
1500000
209943
38.26
28.26
3426000
5135943
10000000
4864057

Q10
1500000
170682
37.34
27.34
3334000
5004682
10000000
4995318

Q9

1500000
170682
37.33
27.33
3333000
5003682
10000000
4996318
Q10

1500000
191699
37.43
27.43
3343000
5034699
10000000
4965301

1500000
183497
37.94
27.94
3394000
5077497
10000000
4922503

1500000
191699
37.44
27.44
3344000
5035699
10000000
4964301

1500000
209943
38.29
28.29
3429000
5138943
10000000
4861057

Q11
1500000
170682
37.32
27.32
3332000
5002682
10000000
4997318
Q11
1500000
191699
37.45
27.45
3345000
5036699
10000000
4963301

Q11
1500000
183497
37.9
27.9
3390000
5073497
10000000
4926503
Q11
1500000
209943
38.32
28.32
3432000
5141943
10000000
4858057

Q12
1500000
170682
37.31
27.31
3331000
5001682
10000000
4998318
Q12
1500000
191699
37.46
27.46
3346000
5037699
10000000
4962301

Q12
1500000
183497
37.86
27.86
3386000
5069497
10000000
4930503
Q12
1500000
209943
38.35
28.35
3435000
5144943
10000000
4855057

Q13
1500000
170682
37.3
27.3
3330000
5000682
10000000
4999318
Q13
1500000
191699
37.47
27.47
3347000
5038699
10000000
4961301

Q13
1500000
183497
37.82
27.82
3382000
5065497
10000000
4934503
Q13
1500000
209943
38.38
28.38
3438000
5147943
10000000
4852057

Q14
1500000
170682
37.29
27.29
3329000
4999682
10000000
5000318
Q14
1500000
191699
37.48
27.48
3348000
5039699
10000000
4960301

Q10
1500000
154996
36.52
26.56
3253600
4908596
10000000
5091404
Q10
1500000
178894
36.61
26.63
3261800
4940694
10000000
5059306

Q11
1500000
157604
36.68
26.68
3268000
4925604
10000000
5074396
Q11
1500000
181046
36.22
26.22
3222000
4903046
10000000
5096954

Q11
1500000
154996
36.48
26.56
3251200
4906196
10000000
5093804
Q11
1500000
178894
36.61
26.64
3262200
4941094
10000000
5058906

Q12
1500000
157604
36.67
26.67
3267000
4924604
10000000
5075396
Q12
1500000
181046
36.26
26.26
3226000
4907046
10000000
5092954

Q12
1500000
154996
36.44
26.56
3248800
4903796
10000000
5096204
Q12
1500000
178894
36.61
26.65
3262600
4941494
10000000
5058506

Q13
1500000
157604
36.66
26.66
3266000
4923604
10000000
5076396
Q13
1500000
181046
36.3
26.3
3230000
4911046
10000000
5088954

Q13
1500000
154996
36.4
26.56
3246400
4901396
10000000
5098604
Q13
1500000
178894
36.61
26.66
3263000
4941894
10000000
5058106

Q14
1500000
157604
36.65
26.65
3265000
4922604
10000000
5077396
Q14
1500000
181046
36.34
26.34
3234000
4915046
10000000
5084954

Q14
1500000
154996
36.36
26.56
3244000
4898996
10000000
5101004
Q14
1500000
178894
36.61
26.67
3263400
4942294
10000000
5057706

Q15
1500000
157604
36.64
26.64
3264000
4921604
10000000
5078396
Q15
1500000
181046
36.38
26.38
3238000
4919046
10000000
5080954

Q15
1500000
154996
36.32
26.56
3241600
4896596
10000000
5103404
Q15
1500000
178894
36.61
26.68
3263800
4942694
10000000
5057306

Q16
1500000
157604
36.63
26.63
3263000
4920604
10000000
5079396
Q16
1500000
181046
36.42
26.42
3242000
4923046
10000000
5076954

0.04
0.03

Q14
1500000
209943
38.41
28.41
3441000
5150943
10000000
4849057

Q15

Q16

1500000
209943
38.44
28.44
3444000
5153943
10000000
4846057

Q17

1500000
209943
38.47
28.47
3447000
5156943
10000000
4843057

1500000
209943
38.5
28.5
3450000
5159943
10000000
4840057

0.01

Q15
1500000
191699
37.49
27.49
3349000
5040699
10000000
4959301

Q16
1500000
191699
37.5
27.5
3350000
5041699
10000000
4958301

Q17

Q18

1500000
191699
37.51
27.51
3351000
5042699
10000000
4957301
0.04

1500000
191699
37.52
27.52
3352000
5043699
10000000
4956301

0.01

Q16
1500000
178894
36.61
26.69
3264200
4943094
10000000
5056906

Q17

Q18

1500000
178894
36.61
26.7
3264600
4943494
10000000
5056506

1500000
178894
36.61
26.71
3265000
4943894
10000000
5056106

Q19
1500000
178894
36.61
26.72
3265400
4944294
10000000
5055706

0.01
0.04

Q17
1500000
181046
36.46
26.46
3246000
4927046
10000000
5072954

Q18
1500000
181046
36.5
26.5
3250000
4931046
10000000
5068954

Q19
1500000
181046
36.54
26.54
3254000
4935046
10000000
5064954

Q20
1500000
181046
36.58
26.58
3258000
4939046
10000000
5060954

Results for company name: N&N


Decision Inputs for Quarter Number 1
Company Operating Decisions
Units to be produced

100,000

Div. per common share

$0.10

Demand/price forecast

$0

Investment Decisions
Short-term investment

$200,000

Machine units bought


Project A

0
no

Financing Decisions
Short-term loans
Two-year loans

$0
$2,500,000

Three-year loans

$0

Ten-year bonds

$0

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 1
Sales revenue ( 97,383 units at $100.00 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 9,809 at $74.79 )

$0.00

Materials
Direct Labor

$1,500,000
3,500,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $70.39 )
Goods Available for Sale ( $70.78 per unit )
Less: Ending Inventory ( 12,426 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

$60,408
478,125
1,300,000
200,000

Income Before Taxes


Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.10 per share )
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 1
ASSETS
Current Assets
Cash

$120,485

Marketable Securities
Accounts Receivable
Inventory ( 12,426 units at $70.78 /UNIT )

200,000
6,524,661
879,492

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$2,008,125
7,165,250

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable

$520,000

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing

1,850,000

Bonds Maturing

1,200,000

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$937,500
0
1,200,000

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

3,190,511

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 1
HISTORICAL INFORMATION

Common share price

$36.19

Quarterly EPS

$0.74

Price earnings ratio

12.21

Actual unit price

$100.00

Preferred stock price

$32.15

Return on investment

17.54%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.98%

3.11%

INFORMATION FOR FUTURE QUARTERS:


2
Units forecast
Price per unit forecast

107,734
$100.80

Units of plant capacity

100,000

Units of machine capacity

100,000

Other overhead

200,000

Depreciation: Machinery

478,125

Projects
Plant

0
1,300,000

Principal repayment on debt:


Short-term

2-year

312,500

3-year

300,000

Bonds

300,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$39.00

Rates on funding in quarter 2


Short-term

2-year loan
1.96%

1.89%

Interest due next quarter:


