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Decision Inputs for Quarter Number 1
Company Operating Decisions
Units to be produced 100,000 Per unit price
Div. per common share $0.10 Advertising cost
Demand/price forecast $0 Sales discount
Investment Decisions
Short-term investment $200,000 Risk of S-T investment
Machine units bought 0 Units of plant bought
Project A no Project B
Financing Decisions
Short-term loans $0 Preferred shares
Two-year loans $2,500,000 Common shares
Three-year loans $0 Common tender price
Ten-year bonds $0
Special Options
Strike settlement (per hr.) $0.00 Dollar penalty
Decision Inputs for Quarter Number 3
Company Operating Decisions
Units to be produced 100,000 Per unit price
Div. per common share $0.00 Advertising cost
Demand/price forecast $0 Sales discount
Investment Decisions
Short-term investment $0 Risk of S-T investment
Machine units bought 10,000 Units of plant bought
Project A no Project B
Financing Decisions
Short-term loans $0 Preferred shares
Two-year loans $0 Common shares
Three-year loans $999,999 Common tender price
Ten-year bonds $999,999
Special Options
Strike settlement (per hr.) $0.00 Dollar penalty
Decision Inputs for Quarter Number 5
Company Operating Decisions
Units to be produced 100,000 Per unit price
Div. per common share $0.10 Advertising cost
Demand/price forecast $0 Sales discount
Investment Decisions
Short-term investment $2,500,000 Risk of S-T investment
Machine units bought 20,000 Units of plant bought
Project A no Project B
Financing Decisions
Short-term loans $0 Preferred shares
Two-year loans $0 Common shares
Three-year loans $8,000,000 Common tender price
Ten-year bonds $0
Special Options
Strike settlement (per hr. $0.00 Dollar penalty
Decision Inputs for Quarter Number 7
Company Operating Decisions
Units to be produced 90,000 Per unit price
Div. per common share $0.15 Advertising cost
Demand/price forecast $0 Sales discount
Investment Decisions
Short-term investment $0 Risk of S-T investment
Machine units bought 10,000 Units of plant bought
Project A yes Project B
Financing Decisions
Short-term loans $0 Preferred shares
Two-year loans $0 Common shares
Three-year loans -$500,000 Common tender price
Ten-year bonds $0
Special Options
Strike settlement (per hr. $0.00 Dollar penalty
Decision Inputs for Quarter Number 1 Decision Inputs for Quarter Number 2
Company Operating Decisions Company Operating Decisions
$100.00 Units to be produced 100,000
$0 Div. per common share $0.00
0.00% Demand/price forecast $0
Investment Decisions Investment Decisions
0 Short-term investment -$200,000
0 Machine units bought 20,000
no Project A no
Financing Decisions Financing Decisions
0 Short-term loans $0
0 Two-year loans $0
$0 Three-year loans $999,999
Ten-year bonds $999,999
Special Options Special Options
$0 Strike settlement (per hr.) $0.00
Decision Inputs for Quarter Number 3 Decision Inputs for Quarter Number 4
Company Operating Decisions Company Operating Decisions
$104.62 Units to be produced 105,000
$0 Div. per common share $0.00
0.00% Demand/price forecast $0
Investment Decisions Investment Decisions
0 Short-term investment $0
25,000 Machine units bought 10,000
no Project A no
Financing Decisions Financing Decisions
0 Short-term loans $0
0 Two-year loans $0
$0 Three-year loans $0
Ten-year bonds $999,999
Special Options Special Options
$0 Strike settlement (per hr.) $0.00
Decision Inputs for Quarter Number 5 Decision Inputs for Quarter Number 6
Company Operating Decisions Company Operating Decisions
$102.31 Units to be produced 100,000
$0 Div. per common share $0.10
0.00% Demand/price forecast $0
Investment Decisions Investment Decisions
0 Short-term investment $1,500,000
0 Machine units bought 25,000
no Project A yes
Financing Decisions Financing Decisions
0 Short-term loans $0
0 Two-year loans $0
$0 Three-year loans -$2,000,000
Ten-year bonds $8,000,000
Special Options Special Options
$0 Strike settlement (per hr. $0.00
Decision Inputs for Quarter Number 7 Decision Inputs for Quarter Number 8
Company Operating Decisions Company Operating Decisions
$115.00 Units to be produced 100,000
$0 Div. per common share $0.15
1.00% Demand/price forecast $0
Investment Decisions Investment Decisions
0 Short-term investment -$400,000
0 Machine units bought 12,500
no Project A no
Financing Decisions Financing Decisions
0 Short-term loans $0
0 Two-year loans $0
$0 Three-year loans $3,000,000
Ten-year bonds $0
Special Options Special Options
$0 Strike settlement (per hr. $0.00
Decision Inputs for Quarter Number 2
Company Operating Decisions
Per unit price $102.31
Advertising cost $0
Sales discount 0.00%
Investment Decisions
Risk of S-T investment 0
Units of plant bought 20,000
Project B no
Financing Decisions
Preferred shares 0
Common shares 0
Common tender price $0
Special Options
Dollar penalty $0
Decision Inputs for Quarter Number 4
Company Operating Decisions
Per unit price $99.34
Advertising cost $0
Sales discount 0.00%
Investment Decisions
Risk of S-T investment 0
Units of plant bought 5,000
Project B no
Financing Decisions
Preferred shares 0
Common shares 0
Common tender price $0
Special Options
Dollar penalty $0
Decision Inputs for Quarter Number 6
Company Operating Decisions
Per unit price $105.00
Advertising cost $0
Sales discount 1.00%
Investment Decisions
Risk of S-T investment 4
Units of plant bought 25,000
Project B no
Financing Decisions
Preferred shares 0
Common shares 0
Common tender price $0
Special Options
Dollar penalty $0
Decision Inputs for Quarter Number 8
Company Operating Decisions
Per unit price $110.00
Advertising cost $0
Sales discount 1.00%
Investment Decisions
Risk of S-T investment 0
Units of plant bought 12,500
Project B no
Financing Decisions
Preferred shares 0
Common shares 0
Common tender price $0
Special Options
Dollar penalty $0
Quarterly Performance Report
Quarter Number 1
,738,300
Income from securities 2,470 $9,740,770
Cost of Goods Sold:
Beginning Inventory: ( 9,809 at $74.79 ) $733,567
Materials ,500,000
Direct Labor ###
Total Direct Costs ,000,000
Warehousing Costs $60,408
Depreciation: Mach. and Equip. 478,125
Plant ###
Other Overhead Costs 200,000
Total Indirect Costs ###
###
,772,100
879,492
Cost of Goods Sold 6,892,608
Gross Profit $2,848,161
Selling and administrative expenses ,486,915
Financial Expenses:
Short Term Bank Interest $0
Penalty Loan Interest 0
Intermediate Term Loan Interest 92,749
Sales revenue ( 97,383 units at $100.00 )
Production Costs ( 100,000 at $70.39 )
Goods Available for Sale ( $70.78 per unit )
Less: Ending Inventory ( 12,426 units )
Bond Interest 33,600
Bond Redemption Costs 0
Total Financial Charges 126,349 1,613,264
Operating Income Before Extraordinary Ite $1,234,898
Extraordinary Items 0
Income Before Taxes $1,234,897
493,958
Income After Taxes $740,939
Preferred Stock Dividind 0
Earnings to Common Stockholders $740,939
100,000
Net Income Transferred to Retained Earning $640,939
Quarterly Performance Report
Quarter Number 3
,319,675
Income from securities 0 $11,319,675
Cost of Goods Sold:
Beginning Inventory: ( 8,198 at $70.13 ) $574,909
Materials ,500,000
Direct Labor ###
Total Direct Costs ,000,000
Warehousing Costs $0
Depreciation: Mach. and Equip. 598,125
Income Tax (rate is 40%)
Common Stock Dividends ( $0.10 per share )
Sales revenue ( 108,198 units at $104.62 )
Plant ###
Other Overhead Costs 200,000
Total Indirect Costs ###
###
,673,033
0
Cost of Goods Sold 7,673,033
Gross Profit $3,646,641
Selling and administrative expenses ,565,984
Financial Expenses:
Short Term Bank Interest $0
Penalty Loan Interest 650,655
Intermediate Term Loan Interest 103,238
Bond Interest 115,177
Bond Redemption Costs 0
Total Financial Charges 869,070 2,435,053
Operating Income Before Extraordinary Ite $1,211,588
Extraordinary Items 0
Income Before Taxes $1,211,587
484,634
Income After Taxes $726,953
Preferred Stock Dividind 0
Earnings to Common Stockholders $726,953
0
Production Costs ( 100,000 at $70.98 )
Goods Available for Sale ( $70.92 per unit )
Less: Ending Inventory ( 0 units )
Income Tax (rate is 40%)
Common Stock Dividends ( $0.00 per share )
Net Income Transferred to Retained Earning $726,953
Quarterly Performance Report
Quarter Number 5
,677,276
Income from securities 21,563 $10,698,838
Cost of Goods Sold:
Beginning Inventory: ( 9,470 at $72.75 ) $688,977
Materials ,500,000
Direct Labor ###
Total Direct Costs ,000,000
Warehousing Costs $11,324
Depreciation: Mach. and Equip. 541,250
Plant ###
Other Overhead Costs 200,000
Total Indirect Costs ###
###
,146,051
380,104
Cost of Goods Sold 7,765,946
Gross Profit $2,932,891
Selling and administrative expenses ,533,864
Financial Expenses:
Short Term Bank Interest $0
Sales revenue ( 104,362 units at $102.31 )
Production Costs ( 100,000 at $74.57 )
Goods Available for Sale ( $74.41 per unit )
Less: Ending Inventory ( 5,108 units )
Penalty Loan Interest 81,378
Intermediate Term Loan Interest 400,523
Bond Interest 81,718
Bond Redemption Costs 0
Total Financial Charges 563,619 2,097,483
Operating Income Before Extraordinary Ite $835,409
Extraordinary Items 0
Income Before Taxes $835,408
334,163
Income After Taxes $501,245
Preferred Stock Dividind 0
Earnings to Common Stockholders $501,245
100,000
Net Income Transferred to Retained Earning $401,245
Quarterly Performance Report
Quarter Number 7
,660,523
Income from securities 9,403 $9,669,926
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 ) $0
Materials ,350,000
Direct Labor ###
Total Direct Costs ,412,400
Income Tax (rate is 40%)
Common Stock Dividends ( $0.10 per share )
Sales revenue ( 84,682 units at $115.00 )
Warehousing Costs $11,954
Depreciation: Mach. and Equip. 693,581
Plant ###
Other Overhead Costs 170,682
Total Indirect Costs ###
###
,762,366
399,581
Cost of Goods Sold 6,362,786
Gross Profit $3,307,139
Selling and administrative expenses ,483,026
Financial Expenses:
Short Term Bank Interest $0
Penalty Loan Interest 0
Intermediate Term Loan Interest 223,847
Bond Interest 432,961
Bond Redemption Costs 0
Total Financial Charges 656,808 2,139,834
Operating Income Before Extraordinary Ite $1,167,305
Extraordinary Items 0
Income Before Taxes $1,167,304
466,921
Income After Taxes $700,383
Preferred Stock Dividind 0
Production Costs ( 90,000 at $75.14 )
Goods Available for Sale ( $75.14 per unit )
Less: Ending Inventory ( 5,318 units )
Income Tax (rate is 40%)
Earnings to Common Stockholders $700,383
150,000
Net Income Transferred to Retained Earning $550,383
Common Stock Dividends ( $0.15 per share )
Quarterly Performance Report
Quarter Number 2
$10,663,567
Income from securities 0
Cost of Goods Sold:
Beginning Inventory: ( 12,426 at $70.78 ) $879,492
Materials ,500,000
Direct Labor ###
Total Direct Costs ,000,000
Warehousing Costs $26,584
Depreciation: Mach. and Equip. 478,125
Plant ###
Other Overhead Costs 200,000
Total Indirect Costs ###
7,004,709
$7,884,200
574,909
Cost of Goods Sold
Gross Profit
Selling and administrative expenses $1,533,178
Financial Expenses:
Short Term Bank Interest $0
Penalty Loan Interest 330,902
Intermediate Term Loan Interest 101,336
Sales revenue ( 104,228 units at $102.31 )
Production Costs ( 100,000 at $70.05 )
Goods Available for Sale ( $70.13 per unit )
Less: Ending Inventory ( 8,198 units )
Bond Interest 100,937
Bond Redemption Costs 0
Total Financial Charges 533,175
Operating Income Before Extraordinary Ite
Extraordinary Items
Income Before Taxes
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earning
Quarterly Performance Report
Quarter Number 4
$9,489,950
Income from securities 0
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 ) $0
Materials ,575,000
Direct Labor ###
Total Direct Costs ,200,000
Warehousing Costs $36,760
Depreciation: Mach. and Equip. 556,875
Income Tax (rate is 40%)
Common Stock Dividends ( $0.00 per share )
Sales revenue ( 95,530 units at $99.34 )
Plant ###
Other Overhead Costs 200,000
Total Indirect Costs ###
7,639,135
$7,639,135
688,977
Cost of Goods Sold
Gross Profit
Selling and administrative expenses $1,474,498
Financial Expenses:
Short Term Bank Interest $0
Penalty Loan Interest 591,036
Intermediate Term Loan Interest 84,061
Bond Interest 138,763
Bond Redemption Costs 0
Total Financial Charges 813,860
Operating Income Before Extraordinary Ite
Extraordinary Items
Income Before Taxes
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Production Costs ( 105,000 at $72.75 )
Goods Available for Sale ( $72.75 per unit )
Less: Ending Inventory ( 9,470 units )
Income Tax (rate is 40%)
Common Stock Dividends ( $0.00 per share )
Net Income Transferred to Retained Earning
Quarterly Performance Report
Quarter Number 6
$10,948,049
Income from securities 109,849
Cost of Goods Sold:
Beginning Inventory: ( 5,108 at $74.41 ) $380,104
Materials ,500,000
Direct Labor ###
Total Direct Costs ,910,000
Warehousing Costs $0
Depreciation: Mach. and Equip. 751,817
Plant ###
Other Overhead Costs 183,497
Total Indirect Costs ###
7,319,064
$7,699,168
0
Cost of Goods Sold
Gross Profit
Selling and administrative expenses $1,547,403
