finnews q3

Results for company name: FIN-NEWS

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 $0

Machine units bought 0

Project A no

Financing Decisions

Short-term loans $0

Two-year loans $0

Three-year loans $0

Ten-year bonds $0

Special Options

Strike settlement (per hr.) $0.00

Quarterly Performance Report

Quarter Number 2

Income from securities

Cost of Goods Sold:

Beginning Inventory: ( 12,426 at $70.78 )

Sales revenue ( 104,001 units at $100.00 )

Materials 1,500,000

Direct Labor 3,500,000

Total Direct Costs 5,000,000

Warehousing Costs 28,400

Depreciation: Mach. and Equip. 478,125

Plant 1,300,000

Other Overhead Costs 200,000

Total Indirect Costs 2,006,525

Cost of Goods Sold

Gross Profit

Selling and administrative expenses

Financial Expenses:

Short Term Bank Interest $0

Penalty Loan Interest 0

Intermediate Term Loan Interest 83,030

Bond Interest 33,600

Bond Redemption Costs 0

Total Financial Charges

Operating Income Before Extraordinary Items

Extraordinary Items

Production Costs ( 100,000 at $70.07 )

Goods Available for Sale ( $70.14 per unit )

Less: Ending Inventory ( 8,425 units )

Extraordinary Items

Income Before Taxes

Income After Taxes

Preferred Stock Dividind

Earnings to Common Stockholders

Net Income Transferred to Retained Earnings

Position Statement

Quarter Number 2

ASSETS

Current Assets

Cash 1,213,213

Marketable Securities 200,000

Accounts Receivable 6,968,067

590,964

Total Current Assets 8,972,242

Machinery and Equipment 1,530,000

Plant 17,355,250

Total Fixed Assets 18,885,250

Total Assets 27,857,492

LIABILITIES AND OWNER EQUITY

Income Tax (rate is 10%)

Common Stock Dividends ( $0.00 per share )

Inventory ( 8,425 units at $70.14 /UNIT )

Fixed Assets (net of depreciation

Current Liabilities

Accounts Payable 520,000

Short Term Loans Payable 0

Short Term Penalty Loan 0

Intermediate Term Debt Maturing 1,550,000

Bonds Maturing 1,200,000

Total Current Liabilities 3,270,000

Long Term Liabilities

Intermediate Loans: 2 years 625,000

3 years 0

Bonds 900,000

Total Long Term Liabilities 1,525,000

Total Liabilities 4,795,000

Owners' Equity

0

18,177,460

Retained Earnings 4,885,032

Total Equity 23,062,492

Total Liabilities and Equity 27,857,492

Summary Data

Quarter Number 2

HISTORICAL INFORMATION

Preferred Stock ( 0 shares )

Common Stock ( 1,280,000 shares )

Common share price 65.51 Accumulated Wealth

Quarterly EPS 1.03 Dividend Yield

Price earnings ratio 15.83 Marketable Security Yield

Actual unit price 101.65 Actual unit demand

Preferred stock price 41.63 Preferred dividend yield

Return on investment 19.01% Return on equity

Call premium: preferred 8.00% Bond call premium

Common tender or sell/sh 36.35 Unpaid preferred dividend/sha

Outstanding debt yields:

Short-term 2-year loan 3-year loan

2.00% 3.11% 2.50%

INFORMATION FOR FUTURE QUARTERS:

3 4

Units forecast 91,414 108,024

Price per unit forecast 99.19 108.23

Units of plant capacity 100,000 140,000

Units of machine capacity 100,000 75,000

Other overhead 200,000 200,000

Depreciation: Machinery 478,125 384,375

Projects 0 0

Plant 1,300,000 1,874,500

Principal repayment on debt:

Short-term 0 0

Short-term 0 0

2-year 312,500 312,500

3-year 300,000 0

Bonds 300,000 300,000

Warehouse fees:

Units First 2000

Cost/Unit 1

Production costs per unit next quarter:

Materials 15 Machinery

Units First 60,000 Next 40,000

Labor cost 39 29

Rates on funding in quarter 3

Short-term 2-year loan 3-year loan

1.81% 1.76% 1.70%

Interest due next quarter:

