Calculate Cash Flow A & B from quarter 1,2,3,4.

46 Chapter 4 The Company Environment and Rules EXHIBIT 4.1 Company Name Quarterly Performance Report Quarter 1 $9,738,300 2.725 $9,741,025 $ 733,567 $1,500,000 3,500,000 $5,000,000 $ 60,408 478,125 1,300,000 200,000 2,038,533 7,038,533 7,772,100 879.492 6,892,608 $2,848,417 Sales Revenue (97,383 units at 100.00) Income from Securities Cost of Goods Sold: Beginning Inventory: (9,809 at $74.79) Materials Direct Labor Total Direct Costs Warehousing Costs Depreciation: Mach. and Equip. Plant Other Overhead Costs Total Indirect Costs Production Costs (100,000 at $70.39) 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 Income before Taxes Income Tax (rate is 40%) Income after Taxes Preferred Stock Dividend Earnings to Common Stockholders Common Stock Dividends ($0.10 per share) Net Income Transferred to Retained Earnings $1,486,915 $ 0 0 92.749 33,600 0 126,349 1.613.264 $1,235,153 $1,235,153 494,060 $ 741,093 $ 741,093 100,000 $ 641,093 EXHIBIT 4.2 Company Name Position Statement Quarter 1 $ 7,724,789 $ 9,173,375 $16.898,164 Assets Current Assets Cash $ 120,636 Marketable Securities 200,000 Accounts Receivable 6,524,661 Inventory (12,426 units at $70.78/Unit) 879,492 Total Current Assets Fixed Assets (net of depreciation) Machinery and Equipment $ 2,008,125 Plant $ 7.165.250 Total Fixed Assets Total Assets Liabilities and Owner Equity Current Liabilities Accounts Payable $ 520,000 Short-Term Loans Payable 0 Short-Term Penalty Loan 0 Intermediate-Term Debt Maturing 1,850,000 Bonds Maturing $ 1,200,000 Total Current Liabilities Long-Term Liabilities Intermediate Loans: 2 years $ 937,500 0 Bonds 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 $3,190,664 Total Equity Total Liabilities and Equity $ 3,570,000 3 years 2,137,500 $5,707,500 11,190,664 $16,898,164 EXHIBIT 4.3 Historical Information: Common share price Quarterly EPS Price-earnings ratio Actual unit price Preferred stock price Return on investment Call premium: preferred Common tender or sell/sh Company Name Summary Data-Quarter 1 $35.57 Accumulated wealth 0.74 Dividend yield 12.00 Marketable security yield 100.00 Actual unit demand 32.15 Preferred dividend yield 17.54 Return on equity 8.00% Bond call premium $0.00 Unpaid preferred dividend/share $35.67 1.10% 1.362% 97,383 3.11 26.49 8.00% $0.00 Short-term Outstanding debt yields: 2-year loan 3-year loan 3.110% 2.500% Bonds Penalty loan 2.980% 1.400% 8.000% Information for Future Quarters: Quarter 3 4 5 $ 2 105,721 99.81 100,000 100,000 200,000 $ 103,295 $ 103.73 100,000 100,000 200,000 123,736 $ 103.03 100,000 75,000 200,000 117,871 102.85 80,000 60,000 200,000 384,375 Units forecast Price per unit forecast Units of plant capacity Units of machine capacity Other overhead Depreciation: Machinery Projects Plant Principal repayment on debt: Short-term 2-year 3-year Bonds Warehouse fees: Units Cost/Unit 478,125 0 1,300,000 478,125 0 1,300,000 0 1,300,000 311.250 0 989,000 0 312,500 300,000 300,000 0 312.500 300,000 300,000 0 312,500 0 300,000 312,500 0 300,000 First 2000 $ 1.00 Next 5000 $ 3.00 Over 7000 $ 8.00 Production costs per unit next quarter: Materials Units Labor cost $15.00 Machinery First 60,000 $39.00 $47.00 Next 40,000 $29.00 Plant Next 20,000 $25.00 $321.00 Over 120.000 $33.00 Rates on funding in quarter 2 2-year loan 3-year loan Short-term Bond Preferred 1.981% 1.915% 1.854% 1.754% 2.620% Interest due next quarter: Short-term Intermediate Bonds $ 0 $83,030 $33,600 Capital budgeting projects for next quarter: Unit Overhead Cost Capacity Saving Unit Labor Sav., Otr. 2 Change/Qtr. Labor Sav. Life A B 2-yr 3-yr $659,280 $513,432 100,000 120,000 $15,340 -$8,102 $0.82 $0.85 $0.03 -$0,01 46 Chapter 4 The Company Environment and Rules EXHIBIT 4.1 Company Name Quarterly Performance Report Quarter 1 $9,738,300 2.725 $9,741,025 $ 733,567 $1,500,000 3,500,000 $5,000,000 $ 60,408 478,125 1,300,000 200,000 2,038,533 7,038,533 7,772,100 879.492 6,892,608 $2,848,417 Sales Revenue (97,383 units at 100.00) Income from Securities Cost of Goods Sold: Beginning Inventory: (9,809 at $74.79) Materials Direct Labor Total Direct Costs Warehousing Costs Depreciation: Mach. and Equip. Plant Other Overhead Costs Total Indirect Costs Production Costs (100,000 at $70.39) 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 Income before Taxes Income Tax (rate is 40%) Income after Taxes Preferred Stock Dividend Earnings to Common Stockholders Common Stock Dividends ($0.10 per share) Net Income Transferred to Retained Earnings $1,486,915 $ 0 0 92.749 33,600 0 126,349 1.613.264 $1,235,153 $1,235,153 494,060 $ 741,093 $ 741,093 100,000 $ 641,093 EXHIBIT 4.2 Company Name Position Statement Quarter 1 $ 7,724,789 $ 9,173,375 $16.898,164 Assets Current Assets Cash $ 120,636 Marketable Securities 200,000 Accounts Receivable 6,524,661 Inventory (12,426 units at $70.78/Unit) 879,492 Total Current Assets Fixed Assets (net of depreciation) Machinery and Equipment $ 2,008,125 Plant $ 7.165.250 Total Fixed Assets Total Assets Liabilities and Owner Equity Current Liabilities Accounts Payable $ 520,000 Short-Term Loans Payable 0 Short-Term Penalty Loan 0 Intermediate-Term Debt Maturing 1,850,000 Bonds Maturing $ 1,200,000 Total Current Liabilities Long-Term Liabilities Intermediate Loans: 2 years $ 937,500 0 Bonds 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 $3,190,664 Total Equity Total Liabilities and Equity $ 3,570,000 3 years 2,137,500 $5,707,500 11,190,664 $16,898,164 EXHIBIT 4.3 Historical Information: Common share price Quarterly EPS Price-earnings ratio Actual unit price Preferred stock price Return on investment Call premium: preferred Common tender or sell/sh Company Name Summary Data-Quarter 1 $35.57 Accumulated wealth 0.74 Dividend yield 12.00 Marketable security yield 100.00 Actual unit demand 32.15 Preferred dividend yield 17.54 Return on equity 8.00% Bond call premium $0.00 Unpaid preferred dividend/share $35.67 1.10% 1.362% 97,383 3.11 26.49 8.00% $0.00 Short-term Outstanding debt yields: 2-year loan 3-year loan 3.110% 2.500% Bonds Penalty loan 2.980% 1.400% 8.000% Information for Future Quarters: Quarter 3 4 5 $ 2 105,721 99.81 100,000 100,000 200,000 $ 103,295 $ 103.73 100,000 100,000 200,000 123,736 $ 103.03 100,000 75,000 200,000 117,871 102.85 80,000 60,000 200,000 384,375 Units forecast Price per unit forecast Units of plant capacity Units of machine capacity Other overhead Depreciation: Machinery Projects Plant Principal repayment on debt: Short-term 2-year 3-year Bonds Warehouse fees: Units Cost/Unit 478,125 0 1,300,000 478,125 0 1,300,000 0 1,300,000 311.250 0 989,000 0 312,500 300,000 300,000 0 312.500 300,000 300,000 0 312,500 0 300,000 312,500 0 300,000 First 2000 $ 1.00 Next 5000 $ 3.00 Over 7000 $ 8.00 Production costs per unit next quarter: Materials Units Labor cost $15.00 Machinery First 60,000 $39.00 $47.00 Next 40,000 $29.00 Plant Next 20,000 $25.00 $321.00 Over 120.000 $33.00 Rates on funding in quarter 2 2-year loan 3-year loan Short-term Bond Preferred 1.981% 1.915% 1.854% 1.754% 2.620% Interest due next quarter: Short-term Intermediate Bonds $ 0 $83,030 $33,600 Capital budgeting projects for next quarter: Unit Overhead Cost Capacity Saving Unit Labor Sav., Otr. 2 Change/Qtr. Labor Sav. Life A B 2-yr 3-yr $659,280 $513,432 100,000 120,000 $15,340 -$8,102 $0.82 $0.85 $0.03 -$0,01