Financial Expenses:
Short Term Bank Interest $0
Sales revenue ( 105,108 units at $105.00 )
Production Costs ( 100,000 at $73.19 )
Goods Available for Sale ( $73.25 per unit )
Less: Ending Inventory ( 0 units )
Penalty Loan Interest 0
Intermediate Term Loan Interest 283,881
Bond Interest 504,799
Bond Redemption Costs 0
Total Financial Charges 788,680
Operating Income Before Extraordinary Ite
Extraordinary Items
Income Before Taxes
Income After Taxes
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earning
Quarterly Performance Report
Quarter Number 8
$11,492,300
Income from securities 9,590
Cost of Goods Sold:
Beginning Inventory: ( 5,318 at $75.14 ) $399,581
Materials ,500,000
Direct Labor ###
Total Direct Costs ,831,000
Income Tax (rate is 40%)
Common Stock Dividends ( $0.10 per share )
Sales revenue ( 105,318 units at $110.00 )
Warehousing Costs $0
Depreciation: Mach. and Equip. 759,831
Plant ###
Other Overhead Costs 170,682
Total Indirect Costs ###
7,330,263
$7,729,843
0
Cost of Goods Sold
Gross Profit
Selling and administrative expenses $1,574,615
Financial Expenses:
Short Term Bank Interest $0
Penalty Loan Interest 0
Intermediate Term Loan Interest 319,226
Bond Interest 411,123
Bond Redemption Costs 0
Total Financial Charges 730,349
Operating Income Before Extraordinary Ite
Extraordinary Items
Income Before Taxes
Income After Taxes
Preferred Stock Dividind
Production Costs ( 100,000 at $73.30 )
Goods Available for Sale ( $73.40 per unit )
Less: Ending Inventory ( 0 units )
Income Tax (rate is 40%)
Earnings to Common Stockholders
Net Income Transferred to Retained Earning
Common Stock Dividends ( $0.15 per share )
Quarterly Performance Report
Quarter Number 2
$10,663,567
7,309,292
$3,354,274
2,066,353
$1,287,921
0
$1,287,921
515,169
$772,752
0
$772,752
0
$772,752
Quarterly Performance Report
Quarter Number 4
$9,489,950
6,950,157
$2,539,792
2,288,357
$251,435
0
$251,434
100,574
$150,860
0
$150,860
0
$150,860
Quarterly Performance Report
Quarter Number 6
$11,057,898
7,699,168
$3,358,729
2,336,082
$1,022,647
0
$1,022,647
409,058
$613,589
0
$613,589
100,000
$513,589
Quarterly Performance Report
Quarter Number 8
$11,501,890
7,729,843
$3,772,046
2,304,964
$1,467,082
0
$1,467,081
586,832
$880,249
0
$880,249
150,000
$730,249
Position Statement
Quarter Number 1
ASSETS
Current Assets
Cash $120,485
Marketable Securities 200,000
Accounts Receivable 6,524,661
879,492
Total Current Assets $7,724,636
Machinery and Equipment $2,008,125
Plant 7,165,250
Total Fixed Assets 9,173,375
Total Assets $16,898,011
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 $3,570,000
Long Term Liabilities
Intermediate Loans: 2 years $937,500
Inventory ( 12,426 units at $70.78 /UNIT )
Fixed Assets (net of depreciation
3 years 0
Bonds 1,200,000
Total Long Term Liabilities 2,137,500
Total Liabilities $5,707,500
Owners' Equity
$0
8,000,000
Retained Earnings 3,190,511
Total Equity 11,190,512
Total Liabilities and Equity $16,898,011
Position Statement
Quarter Number 3
ASSETS
Current Assets
Cash $260,262
Marketable Securities 0
Accounts Receivable 7,584,182
0
Total Current Assets $7,844,444
Machinery and Equipment $2,311,875
Plant ###
Total Fixed Assets 21,187,125
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Inventory ( 0 units at $70.92 /UNIT )
Fixed Assets (net of depreciation
Total Assets $29,031,569
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $520,000
Short Term Loans Payable 0
Short Term Penalty Loan 8,783,853
Intermediate Term Debt Maturing 1,916,664
Bonds Maturing 1,399,996
Total Current Liabilities $12,620,513
Long Term Liabilities
Intermediate Loans: 2 years $312,500
3 years 1,083,332
Bonds 2,325,002
Total Long Term Liabilities 3,720,834
Total Liabilities $16,341,347
Owners' Equity
$0
8,000,000
Retained Earnings 4,690,222
Total Equity 12,690,219
Total Liabilities and Equity $29,031,569
Position Statement
Quarter Number 5
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Quarter Number 5
ASSETS
Current Assets
Cash $32,551
Marketable Securities 0
Accounts Receivable 7,153,775
380,104
Total Current Assets $7,566,430
Machinery and Equipment $2,633,750
Plant ###
Total Fixed Assets 19,974,000
Total Assets $27,540,430
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $520,000
Short Term Loans Payable 0
Short Term Penalty Loan 115,609
Intermediate Term Debt Maturing 4,270,832
Bonds Maturing 1,499,996
Total Current Liabilities $6,406,437
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 5,416,666
Bonds 2,475,001
Inventory ( 5,108 units at $74.41 /UNIT )
Fixed Assets (net of depreciation
Bonds 2,475,001
Total Long Term Liabilities 7,891,666
Total Liabilities $14,298,103
Owners' Equity
$0
8,000,000
Retained Earnings 5,242,327
Total Equity 13,242,328
Total Liabilities and Equity $27,540,430
Position Statement
Quarter Number 7
ASSETS
Current Assets
Cash $366,710
Marketable Securities 1,592,779
Accounts Receivable 1,304,950
399,581
Total Current Assets $3,664,018
Machinery and Equipment $4,287,000
Plant ###
Total Fixed Assets 27,654,750
Total Assets $31,318,768
LIABILITIES AND OWNER EQUITY
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Inventory ( 5,318 units at $75.14 /UNIT )
Fixed Assets (net of depreciation
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $458,308
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 1,979,165
Bonds Maturing 1,699,996
Total Current Liabilities $4,137,469
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 3,750,000
Bonds 9,125,001
Total Long Term Liabilities 12,875,001
Total Liabilities $17,012,470
Owners' Equity
$0
8,000,000
Retained Earnings 6,306,298
Total Equity 14,306,298
Total Liabilities and Equity $31,318,768
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Position Statement
Quarter Number 2
ASSETS
Current Assets
Cash $132,361
Marketable Securities 0
Accounts Receivable 7,144,590
574,909
Total Current Assets $7,851,857
Machinery and Equipment $2,490,000
Plant ###
Total Fixed Assets 15,265,250
Total Assets $23,117,107
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $520,000
Short Term Loans Payable 0
Short Term Penalty Loan 4,467,179
Intermediate Term Debt Maturing 1,883,332
Bonds Maturing 1,299,996
Total Current Liabilities $8,170,507
Long Term Liabilities
Intermediate Loans: 2 years $625,000
Inventory ( 8,198 units at $70.13 /UNIT )
Fixed Assets (net of depreciation
3 years 583,333
Bonds 1,775,003
Total Long Term Liabilities 2,983,335
Total Liabilities $11,153,841
Owners' Equity
$0
8,000,000
Retained Earnings 3,963,266
Total Equity 11,963,263
Total Liabilities and Equity $23,117,107
Position Statement
Quarter Number 4
ASSETS
Current Assets
Cash $236,414
Marketable Securities 0
Accounts Receivable 6,358,267
688,977
Total Current Assets $7,283,657
Machinery and Equipment $2,215,000
Plant ###
Total Fixed Assets 21,259,750
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Inventory ( 9,470 units at $72.75 /UNIT )
Fixed Assets (net of depreciation
Total Assets $28,543,407
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $540,000
Short Term Loans Payable 0
Short Term Penalty Loan 7,978,999
Intermediate Term Debt Maturing 1,916,664
Bonds Maturing 1,499,996
Total Current Liabilities $11,935,658
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 916,666
Bonds 2,850,001
Total Long Term Liabilities 3,766,666
Total Liabilities $15,702,324
Owners' Equity
$0
8,000,000
Retained Earnings 4,841,083
Total Equity 12,841,082
Total Liabilities and Equity $28,543,407
Position Statement
Quarter Number 6
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Quarter Number 6
ASSETS
Current Assets
Cash $412,310
Marketable Securities 1,592,779
Accounts Receivable 1,478,870
0
Total Current Assets $3,483,957
Machinery and Equipment $3,881,469
Plant ###
Total Fixed Assets 28,722,969
Total Assets $32,206,926
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $509,350
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 1,958,332
Bonds Maturing 1,999,996
Total Current Liabilities $4,467,678
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 4,583,333
Bonds 9,400,001
Inventory ( 0 units at $73.25 /UNIT )
Fixed Assets (net of depreciation
Bonds 9,400,001
Total Long Term Liabilities 13,983,334
Total Liabilities $18,451,011
Owners' Equity
$0
8,000,000
Retained Earnings 5,755,915
Total Equity 13,755,916
Total Liabilities and Equity $32,206,926
Position Statement
Quarter Number 8
ASSETS
Current Assets
Cash $494,544
Marketable Securities 1,192,779
Accounts Receivable 1,552,387
0
Total Current Assets $3,239,710
Machinery and Equipment $4,177,169
Plant ###
Total Fixed Assets 30,713,669
Total Assets $33,953,379
LIABILITIES AND OWNER EQUITY
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Inventory ( 0 units at $73.40 /UNIT )
Fixed Assets (net of depreciation
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $500,168
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 3,499,998
Bonds Maturing 1,399,996
Total Current Liabilities $5,400,162
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 4,666,667
Bonds 8,850,001
Total Long Term Liabilities 13,516,667
Total Liabilities $18,916,829
Owners' Equity
$0
8,000,000
Retained Earnings 7,036,550
Total Equity 15,036,547
Total Liabilities and Equity $33,953,379
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Position Statement
Quarter Number 2
Position Statement
Quarter Number 4
Position Statement
Quarter Number 6
Position Statement
Quarter Number 8
Summary Data
Quarter Number 1
HISTORICAL INFORMATION
Common share price $36.19 Accumulated Wealth $36.29
Quarterly EPS $0.74 Dividend Yield 1.08%
Price earnings ratio 12.21 Marketable Security Yield 1.23%
Actual unit price $100.00 Actual unit demand 97,383
Preferred stock price $32.15 Preferred dividend yield 3.11%
Return on investment 17.54% Return on equity 26.48%
Call premium: preferred 8.00% Bond call premium 8.00%
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha $0.00
Outstanding debt yields:
Short-term 2-year loan 3-year loan Bonds
2.98% 3.11% 2.50% 1.40%
INFORMATION FOR FUTURE QUARTERS:
2 3 4
Units forecast 107,734 107,051 105,445
Price per unit forecast $100.80 $104.73 $98.08
Units of plant capacity 100,000 100,000 100,000
Units of machine capacity 100,000 100,000 75,000
Other overhead 200,000 200,000 200,000
Depreciation: Machinery 478,125 478,125 384,375
Projects 0 0 0
Plant 1,300,000 1,300,000 1,300,000
Plant 1,300,000 1,300,000 1,300,000
Principal repayment on debt:
Short-term 0 0 0
2-year 312,500 312,500 312,500
3-year 300,000 300,000 0
Bonds 300,000 300,000 300,000
Warehouse fees:
Units First 2000 Next 5000
Cost/Unit $1.00 $3.00
Production costs per unit next quarter:
Materials $15.00 Machinery $48.00
Units First 60,000 Next 40,000 Next 20,000
Labor cost $39.00 $29.00 $25.00
Rates on funding in quarter 2
Short-term 2-year loan 3-year loan Bond
1.96% 1.89% 1.83% 1.73%
Interest due next quarter:
Short-term $0
Intermediate $83,030
Bonds $33,600
Capital budgeting projects for next quarter:
Life Cost Unit Capacity
A 2-yr $659,280 100,000
B 3-yr $513,432 120,000
Summary Data
Quarter Number 2
HISTORICAL INFORMATION
Common share price $52.73 Accumulated Wealth $52.83
Quarterly EPS $0.77 Dividend Yield 0.00%
Price earnings ratio 17.06 Marketable Security Yield 1.30%
Actual unit price $102.31 Actual unit demand 104,228
Preferred stock price $42.62 Preferred dividend yield 2.35%
Return on investment 13.37% Return on equity 25.84%
Call premium: preferred 8.00% Bond call premium 8.00%
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha $0.00
Outstanding debt yields:
Short-term 2-year loan 3-year loan Bonds
1.96% 3.11% 2.08% 1.50%
INFORMATION FOR FUTURE QUARTERS:
3 4 5
Units forecast 109,306 98,139 103,736
Price per unit forecast $103.63 $98.99 $101.27
Units of plant capacity 100,000 120,000 100,000
Units of machine capacity 120,000 95,000 80,000
Other overhead 200,000 200,000 200,000
Depreciation: Machinery 598,125 504,375 431,250
Projects 0 0 0
Plant 1,300,000 1,645,500 1,334,500
Plant 1,300,000 1,645,500 1,334,500
Principal repayment on debt:
Short-term 0 0 0
2-year 312,500 312,500 312,500
3-year 383,333 83,333 83,333
Bonds 325,000 325,000 325,000
Warehouse fees:
Units First 2000 Next 5000
Cost/Unit $1.00 $3.00
Production costs per unit next quarter:
Materials $15.00 Machinery $42.00
Units First 60,000 Next 40,000 Next 20,000
Labor cost $39.00 $29.00 $25.00
Rates on funding in quarter 3
Short-term 2-year loan 3-year loan Bond
2.07% 2.01% 1.96% 1.91%
Interest due next quarter:
Short-term $0
Intermediate $83,638
Bonds $46,068
Capital budgeting projects for next quarter:
Life Cost Unit Capacity
A 2-yr $629,400 100,000
B 3-yr $472,560 120,000
Summary Data
Quarter Number 3
HISTORICAL INFORMATION
Common share price $60.26 Accumulated Wealth $60.36
Quarterly EPS $0.73 Dividend Yield 0.00%
Price earnings ratio 20.72 Marketable Security Yield 1.16%
Actual unit price $104.62 Actual unit demand 110,746
Preferred stock price $40.36 Preferred dividend yield 2.48%
Return on investment 10.02% Return on equity 22.91%