Short-term 0

Intermediate 65,812

Bonds 29,400

Capital budgeting projects for next quarter:

Life Cost

A 2-yr 499,248

B 3-yr 482,424



Per unit price $100.00

Advertising c $0

Sales discoun 0.00%


Risk of S-T i 0

Units of plan 40,000

Project B no

Financing Decisions

Preferred sha 0

Common shar 280,000

Common tende $40

Special Options

Dollar penalt $0


Quarter Number 2

10,400,100

2,571 10,402,671

879,492

7,006,525

7,886,016

590,964

7,295,053

3,107,618

1,520,005

116,630 1,636,635

1,470,983

0

0

1,470,983

147,098

1,323,885

0

1,323,885

0

1,323,885

Position Statement

Quarter Number 2

11,240,000.00

Summary Data

Quarter Number 2

65.61

0.00%

1.29%

102,285

2.40%

22.96%

8.00%

$0.00


Bonds Penalty loan

1.40% 8.00%


5 6

100,599 116,094

104.91 100.22

120,000 90,000

60,000 60,000

200,000 200,000

311,250 311,250

0 0

1,563,500 1,242,000


0

0

312,500 312,500

0 0

300,000 300,000

Next 5000 Over 7000

3 8


52 Plant 359

Next 20,000Over 120,000

25 33


Bond Preferred

1.59% 2.17%


Unit CapacityOverhead SavingUnit Labor sav., Qtr.3 Change/Qtr. Labor Sav.

100,000 13,320 0.62 0.01

120,000 -8,254 0.8 -0.01


Company Operating DecisionsUnits to be produced 100,000 Per unit priceDiv. per common share $0.00 Advertising costDemand/price forecast $0 Sales discount

Investment DecisionsShort-term investment $0 Risk of S-T investmentMachine units bought 0 Units of plant boughtProject A no Project B

Financing DecisionsShort-term loans $0 Preferred sharesTwo-year loans $0 Common sharesThree-year loans $0 Common tender priceTen-year bonds $0

Special OptionsStrike settlement (per hr.) $0.00 Dollar penalty


Company Operating Decisions $100.00 $0

0%

Investment Decisions0

40,000 no

Financing Decisions $ - $ 280,000 $40

Special Options $0


Quarter Number 2

Sales revenue ( 104,001 units at $100.00 ) $ 10,400,100 Income from securities $ 2,572 Cost of Goods Sold: Beginning Inventory: ( 12,426 at $70.78 ) $ 879,492 Materials $ 1,500,000 Direct Labor $ 3,500,000 Total Direct Costs $ 5,000,000 Warehousing Costs $ 28,400 Depreciation: Mach. and Equip. $ 478,125 Plant $ 1,300,000 Other Overhead Costs $ 200,000 Total Indirect Costs $ 2,006,525 Production Costs ( 100,000 at $70.07 ) $ 7,006,525 Goods Available for Sale ( $70.14 per unit ) $ 7,886,017 Less: Ending Inventory ( 8,425 units ) $ 590,964 Cost of Goods SoldGross ProfitSelling and administrative expensesOperating Income Before Interest and Taxes (EBIT)Financial Expenses: Short Term Bank Interest $0 Penalty Loan Interest $ - Intermediate Term Loan Interest $ 83,030 Bond Interest $ 33,600 Bond Redemption Costs $ - Total Financial ChargesOperating Income Before Extraordinary ItemsExtraordinary ItemsIncome Before TaxesIncome Tax (rate is 10%)Income After Taxes Preferred Stock DividindEarnings to Common StockholdersCommon Stock Dividends ( $0.00 per share )Net Income Transferred to Retained Earnings

Position Statement

Quarter Number 2

ASSETSCurrent Assets Cash $ 1,213,213 Marketable Securities $ 200,000

Accounts Receivable $ 6,968,067 Inventory ( 8,425 units at $70.14 /UNIT ) $ 590,964 Total Current Assets $ 8,972,244 Fixed Assets (net of depreciation Machinery and Equipment $ 1,530,000 Plant $ 17,355,250 Total Fixed Assets $ 18,885,250 Total Assets $ 27,857,494

