Under level vs. seasonal production, we observe an increase in Notes Payable, which is mainly used to finance_______.

In level production (right side of the spreadsheet) the firm is using Notes Payables April-October to finance the minimum Cash Balance of $500. In other words, the firm is borrowing from a bank via short-term debt that appears in Notes Payable to reach its minimum Cash Balance of $500 from April through October in level production.

TRUE or FALSE

Exhibit 2 2012 Pro Forma Income Statement Under Seasonal Production in thousands of dollars n Feb Mar Apr Mayun 70214961 4141 3781 1621 1801 378 633211 272 2491 107 119 2491 293 Aug Sep Od 5.401 2.9701 2.520 1 356 1.9601 1.663 194 1.0101 957 Nor Dec Tol 5.724 3,546 15.000 3.7781 2,340 11 80 1946 1.2001 1201 Exhibit IN-2 2012 Pro Forma Income Statement Under level Production in thousands of dollars) Mar Apr May u n Aug Sep Oct Nov Dec. Total 414 3781621803785401 2.9701 2,5201 5.72413.546 18000 292 249 227 97 10922713241 1.7921151213.4341 2.1291 1050 360 3601 360 361 360 360 3501 35014270 X -1861 Prolillass) before la income Laxesd L-132 2001 22212343001 3021 2351 -1811 645 4911,576 229 1,737 45668 756 80 105 -10312016112191 167 536 29591 -8713211461-1550-2001-2001 - 1551 - 1191 4263241.0405541,147 2171 2371 330 331 2640 2131 7551 -74811112111390 721 257 -1431 -156121812201 174 1411 499 576 1.8721 10311 2.13 19616371351400 300 1.236 6911 1993 Net income Exhibit TN-1 2012 Pro Forma Balance Sheets Under level Production in thousands of dollars 03 Jan Exhibit 1 2012 Pro Forma Balance Sheets and Accured Taxes Under Seasonal Production in thousands of dollars) Dec 31 2011 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 500 1511 2.9501 2.7601 2.4771 2,274 1946 1.625 1.246758 500 5.2451 2.5411 8321 G301 5541 37812291 3911 6431 2.4571 3.343 1,227 1,227 1.227 1.227 1.227 1.227 1.227 1.227 1.227 1.227 1.227 6,972 5.2801 5.0091 4,6251 4.2591 3.879 3.4131 3,2431 3.1161 4.4421 5570 2,998 2,998 2.999 2.999 2.998 2.998 2.989 2.9891 2.988 2.989 2.988 9.950 2,2681 7,99 71 7,6131 7.2471 6 9671 6401 6.231 6.1041 74311 8.559 Nov Dec 500 500 5.7716.489 1,227 1.227 7.499 8,216 2.999 2,999 10,496 11.2041 Feb Mar Apr May Jun 2011 500 1.29212.1981 1,392 500 500 500 5.2451 25411 932 680 554 3791 229 1,2271,706 2,314 2.966 3,6391 4.4421 5,234 6972 5,529 5,343 4.987 4.693 5.319 5.972 2989 2.9891 2.9881 2.998 2.999 2,998 2.988 9.963.5171 3.322 7.9761 7.69113.300131961 Jul Aug Sep Oct Nov Dec 500 500 500 500 500 500 39116431 2.4571 3.3431 5.7711 6.499 5,907 6,483 5,601 4.9992,4551 1,227 6,797 7.6251 8,556 9,3321 2.988 2.9891 2.9891 2.988 2.988 2.990 9.795 10.6141 11 5461 12.3211 11.714 LTD, current portion Current Liabilities 96623211601 1371 1251 531 501251179 9901 332 226 0 0 0 0 0 0 0 0 0 785 261-1881388 4927151795857 -7571590 100 100 100 100 100 100 100 100 100 100 100 2.00114251261491 1631 3391 556 571 578 320 1.126 1.000 1.000 1.000 1.000 1.000 1.000 9501 9501 9501 9501 9501 3,091 1,4251 1,26 1,049183716611 394 37913721 1,2731 2,0761 6,9296,84216,710 6,564 6,40916,206 6.0075.8511 5,73216.158 6,482 ,9801 8,2681 7997 7.6131 7.2471 5.967 6.4011 6.2311 6.1041 74301 9.559 1001 2,014 2,228 950 2,964 3,128 7.5221 8,0761 10,496 11.204 966 4901 4301 451 450 450 450 450 450 450 82510 010 0 6 3 1.9191 2.176 1,0191 2.176 3.265 3.265 4.306 4,603 4,801 2,322 411 -1711 372 4941 -717 897 9.901 742 547 100 100 100 100 100 100 100 100 100 100 100 1001 20311 6545913791241 1.095 2009 3.007 3.9761 4.4101 4.804 2,962 1.422 1.000 1.000 1.000 1.000 1.000 1.0001 9501 9501 9501 9501 9501 9501 900 3,031 1,654 1.591 1,379 1,241 2,085 29591 3.957 4,926 5,3601 5,754 3.9121 2,7221 692916.8631 6,7401 6,597 6,4401 6,2221 6.0031 5.820 5,687 6,1866,5667,2021 8,492 9601 9517 9,332 7.9767,681 9,2098.96119,786 10,614 11,546 12,320 11,7131 11,204 Tolaliabilities Shareholders equily Tolal liabilities and equily 1 9 Exhibil 3 2012 Pro Forma Cash How Statement Under Seasonal Production in thousands of dollars Exhibit IN 3 2012 Cash Flow Stalement under led Production in thousands of dollars) ALESPINOY 1,962 1,4641157-26511781-2531-2961354146211 7811920 .932 -1.081 1.064 1.016 -272 173 2.90411.446 Operating