Short-term

$0

Intermediate

$83,030

Bonds

$33,600

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$9,738,300
2,470

$733,567

$9,740,770

$5,000,000

2,038,533
7,038,533
$7,772,100
879,492
6,892,608
$2,848,161
$1,486,915

$0
0
92,749
33,600
0
126,349

1,613,264
$1,234,898
0

$1,234,897
493,958
$740,939
0
$740,939
100,000
$640,939

$7,724,636

9,173,375
$16,898,011

$3,570,000

2,137,500
$5,707,500

11,190,512
$16,898,011

Accumulated Wealth

$36.29

Dividend Yield

1.08%

Marketable Security Yield

1.24%

Actual unit demand

97,383

Preferred dividend yield

3.11%

Return on equity

26.48%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

2.50%

1.40%

8.00%

107,051

105,445

114,656

$104.73

$98.08

$101.85

100,000

100,000

80,000

100,000

75,000

60,000

200,000

200,000

200,000

478,125

384,375

311,250

1,300,000

1,300,000

989,000

312,500

312,500

312,500

300,000

300,000

300,000

300,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$48.00 Plant

Next 40,000

Next 20,000
$29.00

3-year loan

$25.00

Bond
1.83%

Cost

Over 120,000
$33.00

Preferred
1.73%

Unit Capacity

2.35%

Overhead Saving

$659,280

100,000

$15,340

$513,432

120,000

($8,102)

$100.00
$0
0.00%

0
0
no

0
0
$0

$0

$333.00

Unit Labor sav., Qtr.2

Change/Qtr. Labor Sav.

$0.82

$0.03

$0.85

($0.01)

Results for company name: N&N


Decision Inputs for Quarter Number 2
Company Operating Decisions
Units to be produced

100,000

Div. per common share

$0.00

Demand/price forecast

$0

Investment Decisions
Short-term investment

($200,000)

Machine units bought


Project A

20,000
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans

$999,999

Ten-year bonds

$999,999

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 2
Sales revenue ( 104,228 units at $102.31 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 12,426 at $70.78 )

$0.00

Materials
Direct Labor

$1,500,000
3,500,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $70.05 )
Goods Available for Sale ( $70.13 per unit )
Less: Ending Inventory ( 8,198 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

$26,584
478,125
1,300,000
200,000

Income Before Taxes


Income Tax (rate is 40%)
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 2
ASSETS
Current Assets
Cash

$132,361

Marketable Securities
Accounts Receivable
Inventory ( 8,198 units at $70.13 /UNIT )

0
7,144,590
574,909

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$2,490,000
12,775,250

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable

$520,000

Short Term Loans Payable

Short Term Penalty Loan

4,467,179

Intermediate Term Debt Maturing

1,883,332

Bonds Maturing

1,299,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$625,000
583,333
1,775,003

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

3,963,266

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 2
HISTORICAL INFORMATION

Common share price

$52.73

Quarterly EPS

$0.77

Price earnings ratio

17.06

Actual unit price

$102.31

Preferred stock price

$42.62

Return on investment

13.37%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan

1.96%

3.11%

INFORMATION FOR FUTURE QUARTERS:


3
Units forecast
Price per unit forecast

109,306
$103.63

Units of plant capacity

100,000

Units of machine capacity

120,000

Other overhead

200,000

Depreciation: Machinery

598,125

Projects
Plant

0
1,300,000

Principal repayment on debt:


Short-term

Short-term

2-year

312,500

3-year

383,333

Bonds

325,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$39.00

Rates on funding in quarter 3


Short-term

2-year loan

2.07%

2.01%

Interest due next quarter:


Short-term

$0

Intermediate

$83,638

Bonds

$46,068

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$10,663,567
0

$879,492

$10,663,567

$5,000,000

2,004,709
7,004,709
$7,884,200
574,909
7,309,292
$3,354,274
$1,533,178

$0
330,902
101,336
100,937
0
533,175

2,066,353
$1,287,921
0

$1,287,921
515,169
$772,752
0
$772,752
0
$772,752

$7,851,857

15,265,250
$23,117,107

y Data

umber 2

$8,170,507

2,983,335
$11,153,841

11,963,263
$23,117,107

Accumulated Wealth

$52.83

Dividend Yield

0.00%

Marketable Security Yield

1.30%

Actual unit demand

104,228

Preferred dividend yield

2.35%

Return on equity

25.84%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

2.08%

1.50%

8.00%

98,139

103,736

90,118

$98.99

$101.27

$103.16

120,000

100,000

70,000

95,000

80,000

80,000

200,000

200,000

200,000

504,375

431,250

431,250

1,645,500

1,334,500

1,013,000

Machinery

312,500

312,500

312,500

83,333

83,333

83,333

325,000

325,000

325,000

First 2000

Next 5000

Over 7000

$1.00

$3.00

$8.00

$42.00

Plant

Next 40,000

Next 20,000

Over 120,000

$29.00

$25.00

$33.00

3-year loan

Bond

Preferred

1.96%

1.91%

2.48%

Cost

Unit Capacity

Overhead Saving

$629,400

100,000

$14,887

$472,560

120,000

($8,958)

$102.31
$0
0.00%

0
20,000
no

0
0
$0

$0

$286.00

Unit Labor sav., Qtr.3


Change/Qtr. Labor Sav.
$0.78

$0.03

$0.78

($0.02)

Results for company name: N&N


Decision Inputs for Quarter Number 3
Company Operating Decisions
Units to be produced

100,000

Div. per common share

$0.00

Demand/price forecast

$0

Investment Decisions
Short-term investment

$0

Machine units bought


Project A

10,000
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans

$999,999

Ten-year bonds

$999,999

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 3
Sales revenue ( 108,198 units at $104.62 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 8,198 at $70.13 )

$0.00

Materials
Direct Labor

$1,500,000
3,500,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $70.98 )
Goods Available for Sale ( $70.92 per unit )
Less: Ending Inventory ( 0 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

$0
598,125
1,300,000
200,000

Income Before Taxes


Income Tax (rate is 40%)
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

$260,262

Marketable Securities
Accounts Receivable
Inventory ( 0 units at $70.92 /UNIT )

0
7,584,182
0

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$2,311,875
18,875,250

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable
Short Term Loans Payable

$520,000
0

Short Term Penalty Loan

8,783,853

Intermediate Term Debt Maturing

1,916,664

Bonds Maturing

1,399,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$312,500
1,083,332
2,325,002

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

4,690,222

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 3
HISTORICAL INFORMATION

Common share price

$60.26

Quarterly EPS

$0.73

Price earnings ratio

20.72

Actual unit price

$104.62

Preferred stock price

$40.36

Return on investment

10.02%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.07%

3.11%

INFORMATION FOR FUTURE QUARTERS:


4
Units forecast

98,414

Price per unit forecast

$99.13

Units of plant capacity

120,000

Units of machine capacity

105,000

Other overhead

200,000

Depreciation: Machinery

556,875

Projects
Plant

0
1,645,500

Principal repayment on debt:


Short-term

2-year

312,500

3-year

166,667

Bonds

350,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$39.00

Rates on funding in quarter 4


Short-term

2-year loan
2.46%

2.50%

Interest due next quarter:


Short-term

$0

Intermediate

$84,062

Bonds

$59,579

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$11,319,675
0

$574,909

$11,319,675

$5,000,000

2,098,125
7,098,125
$7,673,033
0
7,673,033
$3,646,641
$1,565,984

$0
650,655
103,238
115,177
0
869,070

2,435,053
$1,211,588
0

$1,211,587
484,634
$726,953
0
$726,953
0
$726,953

$7,844,444

21,187,125
$29,031,569

$12,620,513

3,720,834
$16,341,347

12,690,219
$29,031,569

Accumulated Wealth

$60.36

Dividend Yield

0.00%

Marketable Security Yield

1.16%

Actual unit demand

110,746

Preferred dividend yield

2.48%

Return on equity

22.91%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

2.03%

1.60%

8.00%

101,134

113,473

134,623

$101.54

$103.16

$102.08

125,000

95,000

95,000

90,000

90,000

35,000

200,000

200,000

200,000

483,750

483,750

195,000

1,704,500

1,383,000

1,383,000

312,500

312,500

312,500

166,667

166,667

166,667

350,000

350,000

350,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$46.00 Plant

Next 40,000

Next 20,000
$29.00

3-year loan

$25.00

Bond
2.57%

Cost

Over 120,000
$33.00

Preferred
2.92%

Unit Capacity

3.79%

Overhead Saving

$570,456

100,000

$15,638

$395,544

120,000

($9,986)

$104.62
$0
0.00%

0
25,000
no

0
0
$0

$0

$313.00

Unit Labor sav., Qtr.4

Change/Qtr. Labor Sav.