LIABILITIES AND OWNER EQUITYCurrent Liabilities Accounts Payable $ 520,000 Short Term Loans Payable $ - Short Term Penalty Loan $ - Intermediate Term Debt Maturing $ 1,550,000 Bonds Maturing $ 1,200,000 Total Current Liabilities $ 3,270,000 Long Term Liabilities Intermediate Loans: 2 years $ 625,000 3 years $ - Bonds $ 900,000 Total Long Term Liabilities $ 1,525,000 Total Liabilities $ 4,795,000

Owners' Equity

Preferred Stock ( 0 shares ) $ - Common Stock ( 1,280,000 shares ) $ 18,177,460 Retained Earnings $ 4,885,032 Total Equity $ 23,062,492 Total Liabilities and Equity $ 27,857,492


Quarter Number 2

$ 10,402,672

$ 7,295,053 $ 3,107,619 $ 1,520,005 $ 1,587,614

$ 116,630 $ 1,470,984 $ - $ 1,470,984 $ 588,394 $ 882,590 $ - $ 882,590 $ - $ 882,590

Position Statement

Quarter Number 2

Summary Data

Quarter Number 2

HISTORICAL INFORMATIONCommon share price $ 65.51 Quarterly EPS $ 1.03 Price earnings ratio 15.83Actual unit price $ 101.65 Preferred stock price $ 41.63 Return on investment 19.010%Call premium: preferred 8.000%Common tender or sell/sh $ 36.35 Outstanding debt yields:

Short-term 2-year loan 3-year loan2.002% 3.110% 2.500%


3 4Units forecast 91,414 108,024 Price per unit forecast $ 99.19 $ 108.23 Units of plant capacity 100,000 140,000 Units of machine capacity 100,000 75,000 Other overhead $ 200,000 $ 200,000 Depreciation: Machinery $ 478,125 $ 384,375 Projects $ - $ - Plant $ 1,300,000 $ 1,874,500 Principal repayment on debt: Short-term $ - $ - 2-year $ 312,500 $ 312,500 3-year $ 300,000 $ - Bonds $ 300,000 $ 300,000 Warehouse fees: Units First 2000 Cost/Unit $ 1.00 Production costs per unit next quarter:

Materials $ 15.00 Machinery Units First 60,000 Next 40,000

Labor cost $ 39.00 $ 29.00 Rates on funding in quarter 3

Short-term 2-year loan 3-year loan1.810% 1.755% 1.701%

Interest due next quarter: Short-term $ -

Intermediate $ 65,812 Bonds $ 29,400 Capital budgeting projects for next quarter:

Life CostA 2-yr $ 499,248 B 3-yr $ 482,424

Direct Labor Cost TableRange of Production

0 to 60,000 60,000 to 100,000 100,000 to 120,000 120,000 and up

Warehousing Cost TableInventory Levels

0 to 2,0002000 to 7,000

7,000 and up

Summary Data

Quarter Number 2

Accumulated Wealth $ 65.61 Dividend Yield 0.000%Marketable Security Yield 1.286%Actual unit demand 102285Preferred dividend yield 2.400%Return on equity 22.960%Bond call premium 8.000%Unpaid preferred dividend/share $0.00

Bonds Penalty loan1.400% 8.000%


5 6100,599 116,094

$ 104.91 $ 100.22 120,000 90,000

60,000 60,000 $ 200,000 $ 200,000 $ 311,250 $ 311,250 $ - $ - $ 1,563,500 $ 1,242,000

$ - $ - $ 312,500 $ 312,500 $ - $ - $ 300,000 $ 300,000

Next 5000 Over 7000 $ 3.00 $ 8.00

$ 52.00 Plant Rs. 359.00Next 20,000 Over 120,000

$ 25.00 $ 33.00

Bond Preferred1.593% 2.171%

Unit Capacity Overhead Saving Unit Labor sav., Qtr.3 Change/Qtr. Labor Sav. 100,000 $ 13,320.00 $ 0.62 $ 0.01 120,000 $ (8,254.00) $ 0.80 $ (0.01)

Direct Labor Cost TableMarginal Cost/Unit Direct Labor Cost $ 39.00 $ 3,822,000 $ 29.00 $ 3,442,000 $ 25.00 $ 3,450,000 $ 33.00 $ 3,274,000