Call premium: preferred 8.00% Bond call premium 8.00%
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha $0.00
Outstanding debt yields:
Short-term 2-year loan 3-year loan Bonds
2.07% 3.11% 2.03% 1.60%
INFORMATION FOR FUTURE QUARTERS:
4 5 6
Units forecast 98,414 101,134 113,473
Price per unit forecast $99.13 $101.54 $103.16
Units of plant capacity 120,000 125,000 95,000
Units of machine capacity 105,000 90,000 90,000
Other overhead 200,000 200,000 200,000
Depreciation: Machinery 556,875 483,750 483,750
Projects 0 0 0
Plant 1,645,500 1,704,500 1,383,000
Plant 1,645,500 1,704,500 1,383,000
Principal repayment on debt:
Short-term 0 0 0
2-year 312,500 312,500 312,500
3-year 166,667 166,667 166,667
Bonds 350,000 350,000 350,000
Warehouse fees:
Units First 2000 Next 5000
Cost/Unit $1.00 $3.00
Production costs per unit next quarter:
Materials $15.00 Machinery $46.00
Units First 60,000 Next 40,000 Next 20,000
Labor cost $39.00 $29.00 $25.00
Rates on funding in quarter 4
Short-term 2-year loan 3-year loan Bond
2.46% 2.50% 2.57% 2.92%
Interest due next quarter:
Short-term $0
Intermediate $84,062
Bonds $59,579
Capital budgeting projects for next quarter:
Life Cost Unit Capacity
A 2-yr $570,456 100,000
B 3-yr $395,544 120,000
Summary Data
Quarter Number 4
HISTORICAL INFORMATION
Common share price $29.97 Accumulated Wealth $30.08
Quarterly EPS $0.15 Dividend Yield 0.00%
Price earnings ratio 49.67 Marketable Security Yield 1.11%
Actual unit price $99.34 Actual unit demand 95,530
Preferred stock price $26.37 Preferred dividend yield 3.79%
Return on investment 2.11% Return on equity 4.70%
Call premium: preferred 8.00% Bond call premium 8.00%
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha $0.00
Outstanding debt yields:
Short-term 2-year loan 3-year loan Bonds
2.46% 3.11% 2.03% 1.88%
INFORMATION FOR FUTURE QUARTERS:
5 6 7
Units forecast 107,565 118,165 116,386
Price per unit forecast $101.56 $102.70 $106.65
Units of plant capacity 125,000 100,000 100,000
Units of machine capacity 100,000 100,000 45,000
Other overhead 200,000 200,000 200,000
Depreciation: Machinery 541,250 541,250 252,500
Projects 0 0 0
Plant 1,704,500 1,473,750 1,473,750
Plant 1,704,500 1,473,750 1,473,750
Principal repayment on debt:
Short-term 0 0 0
2-year 312,500 312,500 312,500
3-year 166,667 166,667 166,667
Bonds 375,000 375,000 375,000
Warehouse fees:
Units First 2000 Next 5000
Cost/Unit $1.00 $3.00
Production costs per unit next quarter:
Materials $15.00 Machinery $48.00
Units First 60,000 Next 40,000 Next 20,000
Labor cost $39.00 $29.00 $25.00
Rates on funding in quarter 5
Short-term 2-year loan 3-year loan Bond
2.83% 2.95% 3.12% 3.79%
Interest due next quarter:
Short-term $0
Intermediate $70,965
Bonds $81,718
Capital budgeting projects for next quarter:
Life Cost Unit Capacity
A 2-yr $607,992 100,000
B 3-yr $391,632 120,000
Summary Data
Quarter Number 5
HISTORICAL INFORMATION
Common share price $37.45 Accumulated Wealth $37.66
Quarterly EPS $0.50 Dividend Yield 1.07%
Price earnings ratio 18.68 Marketable Security Yield 0.86%
Actual unit price $102.31 Actual unit demand 104,362
Preferred stock price $20.29 Preferred dividend yield 4.93%
Return on investment 7.28% Return on equity 15.14%
Call premium: preferred 8.00% Bond call premium 8.00%
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha $0.00
Outstanding debt yields:
Short-term 2-year loan 3-year loan Bonds
2.83% 3.11% 3.77% 1.88%
INFORMATION FOR FUTURE QUARTERS:
6 7 8
Units forecast 112,661 127,161 117,708
Price per unit forecast $102.47 $107.90 $104.70
Units of plant capacity 100,000 100,000 75,000
Units of machine capacity 120,000 65,000 65,000
Other overhead 200,000 200,000 200,000
Depreciation: Machinery 661,250 372,500 372,500
Projects 0 0 0
Plant 1,473,750 1,473,750 1,120,000
Plant 1,473,750 1,473,750 1,120,000
Principal repayment on debt:
Short-term 0 0 0
2-year 312,500 312,500 312,500
3-year 833,333 833,333 833,333
Bonds 375,000 375,000 375,000
Warehouse fees:
Units First 2000 Next 5000
Cost/Unit $1.00 $3.00
Production costs per unit next quarter:
Materials $15.00 Machinery $51.00
Units First 60,000 Next 40,000 Next 20,000
Labor cost $39.00 $29.00 $25.00
Rates on funding in quarter 6
Short-term 2-year loan 3-year loan Bond
2.74% 2.93% 3.17% 4.00%
Interest due next quarter:
Short-term $0
Intermediate $359,357
Bonds $74,674
Capital budgeting projects for next quarter:
Life Cost Unit Capacity
A 2-yr $724,536 100,000
B 3-yr $499,200 120,000
Summary Data
Quarter Number 6
HISTORICAL INFORMATION
Common share price $44.72 Accumulated Wealth $45.04
Quarterly EPS $0.61 Dividend Yield 0.89%
Price earnings ratio 18.22 Marketable Security Yield 0.76%
Actual unit price $103.96 Actual unit demand 109,051
Preferred stock price $19.63 Preferred dividend yield 5.09%
Return on investment 7.62% Return on equity 17.84%
Call premium: preferred 8.00% Bond call premium 8.00%
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha $0.00
Outstanding debt yields:
Short-term 2-year loan 3-year loan Bonds
2.74% 3.11% 3.77% 3.80%
INFORMATION FOR FUTURE QUARTERS:
7 8 9
Units forecast 118,532 133,519 128,059
Price per unit forecast $105.64 $107.39 $104.66
Units of plant capacity 100,000 100,000 100,000
Units of machine capacity 90,000 90,000 85,000
Other overhead 183,497 183,497 183,497
Depreciation: Machinery 531,875 531,875 509,375
Projects 90,567 90,567 90,567
Plant 1,473,750 1,568,750 1,568,750
Principal repayment on debt:
Short-term 0 0 0
2-year 312,500 312,500 0
3-year 0 0 500,000
Bonds 575,000 575,000 575,000
Warehouse fees:
Units First 2000 Next 5000
Cost/Unit $1.00 $3.00
Production costs per unit next quarter:
Materials $15.00 Machinery $53.00
Units First 60,000 Next 40,000 Next 20,000
Labor cost $38.06 $28.06 $25.00
Rates on funding in quarter 7
Short-term 2-year loan 3-year loan Bond
2.55% 2.76% 3.01% 3.87%
Interest due next quarter:
Short-term $0
Intermediate $242,716
Bonds $432,961
Capital budgeting projects for next quarter:
Life Cost Unit Capacity
A 2-yr $569,112 100,000
B 3-yr $394,272 120,000
Summary Data
Quarter Number 7
HISTORICAL INFORMATION
Common share price $40.15 Accumulated Wealth $40.63
Quarterly EPS $0.70 Dividend Yield 1.47%
Price earnings ratio 14.33 Marketable Security Yield 0.59%
Actual unit price $106.27 Actual unit demand 115,856
Preferred stock price $19.48 Preferred dividend yield 5.13%
Return on investment 8.95% Return on equity 19.58%
Call premium: preferred 8.00% Bond call premium 8.00%
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha $0.00
Outstanding debt yields:
Short-term 2-year loan 3-year loan Bonds
2.55% 3.11% 3.77% 3.80%
INFORMATION FOR FUTURE QUARTERS:
8 9 10
Units forecast 121,132 119,208 102,426
Price per unit forecast $107.91 $107.87 $100.59
Units of plant capacity 100,000 100,000 100,000
Units of machine capacity 100,000 95,000 95,000
Other overhead 170,682 170,682 170,682
Depreciation: Machinery 598,125 575,625 575,625
Projects 161,706 161,706 161,706
Projects 161,706 161,706 161,706
Plant 1,568,750 1,568,750 1,568,750
Principal repayment on debt:
Short-term 0 0 0
2-year 312,500 0 0
3-year 0 0 833,333
Bonds 575,000 575,000 275,000
Warehouse fees:
Units First 2000 Next 5000
Cost/Unit $1.00 $3.00
Production costs per unit next quarter:
Materials $15.00 Machinery $52.00
Units First 60,000 Next 40,000 Next 20,000
Labor cost $37.31 $27.31 $25.00
Rates on funding in quarter 8
Short-term 2-year loan 3-year loan Bond
2.61% 2.84% 3.13% 4.05%
Interest due next quarter:
Short-term $0
Intermediate $214,129
Bonds $411,123
Capital budgeting projects for next quarter:
Life Cost Unit Capacity
A 2-yr $570,480 100,000
B 3-yr $422,784 120,000
B 3-yr $422,784 120,000
Summary Data
Quarter Number 8
HISTORICAL INFORMATION
Common share price $43.52 Accumulated Wealth $44.16
Quarterly EPS $0.88 Dividend Yield 1.35%
Price earnings ratio 12.36 Marketable Security Yield 0.80%
Actual unit price $108.25 Actual unit demand 121,620
Preferred stock price $19.49 Preferred dividend yield 5.13%
Return on investment 10.37% Return on equity 23.42%
Call premium: preferred 8.00% Bond call premium 8.00%
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha $0.00
Outstanding debt yields:
Short-term 2-year loan 3-year loan Bonds
2.61% 3.11% 3.68% 3.80%
INFORMATION FOR FUTURE QUARTERS:
9 10 11
Units forecast 123,404 103,229 96,799
Price per unit forecast $108.32 $100.24 $105.25
Units of plant capacity 100,000 112,500 87,500
Units of machine capacity 107,500 107,500 87,500
Other overhead 170,682 170,682 170,682
Depreciation: Machinery 656,875 656,875 536,875
Projects 161,706 161,706 161,706
Plant 1,568,750 1,805,625 1,491,875
Principal repayment on debt:
Short-term 0 0 0
2-year 0 0 0
3-year 250,000 1,083,333 1,083,333
Bonds 575,000 275,000 275,000
Warehouse fees:
Units First 2000 Next 5000
Cost/Unit $1.00 $3.00
Production costs per unit next quarter:
Materials $15.00 Machinery $44.00
Units First 60,000 Next 40,000 Next 20,000
Labor cost $37.26 $27.26 $25.00
Rates on funding in quarter 9
Short-term 2-year loan 3-year loan Bond
2.70% 2.88% 3.11% 3.90%
Interest due next quarter:
Short-term $0
Intermediate $300,315
Bonds $389,285
Capital budgeting projects for next quarter:
Life Cost Unit Capacity
A 2-yr $453,312 100,000
B 3-yr $673,152 120,000
Outstanding debt yields:
Penalty loan
8.00%
INFORMATION FOR FUTURE QUARTERS:
5
114,656
$101.85
80,000
60,000
200,000
311,250
0
989,000
989,000
Principal repayment on debt:
312,500
0
300,000
Over 7000
$8.00
Production costs per unit next quarter:
Plant $333.00
Over 120,000
$33.00
Rates on funding in quarter 2
Preferred
2.35%
Capital budgeting projects for next quarter:
Overhead SavingUnit Labor sav., Qtr.2Change/Qtr. Labor Sav.
$15,340 $0.82 $0.03
-$8,102 $0.85 -$0.01
Outstanding debt yields:
Penalty loan
8.00%
INFORMATION FOR FUTURE QUARTERS:
6
90,118
$103.16
70,000
80,000
200,000
431,250
0
1,013,000
1,013,000
Principal repayment on debt:
312,500
83,333
325,000
Over 7000
$8.00
Production costs per unit next quarter:
Plant $286.00
Over 120,000
$33.00
Rates on funding in quarter 3
Preferred
2.48%
Capital budgeting projects for next quarter:
Overhead SavingUnit Labor sav., Qtr.3Change/Qtr. Labor Sav.
$14,887 $0.78 $0.03
-$8,958 $0.78 -$0.02
Outstanding debt yields:
Penalty loan
8.00%
INFORMATION FOR FUTURE QUARTERS:
7
134,623
$102.08
95,000
35,000
200,000
195,000
0
1,383,000
1,383,000
Principal repayment on debt:
312,500
166,667
350,000
Over 7000
$8.00
Production costs per unit next quarter:
Plant $313.00
Over 120,000
$33.00
Rates on funding in quarter 4
Preferred
3.79%
Capital budgeting projects for next quarter:
Overhead SavingUnit Labor sav., Qtr.4Change/Qtr. Labor Sav.
$15,638 $0.71 $0.03
-$9,986 $0.65 -$0.03
Outstanding debt yields:
Penalty loan
8.00%
INFORMATION FOR FUTURE QUARTERS:
8
128,718
$105.92
75,000
45,000
200,000
252,500
0
1,120,000
1,120,000
Principal repayment on debt:
312,500
166,667
375,000
Over 7000
$8.00
Production costs per unit next quarter:
Plant $328.00
Over 120,000
$33.00
Rates on funding in quarter 5
Preferred
4.93%
Capital budgeting projects for next quarter:
Overhead SavingUnit Labor sav., Qtr.5Change/Qtr. Labor Sav.
$15,189 $0.75 $0.03
-$8,139 $0.65 -$0.01
Outstanding debt yields:
Penalty loan
8.00%
INFORMATION FOR FUTURE QUARTERS:
9
129,204
$107.91
75,000
60,000
200,000
350,000
0
1,120,000
1,120,000
Principal repayment on debt:
0
833,333
375,000
Over 7000
$8.00
Production costs per unit next quarter:
Plant $349.00
Over 120,000
$33.00
Rates on funding in quarter 6
Preferred
5.09%
Capital budgeting projects for next quarter:
Overhead SavingUnit Labor sav., Qtr.6Change/Qtr. Labor Sav.
$16,503 $0.90 $0.04
-$9,943 $0.83 -$0.03
Outstanding debt yields:
Penalty loan
8.00%
INFORMATION FOR FUTURE QUARTERS:
10
98,872
$100.97
100,000
85,000
183,497
509,375
90,567
1,568,750
Principal repayment on debt:
0
833,333
275,000
Over 7000
$8.00
Production costs per unit next quarter:
Plant $364.00
Over 120,000
$33.00
Rates on funding in quarter 7
Preferred
5.13%
Capital budgeting projects for next quarter:
Overhead SavingUnit Labor sav., Qtr.7Change/Qtr. Labor Sav.
$12,815 $0.70 $0.01
-$8,202 $0.65 -$0.01
Outstanding debt yields:
Penalty loan
8.00%
INFORMATION FOR FUTURE QUARTERS:
11
110,375
$101.17
75,000
75,000
170,682
455,625
161,706
161,706
1,255,000
Principal repayment on debt:
0
833,333
275,000
Over 7000
$8.00
Production costs per unit next quarter:
Plant $359.00
Over 120,000
$33.00
Rates on funding in quarter 8
Preferred
5.13%
Capital budgeting projects for next quarter:
Overhead SavingUnit Labor sav., Qtr.8Change/Qtr. Labor Sav.
$15,686 $0.71 $0.04
-$8,212 $0.70 -$0.01
-$8,212 $0.70 -$0.01
Outstanding debt yields:
Penalty loan
8.00%
INFORMATION FOR FUTURE QUARTERS:
12
98,361
$102.47
87,500
77,500
170,682
484,375
161,706
1,491,875
Principal repayment on debt:
0
1,083,333
275,000
Over 7000
$8.00
Production costs per unit next quarter:
Plant $299.00
Over 120,000
$33.00
Rates on funding in quarter 9
Preferred
5.20%
Capital budgeting projects for next quarter:
Overhead SavingUnit Labor sav., Qtr.9Change/Qtr. Labor Sav.