$0.71

$0.03

$0.65

($0.03)

Results for company name: N&N


Decision Inputs for Quarter Number 4
Company Operating Decisions
Units to be produced

105,000

Div. per common share

$0.00

Demand/price forecast

$0

Investment Decisions
Short-term investment

$0

Machine units bought


Project A

10,000
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans

$0

Ten-year bonds

$999,999

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 4
Sales revenue ( 95,530 units at $99.34 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 )

$0.00

Materials
Direct Labor

$1,575,000
3,625,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 105,000 at $72.75 )
Goods Available for Sale ( $72.75 per unit )
Less: Ending Inventory ( 9,470 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

$36,760
556,875
1,645,500
200,000

Income Before Taxes


Income Tax (rate is 40%)
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

$236,414

Marketable Securities
Accounts Receivable
Inventory ( 9,470 units at $72.75 /UNIT )

0
6,358,267
688,977

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$2,215,000
19,044,750

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable
Short Term Loans Payable

$540,000
0

Short Term Penalty Loan

7,978,999

Intermediate Term Debt Maturing

1,916,664

Bonds Maturing

1,499,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$0
916,666
2,850,001

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

4,841,083

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 4
HISTORICAL INFORMATION

Common share price

$29.97

Quarterly EPS

$0.15

Price earnings ratio

49.67

Actual unit price

$99.34

Preferred stock price

$26.37

Return on investment

2.11%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.46%

3.11%

INFORMATION FOR FUTURE QUARTERS:


5
Units forecast
Price per unit forecast

107,565
$101.56

Units of plant capacity

125,000

Units of machine capacity

100,000

Other overhead

200,000

Depreciation: Machinery

541,250

Projects
Plant

0
1,704,500

Principal repayment on debt:


Short-term

2-year

312,500

3-year

166,667

Bonds

375,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$39.00

Rates on funding in quarter 5


Short-term

2-year loan
2.83%

2.95%

Interest due next quarter:


Short-term

$0

Intermediate

$70,965

Bonds

$81,718

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$9,489,950
0

$0

$9,489,950

$5,200,000

2,439,135
7,639,135
$7,639,135
688,977
6,950,157
$2,539,792
$1,474,498

$0
591,036
84,061
138,763
0
813,860

2,288,357
$251,435
0

$251,434
100,574
$150,860
0
$150,860
0
$150,860

$7,283,657

21,259,750
$28,543,407

$11,935,658

3,766,666
$15,702,324

12,841,082
$28,543,407

Accumulated Wealth

$30.08

Dividend Yield

0.00%

Marketable Security Yield

1.11%

Actual unit demand

95,530

Preferred dividend yield

3.79%

Return on equity

4.70%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

2.03%

1.88%

8.00%

118,165

116,386

128,718

$102.70

$106.65

$105.92

100,000

100,000

75,000

100,000

45,000

45,000

200,000

200,000

200,000

541,250

252,500

252,500

1,473,750

1,473,750

1,120,000

312,500

312,500

312,500

166,667

166,667

166,667

375,000

375,000

375,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$48.00 Plant

Next 40,000

Next 20,000
$29.00

3-year loan

$25.00

Bond
3.12%

Cost

Over 120,000
$33.00

Preferred
3.79%

Unit Capacity

4.93%

Overhead Saving

$607,992

100,000

$15,189

$391,632

120,000

($8,139)

$99.34
$0
0.00%

0
5,000
no

0
0
$0

$0

$328.00

Unit Labor sav., Qtr.5

Change/Qtr. Labor Sav.

$0.75

$0.03

$0.65

($0.01)

Results for company name: N&N


Decision Inputs for Quarter Number 5
Company Operating Decisions
Units to be produced

100,000

Div. per common share

$0.10

Demand/price forecast

$0

Investment Decisions
Short-term investment

$2,500,000

Machine units bought


Project A

20,000
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

$8,000,000
$0

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 5
Sales revenue ( 104,362 units at $102.31 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 9,470 at $72.75 )

$0.00

Materials
Direct Labor

$1,500,000
3,500,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $74.57 )
Goods Available for Sale ( $74.41 per unit )
Less: Ending Inventory ( 5,108 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

$11,324
541,250
1,704,500
200,000

Income Before Taxes


Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.10 per share )
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 5
ASSETS
Current Assets
Cash

$32,551

Marketable Securities
Accounts Receivable
Inventory ( 5,108 units at $74.41 /UNIT )

0
7,153,775
380,104

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$2,633,750
17,340,250

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable
Short Term Loans Payable
Short Term Penalty Loan

$520,000
0
115,609

Intermediate Term Debt Maturing

4,270,832

Bonds Maturing

1,499,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$0
5,416,666
2,475,001

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

5,242,327

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 5
HISTORICAL INFORMATION

Common share price

$37.45

Quarterly EPS

$0.50

Price earnings ratio

18.68

Actual unit price

$102.31

Preferred stock price

$20.29

Return on investment

7.28%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.83%

3.11%

INFORMATION FOR FUTURE QUARTERS:


6
Units forecast
Price per unit forecast

112,661
$102.47

Units of plant capacity

100,000

Units of machine capacity

120,000

Other overhead

200,000

Depreciation: Machinery

661,250

Projects
Plant

0
1,473,750

Principal repayment on debt:


Short-term

2-year

312,500

3-year

833,333

Bonds

375,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$39.00

Rates on funding in quarter 6


Short-term

2-year loan
2.74%

2.93%

Interest due next quarter:


Short-term

$0

Intermediate

$359,357

Bonds

$74,674

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$10,677,276
21,563

$688,977

$10,698,838

$5,000,000

2,457,074
7,457,074
$8,146,051
380,104
7,765,946
$2,932,891
$1,533,864

$0
81,378
400,523
81,718
0
563,619

2,097,483
$835,409
0

$835,408
334,163
$501,245
0
$501,245
100,000
$401,245

$7,566,430

19,974,000
$27,540,430

$6,406,437

7,891,666
$14,298,103

13,242,328
$27,540,430

Accumulated Wealth

$37.66

Dividend Yield

1.07%

Marketable Security Yield

0.86%

Actual unit demand

104,362

Preferred dividend yield

4.93%

Return on equity

15.14%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

3.77%

1.88%

8.00%

127,161

117,708

129,204

$107.90

$104.70

$107.91

100,000

75,000

75,000

65,000

65,000

60,000

200,000

200,000

200,000

372,500

372,500

350,000

1,473,750

1,120,000

1,120,000

312,500

312,500

833,333

833,333

833,333

375,000

375,000

375,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$51.00 Plant

Next 40,000

Next 20,000
$29.00

3-year loan

$25.00

Bond
3.17%

Cost

Over 120,000
$33.00

Preferred
4.00%

Unit Capacity

5.09%

Overhead Saving

$724,536

100,000

$16,503

$499,200

120,000

($9,943)

$102.31
$0
0.00%

0
0
no

0
0
$0

$0

$349.00

Unit Labor sav., Qtr.6

Change/Qtr. Labor Sav.