Warehousing Cost TableMarginal Cost/Unit Warehouse Cost $ 1.00 $ 10,028 $ 3.00 $ 26,084 $ 8.00 $ 41,224

Production Plan for next 4 Quarters3 4 5 6

Beg. Inv 8,425 10,028 4,232 18,984 Production 98,000 100,000 120,000 100,000 Est. Sales 96,397 105,796 105,247 116,094 Ending Inv 10,028 4,232 18,984 2,890

Over Prod Limit Over Prod Limit Over Prod LimitProduction Capacities

PlantExisting 100,000 140,000 120,000 90,000 1st Addition 60,000 60,000 2nd Addition - Total 100,000 140,000 180,000 150,000

MachinesExisting 100,000 75,000 60,000 60,000 1st Addition 20,000 20,000 20,000 2nd Addition - - 3rd Addition - Total 100,000 95,000 80,000 80,000

PurchasesPlantUnits 60,000 - - Cost $ 21,790,000 $ - $ - $ -

MachineryUnits 20,000 - - - Cost $ 1,040,000 $ - $ - $ -

Total Cost $ 22,830,000 $ - $ - $ -

Unit Sales Forecasts

4 Quarter 116,094 116,094 3 Quarter 100,599 100,599 2 Quarter 108,024 108,024 1 Quarter 91,414 Exp. Sales 96,397 105,796 105,247 116,094

Unit Price Forecasts

4 Quarter $ 100.22 $ 100.22 3 Quarter $ 104.91 $ 104.91

2 Quarter $ 108.23 $ 108.23 1 Quarter $ 99.19 Exp. Sales 101.90 107.23 103.50 100.22

Issuing Stock

Common Stock:Current Stock Price: $ 65.51 Per Share Reciepts $ -

# of Shares Outstanding: 1,200,000 $ -

$ 18,177,460.00 1,200,000

# of Shares Offered: - $ 18,177,460.00

Total Cash Inflow From Stock Issue:

Current Common Stock Cash Value

Total Shares Outstanding After Issue Decision:

Total Cash Value of Stock After Issue Decision:

Proforma Decisions for next quarterQuarter Number 3

Assumptions for next quarter (Not part of the decision set)Next Quarter 3Units Sold (assumed) 96,397 Price per unit (assumed) $ 100.00 Return of marketable securities 1.33%

Company Operating DecisionsUnits to be produced 98,000 Per unit priceDiv. per common share $ - Advertising costDemand/price forecast N/A Sales discount

Investment DecisionsShort-term investment $ - Risk of S-T investmentMachine units bought 20,000 Units of plant boughtProject A 0 Project B

Financing DecisionsShort-term loans $ - Preferred sharesTwo-year loans $ - Common sharesThree-year loans Common tender priceTen-year bonds

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

Proforma Decisions for next quarterQuarter Number 3

Company Operating Decisions$100.00

N/A0%

Investment Decisions0

60,000 0

Financing Decisions $ - $ - $ -

Special OptionsN/A

Proforma Quarterly Performance Report

Quarter Number: 3

Sales revenue 96,397 $100.00 $ 9,639,700 Income from securities $ 2,656 Cost of Goods Sold: Beginning Inventory: (units @ $ per unit) 8,425 $ 70.14 $ 590,964 Materials $ 1,470,000 Direct Labor $ 3,442,000 Total Direct Costs $ 4,912,000 Warehousing Costs $ 41,224 Depreciation: Mach. and Equip. $ 478,125 Plant $ 1,300,000 Other Overhead Costs $ 200,000 Total Indirect Costs $ 2,019,349 Production Costs (units @ $ per unit) 98,000 $ 70.73 $ 6,931,349 Goods Available for Sale (units @ $ per unit) 106,425 $ 70.68 $ 7,522,313 Less: Ending Inventory 10,028 $ 708,797 Cost of Goods SoldGross ProfitSelling and administrative expensesEarnings before intrest and taxes (EBIT)Financial Expenses: Short Term Bank Interest $ - Penalty Loan Interest $ 476,303 Intermediate Term Loan Interest $ 65,812 Bond Interest $ 29,400 Bond Redemption Costs $ - Total Financial ChargesOperating Income Before Extraordinary ItemsExtraordinary ItemsIncome Before TaxesIncome Tax Income After Taxes Preferred Stock DividendsEarnings to Common StockholdersCommon Stock Dividends 1,200,000 shares outstandingNet Income Transferred to Retained Earnings