Activities Cash flow from operations Investing Activities Les capital expenditures Financing Activities Banknote repayment Dell Bank nole issuance LLLLL .................... cash flow from financing so Total Cash Flow 321137914881 Exhibit 2 2012 Pro Forma Income Statement Under Seasonal Production in thousands of dollars n Feb Mar Apr Mayun 70214961 4141 3781 1621 1801 378 633211 272 2491 107 119 2491 293 Aug Sep Od 5.401 2.9701 2.520 1 356 1.9601 1.663 194 1.0101 957 Nor Dec Tol 5.724 3,546 15.000 3.7781 2,340 11 80 1946 1.2001 1201 Exhibit IN-2 2012 Pro Forma Income Statement Under level Production in thousands of dollars) Mar Apr May u n Aug Sep Oct Nov Dec. Total 414 3781621803785401 2.9701 2,5201 5.72413.546 18000 292 249 227 97 10922713241 1.7921151213.4341 2.1291 1050 360 3601 360 361 360 360 3501 35014270 X -1861 Prolillass) before la income Laxesd L-132 2001 22212343001 3021 2351 -1811 645 4911,576 229 1,737 45668 756 80 105 -10312016112191 167 536 29591 -8713211461-1550-2001-2001 - 1551 - 1191 4263241.0405541,147 2171 2371 330 331 2640 2131 7551 -74811112111390 721 257 -1431 -156121812201 174 1411 499 576 1.8721 10311 2.13 19616371351400 300 1.236 6911 1993 Net income Exhibit TN-1 2012 Pro Forma Balance Sheets Under level Production in thousands of dollars 03 Jan Exhibit 1 2012 Pro Forma Balance Sheets and Accured Taxes Under Seasonal Production in thousands of dollars) Dec 31 2011 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 500 1511 2.9501 2.7601 2.4771 2,274 1946 1.625 1.246758 500 5.2451 2.5411 8321 G301 5541 37812291 3911 6431 2.4571 3.343 1,227 1,227 1.227 1.227 1.227 1.227 1.227 1.227 1.227 1.227 1.227 6,972 5.2801 5.0091 4,6251 4.2591 3.879 3.4131 3,2431 3.1161 4.4421 5570 2,998 2,998 2.999 2.999 2.998 2.998 2.989 2.9891 2.988 2.989 2.988 9.950 2,2681 7,99 71 7,6131 7.2471 6 9671 6401 6.231 6.1041 74311 8.559 Nov Dec 500 500 5.7716.489 1,227 1.227 7.499 8,216 2.999 2,999 10,496 11.2041 Feb Mar Apr May Jun 2011 500 1.29212.1981 1,392 500 500 500 5.2451 25411 932 680 554 3791 229 1,2271,706 2,314 2.966 3,6391 4.4421 5,234 6972 5,529 5,343 4.987 4.693 5.319 5.972 2989 2.9891 2.9881 2.998 2.999 2,998 2.988 9.963.5171 3.322 7.9761 7.69113.300131961 Jul Aug Sep Oct Nov Dec 500 500 500 500 500 500 39116431 2.4571 3.3431 5.7711 6.499 5,907 6,483 5,601 4.9992,4551 1,227 6,797 7.6251 8,556 9,3321 2.988 2.9891 2.9891 2.988 2.988 2.990 9.795 10.6141 11 5461 12.3211 11.714 LTD, current portion Current Liabilities 96623211601 1371 1251 531 501251179 9901 332 226 0 0 0 0 0 0 0 0 0 785 261-1881388 4927151795857 -7571590 100 100 100 100 100 100 100 100 100 100 100 2.00114251261491 1631 3391 556 571 578 320 1.126 1.000 1.000 1.000 1.000 1.000 1.000 9501 9501 9501 9501 9501 3,091 1,4251 1,26 1,049183716611 394 37913721 1,2731 2,0761 6,9296,84216,710 6,564 6,40916,206 6.0075.8511 5,73216.158 6,482 ,9801 8,2681 7997 7.6131 7.2471 5.967 6.4011 6.2311 6.1041 74301 9.559 1001 2,014 2,228 950 2,964 3,128 7.5221 8,0761 10,496 11.204 966 4901 4301 451 450 450 450 450 450 450 82510 010 0 6 3 1.9191 2.176 1,0191 2.176 3.265 3.265 4.306 4,603 4,801 2,322 411 -1711 372 4941 -717 897 9.901 742 547 100 100 100 100 100 100 100 100 100 100 100 1001 20311 6545913791241 1.095 2009 3.007 3.9761 4.4101 4.804 2,962 1.422 1.000 1.000 1.000 1.000 1.000 1.0001 9501 9501 9501 9501 9501 9501 900 3,031 1,654 1.591 1,379 1,241 2,085 29591 3.957 4,926 5,3601 5,754 3.9121 2,7221 692916.8631 6,7401 6,597 6,4401 6,2221 6.0031 5.820 5,687 6,1866,5667,2021 8,492 9601 9517 9,332 7.9767,681 9,2098.96119,786 10,614 11,546 12,320 11,7131 11,204 Tolaliabilities Shareholders equily Tolal liabilities and equily 1 9 Exhibil 3 2012 Pro Forma Cash How Statement Under Seasonal Production in thousands of dollars Exhibit IN 3 2012 Cash Flow Stalement under led Production in thousands of dollars) ALESPINOY 1,962 1,4641157-26511781-2531-2961354146211 7811920 .932 -1.081 1.064 1.016 -272 173 2.90411.446 Operating Activities Cash flow from operations Investing Activities Les capital expenditures Financing Activities Banknote repayment Dell Bank nole issuance LLLLL .................... cash flow from financing so Total Cash Flow 321137914881