$13,078 $0.56 $0.01
-$10,364 $1.12 -$0.04
N&N Company - Financial Decision and Performance
Quarter1 Quarter2Unit to be produced unit 100,000.00 100,000.00Forecasted Price $ 100.00 100.00Actual Sale Volume unit 97,383.00 104,228.00Unit Price $ 100.00 102.31Ending Inventory unit 12,426.00 8,198.00Purchase of Plant Capacity unit 0.00 20,000.00Purchase of Machine Capacity unit 0.00 20,000.00Net Income $ 640,939.00 772,752.00Short-Term Penalty Loans $ 0.00 4,467,179.00Short-Term Investment $ 200,000.00 -200,000.002 Year Loans $ 2,500,000.00 -3 Year Loans $ - 999,999.0010 Year Bonds $ - 999,999.00Marketable Security Yield % 1.24 1.30Interest Rate - 2 Year Loans % 3.11 1.89Interest Rate - 3 Year Loans % 2.50 1.83Coupon % 1.40 1.73Penalty Loan % 8.00 8.00Stock Price $ 36.29 52.83Dividend $ 0.10 -Dividend Yield % 1.08 -Quarterly EPS $ 0.74 0.77ROI % 17.54 13.37ROE % 26.48 25.84
P/E Ratio time 12.21 17.06
N&N Company - Financial Decision and Performance
Quarter3 Quarter4 Quarter5100,000.00 105,000.00 100,000.00
103.00 100.00 102.00108,198.00 95,539.00 104,362.00
104.62 99.34 102.31- 9,470.00 5,108.00
25,000.00 5,000.00 -10,000.00 10,000.00 20,000.00
726,953.00 150,860.00 401,245.008,783,853.00 7,978,999.00 115,609.00
- - 2,500,000.00- - -
999,999.00 - 8,000,000.00999,999.00 999,999.00 -
1.16 1.11 0.862.01 2.50 2.951.96 2.57 3.121.91 2.92 3.798.00 8.00 8.00
60.36 30.08 37.66- - 0.10- - 1.07
0.73 0.15 0.5010.02 2.11 7.2822.91 4.70 15.14
20.72 49.67 18.68
Q6 Q7 Q8
Cash $412,310 $366,710 $494,544
Short-Term Security $1,592,779 $1,592,779 $1,192,779
Q6 Q7 Q8
Total Liabilities $18,451,011 $17,012,470 $18,916,829
Total Equities $13,755,916 $14,306,298 $15,036,547
D/E Ratio (time) 1.34 1.19 1.26
Q6 Q7 Q8Cost of Debt 4.00% 3.87% 4.05%Tax Rate 40.00% 40.00% 40.00%Div. of Preferred Stock 5.09% 5.13% 5.13%Cost of Equity 6.18% 6.39% 6.21%Proportion of Debt 56.60% 53.64% 55.05%Proportion of Equity 43.40% 46.36% 44.95%WACC 4.04% 4.21% 4.13%
Q9
$491,370
$592,779
Q9
$19,741,329
$15,680,656
1.26
Q93.90%
40.00%5.30%6.70%
55.10%44.90%4.30%
Q6 A B0 -$724,536.00 -$499,200.00 A1 $4,906,503.00 $4,873,057.002 $4,910,503.00 $4,870,057.003 $4,914,503.00 $4,867,057.004 $4,918,503.00 $4,864,057.005 $4,922,503.00 $4,861,057.006 $4,926,503.00 $4,858,057.007 $4,930,503.00 $4,855,057.008 $4,934,503.00 $4,852,057.009 - $4,849,057.00
10 - $4,846,057.00 B11 - $4,843,057.0012 - $4,840,057.00
$13,589,231.61 $9,952,135.47NPV $12,864,695.61 $9,452,935.47
Q7 A B0 -$569,112.00 -$394,272.00 A1 $4,993,318.00 $4,967,301.002 $4,994,318.00 $4,966,301.003 $4,995,318.00 $4,965,301.004 $4,996,318.00 $4,964,301.005 $4,997,318.00 $4,963,301.006 $4,998,318.00 $4,962,301.007 $4,999,318.00 $4,961,301.008 $5,000,318.00 $4,960,301.009 - $4,959,301.00
10 - $4,958,301.00 B11 - $4,957,301.0012 - $4,956,301.00
$13,377,651.86 $9,755,933.42NPV $12,808,539.86 $9,361,661.42
Q8 A B0 -$570,480.00 -$422,784.00 A
1 $5,085,004.00 $5,060,106.002 $5,089,004.00 $5,059,706.003 $5,091,404.00 $5,059,306.004 $5,093,804.00 $5,058,906.005 $5,096,204.00 $5,058,506.006 $5,098,604.00 $5,058,106.007 $5,101,004.00 $5,057,706.008 $5,103,404.00 $5,057,306.009 - $5,056,906.00
10 - $5,056,506.00 B11 - $5,056,106.0012 - $5,055,706.00
$13,839,247.65 $10,127,006.33NPV $13,268,767.65 $9,704,222.33
Q9 A B0 -$570,480.00 -$673,152.00 A1 $5,072,396.00 $5,104,954.002 $5,073,396.00 $5,100,954.003 $5,074,396.00 $5,096,954.004 $5,075,396.00 $5,092,954.005 $5,076,396.00 $5,088,954.006 $5,077,396.00 $5,084,954.007 $5,078,396.00 $5,080,954.008 $5,079,396.00 $5,076,954.009 - $5,072,954.00
10 - $5,068,954.00 B11 - $5,064,954.0012 - $5,060,954.00
$13,365,775.14 $9,811,896.34NPV $12,795,295.14 $9,138,744.34
Q6 Q7 Q8 Q9 Q10Material 15 0 1500000 1500000 1500000 1500000 1500000Overhead 200000 183497 183497 183497 183497 183497 183497
60000 39 38.1 38.06 38.02 37.98 37.9440000 29 28.1 28.06 28.02 27.98 27.94
Labor 3410000 3406000 3402000 3398000 3394000Total Cost 5093497 5089497 5085497 5081497 5077497Sale 10000000 10000000 10000000 10000000 10000000Profit 4906503 4910503 4914503 4918503 4922503
Q6 Q7 Q8 Q9 Q10Material 15 0 1500000 1500000 1500000 1500000 1500000Overhead 200000 209943 209943 209943 209943 209943 209943
60000 39 38.17 38.2 38.23 38.26 38.2940000 29 28.17 28.2 28.23 28.26 28.29
Labor 3417000 3420000 3423000 3426000 3429000Total Cost 5126943 5129943 5132943 5135943 5138943Sale 10000000 10000000 10000000 10000000 10000000Profit 4873057 4870057 4867057 4864057 4861057
Q7 Q8 Q9 Q10 Q11Material 15 0 1500000 1500000 1500000 1500000 1500000Overhead 183497 170682 170682 170682 170682 170682 170682
60000 38.06 37.36 37.35 37.34 37.33 37.3240000 28.06 27.36 27.35 27.34 27.33 27.32
Labor 3336000 3335000 3334000 3333000 3332000Total Cost 5006682 5005682 5004682 5003682 5002682Sale 10000000 10000000 10000000 10000000 10000000Profit 4993318 4994318 4995318 4996318 4997318
Q7 Q8 Q9 Q10 Q11Material 15 0 1500000 1500000 1500000 1500000 1500000Overhead 183497 191699 191699 191699 191699 191699 191699
60000 38.06 37.41 37.42 37.43 37.44 37.4540000 28.06 27.41 27.42 27.43 27.44 27.45
Labor 3341000 3342000 3343000 3344000 3345000Total Cost 5032699 5033699 5034699 5035699 5036699Sale 10000000 10000000 10000000 10000000 10000000Profit 4967301 4966301 4965301 4964301 4963301
Q8 Q9 Q10 Q11 Q12Material 15 0 1500000 1500000 1500000 1500000 1500000
Overhead 170682 154996 154996 154996 154996 154996 15499660000 37.31 36.6 36.56 36.52 36.48 36.4440000 27.31 26.6 26.56 26.56 26.56 26.56
Labor 3260000 3256000 3253600 3251200 3248800Total Cost 4914996 4910996 4908596 4906196 4903796Sale 10000000 10000000 10000000 10000000 10000000Profit 5085004 5089004 5091404 5093804 5096204
Q8 Q9 Q10 Q11 Q12Material 15 0 1500000 1500000 1500000 1500000 1500000Overhead 170682 178894 178894 178894 178894 178894 178894
60000 37.31 36.61 36.61 36.61 36.61 36.6140000 27.31 26.61 26.62 26.63 26.64 26.65
Labor 3261000 3261400 3261800 3262200 3262600Total Cost 4939894 4940294 4940694 4941094 4941494Sale 10000000 10000000 10000000 10000000 10000000Profit 5060106 5059706 5059306 5058906 5058506
Q9 Q10 Q11 Q12 Q13Material 15 0 1500000 1500000 1500000 1500000 1500000Overhead 170682 157604 157604 157604 157604 157604 157604
60000 37.26 36.7 36.69 36.68 36.67 36.6640000 27.26 26.7 26.69 26.68 26.67 26.66
Labor 3270000 3269000 3268000 3267000 3266000Total Cost 4927604 4926604 4925604 4924604 4923604Sale 10000000 10000000 10000000 10000000 10000000Profit 5072396 5073396 5074396 5075396 5076396
Q9 Q10 Q11 Q12 Q13Material 15 0 1500000 1500000 1500000 1500000 1500000Overhead 170682 181046 181046 181046 181046 181046 181046
60000 37.26 36.14 36.18 36.22 36.26 36.340000 27.26 26.14 26.18 26.22 26.26 26.3
Labor 3214000 3218000 3222000 3226000 3230000Total Cost 4895046 4899046 4903046 4907046 4911046Sale 10000000 10000000 10000000 10000000 10000000Profit 5104954 5100954 5096954 5092954 5088954
0.040.03
Q11 Q12 Q131500000 1500000 1500000
183497 183497 18349737.9 37.86 37.8227.9 27.86 27.82
3390000 3386000 33820005073497 5069497 5065497
10000000 10000000 100000004926503 4930503 4934503
Q11 Q12 Q13 Q14 Q15 Q16 Q171500000 1500000 1500000 1500000 1500000 1500000 1500000
209943 209943 209943 209943 209943 209943 20994338.32 38.35 38.38 38.41 38.44 38.47 38.528.32 28.35 28.38 28.41 28.44 28.47 28.5
3432000 3435000 3438000 3441000 3444000 3447000 34500005141943 5144943 5147943 5150943 5153943 5156943 5159943
10000000 10000000 10000000 10000000 10000000 10000000 100000004858057 4855057 4852057 4849057 4846057 4843057 4840057
0.01Q12 Q13 Q14
1500000 1500000 1500000170682 170682 170682
37.31 37.3 37.2927.31 27.3 27.29
3331000 3330000 33290005001682 5000682 4999682
10000000 10000000 100000004998318 4999318 5000318
Q12 Q13 Q14 Q15 Q16 Q17 Q181500000 1500000 1500000 1500000 1500000 1500000 1500000
191699 191699 191699 191699 191699 191699 19169937.46 37.47 37.48 37.49 37.5 37.51 37.5227.46 27.47 27.48 27.49 27.5 27.51 27.52
3346000 3347000 3348000 3349000 3350000 3351000 33520005037699 5038699 5039699 5040699 5041699 5042699 5043699
10000000 10000000 10000000 10000000 10000000 10000000 100000004962301 4961301 4960301 4959301 4958301 4957301 4956301
0.040.01
Q13 Q14 Q151500000 1500000 1500000
154996 154996 15499636.4 36.36 36.32
26.56 26.56 26.563246400 3244000 32416004901396 4898996 4896596
10000000 10000000 100000005098604 5101004 5103404
Q13 Q14 Q15 Q16 Q17 Q18 Q191500000 1500000 1500000 1500000 1500000 1500000 1500000
178894 178894 178894 178894 178894 178894 17889436.61 36.61 36.61 36.61 36.61 36.61 36.6126.66 26.67 26.68 26.69 26.7 26.71 26.72
3263000 3263400 3263800 3264200 3264600 3265000 32654004941894 4942294 4942694 4943094 4943494 4943894 4944294
10000000 10000000 10000000 10000000 10000000 10000000 100000005058106 5057706 5057306 5056906 5056506 5056106 5055706
0.010.04
Q14 Q15 Q161500000 1500000 1500000
157604 157604 15760436.65 36.64 36.6326.65 26.64 26.63
3265000 3264000 32630004922604 4921604 4920604
10000000 10000000 100000005077396 5078396 5079396
Q14 Q15 Q16 Q17 Q18 Q19 Q201500000 1500000 1500000 1500000 1500000 1500000 1500000
181046 181046 181046 181046 181046 181046 18104636.34 36.38 36.42 36.46 36.5 36.54 36.5826.34 26.38 26.42 26.46 26.5 26.54 26.58
3234000 3238000 3242000 3246000 3250000 3254000 32580004915046 4919046 4923046 4927046 4931046 4935046 4939046
10000000 10000000 10000000 10000000 10000000 10000000 100000005084954 5080954 5076954 5072954 5068954 5064954 5060954
Results for company name: N&NDecision Inputs for Quarter Number 1
Company Operating Decisions
Units to be produced 100,000
Div. per common share $0.10
Demand/price forecast $0
Investment Decisions
Short-term investment $200,000
Machine units bought 0
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $2,500,000
Three-year loans $0
Ten-year bonds $0
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 1
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 9,809 at $74.79 )
Materials $1,500,000
Direct Labor 3,500,000
Sales revenue ( 97,383 units at $100.00 )
Total Direct Costs $5,000,000
Warehousing Costs $60,408
Depreciation: Mach. and Equip. 478,125
Plant 1,300,000
Other Overhead Costs 200,000
Total Indirect Costs 2,038,533
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 92,749
Bond Interest 33,600
Bond Redemption Costs 0
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income After Taxes
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 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 1
ASSETS
Current Assets
Cash $120,485
Marketable Securities 200,000
Accounts Receivable 6,524,661
879,492
Total Current Assets $7,724,636
Machinery and Equipment $2,008,125
Plant 7,165,250
Total Fixed Assets 9,173,375
Total Assets $16,898,011
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
Common Stock Dividends ( $0.10 per share )
Inventory ( 12,426 units at $70.78 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,200,000
Total Current Liabilities $3,570,000
Long Term Liabilities
Intermediate Loans: 2 years $937,500
3 years 0
Bonds 1,200,000
Total Long Term Liabilities 2,137,500
Total Liabilities $5,707,500
Owners' Equity
$0
8,000,000
Retained Earnings 3,190,511
Total Equity 11,190,512
Total Liabilities and Equity $16,898,011
Summary Data
Quarter Number 1
HISTORICAL INFORMATION
Common share price $36.19 Accumulated Wealth
Quarterly EPS $0.74 Dividend Yield
Price earnings ratio 12.21 Marketable Security Yield
Actual unit price $100.00 Actual unit demand
Preferred stock price $32.15 Preferred dividend yield
Return on investment 17.54% Return on equity
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00% Bond call premium
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha
Outstanding debt yields:
Short-term 2-year loan 3-year loan
2.98% 3.11% 2.50%
INFORMATION FOR FUTURE QUARTERS:
2 3
Units forecast 107,734 107,051
Price per unit forecast $100.80 $104.73
Units of plant capacity 100,000 100,000
Units of machine capacity 100,000 100,000
Other overhead 200,000 200,000
Depreciation: Machinery 478,125 478,125
Projects 0 0
Plant 1,300,000 1,300,000
Principal repayment on debt:
Short-term 0 0
2-year 312,500 312,500
3-year 300,000 300,000
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 2
Short-term 2-year loan 3-year loan
1.96% 1.89% 1.83%
Interest due next quarter:
Short-term $0
Intermediate $83,030
Bonds $33,600
Capital budgeting projects for next quarter:
Life Cost
A 2-yr $659,280
B 3-yr $513,432
Per unit price $100.00
Advertising cost $0
Sales discount 0.00%
Risk of S-T investment 0
Units of plant bought 0
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
$9,738,300
2,470 $9,740,770
$733,567
7,038,533
$7,772,100
879,492
6,892,608
$2,848,161
$1,486,915
126,349 1,613,264
$1,234,898
0
$1,234,897
493,958
$740,939
0
$740,939
100,000
$640,939
$36.29
1.08%
1.23%
97,383
3.11%
26.48%
8.00%
$0.00
Bonds Penalty loan
1.40% 8.00%
4 5
105,445 114,656
$98.08 $101.85
100,000 80,000
75,000 60,000
200,000 200,000
384,375 311,250
0 0
1,300,000 989,000
0
312,500 312,500
0 0
300,000 300,000
Next 5000 Over 7000
$3.00 $8.00
$48.00 Plant $333.00
Next 20,000 Over 120,000
$25.00 $33.00
Bond Preferred
1.73% 2.35%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.2Change/Qtr. Labor Sav.