Position Statement

Quarter Number: 3

ASSETS

Current Assets Cash $ (19,015,051) Marketable Securities $ 200,000 Accounts Receivable $ 6,458,599 Inventory $ 708,797 Total Current Assets $ (11,647,655)Fixed Assets (net of depreciation) Machinery and Equipment $ 2,091,875 Plant $ 37,845,250 Total Fixed Assets $ 39,937,125 Total Assets $ 28,289,470

LIABILITIES AND OWNER EQUITYCurrent Liabilities Accounts Payable $ 511,200 Short Term Loans Payable $ - Short Term Penalty Loan $ - Intermediate Term Debt Maturing $ 1,133,333 Bonds Maturing $ 900,000 Total Current Liabilities $ 2,544,533 Long Term Liabilities Intermediate Loans: 2 years $ 416,667 3 years $ - Bonds $ 675,000 Total Long Term Liabilities $ 1,091,667 Total Liabilities $ 3,636,200

Owners' Equity

Preferred Stock ( 0 shares ) $ - Common Stock ( 1,000,000 shares ) $ 18,177,460 Retained Earnings $ 5,582,838 Total Equity $ 23,760,298 Total Liabilities and Equity $ 27,396,498

Proforma Quarterly Performance Report

$ 9,642,356

$ 6,813,516 $ 2,828,840 $ 1,481,985 $ 1,346,855

penalty loan problem

$ 571,515 $ 775,340 $ - $ 775,340 $ 77,534 $ 697,806 $ - $ 697,806 $ - $ 697,806

Position Statement

cash problem

short term penalty loan problem 6351455 $ 476,303

debt schedule prob 19015051.4

Proforma Cash BudgetQuarter Number 3

Cash sales (33% of Sales) $ 3,181,101 $ 6,968,067 $ 2,656

Extraordinary Gain $ - Sales of Marketable Securities $ -

$ - $ - $ - $ - $ - TBA $ -

$ 10,151,824

Net Flow (total inflows – total outflows) $ (20,228,264) $ 1,213,213 $ (19,015,051)

Cash Inflows

Accounts Receivable collected Income from Marketable Securities

Issuance of: Short-Term Loans Penalty Loans Two-Year Loans Three-Year Loans Long-Term Debt Preferred Stock Common Stock Total Inflows

Beginning Cash Balance Ending Cash Balance

Proforma Cash BudgetQuarter Number 3

$ 1,323,000 $ 3,097,800 $ 41,224 $ 180,000 $ 520,000

$ - $ - $ 65,812 $ 29,400 $ - $ 1,481,985

Machinery Purchased $ 1,040,000 TBA

Plant Additions Purchased $ 21,790,000 Extraordinary Loss $ - Income Tax $ 77,534 Preferred Stock Dividends $ - Common Stock Dividends $ - Purchase of Marketable Securities $ -

$ - $ - $ 208,333 $ 300,000 $ 225,000 TBA $ -

$ 30,380,088

Cash Outflows Production Cash Flows Materials (90% cash) Direct Labor (90% cash) Warehousing Fees Other Overhead Charges (90% cash) Accounts Payable PaymentsFinancial Expenses: Short-Term Loan Interest: Bank Shark Loan Inc. Intermediate-Term Loan Interest Bond Interest Bond Redemption Costs Selling and Administrative Expenses

Capital Budgeting Projects Purchased

Payments and Retirement of: Short-Term Loans Penalty Loans Two-Year Loans Three-Year Loans Debentures Preferred Stock Common Stock Total Outflows