$0.90

$0.04

$0.83

($0.03)

Results for company name: N&N


Decision Inputs for Quarter Number 6
Company Operating Decisions
Units to be produced

100,000

Div. per common share

$0.10

Demand/price forecast

$0

Investment Decisions
Short-term investment

$1,500,000

Machine units bought


Project A

25,000
yes

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

($2,000,000)
$8,000,000

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 6
Sales revenue ( 105,108 units at $105.00 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 5,108 at $74.41 )

$0.00

Materials
Direct Labor

$1,500,000
3,410,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $73.19 )
Goods Available for Sale ( $73.25 per unit )
Less: Ending Inventory ( 0 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

$0
751,817
1,473,750
183,497

Income Before Taxes


Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.10 per share )
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 6
ASSETS
Current Assets
Cash

$412,310

Marketable Securities

1,592,779

Accounts Receivable

1,478,870

Inventory ( 0 units at $73.25 /UNIT )

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$3,881,469
24,841,500

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable

$509,350

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing

1,958,332

Bonds Maturing

1,999,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$0
4,583,333
9,400,001

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

5,755,915

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 6
HISTORICAL INFORMATION

Common share price

$44.72

Quarterly EPS

$0.61

Price earnings ratio

18.22

Actual unit price

$103.96

Preferred stock price

$19.63

Return on investment

7.62%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.74%

3.11%

INFORMATION FOR FUTURE QUARTERS:


7
Units forecast
Price per unit forecast
Units of plant capacity
Units of machine capacity

118,532
$105.64
100,000
90,000

Other overhead

183,497

Depreciation: Machinery

531,875

Projects
Plant

90,567
1,473,750

Principal repayment on debt:


Short-term

2-year

312,500

3-year

Bonds

575,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$38.06

Rates on funding in quarter 7


Short-term

2-year loan
2.55%

2.76%

Interest due next quarter:


Short-term

$0

Intermediate

$242,716

Bonds

$432,961

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$10,948,049
109,849

$380,104

$11,057,898

$4,910,000

2,409,063
7,319,064
$7,699,168
0
7,699,168
$3,358,729
$1,547,403

$0
0
283,881
504,799
0
788,680

2,336,082
$1,022,647
0

$1,022,647
409,058
$613,589
0
$613,589
100,000
$513,589

$3,483,957

28,722,969
$32,206,926

$4,467,678

13,983,334
$18,451,011

13,755,916
$32,206,926

Accumulated Wealth

$45.04

Dividend Yield

0.89%

Marketable Security Yield

0.76%

Actual unit demand

109,051

Preferred dividend yield

5.09%

Return on equity

17.84%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

3.77%

3.80%

8.00%

10

133,519

128,059

98,872

$107.39

$104.66

$100.97

100,000

100,000

100,000

90,000

85,000

85,000

183,497

183,497

183,497

531,875

509,375

509,375

90,567

90,567

90,567

1,568,750

1,568,750

1,568,750

312,500

500,000

833,333

575,000

575,000

275,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$53.00 Plant

Next 40,000

Next 20,000
$28.06

3-year loan

$25.00

Bond
3.01%

Cost

Over 120,000
$33.00

Preferred
3.87%

Unit Capacity

5.13%

Overhead Saving

$569,112

100,000

$12,815

$394,272

120,000

($8,202)

$105.00
$0
1.00%

4
25,000
no

0
0
$0

$0

$364.00

Unit Labor sav., Qtr.7

Change/Qtr. Labor Sav.

$0.70

$0.01

$0.65

($0.01)

Results for company name: N&N


Decision Inputs for Quarter Number 7
Company Operating Decisions
Units to be produced

90,000

Div. per common share

$0.15

Demand/price forecast

$0

Investment Decisions
Short-term investment

$0

Machine units bought


Project A

10,000
yes

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

($500,000)
$0

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 7
Sales revenue ( 84,682 units at $115.00 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 )

$0.00

Materials
Direct Labor

$1,350,000
3,062,400

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 90,000 at $75.14 )
Goods Available for Sale ( $75.14 per unit )
Less: Ending Inventory ( 5,318 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

$11,954
693,581
1,473,750
170,682

Income Before Taxes


Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.15 per share )
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 7
ASSETS
Current Assets
Cash

$366,710

Marketable Securities

1,592,779

Accounts Receivable

1,304,950

Inventory ( 5,318 units at $75.14 /UNIT )

399,581

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$4,287,000
23,367,750

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable

$458,308

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing

1,979,165

Bonds Maturing

1,699,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$0
3,750,000
9,125,001

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

6,306,298

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 7
HISTORICAL INFORMATION

Common share price

$40.15

Quarterly EPS

$0.70

Price earnings ratio

14.33

Actual unit price

$106.27

Preferred stock price

$19.48

Return on investment

8.95%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.55%

3.11%

INFORMATION FOR FUTURE QUARTERS:


8
Units forecast
Price per unit forecast

121,132
$107.91

Units of plant capacity

100,000

Units of machine capacity

100,000

Other overhead

170,682

Depreciation: Machinery

598,125

Projects
Plant

161,706
1,568,750

Principal repayment on debt:


Short-term

2-year

312,500

3-year

Bonds

575,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$37.31

Rates on funding in quarter 8


Short-term

2-year loan
2.62%

2.84%

Interest due next quarter:


Short-term

$0

Intermediate

$214,129

Bonds

$411,123

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$9,660,523
9,403

$0

$9,669,926

$4,412,400

2,349,966
6,762,367
$6,762,366
399,581
6,362,786
$3,307,139
$1,483,026

$0
0
223,847
432,961
0
656,808

2,139,834
$1,167,305
0

$1,167,304
466,921
$700,383
0
$700,383
150,000
$550,383

$3,664,018

27,654,750
$31,318,768

$4,137,469

12,875,001
$17,012,470

14,306,298
$31,318,768

Accumulated Wealth

$40.63

Dividend Yield

1.47%

Marketable Security Yield

0.59%

Actual unit demand

115,856

Preferred dividend yield

5.13%

Return on equity

19.58%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

3.77%

3.80%

8.00%

10

11

119,208

102,426

110,375

$107.87

$100.59

$101.17

100,000

100,000

75,000

95,000

95,000

75,000

170,682

170,682

170,682

575,625

575,625

455,625

161,706

161,706

161,706

1,568,750

1,568,750

1,255,000

833,333

833,333

575,000

275,000

275,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$52.00 Plant

Next 40,000

Next 20,000
$27.31

3-year loan

$25.00

Bond
3.13%

Cost

Over 120,000
$33.00

Preferred
4.05%

Unit Capacity

5.13%

Overhead Saving

$570,480

100,000

$15,686

$422,784

120,000

($8,212)

$115.00
$0
1.00%

0
0
no

0
0
$0

$0

$359.00

Unit Labor sav., Qtr.8

Change/Qtr. Labor Sav.

