the company's annual total revenues

Trends in the company's annual earnings per share (EPS)

Trends in the company's annual return on equity investment (ROE)

Trends in the company's annual credit rating

Trends in the company's year-end stock price o Trends in the company's annual image rating

Income Statement (5000) AC Camera Revenues UAV Drone Revenues Total Revenues Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss) North America 84,944 108,911 193,855 128,085 4,828 9,854 3,273 47,815 Europe Asia Latin Africa Pacific America 68,419 47,633 30,210 81,777 54,035 26,454 150, 196 101,668 56,664 117,386 80,874 44,316 10,379 9,223 5,282 7,640 5,140 3,380 3,108 2,281 1,405 11,683 4,150 2,281 Interest Income (Expense) Other Income (Expense) Pre-Tax Profit (Loss) Income Taxes Net Profit (Loss) Company Total 231,206 271,177 502,383 370,661 29,712 26,014 10,067 65,929 -9,673 -3,296 52,960 15,888 37,072 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-awarded refunds (appearing as positive). 3 The income tax rate is 30%. If a net loss was recorded in Year 6, the loss is carried forward and may offset some or all taxable Year 7 profit and reduce the company's tax liability in Year 7. Profitability and Payout Earnings Per Share Dividends Per Share Year 6 $0.26 $0.00 Year 7 $1.68 $0.00 $000s 29,763 481,792 0 Balance Sheet Assets Cash on Hand Accounts Receivable (see Note 1) Component Inventories (see Note 2) Total Current Assets Gross Investment in Plant and Equipment Less Accumulated Depreciation Total Fixed Asset Investment (see Note 3) Total Assets Liabilities $000s 46,160 76,745 24,232 147,137 278,500 75,300 203,200 350,337 $000s Cash Flow Statement Cash Available in Year 7 Beginning Cash Balance (carried over from Year 6) Cash -Receipts from Sales (see Note 1) Inflows Bank Loan 1-Year 5-Year 10-Year Stock Issue (0 shares isued @56.12) Loan to Cover Overdraft Interest on Year 6 Cash Balance Cash Refund (awarded by instructor) Total Cash Available from all sources) 0 60 0 511,615 $000s 29,763 481,792 Balance Sheet Assets $000s Cash on Hand 46,160 Accounts Receivable (see Note 1) 76,745 Component Inventories (see Note 2) 24,232 Total Current Assets 147,137 Gross Investment in Plant and Equipment 278,500 Less Accumulated Depreciation 75,300 Total Fixed Asset Investment (see Note 3) 203,200 Total Assets 350,337 Liabilities $000s Accounts Payable (see Note 4) 66,638 Overdraft Loan Payable (see Note 5) 1-Year Bank Loan Payable (see Note 6) Current Portion of Long-Term Loans (see Note 7) 17,050 Total Current Liabilities 83,688 Long-Term Bank Loans (see Note 8) 86,400 Total Liabilities 170,088 Beginnin Shareholder Equity Change in Year 7 $000s Balance Common Stock (see Note 9) 11,050 11,050 Additional Capital (see Note 10) 101,758 101,757 Retained Earnings 30,370 +37,072 67,442 Total Shareholder Equity 143,178 +37,071 180,249 Return on Average Equity (see Note 11) 22.9% 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 7 (to be collected in Year 3). 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 7 (to be paid in Year 8). 511,615 $000s 238,277 114,418 65,793 Cash Flow Statement Cash Available in Year 7 Beginning Cash Balance (carried over from Year 6) Cash Receipts from Sales (see Note 1) Inflows Bank Loan 1-Year 5-Year 10-Year Stock Issue (0 shares isued @56.12) Loan to Cover Overdraft Interest on Year 6 Cash Balance Cash Refund (awarded by instructor) Total Cash Available from all sources) Cash Outlays in Year 7 Payments to Component Suppliers (see Note 2) Production and Assembly Expenses (see Note 3) Delivery, Marketing, and Administrative Expenses Capital Outlays - New Workstations Robotics Upgrades Facilities Expansion Facilities Improvements (CSRC) Repayment of -Overdraft Loan Bank Loan 1-Year Loan Principal 5-Year Loan (see Note 4) 10-Year Loan Interest Payments Year 7 Overdraft Loan Bank Loans (1-year, 5-year, 10-year) Stock Repurchases (0 shares repurchased @ $6.12) Income Tax Payments Dividend Payments to Shareholders Charitable Contributions Cash Fines (assessed by instructor) Total Cash Outlays Net Cash Balance (5000s at the end of Year 7) Notes to Cash Flow Statement 1,000 g 0 0 17,050 0 9,733 15,888 0 3,296 0 465,455 46,160 Financial Statements Year 7 Help Pri LISTY 1,71 TITLEIES TaymenTLS Tear Toverurait Luan Total Shareholder Equity 143,178 +37,071 180,249 Bank Loans (1-year, 5-year, 10-year) 9,733 Return on Average Equity (see Note 11) 0 22.9% Stock Repurchases (0 shares repurchased @ $6.12) Income Tax Payments 15,888 Notes to Balance Sheet (all dollar and share figures in thousands) Dividend Payments to Shareholders Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone Charitable Contributions 3,296 revenues generated in Year 7 (to be collected in Year 8). Cash Fines (assessed by instructor) Note 2: A 10% reserve of camera and drone components is kept at all times. Total Cash Outlays 465,455 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 Net Cash Balance (5000s at the end of Year 7) 46,160 used in Year 7 (to be paid in Year 8). Notes to Cash Flow Statement 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 7 was 5.7%. Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera and 3rd-party drone revenues generated in Year 7. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 8. Note 2: Payments to component suppliers equals 75% of the cost of components used Note 8: Long-term bank loans outstanding: Out- in Year 7 and 25% of the cost of components used in Year 6. Annual Year 8 Loan Initial Original Interest standing Principal Interest Note 3: Production and assembly expenses include all Year 7 production-related ex- No. Year Principal Rate Term Principal Payment Payable penses except for depreciation (which is a non-cash accounting charge). 1 Y1 Note 4: Overdraft and 1-year loans received in Year 6 were repaid in full in Year 7. 60,000 7.5% 10-Yr 24,000 6,000 1,800 2 Y4 20,000 Interest on overdraft and 1-year loans received in Y6 was also paid in Y7. 8.5% 10-Yr 14.000 2.000 1.190 Y4 80,000 8.5 % 10-Yr 56.000 8.000 4,760 Y6 10.500 6.5 % 10-Yr 9,450 1.050 614 Selected Financial Statistics Credit -Debt / Equity Percentage (Debt: Equity) 49:51 Rating Interest Coverage Ratio (oper. prof. = int. exp.) 6.82 Measures Current Ratio (current assets + current liabilities) 1.76 11 Credit Rating (at the end of Year 7) A- 12 Operating Profit Margin (operating profit = net sales revenues) 13.1 % Note 9: There are 22,100 shares of stock outstanding at a par value of $0.50 per share. Net Profit Margin (net profit - net sales revenues) 7.4% Note 10: Total $ amount above par value that shareholders paid to purchase stock. Dividend Payout (dividend per share = earnings per share) 0.0% Note 11: The formula for Return After-Tax Profit Market Capitalization (544.43 stock price x 22,100 shares) $981,903 on Average Equity is: (Beginning Equity + Ending Equity) = 2 Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding NOTONO 9