Details of Debt at beginning of Quarter Number 3

Principle Maturity Date Current Portion Short-term Debt

$ -

Total $ - $ -

2yr Debt $ 625,000 9 $ 208,333 $ 833,333

Total $ 208,333 $ 833,333

3yr Debt $ - 13 $ - $ - $ 600,000 4 $ 300,000 $ 300,000 $ - 18 $ - $ -

Total $ 300,000 $ 300,000

10yr Debt $ - 0 $ - $ -

42 $ - $ - $ 900,000 10 225,000.00 $ 900,000

Total $ 225,000 $ 900,000

Change in Debt for Next QuarterNew DebtShort-term $ - 6 $ - $ - 2yr $ - 10 $ - $ - 3yr $ - 14 $ - $ - 10yr $ - 42 $ - $ -

Debt RetirementShort-term $ - $ - $ - 2yr $ - $ - $ - 3yr $ - $ - $ - 10yr $ - $ - $ -

Repayment Totals Proforma TotalsShort-term $ - $ - $ - 2yr $ 1,458,333 $ 208,333 $ 833,333 3yr $ 600,000 $ 300,000 $ 300,000 10yr $ 1,800,000 $ 225,000 $ 900,000

Iterest on New Debt

Next Quarterley Repayment

Debt offering premium 0.00%Short-term $ - 2yr $ - 3yr $ - 10yr $ -

Details of Debt at beginning of Quarter Number 3

$ -

$ 416,667

$ 416,667

$ - $ - $ -

$ -

$ - $ - $ 675,000 $ 675,000

Change in Debt for Next Quarter

$ - $ - $ - $ -

$ - $ - $ - $ -

$ - $ 416,667 $ - $ 675,000

Long-term portion

Ratio AnalysisQtr 2 Proforma Qtr 3

Liquidity RatiosCurrent Ratio 2.74 Times -4.58 TimesQuick Ratio 2.56 Times -4.86 Times

Efficiency RatiosInventory Turnover 49.38 Times 38.45 TimesDays Sales in Inventory 7.29 days 9.36 daysAccount Receivable Turnover 5.97 Times 5.97 TimesAverage Collection Period 60.29 days 60.28 daysFixed Asset Turnover 2.20 Times 0.97 TimesTotal Asset Turnover 1.49 Times 1.36 Times

Leverage RatiosTotal Debt Ratio 17.21% 12.85%Long-Term Debt Ratio 5.47% 3.86%LTD to Total Capitalization 7.74% 5.67%Debt to Equity 0.21 Times 0.15 TimesLTD to Equity 0.08 Times 0.06 Times

Converage RatiosTimes Interest Earned 13.61 Times 2.36 TimesCash Coverage Ratio 28.86 Times 5.47 Times

Profitablility RatiosGross Profit Margin 29.87% 29.34%Operating Profit Margin 15.26% 13.97%Net Profit Margin 8.48% 7.24%Return on Total Assets 12.67% 9.87%Return on Equity 15.31% 11.75%Return on Common Equity 15.31% 11.75%

Du Pont Analysis of ROE

Net Profit Margin 8.48% 7.24%x Total Asset Turnover 1.49 Times 1.36 Timesx Equity Multiplier 1.21 Times 1.15 TimesROE 15.31% 11.38%

Altman Z scoreFactors Weights

NWC/Total Assets 0.2047 1.2Retained Earnings/ Total Assets 0.0317 1.4

EBIT/Total Assets 0.2280 3.3Market Value Equity/BV Debt 13.6621 0.6Sales/ Total Assets 1.4937 1

Z-Score 10.73

Weighted Average Cost of CapitalSources Value Weight Before Tax After Tax WACCShort Term Debt $ - 0.00% 1.81% 1.09% 0.00%2yr Debt $ 1,458,333 2.10% 1.76% 1.05% 0.02%3yr Debt $ 600,000 0.86% 1.70% 1.02% 0.01%10yr Debt $ 1,800,000 2.59% 1.59% 0.96% 0.02%Preferred $ - 0.00% 2.17% 2.17% 0.00% risk prem 0.58%Common $ 65,510,000 94.44% 2.75% 2.75% 2.60%TOTAL $ 69,368,333 100% 2.65%