$0.71

$0.04

$0.70

($0.01)

Results for company name: N&N


Decision Inputs for Quarter Number 8
Company Operating Decisions
Units to be produced

100,000

Div. per common share

$0.15

Demand/price forecast

$0

Investment Decisions
Short-term investment

($400,000)

Machine units bought


Project A

12,500
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

$3,000,000
$0

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 8
Sales revenue ( 105,318 units at $110.00 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 5,318 at $75.14 )

$0.00

Materials
Direct Labor

$1,500,000
3,331,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $73.30 )
Goods Available for Sale ( $73.40 per unit )
Less: Ending Inventory ( 0 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

$0
759,831
1,568,750
170,682

Income Before Taxes


Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.15 per share )
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 8
ASSETS
Current Assets
Cash

$494,544

Marketable Securities

1,192,779

Accounts Receivable

1,552,387

Inventory ( 0 units at $73.40 /UNIT )

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$4,177,169
26,536,500

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable

$500,168

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing

3,499,998

Bonds Maturing

1,399,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$0
4,666,667
8,850,001

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

7,036,550

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 8
HISTORICAL INFORMATION

Common share price

$43.52

Quarterly EPS

$0.88

Price earnings ratio

12.36

Actual unit price

$108.25

Preferred stock price

$19.49

Return on investment

10.37%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.62%

3.11%

INFORMATION FOR FUTURE QUARTERS:


9
Units forecast
Price per unit forecast

123,404
$108.32

Units of plant capacity

100,000

Units of machine capacity

107,500

Other overhead

170,682

Depreciation: Machinery

656,875

Projects
Plant

161,706
1,568,750

Principal repayment on debt:


Short-term

2-year

3-year

250,000

Bonds

575,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$37.26

Rates on funding in quarter 9


Short-term

2-year loan
2.70%

2.88%

Interest due next quarter:


Short-term

$0

Intermediate

$300,315

Bonds

$389,285

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$11,492,300
9,590

$399,581

$11,501,890

$4,831,000

2,499,262
7,330,263
$7,729,843
0
7,729,843
$3,772,046
$1,574,615

$0
0
319,226
411,123
0
730,349

2,304,964
$1,467,082
0

$1,467,081
586,832
$880,249
0
$880,249
150,000
$730,249

$3,239,710

30,713,669
$33,953,379

$5,400,162

13,516,667
$18,916,829

15,036,547
$33,953,379

Accumulated Wealth

$44.16

Dividend Yield

1.35%

Marketable Security Yield

0.80%

Actual unit demand

121,620

Preferred dividend yield

5.13%

Return on equity

23.42%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

3.68%

3.80%

8.00%

10

11

12

103,229

96,799

98,361

$100.24

$105.25

$102.47

112,500

87,500

87,500

107,500

87,500

77,500

170,682

170,682

170,682

656,875

536,875

484,375

161,706

161,706

161,706

1,805,625

1,491,875

1,491,875

1,083,333

1,083,333

1,083,333

275,000

275,000

275,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$44.00 Plant

Next 40,000

Next 20,000
$27.26

3-year loan

$25.00

Bond
3.11%

Cost

Over 120,000
$33.00

Preferred
3.90%

Unit Capacity

5.20%

Overhead Saving

$453,312

100,000

$13,078

$673,152

120,000

($10,364)

$110.00
$0
1.00%

0
12,500
no

0
0
$0

$0

$299.00

Unit Labor sav., Qtr.9

Change/Qtr. Labor Sav.

$0.56

$0.01

$1.12

($0.04)

Results for company name: N&N


Decision Inputs for Quarter Number 9
Company Operating Decisions
Units to be produced

100,000

Div. per common share

$0.10

Demand/price forecast

$0

Investment Decisions
Short-term investment

($600,000)

Machine units bought


Project A

12,500
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

$1,800,000
$0

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 9
Sales revenue ( 100,000 units at $110.00 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 )

$0.00

Materials
Direct Labor

$1,500,000
3,326,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $73.84 )
Goods Available for Sale ( $73.84 per unit )
Less: Ending Inventory ( 0 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

$0
818,581
1,568,750
170,682

Extraordinary Items
Income Before Taxes
Income Tax (rate is 40%)
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Common Stock Dividends ( $0.10 per share )
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 9
ASSETS
Current Assets
Cash

$491,370

Marketable Securities
Accounts Receivable
Inventory ( 0 units at $73.84 /UNIT )

592,779
1,474,000
0

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$3,908,588
28,955,250

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable

$499,668

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing

4,933,331

Bonds Maturing

1,099,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$0
4,633,334
8,575,001

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

7,680,657

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 9
HISTORICAL INFORMATION

Common share price

$41.71

Quarterly EPS

$0.74

Price earnings ratio

14.01

Actual unit price

$107.59

Preferred stock price

$19.24

Return on investment

8.40%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.70%

3.11%

INFORMATION FOR FUTURE QUARTERS:


10
Units forecast

101,176

Price per unit forecast

$99.06

Units of plant capacity

112,500

Units of machine capacity

120,000

Other overhead

170,682

Depreciation: Machinery

725,625

Projects
Plant
Principal repayment on debt:

161,706
1,805,625

Short-term

2-year

3-year

1,233,333

Bonds

275,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$37.21

Rates on funding in quarter 10


Short-term

2-year loan
1.89%

1.91%

Interest due next quarter:


Short-term

$0

Intermediate

$344,185

Bonds

$367,447

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$10,912,000
5,651

$0

$10,917,651

$4,825,999

2,558,012
7,384,013
$7,384,012
0
7,384,012
$3,533,638
$1,545,600

$0
0
358,576
389,285
0
747,861

2,293,461
$1,240,177

0
$1,240,176
496,070
$744,106
0
$744,106
100,000
$644,106

$2,558,148

32,863,838
$35,421,986

$6,532,995

13,208,334
$19,741,329

15,680,656
$35,421,986

Accumulated Wealth

$42.47

Dividend Yield

0.95%

Marketable Security Yield

0.95%

Actual unit demand

119,827

Preferred dividend yield

5.20%

Return on equity

18.98%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

3.60%

3.80%

8.00%

11

12

13

112,129

126,307

106,860

$105.15

$110.02

$111.27

100,000

100,000

100,000

100,000

90,000

80,000

170,682

170,682

170,682

605,625

553,125

495,625

161,706

161,706

161,706

1,691,250

1,691,250

1,691,250

1,233,333

1,233,333

1,233,333

275,000

275,000

275,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$48.00 Plant

Next 40,000

Next 20,000
$27.21

3-year loan

$25.00

Bond
1.93%

Cost

Over 120,000
$33.00

Preferred
1.98%

Unit Capacity

2.55%

Overhead Saving

$495,096

100,000

$15,892

$612,240

120,000

($8,547)

$110.00
$0
1.00%

0
12,500
no

0
0
$0

$0

$329.00

Unit Labor sav., Qtr.10

Change/Qtr. Labor Sav.

$0.61

$0.04

$1.02

($0.01)

Results for company name: N&N


Decision Inputs for Quarter Number 10
Company Operating Decisions
Units to be produced

112,500

Div. per common share

$0.00

Demand/price forecast

$0

Investment Decisions
Short-term investment

($500,000)

Machine units bought


Project A

0
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

($1,200,000)
$0

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 10
Sales revenue ( 103,178 units at $99.50 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 )

$0.00

Materials
Direct Labor

$1,687,500
3,633,500

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 112,500 at $73.07 )
Goods Available for Sale ( $73.07 per unit )
Less: Ending Inventory ( 9,322 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

$35,576
887,331
1,805,625
170,682

Income Before Taxes


Income Tax (rate is 40%)
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 10
ASSETS
Current Assets
Cash

$723,639

Marketable Securities
Accounts Receivable
Inventory ( 9,322 units at $73.07 /UNIT )

92,779
1,375,672
681,145

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$3,021,257
27,149,624

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable

$549,168

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing

3,649,999

Bonds Maturing

1,099,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$0
3,483,334
8,300,001

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

7,961,620

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 10
HISTORICAL INFORMATION

Common share price

$29.66

Quarterly EPS

$0.28

Price earnings ratio

26.39

Actual unit price

$100.66

Preferred stock price

$39.30

Return on investment

3.40%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
1.89%

3.11%

INFORMATION FOR FUTURE QUARTERS:


11
Units forecast
Price per unit forecast

111,220
$103.31

Units of plant capacity

100,000

Units of machine capacity

100,000

Other overhead

170,682

Depreciation: Machinery

605,625

Projects
Plant

161,706
1,691,250

Principal repayment on debt:


Short-term

2-year

3-year

33,333

Bonds

275,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$37.16

Rates on funding in quarter 11


Short-term

2-year loan
2.03%

2.05%

Interest due next quarter:


Short-term

$0

Intermediate

$256,640

Bonds

$357,003

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$10,184,081
922

$0

$10,185,003

$5,320,999

2,899,213
8,220,214
$8,220,213
681,145
7,539,068
$2,645,934
$1,509,204

$0
0
301,011
367,447
0
668,458

2,177,662
$468,272
0

$468,271
187,308
$280,963
0
$280,963
0
$280,963

$2,873,235

30,170,882
$33,044,117

$5,299,163

11,783,334
$17,082,497

15,961,620
$33,044,117

Accumulated Wealth

$30.44

Dividend Yield

0.00%

Marketable Security Yield

0.99%

Actual unit demand

99,425

Preferred dividend yield

2.54%

Return on equity

7.04%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

3.60%

3.80%

8.00%

12

13

14

115,296

138,968

145,798

$106.20

$109.46

$111.80

100,000

100,000

100,000

90,000

80,000

60,000

170,682

170,682

187,185

553,125

495,625

375,625

161,706

161,706

71,139

1,691,250

1,691,250

1,691,250

1,233,333

1,233,333

1,150,000

275,000

275,000

275,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$54.00 Plant

Next 40,000

Next 20,000
$27.16

3-year loan

$25.00

Bond
2.07%

Cost

Over 120,000
$33.00

Preferred
2.12%

Unit Capacity

2.66%

Overhead Saving

$722,640

100,000

$12,579

$633,552

120,000

($9,362)

$99.50
$0
1.00%

0
0
no

0
0
$0

$0

$366.00

Unit Labor sav., Qtr.11

Change/Qtr. Labor Sav.

$0.90

$0.01

$1.05

($0.03)

Results for company name: N&N


Decision Inputs for Quarter Number 11
Company Operating Decisions
Units to be produced

100,000

Div. per common share

$0.00

Demand/price forecast

$0

Investment Decisions
Short-term investment

($92,779)

Machine units bought


Project A

10,000
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

($3,000,000)
$0

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 11
Sales revenue ( 108,784 units at $104.00 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 9,322 at $73.07 )

$0.00

Materials
Direct Labor

$1,500,000
3,316,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $74.46 )
Goods Available for Sale ( $74.34 per unit )
Less: Ending Inventory ( 538 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

$538
767,331
1,691,250
170,682

Income Before Taxes


Income Tax (rate is 40%)
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 11
ASSETS
Current Assets
Cash

$518,505

Marketable Securities
Accounts Receivable
Inventory ( 538 units at $74.34 /UNIT )

0
1,516,014
39,995

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$2,793,926
25,458,374

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable

$498,668

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing

1,683,332

Bonds Maturing

1,099,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$0
2,416,667
8,025,001

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

8,603,148

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 11
HISTORICAL INFORMATION

Common share price

$35.34

Quarterly EPS

$0.64

Price earnings ratio

13.77

Actual unit price

$103.96

Preferred stock price

$37.64

Return on investment

8.46%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.03%

3.11%

INFORMATION FOR FUTURE QUARTERS:


12
Units forecast
Price per unit forecast

115,773
$107.14

Units of plant capacity

100,000

Units of machine capacity

100,000

Other overhead

170,682

Depreciation: Machinery

620,625

Projects
Plant

161,706
1,691,250

Principal repayment on debt:


Short-term

2-year

3-year

Bonds

275,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$37.11

Rates on funding in quarter 12


Short-term

2-year loan
2.01%

1.66%

Interest due next quarter:


Short-term

$0

Intermediate

$147,508

Bonds

$346,559

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$11,223,028
0

$681,145

$11,223,028

$4,815,999

2,629,800
7,445,801
$8,126,946
39,995
8,086,951
$3,136,076
$1,561,151

$0
0
148,707
357,003
0
505,710

2,066,861
$1,069,215
0

$1,069,214
427,685
$641,529
0
$641,529
0
$641,529

$2,074,511

28,252,300
$30,326,811

$3,281,996

10,441,667
$13,723,663

16,603,149
$30,326,811

Accumulated Wealth

$36.15

Dividend Yield

0.00%

Marketable Security Yield

0.98%

Actual unit demand

108,927

Preferred dividend yield

2.66%

Return on equity

15.46%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

3.60%

3.80%

8.00%

13

14

15

117,770

162,333

160,701

$110.31

$112.95

$119.31

100,000

100,000

100,000

90,000

70,000

45,000

170,682

187,185

200,000

563,125

443,125

283,750

161,706

71,139

1,691,250

1,691,250

1,691,250

616,667

1,066,667

275,000

275,000

275,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$57.00 Plant

Next 40,000

Next 20,000
$27.11

3-year loan

$25.00

Bond
1.82%

Cost

Over 120,000
$33.00

Preferred
2.15%

Unit Capacity

2.82%

Overhead Saving

$518,088

100,000

$13,215

$695,160

120,000

($8,523)

$104.00
$0
1.00%

0
0
no

0
0
$0

$0

$390.00

Unit Labor sav., Qtr.12

Change/Qtr. Labor Sav.

$0.64

$0.01

$1.15

($0.01)

Results for company name: N&N


Decision Inputs for Quarter Number 12
Company Operating Decisions
Units to be produced

100,000

Div. per common share

$0.00

Demand/price forecast

$0

Investment Decisions
Short-term investment

$0

Machine units bought


Project A

10,000
no

Financing Decisions
Short-term loans

$0

Two-year loans

$0

Three-year loans
Ten-year bonds

($2,500,000)
$0

Special Options
Strike settlement (per hr.)
Quarterly Performance Report
Quarter Number 12
Sales revenue ( 100,538 units at $108.00 )
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 538 at $74.34 )

$0.00

Materials
Direct Labor

$1,500,000
3,311,000

Total Direct Costs


Warehousing Costs
Depreciation: Mach. and Equip.
Plant
Other Overhead Costs
Total Indirect Costs
Production Costs ( 100,000 at $74.55 )
Goods Available for Sale ( $74.55 per unit )
Less: Ending Inventory ( 0 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

$0
782,331
1,691,250
170,682

Income Before Taxes


Income Tax (rate is 40%)
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 12
ASSETS
Current Assets
Cash

$547,587

Marketable Securities
Accounts Receivable
Inventory ( 0 units at $74.55 /UNIT )

0
1,454,986
0

Total Current Assets


Fixed Assets (net of depreciation
Machinery and Equipment
Plant

$2,581,595
23,767,124

Total Fixed Assets


Total Assets
LIABILITIES AND OWNER EQUITY

Current Liabilities
Accounts Payable

$498,168

Short Term Loans Payable

Short Term Penalty Loan

Intermediate Term Debt Maturing


Bonds Maturing

250,000
1,099,996

Total Current Liabilities


Long Term Liabilities
Intermediate Loans: 2 years
3 years
Bonds

$0
1,350,000
7,750,001

Total Long Term Liabilities


Total Liabilities
Owners' Equity
Preferred Stock ( 0 shares )

$0

Common Stock ( 1,000,000 shares )