100,000 $15,340 $0.82 $0.03
120,000 ($8,102) $0.85 ($0.01)
Results for company name: N&NDecision 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 ($200,000)
Machine units bought 20,000
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans $999,999
Ten-year bonds $999,999
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 )
Materials $1,500,000
Direct Labor 3,500,000
Sales revenue ( 104,228 units at $102.31 )
Total Direct Costs
Warehousing Costs $26,584
Depreciation: Mach. and Equip. 478,125
Plant 1,300,000
Other Overhead Costs 200,000
Total Indirect Costs
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 After Taxes
Production Costs ( 100,000 at $70.05 )
Goods Available for Sale ( $70.13 per unit )
Less: Ending Inventory ( 8,198 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 2
ASSETS
Current Assets
Cash $132,361
Marketable Securities 0
Accounts Receivable 7,144,590
574,909
Total Current Assets
Machinery and Equipment $2,490,000
Plant 12,775,250
Total Fixed Assets
Total Assets
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $520,000
Short Term Loans Payable 0
Short Term Penalty Loan 4,467,179
Intermediate Term Debt Maturing 1,883,332
Common Stock Dividends ( $0.00 per share )
Inventory ( 8,198 units at $70.13 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,299,996
Total Current Liabilities
Long Term Liabilities
Intermediate Loans: 2 years $625,000
3 years 583,333
Bonds 1,775,003
Total Long Term Liabilities
Total Liabilities
Owners' Equity
$0
8,000,000
Retained Earnings 3,963,266
Total Equity
Total Liabilities and Equity
Summary Data
Quarter Number 2
HISTORICAL INFORMATION
Common share price $52.73
Quarterly EPS $0.77
Price earnings ratio 17.06
Actual unit price $102.31
Preferred stock price $42.62
Return on investment 13.37%
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00%
Common tender or sell/sh $0.00
Outstanding debt yields:
Short-term 2-year loan
1.96% 3.11%
INFORMATION FOR FUTURE QUARTERS:
3
Units forecast 109,306
Price per unit forecast $103.63
Units of plant capacity 100,000
Units of machine capacity 120,000
Other overhead 200,000
Depreciation: Machinery 598,125
Projects 0
Plant 1,300,000
Principal repayment on debt:
Short-term 0
2-year 312,500
3-year 383,333
Bonds 325,000
Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials $15.00
Units First 60,000
Labor cost $39.00
Rates on funding in quarter 3
Short-term 2-year loan
2.07% 2.01%
Interest due next quarter:
Short-term $0
Intermediate $83,638
Bonds $46,068
Capital budgeting projects for next quarter:
Life
A 2-yr
B 3-yr
Per unit price ###
Advertising cost $0
Sales discount 0.00%
Risk of S-T investment 0
Units of plant bought 20,000
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
###
0 $10,663,567
$879,492
$5,000,000
2,004,709
7,004,709
$7,884,200
574,909
7,309,292
$3,354,274
$1,533,178
$0
330,902
101,336
100,937
0
533,175 2,066,353
$1,287,921
0
$1,287,921
515,169
$772,752
0
$772,752
0
$772,752
$7,851,857
15,265,250
$23,117,107
$8,170,507
2,983,335
$11,153,841
11,963,263
$23,117,107
Summary Data
Quarter Number 2
Accumulated Wealth $52.83
Dividend Yield 0.00%
Marketable Security Yield 1.30%
Actual unit demand 104,228
Preferred dividend yield 2.35%
Return on equity 25.84%
Bond call premium 8.00%
Unpaid preferred dividend/shar $0.00
Outstanding debt yields:
3-year loan Bonds Penalty loan
2.08% 1.50% 8.00%
INFORMATION FOR FUTURE QUARTERS:
4 5 6
98,139 103,736 90,118
$98.99 $101.27 $103.16
120,000 100,000 70,000
95,000 80,000 80,000
200,000 200,000 200,000
504,375 431,250 431,250
0 0 0
1,645,500 1,334,500 1,013,000
Principal repayment on debt:
0 0
312,500 312,500 312,500
83,333 83,333 83,333
325,000 325,000 325,000
First 2000 Next 5000 Over 7000
$1.00 $3.00 $8.00
Production costs per unit next quarter:
Machinery $42.00 Plant ###
Next 40,000 Next 20,000 Over 120,000
$29.00 $25.00 $33.00
Rates on funding in quarter 3
3-year loan Bond Preferred
1.96% 1.91% 2.48%
Capital budgeting projects for next quarter:
Cost Unit Capacity Overhead SavingUnit Labor sav., Qtr.3
$629,400 100,000 $14,887 $0.78
$472,560 120,000 ($8,958) $0.78
Capital budgeting projects for next quarter:
Change/Qtr. Labor Sav.
$0.03
($0.02)
Results for company name: N&NDecision Inputs for Quarter Number 3
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 10,000
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans $999,999
Ten-year bonds $999,999
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 3
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 8,198 at $70.13 )
Materials $1,500,000
Direct Labor 3,500,000
Sales revenue ( 108,198 units at $104.62 )
Total Direct Costs $5,000,000
Warehousing Costs $0
Depreciation: Mach. and Equip. 598,125
Plant 1,300,000
Other Overhead Costs 200,000
Total Indirect Costs 2,098,125
Cost of Goods Sold
Gross Profit
Selling and administrative expenses
Financial Expenses:
Short Term Bank Interest $0
Penalty Loan Interest 650,655
Intermediate Term Loan Interest 103,238
Bond Interest 115,177
Bond Redemption Costs 0
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income After Taxes
Production Costs ( 100,000 at $70.98 )
Goods Available for Sale ( $70.92 per unit )
Less: Ending Inventory ( 0 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 3
ASSETS
Current Assets
Cash $260,262
Marketable Securities 0
Accounts Receivable 7,584,182
0
Total Current Assets $7,844,444
Machinery and Equipment $2,311,875
Plant 18,875,250
Total Fixed Assets 21,187,125
Total Assets $29,031,569
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $520,000
Short Term Loans Payable 0
Short Term Penalty Loan 8,783,853
Intermediate Term Debt Maturing 1,916,664
Common Stock Dividends ( $0.00 per share )
Inventory ( 0 units at $70.92 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,399,996
Total Current Liabilities $12,620,513
Long Term Liabilities
Intermediate Loans: 2 years $312,500
3 years 1,083,332
Bonds 2,325,002
Total Long Term Liabilities 3,720,834
Total Liabilities $16,341,347
Owners' Equity
$0
8,000,000
Retained Earnings 4,690,222
Total Equity 12,690,219
Total Liabilities and Equity $29,031,569
Summary Data
Quarter Number 3
HISTORICAL INFORMATION
Common share price $60.26 Accumulated Wealth
Quarterly EPS $0.73 Dividend Yield
Price earnings ratio 20.72 Marketable Security Yield
Actual unit price $104.62 Actual unit demand
Preferred stock price $40.36 Preferred dividend yield
Return on investment 10.02% Return on equity
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00% Bond call premium
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha
Outstanding debt yields:
Short-term 2-year loan 3-year loan
2.07% 3.11% 2.03%
INFORMATION FOR FUTURE QUARTERS:
4 5
Units forecast 98,414 101,134
Price per unit forecast $99.13 $101.54
Units of plant capacity 120,000 125,000
Units of machine capacity 105,000 90,000
Other overhead 200,000 200,000
Depreciation: Machinery 556,875 483,750
Projects 0 0
Plant 1,645,500 1,704,500
Principal repayment on debt:
Short-term 0 0
2-year 312,500 312,500
3-year 166,667 166,667
Bonds 350,000 350,000
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 4
Short-term 2-year loan 3-year loan
2.46% 2.50% 2.57%
Interest due next quarter:
Short-term $0
Intermediate $84,062
Bonds $59,579
Capital budgeting projects for next quarter:
Life Cost
A 2-yr $570,456
B 3-yr $395,544
Per unit price $104.62
Advertising cost $0
Sales discount 0.00%
Risk of S-T investment 0
Units of plant bought 25,000
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
###
0 $11,319,675
$574,909
7,098,125
$7,673,033
0
7,673,033
$3,646,641
$1,565,984
869,070 2,435,053
$1,211,588
0
$1,211,587
484,634
$726,953
0
$726,953
0
$726,953
$60.36
0.00%
1.16%
110,746
2.48%
22.91%
8.00%
$0.00
Bonds Penalty loan
1.60% 8.00%
6 7
113,473 134,623
$103.16 $102.08
95,000 95,000
90,000 35,000
200,000 200,000
483,750 195,000
0 0
1,383,000 1,383,000
0
312,500 312,500
166,667 166,667
350,000 350,000
Next 5000 Over 7000
$3.00 $8.00
$46.00 Plant $313.00
Next 20,000 Over 120,000
$25.00 $33.00
Bond Preferred
2.92% 3.79%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.4Change/Qtr. Labor Sav.
100,000 $15,638 $0.71 $0.03
120,000 ($9,986) $0.65 ($0.03)
Results for company name: N&NDecision Inputs for Quarter Number 4
Company Operating Decisions
Units to be produced 105,000
Div. per common share $0.00
Demand/price forecast $0
Investment Decisions
Short-term investment $0
Machine units bought 10,000
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans $0
Ten-year bonds $999,999
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 4
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 )
Materials $1,575,000
Direct Labor 3,625,000
Sales revenue ( 95,530 units at $99.34 )
Total Direct Costs $5,200,000
Warehousing Costs $36,760
Depreciation: Mach. and Equip. 556,875
Plant 1,645,500
Other Overhead Costs 200,000
Total Indirect Costs 2,439,135
Cost of Goods Sold
Gross Profit
Selling and administrative expenses
Financial Expenses:
Short Term Bank Interest $0
Penalty Loan Interest 591,036
Intermediate Term Loan Interest 84,061
Bond Interest 138,763
Bond Redemption Costs 0
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income After Taxes
Production Costs ( 105,000 at $72.75 )
Goods Available for Sale ( $72.75 per unit )
Less: Ending Inventory ( 9,470 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 4
ASSETS
Current Assets
Cash $236,414
Marketable Securities 0
Accounts Receivable 6,358,267
688,977
Total Current Assets $7,283,657
Machinery and Equipment $2,215,000
Plant 19,044,750
Total Fixed Assets 21,259,750
Total Assets $28,543,407
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $540,000
Short Term Loans Payable 0
Short Term Penalty Loan 7,978,999
Intermediate Term Debt Maturing 1,916,664
Common Stock Dividends ( $0.00 per share )
Inventory ( 9,470 units at $72.75 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,499,996
Total Current Liabilities $11,935,658
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 916,666
Bonds 2,850,001
Total Long Term Liabilities 3,766,666
Total Liabilities $15,702,324
Owners' Equity
$0
8,000,000
Retained Earnings 4,841,083
Total Equity 12,841,082
Total Liabilities and Equity $28,543,407
Summary Data
Quarter Number 4
HISTORICAL INFORMATION
Common share price $29.97 Accumulated Wealth
Quarterly EPS $0.15 Dividend Yield
Price earnings ratio 49.67 Marketable Security Yield
Actual unit price $99.34 Actual unit demand
Preferred stock price $26.37 Preferred dividend yield
Return on investment 2.11% Return on equity
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00% Bond call premium
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha
Outstanding debt yields:
Short-term 2-year loan 3-year loan
2.46% 3.11% 2.03%
INFORMATION FOR FUTURE QUARTERS:
5 6
Units forecast 107,565 118,165
Price per unit forecast $101.56 $102.70
Units of plant capacity 125,000 100,000
Units of machine capacity 100,000 100,000
Other overhead 200,000 200,000
Depreciation: Machinery 541,250 541,250
Projects 0 0
Plant 1,704,500 1,473,750
Principal repayment on debt:
Short-term 0 0
2-year 312,500 312,500
3-year 166,667 166,667
Bonds 375,000 375,000
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 5
Short-term 2-year loan 3-year loan
2.83% 2.95% 3.12%
Interest due next quarter:
Short-term $0
Intermediate $70,965
Bonds $81,718
Capital budgeting projects for next quarter:
Life Cost
A 2-yr $607,992
B 3-yr $391,632
Per unit price $99.34
Advertising cost $0
Sales discount 0.00%
Risk of S-T investment 0
Units of plant bought 5,000
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
$9,489,950
0 $9,489,950
$0
7,639,135
$7,639,135
688,977
6,950,157
$2,539,792
$1,474,498
813,860 2,288,357
$251,435
0
$251,434
100,574
$150,860
0
$150,860
0
$150,860
$30.08
0.00%
1.11%
95,530
3.79%
4.70%
8.00%
$0.00
Bonds Penalty loan
1.88% 8.00%
7 8
116,386 128,718
$106.65 $105.92
100,000 75,000
45,000 45,000
200,000 200,000
252,500 252,500
0 0
1,473,750 1,120,000
0
312,500 312,500
166,667 166,667
375,000 375,000
Next 5000 Over 7000
$3.00 $8.00
$48.00 Plant $328.00
Next 20,000 Over 120,000
$25.00 $33.00
Bond Preferred
3.79% 4.93%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.5Change/Qtr. Labor Sav.
100,000 $15,189 $0.75 $0.03
120,000 ($8,139) $0.65 ($0.01)
Results for company name: N&NDecision Inputs for Quarter Number 5
Company Operating Decisions
Units to be produced 100,000
Div. per common share $0.10
Demand/price forecast $0
Investment Decisions
Short-term investment $2,500,000
Machine units bought 20,000
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans $8,000,000
Ten-year bonds $0
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 5
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 9,470 at $72.75 )
Materials $1,500,000
Direct Labor 3,500,000
Sales revenue ( 104,362 units at $102.31 )
Total Direct Costs $5,000,000
Warehousing Costs $11,324
Depreciation: Mach. and Equip. 541,250
Plant 1,704,500
Other Overhead Costs 200,000
Total Indirect Costs 2,457,074
Cost of Goods Sold
Gross Profit
Selling and administrative expenses
Financial Expenses:
Short Term Bank Interest $0
Penalty Loan Interest 81,378
Intermediate Term Loan Interest 400,523
Bond Interest 81,718
Bond Redemption Costs 0
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income After Taxes
Production Costs ( 100,000 at $74.57 )
Goods Available for Sale ( $74.41 per unit )
Less: Ending Inventory ( 5,108 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 5
ASSETS
Current Assets
Cash $32,551
Marketable Securities 0
Accounts Receivable 7,153,775
380,104
Total Current Assets $7,566,430
Machinery and Equipment $2,633,750
Plant 17,340,250
Total Fixed Assets 19,974,000
Total Assets $27,540,430
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $520,000
Short Term Loans Payable 0
Short Term Penalty Loan 115,609
Intermediate Term Debt Maturing 4,270,832
Common Stock Dividends ( $0.10 per share )
Inventory ( 5,108 units at $74.41 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,499,996
Total Current Liabilities $6,406,437
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 5,416,666
Bonds 2,475,001
Total Long Term Liabilities 7,891,666
Total Liabilities $14,298,103
Owners' Equity
$0
8,000,000
Retained Earnings 5,242,327
Total Equity 13,242,328
Total Liabilities and Equity $27,540,430
Summary Data
Quarter Number 5
HISTORICAL INFORMATION
Common share price $37.45 Accumulated Wealth
Quarterly EPS $0.50 Dividend Yield
Price earnings ratio 18.68 Marketable Security Yield
Actual unit price $102.31 Actual unit demand
Preferred stock price $20.29 Preferred dividend yield
Return on investment 7.28% Return on equity
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00% Bond call premium
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha
Outstanding debt yields:
Short-term 2-year loan 3-year loan
2.83% 3.11% 3.77%
INFORMATION FOR FUTURE QUARTERS:
6 7
Units forecast 112,661 127,161
Price per unit forecast $102.47 $107.90
Units of plant capacity 100,000 100,000
Units of machine capacity 120,000 65,000
Other overhead 200,000 200,000
Depreciation: Machinery 661,250 372,500
Projects 0 0
Plant 1,473,750 1,473,750
Principal repayment on debt:
Short-term 0 0
2-year 312,500 312,500
3-year 833,333 833,333
Bonds 375,000 375,000
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 6
Short-term 2-year loan 3-year loan
2.74% 2.93% 3.17%
Interest due next quarter:
Short-term $0
Intermediate $359,357
Bonds $74,674
Capital budgeting projects for next quarter:
Life Cost
A 2-yr $724,536
B 3-yr $499,200
Per unit price $102.31
Advertising cost $0
Sales discount 0.00%
Risk of S-T investment 0
Units of plant bought 0
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
###
21,563 $10,698,838
$688,977
7,457,074
$8,146,051
380,104
7,765,946
$2,932,891
$1,533,864
563,619 2,097,483
$835,409
0
$835,408
334,163
$501,245
0
$501,245
100,000
$401,245
$37.66
1.07%
0.86%
104,362
4.93%
15.14%
8.00%
$0.00
Bonds Penalty loan
1.88% 8.00%
8 9
117,708 129,204
$104.70 $107.91
75,000 75,000
65,000 60,000
200,000 200,000
372,500 350,000
0 0
1,120,000 1,120,000
0
312,500 0
833,333 833,333
375,000 375,000
Next 5000 Over 7000
$3.00 $8.00
$51.00 Plant $349.00
Next 20,000 Over 120,000
$25.00 $33.00
Bond Preferred
4.00% 5.09%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.6Change/Qtr. Labor Sav.