WACC= 2.65%

NPV AnalysisLife of Proj Cost

Proj A 2-yr $ 499,248 Proj B 3-yr $ 482,424

Proj A Quarter 1 2 3 4∆ Sales $ - $ - $ - $ -

minus ∆ Var Cost $ (60,760) $ (63,000) $ (76,800) $ (65,000)minus ∆ Fix Cost $ (13,320) $ (13,320) $ (13,320) $ (13,320)minus ∆ Depreciation $ 62,406 $ 62,406 $ 62,406 $ 62,406

= ∆ Net Oper. Income $ 11,674 $ 13,914 $ 27,714 $ 15,914 minus ∆ Taxes $ 1,167 $ 1,391 $ 2,771 $ 1,591

= ∆ Net Income $ 10,507 $ 12,523 $ 24,943 $ 14,323 plus ∆ Depreciation $ 62,406 $ 62,406 $ 62,406 $ 62,406

= ∆ ATCF $ 72,913 $ 74,929 $ 87,349 $ 76,729

Proj B Quarter 1 2 3 4∆ Sales $ - $ - $ - $ -

minus ∆ Var Cost $ (78,400) $ (79,000) $ (93,600) $ (77,000)minus ∆ Fix Cost $ 8,254 $ 8,254 $ 8,254 $ 8,254 minus ∆ Depreciation $ 40,202 $ 40,202 $ 40,202 $ 40,202

= ∆ Net Oper. Income $ 29,944 $ 30,544 $ 45,144 $ 28,544 minus ∆ Taxes $ 2,994 $ 3,054 $ 4,514 $ 2,854

= ∆ Net Income $ 26,950 $ 27,490 $ 40,630 $ 25,690 plus ∆ Depreciation $ 40,202 $ 40,202 $ 40,202 $ 40,202

= ∆ ATCF $ 67,152 $ 67,692 $ 80,832 $ 65,892

Quarter Project A Project B Project Recommendation0 $ (499,248) $ (482,424) Project A NO1 $ 72,913 $ 67,152 Prroject B YES2 $ 74,929 $ 67,692 3 $ 87,349 $ 80,832 4 $ 76,729 $ 65,892 5 $ 77,629 $ 64,992 6 $ 78,529 $ 64,092 7 $ 79,429 $ 63,192 8 $ 80,329 $ 62,292 9 $ 61,392

10 $ 60,492 11 $ 59,592 12 $ 58,692

NPV $ 59,250 $ 178,859 IRR 5.34% 10.72%

NPV Analysis

5 6 7 8 $ - $ - $ - $ - $ (66,000) $ (67,000) $ (68,000) $ (69,000) $ (13,320) $ (13,320) $ (13,320) $ (13,320) $ 62,406 $ 62,406 $ 62,406 $ 62,406 $ 16,914 $ 17,914 $ 18,914 $ 19,914 $ 1,691 $ 1,791 $ 1,891 $ 1,991 $ 15,223 $ 16,123 $ 17,023 $ 17,923 $ 62,406 $ 62,406 $ 62,406 $ 62,406 $ 77,629 $ 78,529 $ 79,429 $ 80,329

5 6 7 8 9 10 $ - $ - $ - $ - $ - $ - $ (76,000) $ (75,000) $ (74,000) $ (73,000) $ (72,000) $ (71,000) $ 8,254 $ 8,254 $ 8,254 $ 8,254 $ 8,254 $ 8,254 $ 40,202 $ 40,202 $ 40,202 $ 40,202 $ 40,202 $ 40,202 $ 27,544 $ 26,544 $ 25,544 $ 24,544 $ 23,544 $ 22,544 $ 2,754 $ 2,654 $ 2,554 $ 2,454 $ 2,354 $ 2,254 $ 24,790 $ 23,890 $ 22,990 $ 22,090 $ 21,190 $ 20,290 $ 40,202 $ 40,202 $ 40,202 $ 40,202 $ 40,202 $ 40,202 $ 64,992 $ 64,092 $ 63,192 $ 62,292 $ 61,392 $ 60,492

11 12 $ - $ - $ (70,000) $ (69,000) $ 8,254 $ 8,254 $ 40,202 $ 40,202 $ 21,544 $ 20,544 $ 2,154 $ 2,054 $ 19,390 $ 18,490 $ 40,202 $ 40,202 $ 59,592 $ 58,692

