Shareholder Equity Common Stock (see Note 9) Beginnin virarige $000s g in Year 14 Repayment of Overdraft Loan 0 Balance 9,235 Additional Capital (see Note 10) -515,407 -150 -119,679 9,085 -635,088 Bank Loan Principal (see Note 4) 1-Year Loan 0 5-Year Loan 0 10-Year Loan 10,000 Retained Earnings 1,162,952 +357,276 1,520,228 Interest Payments -Year 14 Overdraft Loan 0 Total Shareholder Equity 656,780 +237,445 894,225 Bank Loans (1-year, 5-year, 10-year) 850 Return on Average Equity (see Note 11) 46.1% Stock Repurchases (300 shares repurchased @ $399.43) 119,829 153,118 0 0 0 Notes to Balance Sheet (all dollar and share figures in thousands) Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 14 (to be collected in Year 15). Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components used in Year 14 (to be paid in Year 15). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 14 was 4.0%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 15. Note 8: Long-term bank loans outstanding: Interest Payable Out- Loan Initial Original No. Year Principal Interest Rate standing Annual Principal Year 15 Term Principal Payment Y1 60,000 7.5 % 10-Yr 0 0 Y4 20,000 8.5% 10-Yr 0 0 Y4 80,000 8.5% 10-Yr 0 0 Y14 10,000 4.5 % 5-Yr 10,000 2,000 9 10 11 12345678TL 450000 Income Tax Payments Dividend Payments to Shareholders Charitable Contributions Cash Fines (assessed by instructor) Total Cash Outlays Net Cash Balance ($000s at the end of Year 14) Notes to Cash Flow Statement 975,099 668,071 Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera and 3rd-party drone revenues generated in Year 14. Note 2: Payments to component suppliers equals 75% of the cost of components used in Year 14 and 25% of the cost of components used in Year 13. Note 3: Production and assembly expenses include all Year 14 production-related ex- penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 13 were repaid in full in Year 14. Interest on overdraft and 1-year loans received in Y13 was also paid in Y14. Credit Rating Measures Selected Financial Statistics Debt/Equity Percentage (Debt: Equity) 10:90 Interest Coverage Ratio (oper. prof. + int. exp.) 1,000.00 Current Ratio (current assets + current liabilities) Credit Rating (at the end of Year 14) 8.86 A+ 42.3% 30.0% 0.0% $9,734,03 2 Note 9: There are 18,170 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return on Average Equity is: After-Tax Profit (Beginning Equity + Ending Equity) 2 Operating Profit Margin (operating profit net sales revenues) Net Profit Margin (net profit net sales revenues) Dividend Payout (dividend per share earnings per share) Market Capitalization ($535.72 stock price x 18,170 shares) ncome Statement ($000) AC Camera Revenues UAV Drone Revenues Total Revenues North America Europe Asia Africa Pacific Latin America 146.223 122.165 128.473 91.240 217,424 212,398 170,231 104,300 363,647 334.563 298,704 195,540 Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss) Profitability and Payout Year 13 Year 14 Other Income (Expense) Earnings Per Share Dividends Per Share $14.65 $0.00 $19.66 Pre-Tax Profit (Loss) $0.00 115,890 157,654 144,863 96,640 3,834 19,019 22,784 15.247 35,500 27,000 23,880 16,100 2,386 2,666 2,893 2,048 206,037 128,224 104,284 65,505 Company Total 488.101 704,353 1,192,454 515,047 60,884 102,480 9,993 504,050 Interest Income (Expense) 6,344 0 510,394 Income Taxes Net Profit (Loss) 153,118 357.276 Notes to Income Statement 1 Revenues listed here have been ad justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues. 2 Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-award refunds (appearing as positive). 3 The income tax rate is 30%. If a net loss was recorded in Year 13, the loss is carried forward and may offset some or all taxable Year 14 profit and reduce the company's tax liability in Year 14.