100,000 $16,503 $0.90 $0.04
120,000 ($9,943) $0.83 ($0.03)
Results for company name: N&NDecision Inputs for Quarter Number 6
Company Operating Decisions
Units to be produced 100,000
Div. per common share $0.10
Demand/price forecast $0
Investment Decisions
Short-term investment $1,500,000
Machine units bought 25,000
Project A yes
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans ($2,000,000)
Ten-year bonds $8,000,000
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 6
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 5,108 at $74.41 )
Materials $1,500,000
Direct Labor 3,410,000
Sales revenue ( 105,108 units at $105.00 )
Total Direct Costs $4,910,000
Warehousing Costs $0
Depreciation: Mach. and Equip. 751,817
Plant 1,473,750
Other Overhead Costs 183,497
Total Indirect Costs 2,409,063
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 283,881
Bond Interest 504,799
Bond Redemption Costs 0
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income After Taxes
Production Costs ( 100,000 at $73.19 )
Goods Available for Sale ( $73.25 per unit )
Less: Ending Inventory ( 0 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 6
ASSETS
Current Assets
Cash $412,310
Marketable Securities 1,592,779
Accounts Receivable 1,478,870
0
Total Current Assets $3,483,957
Machinery and Equipment $3,881,469
Plant 24,841,500
Total Fixed Assets 28,722,969
Total Assets $32,206,926
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $509,350
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 1,958,332
Common Stock Dividends ( $0.10 per share )
Inventory ( 0 units at $73.25 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,999,996
Total Current Liabilities $4,467,678
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 4,583,333
Bonds 9,400,001
Total Long Term Liabilities 13,983,334
Total Liabilities $18,451,011
Owners' Equity
$0
8,000,000
Retained Earnings 5,755,915
Total Equity 13,755,916
Total Liabilities and Equity $32,206,926
Summary Data
Quarter Number 6
HISTORICAL INFORMATION
Common share price $44.72 Accumulated Wealth
Quarterly EPS $0.61 Dividend Yield
Price earnings ratio 18.22 Marketable Security Yield
Actual unit price $103.96 Actual unit demand
Preferred stock price $19.63 Preferred dividend yield
Return on investment 7.62% Return on equity
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00% Bond call premium
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha
Outstanding debt yields:
Short-term 2-year loan 3-year loan
2.74% 3.11% 3.77%
INFORMATION FOR FUTURE QUARTERS:
7 8
Units forecast 118,532 133,519
Price per unit forecast $105.64 $107.39
Units of plant capacity 100,000 100,000
Units of machine capacity 90,000 90,000
Other overhead 183,497 183,497
Depreciation: Machinery 531,875 531,875
Projects 90,567 90,567
Plant 1,473,750 1,568,750
Principal repayment on debt:
Short-term 0 0
2-year 312,500 312,500
3-year 0 0
Bonds 575,000 575,000
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 $38.06 $28.06
Rates on funding in quarter 7
Short-term 2-year loan 3-year loan
2.55% 2.76% 3.01%
Interest due next quarter:
Short-term $0
Intermediate $242,716
Bonds $432,961
Capital budgeting projects for next quarter:
Life Cost
A 2-yr $569,112
B 3-yr $394,272
Per unit price $105.00
Advertising cost $0
Sales discount 1.00%
Risk of S-T investment 4
Units of plant bought 25,000
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
###
109,849 $11,057,898
$380,104
7,319,064
$7,699,168
0
7,699,168
$3,358,729
$1,547,403
788,680 2,336,082
$1,022,647
0
$1,022,647
409,058
$613,589
0
$613,589
100,000
$513,589
$45.04
0.89%
0.76%
109,051
5.09%
17.84%
8.00%
$0.00
Bonds Penalty loan
3.80% 8.00%
9 10
128,059 98,872
$104.66 $100.97
100,000 100,000
85,000 85,000
183,497 183,497
509,375 509,375
90,567 90,567
1,568,750 1,568,750
0
0 0
500,000 833,333
575,000 275,000
Next 5000 Over 7000
$3.00 $8.00
$53.00 Plant $364.00
Next 20,000 Over 120,000
$25.00 $33.00
Bond Preferred
3.87% 5.13%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.7Change/Qtr. Labor Sav.
100,000 $12,815 $0.70 $0.01
120,000 ($8,202) $0.65 ($0.01)
Results for company name: N&NDecision Inputs for Quarter Number 7
Company Operating Decisions
Units to be produced 90,000
Div. per common share $0.15
Demand/price forecast $0
Investment Decisions
Short-term investment $0
Machine units bought 10,000
Project A yes
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans ($500,000)
Ten-year bonds $0
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 7
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 )
Materials $1,350,000
Direct Labor 3,062,400
Sales revenue ( 84,682 units at $115.00 )
Total Direct Costs $4,412,400
Warehousing Costs $11,954
Depreciation: Mach. and Equip. 693,581
Plant 1,473,750
Other Overhead Costs 170,682
Total Indirect Costs 2,349,966
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 223,847
Bond Interest 432,961
Bond Redemption Costs 0
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income After Taxes
Production Costs ( 90,000 at $75.14 )
Goods Available for Sale ( $75.14 per unit )
Less: Ending Inventory ( 5,318 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 7
ASSETS
Current Assets
Cash $366,710
Marketable Securities 1,592,779
Accounts Receivable 1,304,950
399,581
Total Current Assets $3,664,018
Machinery and Equipment $4,287,000
Plant 23,367,750
Total Fixed Assets 27,654,750
Total Assets $31,318,768
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $458,308
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 1,979,165
Common Stock Dividends ( $0.15 per share )
Inventory ( 5,318 units at $75.14 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,699,996
Total Current Liabilities $4,137,469
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 3,750,000
Bonds 9,125,001
Total Long Term Liabilities 12,875,001
Total Liabilities $17,012,470
Owners' Equity
$0
8,000,000
Retained Earnings 6,306,298
Total Equity 14,306,298
Total Liabilities and Equity $31,318,768
Summary Data
Quarter Number 7
HISTORICAL INFORMATION
Common share price $40.15 Accumulated Wealth
Quarterly EPS $0.70 Dividend Yield
Price earnings ratio 14.33 Marketable Security Yield
Actual unit price $106.27 Actual unit demand
Preferred stock price $19.48 Preferred dividend yield
Return on investment 8.95% Return on equity
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00% Bond call premium
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha
Outstanding debt yields:
Short-term 2-year loan 3-year loan
2.55% 3.11% 3.77%
INFORMATION FOR FUTURE QUARTERS:
8 9
Units forecast 121,132 119,208
Price per unit forecast $107.91 $107.87
Units of plant capacity 100,000 100,000
Units of machine capacity 100,000 95,000
Other overhead 170,682 170,682
Depreciation: Machinery 598,125 575,625
Projects 161,706 161,706
Plant 1,568,750 1,568,750
Principal repayment on debt:
Short-term 0 0
2-year 312,500 0
3-year 0 0
Bonds 575,000 575,000
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 $37.31 $27.31
Rates on funding in quarter 8
Short-term 2-year loan 3-year loan
2.61% 2.84% 3.13%
Interest due next quarter:
Short-term $0
Intermediate $214,129
Bonds $411,123
Capital budgeting projects for next quarter:
Life Cost
A 2-yr $570,480
B 3-yr $422,784
Per unit price $115.00
Advertising cost $0
Sales discount 1.00%
Risk of S-T investment 0
Units of plant bought 0
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
$9,660,523
9,403 $9,669,926
$0
6,762,367
$6,762,366
399,581
6,362,786
$3,307,139
$1,483,026
656,808 2,139,834
$1,167,305
0
$1,167,304
466,921
$700,383
0
$700,383
150,000
$550,383
$40.63
1.47%
0.59%
115,856
5.13%
19.58%
8.00%
$0.00
Bonds Penalty loan
3.80% 8.00%
10 11
102,426 110,375
$100.59 $101.17
100,000 75,000
95,000 75,000
170,682 170,682
575,625 455,625
161,706 161,706
1,568,750 1,255,000
0
0 0
833,333 833,333
275,000 275,000
Next 5000 Over 7000
$3.00 $8.00
$52.00 Plant $359.00
Next 20,000 Over 120,000
$25.00 $33.00
Bond Preferred
4.05% 5.13%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.8Change/Qtr. Labor Sav.
100,000 $15,686 $0.71 $0.04
120,000 ($8,212) $0.70 ($0.01)
Results for company name: N&NDecision Inputs for Quarter Number 8
Company Operating Decisions
Units to be produced 100,000
Div. per common share $0.15
Demand/price forecast $0
Investment Decisions
Short-term investment ($400,000)
Machine units bought 12,500
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans $3,000,000
Ten-year bonds $0
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 8
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 5,318 at $75.14 )
Materials $1,500,000
Direct Labor 3,331,000
Sales revenue ( 105,318 units at $110.00 )
Total Direct Costs $4,831,000
Warehousing Costs $0
Depreciation: Mach. and Equip. 759,831
Plant 1,568,750
Other Overhead Costs 170,682
Total Indirect Costs 2,499,262
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 319,226
Bond Interest 411,123
Bond Redemption Costs 0
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income After Taxes
Production Costs ( 100,000 at $73.30 )
Goods Available for Sale ( $73.40 per unit )
Less: Ending Inventory ( 0 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 8
ASSETS
Current Assets
Cash $494,544
Marketable Securities 1,192,779
Accounts Receivable 1,552,387
0
Total Current Assets $3,239,710
Machinery and Equipment $4,177,169
Plant 26,536,500
Total Fixed Assets 30,713,669
Total Assets $33,953,379
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $500,168
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 3,499,998
Common Stock Dividends ( $0.15 per share )
Inventory ( 0 units at $73.40 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,399,996
Total Current Liabilities $5,400,162
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 4,666,667
Bonds 8,850,001
Total Long Term Liabilities 13,516,667
Total Liabilities $18,916,829
Owners' Equity
$0
8,000,000
Retained Earnings 7,036,550
Total Equity 15,036,547
Total Liabilities and Equity $33,953,379
Summary Data
Quarter Number 8
HISTORICAL INFORMATION
Common share price $43.52 Accumulated Wealth
Quarterly EPS $0.88 Dividend Yield
Price earnings ratio 12.36 Marketable Security Yield
Actual unit price $108.25 Actual unit demand
Preferred stock price $19.49 Preferred dividend yield
Return on investment 10.37% Return on equity
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00% Bond call premium
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha
Outstanding debt yields:
Short-term 2-year loan 3-year loan
2.61% 3.11% 3.68%
INFORMATION FOR FUTURE QUARTERS:
9 10
Units forecast 123,404 103,229
Price per unit forecast $108.32 $100.24
Units of plant capacity 100,000 112,500
Units of machine capacity 107,500 107,500
Other overhead 170,682 170,682
Depreciation: Machinery 656,875 656,875
Projects 161,706 161,706
Plant 1,568,750 1,805,625
Principal repayment on debt:
Short-term 0 0
2-year 0 0
3-year 250,000 1,083,333
Bonds 575,000 275,000
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 $37.26 $27.26
Rates on funding in quarter 9
Short-term 2-year loan 3-year loan
2.70% 2.88% 3.11%
Interest due next quarter:
Short-term $0
Intermediate $300,315
Bonds $389,285
Capital budgeting projects for next quarter:
Life Cost
A 2-yr $453,312
B 3-yr $673,152
Per unit price $110.00
Advertising cost $0
Sales discount 1.00%
Risk of S-T investment 0
Units of plant bought 12,500
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
###
9,590 $11,501,890
$399,581
7,330,263
$7,729,843
0
7,729,843
$3,772,046
$1,574,615
730,349 2,304,964
$1,467,082
0
$1,467,081
586,832
$880,249
0
$880,249
150,000
$730,249
$44.16
1.35%
0.80%
121,620
5.13%
23.42%
8.00%
$0.00
Bonds Penalty loan
3.80% 8.00%
11 12
96,799 98,361
$105.25 $102.47
87,500 87,500
87,500 77,500
170,682 170,682
536,875 484,375
161,706 161,706
1,491,875 1,491,875
0
0 0
1,083,333 1,083,333
275,000 275,000
Next 5000 Over 7000
$3.00 $8.00
$44.00 Plant $299.00
Next 20,000 Over 120,000
$25.00 $33.00
Bond Preferred
3.90% 5.20%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.9Change/Qtr. Labor Sav.
100,000 $13,078 $0.56 $0.01
120,000 ($10,364) $1.12 ($0.04)
Decision Inputs for Quarter Number 9
Company Operating Decisions
Units to be produced 100,000
Div. per common share $0.10
Demand/price forecast $0
Investment Decisions
Short-term investment ($600,000)
Machine units bought 12,500
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans $1,800,000
Ten-year bonds $0
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 9
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 )
Results for company name: N&N
Sales revenue ( 100,000 units at $110.00 )
Materials $1,500,000
Direct Labor 3,326,000
Total Direct Costs
Warehousing Costs $0
Depreciation: Mach. and Equip. 818,581
Plant 1,568,750
Other Overhead Costs 170,682
Total Indirect Costs
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
Production Costs ( 100,000 at $73.84 )
Goods Available for Sale ( $73.84 per unit )
Less: Ending Inventory ( 0 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 9
ASSETS
Current Assets
Cash $491,370
Marketable Securities 592,779
Accounts Receivable 1,474,000
0
Total Current Assets
Machinery and Equipment $3,908,588
Plant 28,955,250
Total Fixed Assets
Total Assets
LIABILITIES AND OWNER EQUITY
Income Tax (rate is 40%)
Common Stock Dividends ( $0.10 per share )
Inventory ( 0 units at $73.84 /UNIT )
Fixed Assets (net of depreciation
Current Liabilities
Accounts Payable $499,668
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 4,933,331
Bonds Maturing 1,099,996
Total Current Liabilities
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 4,633,334
Bonds 8,575,001
Total Long Term Liabilities
Total Liabilities
Owners' Equity
$0
8,000,000
Retained Earnings 7,680,657
Total Equity
Total Liabilities and Equity
Summary Data
Quarter Number 9
HISTORICAL INFORMATION
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Common share price $41.71
Quarterly EPS $0.74
Price earnings ratio 14.01
Actual unit price $107.59
Preferred stock price $19.24
Return on investment 8.40%
Call premium: preferred 8.00%
Common tender or sell/sh $0.00
Outstanding debt yields:
Short-term 2-year loan
2.70% 3.11%
INFORMATION FOR FUTURE QUARTERS:
10
Units forecast 101,176
Price per unit forecast $99.06
Units of plant capacity 112,500
Units of machine capacity 120,000
Other overhead 170,682
Depreciation: Machinery 725,625
Projects 161,706
Plant 1,805,625
Principal repayment on debt:
Short-term 0
2-year 0
3-year 1,233,333
Bonds 275,000
Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials $15.00
Units First 60,000
Labor cost $37.21
Rates on funding in quarter 10
Short-term 2-year loan
1.89% 1.91%
Interest due next quarter:
Short-term $0
Intermediate $344,185
Bonds $367,447
Capital budgeting projects for next quarter:
Life
A 2-yr
B 3-yr
Per unit price $110.00
Advertising cost $0
Sales discount 1.00%
Risk of S-T investment 0
Units of plant bought 12,500
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
###
5,651 $10,917,651
$0
$4,825,999
2,558,012
7,384,013
$7,384,012
0
7,384,012
$3,533,638
$1,545,600
$0
0
358,576
389,285
0
747,861 2,293,461
$1,240,177
0
$1,240,176
496,070
$744,106
0
$744,106
100,000
$644,106
$2,558,148
32,863,838
$35,421,986
$6,532,995
13,208,334
$19,741,329
15,680,656
$35,421,986
Accumulated Wealth $42.47
Dividend Yield 0.95%
Marketable Security Yield 0.95%
Actual unit demand 119,827
Preferred dividend yield 5.20%
Return on equity 18.98%
Bond call premium 8.00%
Unpaid preferred dividend/share $0.00
3-year loan Bonds Penalty loan
3.60% 3.80% 8.00%
11 12 13
112,129 126,307 106,860
$105.15 $110.02 $111.27
100,000 100,000 100,000
100,000 90,000 80,000
170,682 170,682 170,682
605,625 553,125 495,625
161,706 161,706 161,706
1,691,250 1,691,250 1,691,250
0 0
0 0 0
1,233,333 1,233,333 1,233,333
275,000 275,000 275,000
First 2000 Next 5000 Over 7000
$1.00 $3.00 $8.00
Machinery $48.00 Plant $329.00
Next 40,000 Next 20,000 Over 120,000
$27.21 $25.00 $33.00
3-year loan Bond Preferred
1.93% 1.98% 2.55%
Cost Unit CapacityOverhead Saving Unit Labor sav., Qtr.10
$495,096 100,000 $15,892 $0.61
$612,240 120,000 ($8,547) $1.02
Change/Qtr. Labor Sav.