Results for company name: FIN-NEWS



Units to b 100,000 Per unit pr $100.00

Div. per $0.10 Advertisin $0

Demand/pr $0 Sales disc 0.00%


Short-ter $200,000 Risk of S- 0

Machine un 0 Units of p 0

Project A no Project B no

Financing Decisions

Short-term $0 Preferred 0

Two-year ,500,000 Common s 0

Three-year $0 Common te $0

Ten-year $0

Special Options

Strike sett $0.00 Dollar pen $0


Quarter Number 1

,738,300

Income fro 2,655 ,740,955

Cost of Go

Beginnin $733,567

Materia,500,000

Direct ###

Sales revenue ( 97,383 units at $100.00 )

Direct ###

Tota ,000,000

Wareho $60,408

Deprec 478,125

###

Other 200,000

Tota ###

###

,772,100

879,492

Cost of Go ###

Gross Profi ,848,347

Selling an ,486,915

Financial

Short Te $0

Penalty 0

Intermed 92,749

Bond Int 33,600

Bond Re 0

Total Fina 126,349 ###

Operating ,235,083

Extraordin 0

Income Be ,235,083

123,508

Income Aft ,111,575

Production Costs ( 100,000 at $70.39 )

Goods Available for Sale ( $70.78 per unit )

Less: Ending Inventory ( 12,426 units )

Income Tax (rate is 10%)

Income Aft ,111,575

Preferre 0

Earnings ,111,575

100,000

Net Income 1,011,575

Position Statement

Quarter Number 1

ASSETS

Current As

Cash $491,120

Marketa 200,000

Accoun ###

879,492

Tot ,095,272

Machin ,008,125

Plant ###

Tot ###

7,268,647

LIABILITI

Current Lia

Accoun$520,000

Short 0

Short 0

Interm ###

Common Stock Dividends ( $0.10 per share )

Inventory ( 12,426 units at $70.78 /UNIT )

Fixed Assets (net of depreciation

Interm ###

Bonds ###

Tota ,570,000

Long Term

Interm $937,500

0

Bonds ###

Tot ###

T ,707,500

Owners' Eq

$0

###

Retain ###

Total Equi ###

7,268,647

Summary Data

Quarter Number 1

HISTORICA

Common sh$43.47 Accumulat $43.57

Quarterly $1.11 Dividend Y 0.93%

Price earni 9.78 Marketable 1.33%

Actual unit$100.00 Actual un 97,383

Preferred $32.15 Preferred 3.11%

Return on 25.75% Return on 38.46%

Preferred Stock ( 0 shares )

Common Stock ( 1,000,000 shares )

Call premi 8.00% Bond call 8.00%

Common ten $0.00 Unpaid pre $0.00


Short-term2-year loan3-year loanBondsPenalty loan

2.98% 3.11% 2.50% 1.40% 8.00%


2 3 4 5

Units fore 101,378 90,174 124,132 111,898

Price per u$100.37 $96.43 $110.60 $104.80

Units of p 100,000 100,000 100,000 80,000

Units of m 100,000 100,000 75,000 60,000

Other ove 200,000 200,000 200,000 200,000

Depreciati 478,125 478,125 384,375 311,250

0 0 0 0

### ### ### 989,000


Short-t 0 0 0

2-year 312,500 312,500 312,500 312,500

3-year 300,000 300,000 0 0

Bonds 300,000 300,000 300,000 300,000

Wareho

Units irst 2000 ext 5000 ver 7000

Cost $1.00 $3.00 $8.00


Materia $15.00 Machinery $41.00 Plant $281.00

Units First 60,000Next 40,000Next 20,000Over 120,000

Labor c $39.00 $29.00 $25.00 $33.00


Short-term2-year loan3-year loan Bond Preferred

2.00% 1.95% 1.91% 1.84% 2.40%

Interest due next qu

Short-t $0

Interme$83,030

Bonds $33,600


Life Cost Unit CapacityOverhead SavingUnit Labor sav., Qtr.2Change/Qtr. Labor Sav.

A 2-yr $437,664 100,000 $14,147 $0.54 $0.02

B 3-yr $634,728 120,000 -$7,395 $1.05 $0.00

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