8,000,000

Retained Earnings

9,403,127

Total Equity
Total Liabilities and Equity

Summary Data
Quarter Number 12
HISTORICAL INFORMATION

Common share price

$36.58

Quarterly EPS

$0.80

Price earnings ratio

11.43

Actual unit price

$107.92

Preferred stock price

$35.50

Return on investment

11.29%

Call premium: preferred

8.00%

Common tender or sell/sh

$0.00

Outstanding debt yields:


Short-term

2-year loan
2.01%

3.11%

INFORMATION FOR FUTURE QUARTERS:


13
Units forecast
Price per unit forecast

124,360
$110.38

Units of plant capacity

100,000

Units of machine capacity

100,000

Other overhead

170,682

Depreciation: Machinery

634,375

Projects
Plant

161,706
1,691,250

Principal repayment on debt:


Short-term

2-year

3-year

Bonds

275,000

Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials

$15.00

Units

First 60,000

Labor cost

$37.06

Rates on funding in quarter 13


Short-term

2-year loan
1.88%

1.53%

Interest due next quarter:


Short-term

$0

Intermediate

$57,564

Bonds

$336,115

Capital budgeting projects for next quarter:


Life
A

2-yr

3-yr

Per unit price


Advertising cost
Sales discount

Risk of S-T investment


Units of plant bought
Project B

Preferred shares
Common shares
Common tender price

Dollar penalty

$10,771,239
0

$39,995

$10,771,239

$4,811,000

2,644,262
7,455,263
$7,495,257
0
7,495,257
$3,275,981
$1,538,562

$0
0
57,564
346,559
0
404,123

1,942,684
$1,333,297
0

$1,333,296
533,318
$799,978
0
$799,978
0
$799,978

$2,002,572

26,348,719
$28,351,291

$1,848,164

9,100,000
$10,948,164

17,403,126
$28,351,291

Accumulated Wealth

$37.41

Dividend Yield

0.00%

Marketable Security Yield

0.99%

Actual unit demand

120,759

Preferred dividend yield

2.82%

Return on equity

18.39%

Bond call premium

8.00%

Unpaid preferred dividend/share

$0.00

3-year loan

Bonds

Penalty loan

3.60%

3.80%

8.00%

14

15

16

138,858

156,519

117,246

$116.19

$114.63

$107.10

100,000

100,000

100,000

80,000

55,000

45,000

187,185

200,000

200,000

514,375

355,000

288,750

71,139

1,691,250

1,691,250

1,691,250

250,000

275,000

275,000

275,000

First 2000

Next 5000
$1.00

Over 7000

$3.00

Machinery

$8.00

$65.00 Plant

Next 40,000

Next 20,000
$27.06

3-year loan

$25.00

Bond
1.68%

Cost

Over 120,000
$33.00

Preferred
2.06%

Unit Capacity

2.64%

Overhead Saving

$560,088

100,000

$16,487

$381,624

120,000

($8,657)

$108.00
$0
1.00%

0
0
no

0
0
$0

$0

$441.00

Unit Labor sav., Qtr.13

Change/Qtr. Labor Sav.

$0.69

$0.04

$0.63

($0.02)

Total Equity
Total Liabilites
Account Receivable
DE Ratio

Q1
$
$

11,190,512
5,707,500
#REF!
0.51

Q1
Capacity
Unit Produced
Actual Unit Demand
Sold Unit
Beginning inventory
Ending inventory

100000
#REF!
#REF!
97383
9809
12,426

Actual Unit Price


Decision Price Per Unit
Unit Plant
Unit Machine

#REF!
#REF!
100000
100000

Earning to common stockholder


Net Income
Dividend
Total Share
Quarterly EPS
Quarter ROE
Return on equity

#REF!
#REF!
#REF!
1000000
#REF!
#REF!
#REF!

Interest
Penalty Loan Interest

#REF!

Loan (Balance Sheet)


Short Term Penalty Loan

#REF!

Financing Decisions
Short-term loans

#REF!

Two-year loans

#REF!

Three-year loans

#REF!

Ten-year bonds

#REF!

Outstanding debt yields:


Short-term
2-year loan
3-year loan
Bonds
Penalty loan

#REF!
#REF!
#REF!
#REF!
#REF!

Rates on funding in next quarter


Short-term
2-year loan
3-year loan
Bond
Preferred

#REF!
#REF!
#REF!
#REF!
#REF!

Stock Price
Prefered Price

#REF!
#REF!

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

#REF!
#REF!
#REF!
#REF!
#REF!
#REF!

Total Financial Charge

Cost of Debt
Tax Rate
Risk Premium
Cost of Equity
Total Long-term Liabilites
Total Equity
Total LTL&E
Proportion of Debt
Proportion of Equity
WACC

#REF!
#REF!
40%
#REF!
#REF!
#REF!
11,190,512
#REF!
#REF!
#REF!
#REF!

Q2
$
$

Q3
11,963,263 $
11,153,841 $
#REF!
0.93

Q4
12,690,219 $
16,341,347 $
#REF!
1.29

Q5
12,841,082 $
15,702,324 $
#REF!
1.22

Q2

Q3

Q4

Q5

13,242,328
14,298,103
#REF!
1.08

#REF!
#REF!
#REF!
104228
12426
8,198

#REF!
#REF!
#REF!
108198
8,198
0

#REF!
#REF!
#REF!
95530
0
9470

#REF!
#REF!
#REF!
104362
9470
5108

#REF!
#REF!
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1000000
#REF!
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#REF!
#REF!
#REF!
1000000
#REF!
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#REF!
#REF!
#REF!
1000000
#REF!
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1000000
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#REF!
#REF!
#REF!
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#REF!
#REF!
40%
#REF!
#REF!
#REF!
11,963,263
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
40%
#REF!
#REF!
#REF!
12,690,219
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
40%
#REF!
#REF!
#REF!
12,841,082
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
40%
#REF!
#REF!
#REF!
13,242,328
#REF!
#REF!
#REF!
#REF!

Q6
$
$

Q7
13,755,916 $
18,451,011 $
#REF!
1.34

Q8
14,306,298 $
17,012,470 $
#REF!
1.19

Q9
15,036,547 $
18,916,829 $
#REF!
1.26

Q6

Q7

Q8

Q9

15,680,656
19,741,329
#REF!
1.26

#REF!
#REF!
#REF!
105108
5108
0

#REF!
#REF!
#REF!
84682
0
5318

#REF!
#REF!
#REF!
105318
5318
0

#REF!
#REF!
#REF!
100000
0
0

#REF!
#REF!
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#REF!
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1000000
#REF!
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1000000
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1000000
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1000000
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#REF!
#REF!
40%
#REF!
#REF!
#REF!
13,755,916
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
40%
#REF!
#REF!
#REF!
14,306,298
#REF!
#REF!
#REF!
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#REF!
#REF!
40%
#REF!
#REF!
#REF!
15,036,547
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
40%
#REF!
#REF!
#REF!
15,680,656
#REF!
#REF!
#REF!
#REF!

Q10
$
$

Q11
15,961,620 $
17,082,497 $
#REF!
1.07

Q12
16,603,149 $
13,723,663 $
#REF!
0.83

Q10

Q11

Q12

17,403,126
10,948,164
#REF!
0.63

#REF!
#REF!
#REF!
103178
0
9322

#REF!
#REF!
#REF!
108784
9322
538

#REF!
#REF!
#REF!
100538
538
0

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

#REF!
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#REF!
#REF!

#REF!
#REF!
#REF!
1000000
#REF!
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#REF!
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1000000
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1000000
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40%
#REF!
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15,961,620
#REF!
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#REF!
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40%
#REF!
#REF!
#REF!
16,603,149
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
40%
#REF!
#REF!
#REF!
17,403,126
#REF!
#REF!
#REF!
#REF!