$0.04
($0.01)
Results for company name: N&NDecision Inputs for Quarter Number 10
Company Operating Decisions
Units to be produced 112,500
Div. per common share $0.00
Demand/price forecast $0
Investment Decisions
Short-term investment ($500,000)
Machine units bought 0
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans ($1,200,000)
Ten-year bonds $0
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 10
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 0 at $0.00 )
Materials $1,687,500
Direct Labor 3,633,500
Sales revenue ( 103,178 units at $99.50 )
Total Direct Costs
Warehousing Costs $35,576
Depreciation: Mach. and Equip. 887,331
Plant 1,805,625
Other Overhead Costs 170,682
Total Indirect Costs
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 After Taxes
Production Costs ( 112,500 at $73.07 )
Goods Available for Sale ( $73.07 per unit )
Less: Ending Inventory ( 9,322 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 10
ASSETS
Current Assets
Cash $723,639
Marketable Securities 92,779
Accounts Receivable 1,375,672
681,145
Total Current Assets
Machinery and Equipment $3,021,257
Plant 27,149,624
Total Fixed Assets
Total Assets
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $549,168
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 3,649,999
Common Stock Dividends ( $0.00 per share )
Inventory ( 9,322 units at $73.07 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,099,996
Total Current Liabilities
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 3,483,334
Bonds 8,300,001
Total Long Term Liabilities
Total Liabilities
Owners' Equity
$0
8,000,000
Retained Earnings 7,961,620
Total Equity
Total Liabilities and Equity
Summary Data
Quarter Number 10
HISTORICAL INFORMATION
Common share price $29.66
Quarterly EPS $0.28
Price earnings ratio 26.39
Actual unit price $100.66
Preferred stock price $39.30
Return on investment 3.40%
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00%
Common tender or sell/sh $0.00
Outstanding debt yields:
Short-term 2-year loan
1.89% 3.11%
INFORMATION FOR FUTURE QUARTERS:
11
Units forecast 111,220
Price per unit forecast $103.31
Units of plant capacity 100,000
Units of machine capacity 100,000
Other overhead 170,682
Depreciation: Machinery 605,625
Projects 161,706
Plant 1,691,250
Principal repayment on debt:
Short-term 0
2-year 0
3-year 33,333
Bonds 275,000
Warehouse fees:
Units
Cost/Unit
Production costs per unit next quarter:
Materials $15.00
Units First 60,000
Labor cost $37.16
Rates on funding in quarter 11
Short-term 2-year loan
2.03% 2.05%
Interest due next quarter:
Short-term $0
Intermediate $256,640
Bonds $357,003
Capital budgeting projects for next quarter:
Life
A 2-yr
B 3-yr
Per unit price
Advertising cost
Sales discount
Risk of S-T investment
Units of plant bought
Project B
Preferred shares
Common shares
Common tender price
Dollar penalty
###
922 $10,185,003
$0
$5,320,999
2,899,213
8,220,214
$8,220,213
681,145
7,539,068
$2,645,934
$1,509,204
$0
0
301,011
367,447
0
668,458 2,177,662
$468,272
0
$468,271
187,308
$280,963
0
$280,963
0
$280,963
$2,873,235
30,170,882
$33,044,117
$5,299,163
11,783,334
$17,082,497
15,961,620
$33,044,117
Accumulated Wealth $30.44
Dividend Yield 0.00%
Marketable Security Yield 0.99%
Actual unit demand 99,425
Preferred dividend yield 2.54%
Return on equity 7.04%
Bond call premium 8.00%
Unpaid preferred dividend/share $0.00
3-year loan Bonds Penalty loan
3.60% 3.80% 8.00%
12 13 14
115,296 138,968 145,798
$106.20 $109.46 $111.80
100,000 100,000 100,000
90,000 80,000 60,000
170,682 170,682 187,185
553,125 495,625 375,625
161,706 161,706 71,139
1,691,250 1,691,250 1,691,250
0 0
0 0 0
1,233,333 1,233,333 1,150,000
275,000 275,000 275,000
First 2000 Next 5000 Over 7000
$1.00 $3.00 $8.00
Machinery $54.00 Plant
Next 40,000 Next 20,000 Over 120,000
$27.16 $25.00 $33.00
3-year loan Bond Preferred
2.07% 2.12% 2.66%
Cost Unit CapacityOverhead Saving
$722,640 100,000 $12,579
$633,552 120,000 ($9,362)
$99.50
$0
1.00%
0
0
no
0
0
$0
$0
$366.00
Unit Labor sav., Qtr.11Change/Qtr. Labor Sav.
$0.90 $0.01
$1.05 ($0.03)
Results for company name: N&NDecision Inputs for Quarter Number 11
Company Operating Decisions
Units to be produced 100,000
Div. per common share $0.00
Demand/price forecast $0
Investment Decisions
Short-term investment ($92,779)
Machine units bought 10,000
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans ($3,000,000)
Ten-year bonds $0
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 11
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 9,322 at $73.07 )
Materials $1,500,000
Direct Labor 3,316,000
Sales revenue ( 108,784 units at $104.00 )
Total Direct Costs $4,815,999
Warehousing Costs $538
Depreciation: Mach. and Equip. 767,331
Plant 1,691,250
Other Overhead Costs 170,682
Total Indirect Costs 2,629,800
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 148,707
Bond Interest 357,003
Bond Redemption Costs 0
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income After Taxes
Production Costs ( 100,000 at $74.46 )
Goods Available for Sale ( $74.34 per unit )
Less: Ending Inventory ( 538 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 11
ASSETS
Current Assets
Cash $518,505
Marketable Securities 0
Accounts Receivable 1,516,014
39,995
Total Current Assets $2,074,511
Machinery and Equipment $2,793,926
Plant 25,458,374
Total Fixed Assets 28,252,300
Total Assets $30,326,811
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $498,668
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 1,683,332
Common Stock Dividends ( $0.00 per share )
Inventory ( 538 units at $74.34 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,099,996
Total Current Liabilities $3,281,996
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 2,416,667
Bonds 8,025,001
Total Long Term Liabilities 10,441,667
Total Liabilities $13,723,663
Owners' Equity
$0
8,000,000
Retained Earnings 8,603,148
Total Equity 16,603,149
Total Liabilities and Equity $30,326,811
Summary Data
Quarter Number 11
HISTORICAL INFORMATION
Common share price $35.34 Accumulated Wealth
Quarterly EPS $0.64 Dividend Yield
Price earnings ratio 13.77 Marketable Security Yield
Actual unit price $103.96 Actual unit demand
Preferred stock price $37.64 Preferred dividend yield
Return on investment 8.46% Return on equity
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00% Bond call premium
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha
Outstanding debt yields:
Short-term 2-year loan 3-year loan
2.03% 3.11% 3.60%
INFORMATION FOR FUTURE QUARTERS:
12 13
Units forecast 115,773 117,770
Price per unit forecast $107.14 $110.31
Units of plant capacity 100,000 100,000
Units of machine capacity 100,000 90,000
Other overhead 170,682 170,682
Depreciation: Machinery 620,625 563,125
Projects 161,706 161,706
Plant 1,691,250 1,691,250
Principal repayment on debt:
Short-term 0 0
2-year 0 0
3-year 0 0
Bonds 275,000 275,000
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 $37.11 $27.11
Rates on funding in quarter 12
Short-term 2-year loan 3-year loan
2.01% 1.65% 1.82%
Interest due next quarter:
Short-term $0
Intermediate $147,508
Bonds $346,559
Capital budgeting projects for next quarter:
Life Cost
A 2-yr $518,088
B 3-yr $695,160
Per unit price $104.00
Advertising cost $0
Sales discount 1.00%
Risk of S-T investment 0
Units of plant bought 0
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
###
0 $11,223,028
$681,145
7,445,801
$8,126,946
39,995
8,086,951
$3,136,076
$1,561,151
505,710 2,066,861
$1,069,215
0
$1,069,214
427,685
$641,529
0
$641,529
0
$641,529
$36.15
0.00%
0.98%
108,927
2.66%
15.46%
8.00%
$0.00
Bonds Penalty loan
3.80% 8.00%
14 15
162,333 160,701
$112.95 $119.31
100,000 100,000
70,000 45,000
187,185 200,000
443,125 283,750
71,139 0
1,691,250 1,691,250
0
0 0
616,667 1,066,667
275,000 275,000
Next 5000 Over 7000
$3.00 $8.00
$57.00 Plant $390.00
Next 20,000 Over 120,000
$25.00 $33.00
Bond Preferred
2.15% 2.82%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.12Change/Qtr. Labor Sav.
100,000 $13,215 $0.64 $0.01
120,000 ($8,523) $1.15 ($0.01)
Results for company name: N&NDecision Inputs for Quarter Number 12
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 10,000
Project A no
Financing Decisions
Short-term loans $0
Two-year loans $0
Three-year loans ($2,500,000)
Ten-year bonds $0
Special Options
Strike settlement (per hr.) $0.00
Quarterly Performance Report
Quarter Number 12
Income from securities
Cost of Goods Sold:
Beginning Inventory: ( 538 at $74.34 )
Materials $1,500,000
Direct Labor 3,311,000
Sales revenue ( 100,538 units at $108.00 )
Total Direct Costs $4,811,000
Warehousing Costs $0
Depreciation: Mach. and Equip. 782,331
Plant 1,691,250
Other Overhead Costs 170,682
Total Indirect Costs 2,644,262
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 57,564
Bond Interest 346,559
Bond Redemption Costs 0
Total Financial Charges
Operating Income Before Extraordinary Items
Extraordinary Items
Income Before Taxes
Income After Taxes
Production Costs ( 100,000 at $74.55 )
Goods Available for Sale ( $74.55 per unit )
Less: Ending Inventory ( 0 units )
Income Tax (rate is 40%)
Preferred Stock Dividind
Earnings to Common Stockholders
Net Income Transferred to Retained Earnings
Position Statement
Quarter Number 12
ASSETS
Current Assets
Cash $547,587
Marketable Securities 0
Accounts Receivable 1,454,986
0
Total Current Assets $2,002,572
Machinery and Equipment $2,581,595
Plant 23,767,124
Total Fixed Assets 26,348,719
Total Assets $28,351,291
LIABILITIES AND OWNER EQUITY
Current Liabilities
Accounts Payable $498,168
Short Term Loans Payable 0
Short Term Penalty Loan 0
Intermediate Term Debt Maturing 250,000
Common Stock Dividends ( $0.00 per share )
Inventory ( 0 units at $74.55 /UNIT )
Fixed Assets (net of depreciation
Bonds Maturing 1,099,996
Total Current Liabilities $1,848,164
Long Term Liabilities
Intermediate Loans: 2 years $0
3 years 1,350,000
Bonds 7,750,001
Total Long Term Liabilities 9,100,000
Total Liabilities $10,948,164
Owners' Equity
$0
8,000,000
Retained Earnings 9,403,127
Total Equity 17,403,126
Total Liabilities and Equity $28,351,291
Summary Data
Quarter Number 12
HISTORICAL INFORMATION
Common share price $36.58 Accumulated Wealth
Quarterly EPS $0.80 Dividend Yield
Price earnings ratio 11.43 Marketable Security Yield
Actual unit price $107.92 Actual unit demand
Preferred stock price $35.50 Preferred dividend yield
Return on investment 11.29% Return on equity
Preferred Stock ( 0 shares )
Common Stock ( 1,000,000 shares )
Call premium: preferred 8.00% Bond call premium
Common tender or sell/sh $0.00 Unpaid preferred dividend/sha
Outstanding debt yields:
Short-term 2-year loan 3-year loan
2.01% 3.11% 3.60%
INFORMATION FOR FUTURE QUARTERS:
13 14
Units forecast 124,360 138,858
Price per unit forecast $110.38 $116.19
Units of plant capacity 100,000 100,000
Units of machine capacity 100,000 80,000
Other overhead 170,682 187,185
Depreciation: Machinery 634,375 514,375
Projects 161,706 71,139
Plant 1,691,250 1,691,250
Principal repayment on debt:
Short-term 0 0
2-year 0 0
3-year 0 0
Bonds 275,000 275,000
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 $37.06 $27.06
Rates on funding in quarter 13
Short-term 2-year loan 3-year loan
1.88% 1.53% 1.68%
Interest due next quarter:
Short-term $0
Intermediate $57,564
Bonds $336,115
Capital budgeting projects for next quarter:
Life Cost
A 2-yr $560,088
B 3-yr $381,624
Per unit price $108.00
Advertising cost $0
Sales discount 1.00%
Risk of S-T investment 0
Units of plant bought 0
Project B no
Preferred shares 0
Common shares 0
Common tender price $0
Dollar penalty $0
###
0 $10,771,239
$39,995
7,455,263
$7,495,257
0
7,495,257
$3,275,981
$1,538,562
404,123 1,942,684
$1,333,297
0
$1,333,296
533,318
$799,978
0
$799,978
0
$799,978
$37.41
0.00%
0.99%
120,759
2.82%
18.39%
8.00%
$0.00
Bonds Penalty loan
3.80% 8.00%
15 16
156,519 117,246
$114.63 $107.10
100,000 100,000
55,000 45,000
200,000 200,000
355,000 288,750
0 0
1,691,250 1,691,250
0
0 0
0 250,000
275,000 275,000
Next 5000 Over 7000
$3.00 $8.00
$65.00 Plant $441.00
Next 20,000 Over 120,000
$25.00 $33.00
Bond Preferred
2.06% 2.64%
Unit CapacityOverhead Saving Unit Labor sav., Qtr.13Change/Qtr. Labor Sav.