Quarter
DE Ratio

Q1

Q2

Quarter
Total Equity

Q1
Q2
Q3
Q4
Q5
11190512 11963263 12690219 12841082 13242328

Quarter
Total Liabilites

Q1
Q2
Q3
Q4
Q5
5707500 11153841 16341347 15702324 14298103

0.51

Q3
0.93

Q4
1.29

Q5
1.22

1.08

Quarter
WACC

Q1

Q2
#REF!

Q3
#REF!

Q4
#REF!

Q5
#REF!

#REF!

Q6

Q7
1.34

Q8
1.19

Q9
1.26

Q10
1.26

Q11
1.07

Q12
0.83

0.63
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
Q1

Q6
Q7
Q8
Q9
Q10
Q11
Q12
13755916 14306298 15036547 15680656 15961620 16603149 17403126

Q6
Q7
Q8
Q9
Q10
Q11
Q12
18451011 17012470 18916829 19741329 17082497 13723663 10948164

Q2

Q6

Q7
#REF!

Q8
#REF!

Q9
#REF!

Q10
#REF!

Q11
#REF!

Q12
#REF!

#REF!

DE Ratio
1.60
1.40
1.20
1.00

DE Ratio

0.80
0.60
0.40
0.20
0.00
Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10 Q11 Q12

Total Equity
20000000
18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
Q1

Total Equity

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9 Q10 Q11 Q12

Total Liabilites
25000000
20000000
15000000

Total Liabilites

10000000
5000000
0
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12

15000000

Total Liabilites

10000000
5000000
0
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12

WACC
1200.00%
1000.00%
800.00%

WACC

600.00%
400.00%
200.00%
0.00%
Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10 Q11 Q12

Q1
Price
EPS
PE

Q2
#REF! $
#REF!
#REF!

Q3
Q4
52.73 $ 81.38 $
0.96
1.12
13.67
18.20

Q5
50.26 $
0.50
25.30

51.86
0.82
15.76

Y1
Total EPS

#REF!

Summary Information
Quarterly CAGR
Yearly CAGR
Min PE
AVG PE
Median PE
MAX PE

Forward EPS Q16 (w/Qu


Forward EPS Q16
Q12 PE

Forward PE Q16 (w/Qua


Year EPS

Min PE
AVG PE
Median PE
Max PE

Forward PE Q16 (w/Year


Year EPS

Min PE

AVG PE
Median PE
Max PE

Stock Price Median PE


#REF!

#REF!

Margin of Yearly
Safety
CAGR
#REF!

#REF!

Forward EPS
Q16
#REF!

Q6
$

Q7
60.49 $
0.80
18.84

Q8
65.34 $
1.13
14.48

Q9
67.98 $
1.33
12.83

Q10
61.66 $
1.14
13.50

Q11
39.88 $
57.54
0.53
0.87
18.69
16.59

Y2
4.08

mmary Information
uarterly CAGR
arly CAGR

#REF!
#REF!
#REF!
#REF!
#REF!
#REF!
Begin

rward EPS Q16 (w/Quarterly CAGR)


rward EPS Q16

Q1
0.87
3.41

16.59

rward PE Q16 (w/Quarterly CAGR)


#REF! Current Stock Price
PE

Stock Price
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

$57.54
Margin of Safety
#REF!
#REF!
#REF!
#REF!

rward PE Q16 (w/Yearly CAGR)


#REF! Current Stock Price
PE

Stock Price
#REF!

$57.54

Margin of Safety
#REF!
0.00%

Q2
#REF!

#REF!

#REF!
#REF!
#REF!

#REF!
#REF!
#REF!

#REF!
#REF!
#REF!

Q12
$
57.54
0.87
16.59
Y3
3.41

Q3

Q4
#REF!

SUM
#REF!
#REF!
#REF!

Capacity
Unit Produced
Actual Unit Demand
Sold Unit
Beginning inventory
Ending inventory

Q1
100,000
100,000
97,383
97,383
9,809
12,426

Q2
100,000
100,000
104,228
104,228
12,426
8,198

Q3
100,000
100,000
110,746
108,198
8,198
-

Actual Unit Price


Decision Price Per Unit
Unit Plant
Unit Machine

100.00
100.00
100,000
100,000

102.31
102.31
100,000
100,000

104.62
104.62
100,000
120,000

N&N tried to maintain production capacity of 100,000 units but which actually can't capture
Because of low capacity so their inventory is volatile sometime high sometime low. I doubt

Units
140,000
120,000
Capacity

100,000

Unit Produced

80,000

Actual Unit Dem

60,000

Sold Unit

40,000
20,000
-

Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10 Q11 Q12

Q4
105,000
105,000
95,530
95,530
9,470

Q5
100,000
100,000
104,362
104,362
9,470
5,108

Q6
100,000
100,000
109,051
105,108
5,108
-

Q7
90,000
90,000
115,856
84,682
5,318

Q8
100,000
100,000
121,620
105,318
5,318
-

99.34
99.34
120,000
105,000

102.31
102.31
125,000
100,000

103.96
105.00
100,000
120,000

106.27
115.00
100,000
90,000

108.25
110.00
100,000
100,000

hich actually can't capture the demand 8 quarters so in our opinion they set low capacity that they should incre
gh sometime low. I doubt about buy plant & machine because it is almost not relavance in most of quarter so I t

1 Q12

Price
120.00
Capacity
Unit Produced
Actual Unit Demand
Sold Unit

115.00
110.00
105.00
100.00
95.00
90.00
Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10

Q9
100,000
100,000
119,827
100,000
-

Q10
112,500
112,500
99,425
103,178
9,322

Q11
100,000
100,000
108,927
108,784
9,322
538

Q12
100,000
100,000
120,759
100,538
538
-

107.59
110.00
100,000
107,500

100.66
99.50
112,500
120,000

103.96
104.00
100,000
100,000

107.92
108.00
100,000
100,000

w capacity that they should increase about 5-10% to capture demand


elavance in most of quarter so I think they can better on adjust timing to invest in plant and machine in the futu

Price

Actual Unit Price


Decision Price Per Unit

Q6

Q7

Q8

Q9

Q10

Q11

Q12

nt and machine in the future

Q1

Q2

Q3

Cash on hand
Marketable Securities
Account Receivable
Inventory
S-T Loan Penalty

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!
#REF!

Current Assets
Current Liabilites
Current Ratio
Quick Ratio

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

After Q5 they maintain cash around $500,000, I think it because of S-T Loan Penalty from Q
May be they can do better than this by less account receivable to repay loan for better perf

Current Assets Items


12
10

Cash on hand

Marketable Securities
Account Receivable

Inventory

4
2
-

Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10

Q11

Q12

Current Assets vs Current Liabilities


12
10
8

Current Assets
Current Liabilites

6
4
2
-

Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10

Q11

Q12

Current Assets
Current Liabilites

6
4
2
-

Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10

Q11

Q12

Q4

Q5

Q6

Q7

Q8

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

Loan Penalty from Q2 - Q5 so they decide to keep more cash. After Q9 their current ratio is rising. It is a good sig
y loan for better performance.

Current Ratio
12.00
10.00

sh on hand

rketable Securities

count Receivable

entory

8.00

Curr

6.00
4.00
2.00
0.00
Q1

es

Current Assets
Current Liabilites

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10 Q11 Q12

Current Assets
Current Liabilites

Q9

Q10

Q11

Q12

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

#REF!
#REF!
#REF!
#REF!

ising. It is a good sign for future that they will less have liquidity problem in the future

Current Ratio

Q11 Q12