100,000 $16,487 $0.69 $0.04
120,000 ($8,657) $0.63 ($0.02)
Q1 Q2Total Equity $ 11,190,512 $ 11,963,263 Total Liabilites $ 5,707,500 $ 11,153,841 Account Receivable $ 6,524,661 $ 7,144,590 DE Ratio 0.51 0.93
Q1 Q2Capacity 100000 100000Unit Produced 100,000 100,000Actual Unit Demand 97383 104228Sold Unit 97383 104228Beginning inventory 9809 12426Ending inventory 12,426 8,198
Actual Unit Price 100 102.31Decision Price Per Unit $100.00 $102.31 Unit Plant 100000 100000Unit Machine 100000 100000
Earning to common stockholder $740,939 772752Net Income 640939 772752Dividend 100000 0Total Share 1000000 1000000Quarterly EPS 0.74 0.77Quarter ROE 6.62% 6.46%Return on equity 26.48% 25.84%
Interest Penalty Loan Interest 0 330,902
Loan (Balance Sheet) Short Term Penalty Loan 0 4,467,179
Financing Decisions
Short-term loans $0 $0
Two-year loans $2,500,000 $0
Three-year loans $0 $999,999
Ten-year bonds $0 $999,999
Outstanding debt yields:
Short-term 2.98% 1.96%2-year loan 3.11% 3.11%3-year loan 2.50% 2.08%Bonds 1.40% 1.50%Penalty loan 8.00% 8.00%
Rates on funding in next quarter
Short-term 1.96% 2.07%2-year loan 1.89% 2.01%3-year loan 1.83% 1.96%Bond 1.73% 1.91%Preferred 2.35% 2.48%
Stock Price $36.19 $52.73 Prefered Price 32.15 42.62
Investment Decisions
Short-term investment 200000 -200000Risk of S-T investment 0 0Machine units bought 0 20000Units of plant bought 0 20000Project A no no Project B no no
Total Financial Charge 126,349 533,175Cost of Debt 2.21% 4.78%Tax Rate 40% 40%Risk Premium 0.61% 0.57%Cost of Equity 2.96% 3.05%Total Long-term Liabilites 2,137,500 2,983,335 Total Equity 11,190,512 11,963,263 Total LTL&E 13,328,012 14,946,598 Proportion of Debt 16.04% 19.96%Proportion of Equity 83.96% 80.04%WACC 2.70% 3.01%
Q3 Q4 Q5 Q6 Q7 $ 12,690,219 $ 12,841,082 $ 13,242,328 $ 13,755,916 $ 14,306,298 $ 16,341,347 $ 15,702,324 $ 14,298,103 $ 18,451,011 $ 17,012,470 $ 7,584,182 $ 6,358,267 $ 7,153,775 $ 1,478,870 $ 1,304,950
1.29 1.22 1.08 1.34 1.19
Q3 Q4 Q5 Q6 Q7100000 105000 100000 100000 90000
100,000 105,000 100,000 100,000 90,000110746 95530 104362 109051 115856108198 95530 104362 105108 84682
8,198 0 9470 5108 00 9470 5108 0 5318
104.62 99.34 102.31 103.96 106.27$104.62 $99.34 $102.31 $105.00 $115.00
100000 120000 125000 100000 100000120000 105000 100000 120000 90000
726953 150860 501245 613589 700383726953 150860 401245 513589 550383
0 0 100000 100000 1500001000000 1000000 1000000 1000000 1000000
0.73 0.15 0.50 0.61 0.705.73% 1.17% 3.79% 4.46% 4.90%
22.91% 4.70% 15.14% 17.84% 19.58%
1,653,971 650,655 591,036 81,378 0 0
8,783,853 7,978,999 115,609 0 0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$999,999 $0 $8,000,000 ($2,000,000) ($500,000)
$999,999 $999,999 $0 $8,000,000 $0
2.07% 2.46% 2.83% 2.74% 2.55%3.11% 3.11% 3.11% 3.11% 3.11%2.03% 2.03% 3.77% 3.77% 3.77%1.60% 1.88% 1.88% 3.80% 3.80%8.00% 8.00% 8.00% 8.00% 8.00%
2.46% 2.83% 2.74% 2.55% 2.61%2.50% 2.95% 2.93% 2.76% 2.84%2.57% 3.12% 3.17% 3.01% 3.13%2.92% 3.79% 4.00% 3.87% 4.05%3.79% 4.93% 5.09% 5.13% 5.13%
$60.26 $29.97 $37.45 $44.72 $40.15 40.36 26.37 20.29 19.63 19.48
0 0 2500000 1500000 00 0 0 4 0
10000 10000 20000 25000 1000025000 5000 0 25000 0
no no no yes yes no no no no no
869,070 813,860 563,619 788,680 656,8085.32% 5.18% 3.94% 4.27% 3.86%
40% 40% 40% 40% 40%0.87% 1.14% 1.09% 1.27% 1.08%4.67% 6.07% 6.18% 6.40% 6.21%
3,720,834 3,766,666 7,891,666 13,983,334 12,875,001 12,690,219 12,841,082 13,242,328 13,755,916 14,306,298 16,411,053 16,607,748 21,133,994 27,739,250 27,181,299
22.67% 22.68% 37.34% 50.41% 47.37%77.33% 77.32% 62.66% 49.59% 52.63%
4.33% 5.40% 4.76% 4.47% 4.37%
Q8 Q9 Q10 Q11 Q12 $ 15,036,547 $ 15,680,656 $ 15,961,620 $ 16,603,149 $ 17,403,126 $ 18,916,829 $ 19,741,329 $ 17,082,497 $ 13,723,663 $ 10,948,164 $ 1,552,387 $ 1,474,000 $ 1,375,672 $ 1,516,014 $ 1,454,986
1.26 1.26 1.07 0.83 0.63
Q8 Q9 Q10 Q11 Q12100000 100000 112500 100000 100,000
100,000 100,000 112,500 100,000 100,000121620 119827 99425 108927 120,759105318 100000 103178 108784 100538
5318 0 0 9322 5380 0 9322 538 0
108.25 107.59 100.66 103.96 $107.92 $110.00 $110.00 $99.50 $104.00 $108.00
100000 100000 112500 100000 100,000100000 107500 120000 100000 100,000
880249 744106 280963 641529 $799,978 730249 644106 280963 641529 $799,978 150000 100000 0 0 0
1000000 1000000 1000000 1000000 10000000.88 0.74 0.28 0.64 0.80
5.85% 4.75% 1.76% 3.86% 4.60%23.42% 18.98% 7.04% 15.46% 18.39%
0 0 0 0 0
0 0 0 0 0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$3,000,000 $1,800,000 ($1,200,000) ($3,000,000) ($2,500,000)
$0 $0 $0 $0 $0
2.61% 2.70% 1.89% 2.03% 2.01%3.11% 3.11% 3.11% 3.11% 3.11%3.68% 3.60% 3.60% 3.60% 3.60%3.80% 3.80% 3.80% 3.80% 3.80%8.00% 8.00% 8.00% 8.00% 8.00%
2.70% 1.89% 2.03% 2.01% 1.88%2.88% 1.91% 2.05% 1.65% 1.53%3.11% 1.93% 2.07% 1.82% 1.68%3.90% 1.98% 2.12% 2.15% 2.06%5.20% 2.55% 2.66% 2.82% 2.64%
$43.52 $41.71 $29.66 $35.34 $36.58 19.49 19.24 39.3 37.64 $35.50
-400000 -600000 -500000 -92779 $0 0 0 0 0 0
12500 12500 0 10000 10,00012500 12500 0 0 0
no no no no no no no no no no
730,349 747,861 668,458 505,710 404,1233.86% 3.79% 3.91% 3.68% 3.69%
40% 40% 40% 40% 40%1.29% 0.57% 0.54% 0.67% 0.58%6.49% 3.12% 3.19% 3.48% 3.22%
13,516,667 13,208,334 11,783,334 10,441,667 9,100,000 15,036,547 15,680,656 15,961,620 16,603,149 17,403,126 28,553,214 28,888,990 27,744,954 27,044,816 26,503,126
47.34% 45.72% 42.47% 38.61% 34.34%52.66% 54.28% 57.53% 61.39% 65.66%
4.51% 2.73% 2.83% 2.99% 2.88%
Quarter Q1 Q2 Q3 Q4 Q5 Q6DE Ratio 0.51 0.93 1.29 1.22 1.08 1.34
Quarter Q1 Q2 Q3 Q4 Q5 Q6Total Equity 11190512 11963263 12690219 12841082 13242328 13755916
Quarter Q1 Q2 Q3 Q4 Q5 Q6Total Liabilites 5707500 11153841 16341347 15702324 14298103 18451011
Quarter Q1 Q2 Q3 Q4 Q5 Q6WACC 2.70% 3.01% 4.33% 5.40% 4.76% 4.47%
Q7 Q8 Q9 Q10 Q11 Q121.19 1.26 1.26 1.07 0.83 0.63
Q7 Q8 Q9 Q10 Q11 Q1214306298 15036547 15680656 15961620 16603149 17403126
Q7 Q8 Q9 Q10 Q11 Q1217012470 18916829 19741329 17082497 13723663 10948164
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q120.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
DE Ratio
DE Ratio
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10Q11Q120
2000000400000060000008000000
100000001200000014000000160000001800000020000000
Total Equity
Total Equity
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9Q10
Q11Q12
0
5000000
10000000
15000000
20000000
25000000
Total Liabilites
Total Liabilites
Q7 Q8 Q9 Q10 Q11 Q124.37% 4.51% 2.73% 2.83% 2.99% 2.88%
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9Q10
Q11Q12
0
5000000
10000000
15000000
20000000
25000000
Total Liabilites
Total Liabilites
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q120.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
WACC
WACC
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q120.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
DE Ratio
DE Ratio
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10Q11Q120
2000000400000060000008000000
100000001200000014000000160000001800000020000000
Total Equity
Total Equity
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9Q10
Q11Q12
0
5000000
10000000
15000000
20000000
25000000
Total Liabilites
Total Liabilites
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9Q10
Q11Q12
0
5000000
10000000
15000000
20000000
25000000
Total Liabilites
Total Liabilites
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q120.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
WACC
WACC
Q1 Q2 Q3 Q4 Q5 Q6Price $36.19 $ 52.73 $ 81.38 $ 50.26 $ 51.86 $ 60.49 EPS 0.74 0.96 1.12 0.50 0.82 0.80 PE 12.21 13.67 18.20 25.30 15.76 18.84
Y1Total EPS 3.32
Summary InformationQuarterly CAGRYearly CAGR
Min PEAVG PEMedian PEMAX PE
Forward EPS Q16 (w/Quarterly CAGR)Forward EPS Q16
Q12 PE
Forward PE Q16 (w/Quarterly CAGR)
Year EPS $ 3.599
PEMin PE 12.21AVG PE 16.39Median PE 16.18Max PE 25.30
Forward PE Q16 (w/Yearly CAGR)
Year EPS $ 3.440
PEMin PE 12.21
AVG PE 16.39Median PE 16.18Max PE 25.30
Stock Price Median PE
$ 55.65 16.18 3.40% 0.89% $ 3.440
Margin of Safety
Yearly CAGR
Forward EPS Q16
Q7 Q8 Q9 Q10 Q11 Q12 $ 65.34 $ 67.98 $ 61.66 $ 39.88 $ 57.54 $ 57.54 1.13 1.33 1.14 0.53 0.87 0.87 14.48 12.83 13.50 18.69 16.59 16.59
Y2 Y34.08 3.41
1.35%0.89%
12.2116.3916.1825.30
Begin Q1 Q2 Q3 Q4 SUMForward EPS Q16 (w/Quarterly CAGR) 0.87 $ 0.882 $ 0.894 $ 0.906 $ 0.918 $ 3.599
3.41 $ 3.440
16.59
Forward PE Q16 (w/Quarterly CAGR)
Current Stock Price $57.54
Stock Price Margin of Safety $ 43.94 30.95% $ 58.98 2.44% $ 58.21 1.15% $ 91.05 36.80%
Forward PE Q16 (w/Yearly CAGR)
Current Stock Price $57.54
Stock Price Margin of Safety $ 42.01 0.00%
$ 56.38 2.06% $ 55.65 3.40% $ 87.04 33.89%
Q1 Q2 Q3 Q4Capacity 100,000 100,000 100,000 105,000 Unit Produced 100,000 100,000 100,000 105,000 Actual Unit Demand 97,383 104,228 110,746 95,530 Sold Unit 97,383 104,228 108,198 95,530 Beginning inventory 9,809 12,426 8,198 - Ending inventory 12,426 8,198 - 9,470
Actual Unit Price 100.00 102.31 104.62 99.34 Decision Price Per Unit 100.00 102.31 104.62 99.34 Unit Plant 100,000 100,000 100,000 120,000 Unit Machine 100,000 100,000 120,000 105,000
N&N tried to maintain production capacity of 100,000 units but which actually can't capture the demand 8 quarters so in our opinion they set low capacity that they should increase about 5-10% to capture demandBecause of low capacity so their inventory is volatile sometime high sometime low. I doubt about buy plant & machine because it is almost not relavance in most of quarter so I think they can better on adjust timing to invest in plant and machine in the future
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Units
CapacityUnit ProducedActual Unit DemandSold Unit
Q5 Q6 Q7 Q8 Q9 Q10 Q11 100,000 100,000 90,000 100,000 100,000 112,500 100,000 100,000 100,000 90,000 100,000 100,000 112,500 100,000 104,362 109,051 115,856 121,620 119,827 99,425 108,927 104,362 105,108 84,682 105,318 100,000 103,178 108,784 9,470 5,108 - 5,318 - - 9,322 5,108 - 5,318 - - 9,322 538
102.31 103.96 106.27 108.25 107.59 100.66 103.96 102.31 105.00 115.00 110.00 110.00 99.50 104.00 125,000 100,000 100,000 100,000 100,000 112,500 100,000 100,000 120,000 90,000 100,000 107,500 120,000 100,000
N&N tried to maintain production capacity of 100,000 units but which actually can't capture the demand 8 quarters so in our opinion they set low capacity that they should increase about 5-10% to capture demandBecause of low capacity so their inventory is volatile sometime high sometime low. I doubt about buy plant & machine because it is almost not relavance in most of quarter so I think they can better on adjust timing to invest in plant and machine in the future
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Units
CapacityUnit ProducedActual Unit DemandSold Unit
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 90.00
95.00
100.00
105.00
110.00
115.00
120.00
Price
Actual Unit PriceDecision Price Per Unit
Q12 100,000 100,000 120,759 100,538 538 -
107.92 108.00 100,000 100,000
N&N tried to maintain production capacity of 100,000 units but which actually can't capture the demand 8 quarters so in our opinion they set low capacity that they should increase about 5-10% to capture demandBecause of low capacity so their inventory is volatile sometime high sometime low. I doubt about buy plant & machine because it is almost not relavance in most of quarter so I think they can better on adjust timing to invest in plant and machine in the future
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 90.00
95.00
100.00
105.00
110.00
115.00
120.00
Price
Actual Unit PriceDecision Price Per Unit
Q1 Q2 Q3 Q4Cash on hand 120,485 132,361 260,262 236,414 Marketable Securities 200,000 - - - Account Receivable 6,524,661 7,144,590 7,584,182 6,358,267 Inventory 879,492 574,909 - 688,977 S-T Loan Penalty - 4,467,179 8,783,853 7,978,999
Current Assets 7,724,636 7,851,857 7,844,444 7,283,657 Current Liabilites 3,570,000 8,170,507 12,620,513 11,935,658 Current Ratio 2.16 0.96 0.62 0.61Quick Ratio 1.92 0.89 0.62 0.55
After Q5 they maintain cash around $500,000, I think it because of S-T Loan Penalty from Q2 - Q5 so they decide to keep more cash. After Q9 their current ratio is rising. It is a good sign for future that they will less have liquidity problem in the futureMay be they can do better than this by less account receivable to repay loan for better performance.
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Current Assets Items
Cash on handMarketable SecuritiesAccount ReceivableInventory
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Current Assets vs Current Liabilities
Current AssetsCurrent Liabilites
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Current Assets vs Current Liabilities
Current AssetsCurrent Liabilites
Q5 Q6 Q7 Q8 Q9 Q10 32,551 412,310 366,710 494,544 491,370 723,639 - 1,592,779 1,592,779 1,192,779 592,779 92,779 7,153,775 1,478,870 1,304,950 1,552,387 1,474,000 1,375,672 380,104 - 399,581 - - 681,145 115,609 - - - - -
7,566,430 3,483,957 3,664,018 3,239,710 2,558,148 2,873,235 6,406,437 4,467,678 4,137,469 5,400,162 6,532,995 5,299,163
1.18 0.78 0.89 0.60 0.39 0.54 1.12 0.78 0.79 0.60 0.39 0.41
After Q5 they maintain cash around $500,000, I think it because of S-T Loan Penalty from Q2 - Q5 so they decide to keep more cash. After Q9 their current ratio is rising. It is a good sign for future that they will less have liquidity problem in the futureMay be they can do better than this by less account receivable to repay loan for better performance.
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q120.00
0.50
1.00
1.50
2.00
2.50
Current Ratio
Current Ratio
Q11 Q12 518,505 547,587 - - 1,516,014 1,454,986 39,995 - - -
2,074,511 2,002,572 3,281,996 1,848,164
0.63 1.08 0.62 1.08
After Q5 they maintain cash around $500,000, I think it because of S-T Loan Penalty from Q2 - Q5 so they decide to keep more cash. After Q9 their current ratio is rising. It is a good sign for future that they will less have liquidity problem in the future