Pro Forma Decision Inputs for Quarter Numb

Market Forecasts

Units Demanded ###

Short-term investment rate 1.00%

Capital gains rate 0.00%

Short-term loans rate 0.00%

Company Operating Decisions: Pro Forma

Units to be produced ###

Div. per common share $0.25

Demand/price forecast $0

Investment Decisions: Pro Forma

Short-term investment ###

Machine units bought 15000

Project A no

Financing Decisions: Pro Forma

Short-term loans $0

Two-year loans $0

Three-year loans ###

Ten-year bonds $0

Special Options: Pro Forma

Strike settlement (per hr.) $0.00

Pro Forma Performance Report

 Quarter Number 2

Sales revenue

Income from securities

Cost of Goods Sold:

Beginning Inventory:

Materials $1,500,000

Direct Labor 3,500,000

Total Direct Costs $5,000,000

Warehousing Costs $761,000

Depreciation: Mach. and Equip. 478,125

Plant 1,300,000

Other Overhead Costs 200,000

Total Indirect Costs 2,739,125

Production Costs

Goods Available for Sale

Less: Ending Inventory

Cost of Goods Sold

Gross Profit

Selling and administrative expenses

Financial Expenses:

Short Term Bank Interest $0

Penalty Loan Interest $0.00

Intermediate Term Loan Interest 120,000

 Intermediate Term Loan Interest 120,000

Bond Interest 0

Bond Redemption Costs 0

Total Financial Charges

Operating Income Before Extraordinary Ite

Extraordinary Items

Income Before Taxes

Income Tax (rate is 40%)

Income After Taxes

Preferred Stock Dividind

Earnings to Common Stockholders

Common Stock Dividends

Net Income Transferred to Retained Earning

Pro Forma Position Statement

Quarter Number 2

ASSETS

Current Assets

Cash $15,516,584

Marketable Securities 0

Accounts Receivable 113,570

Inventory 732,807

Total Current Assets $16,362,960

Fixed Assets (net of depreciation

Fixed Assets (net of depreciation

Machinery and Equipment $0

Plant 1,300,000

Total Fixed Assets 1,300,000

Total Assets $17,662,960

LIABILITIES AND OWNER EQUITY

Current Liabilities

Accounts Payable $0

Short Term Loans Payable $0

Short Term Penalty Loan 0

Intermediate Term Debt Maturing 612,500

Bonds Maturing 300,000

Total Current Liabilities $912,500

Long Term Liabilities

Intermediate Loans: 2 years $625,000

3 years 900000

Bonds 1,500,000

Total Long Term Liabilities 3,025,000

Total Liabilities $3,937,500

Owners' Equity

Preferred Stock ( 0 shares ) $0

Common Stock ( 1,000,000 shares ) 8,000,000

Retained Earnings 5,725,460

Total Equity 13,725,460

Total Liabilities and Equity $17,662,960

INFORMATION FOR FUTURE QUARTERS:

3 4

Units of plant capacity 100,000 100,000

Units of machine capacity 100,000 75,000

Other overhead 200,000 200,000

Depreciation: Machinery 478,125 384,375

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 0

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

uts for Quarter Number 2

Two-year loans rate 0.00%

Three year loan rate 2.00%

Long-term loan rate 0.00%

Preferred stock yield 0.00%

Per unit price $110.00

Advertising cost $0

Sales discount 0.00%

Risk of S-T investment 0

Units of plant bought 20000

Project B no

Preferred shares 0

Common shares 0

Common tender price $0

Dollar penalty $0

e Report
r2

$11,356,950

2,000 $11,358,950

$879,492

7,739,125

$8,618,617

732,807

7,885,810

$3,473,140

$0
 120,000 120,000

$3,353,140

$3,353,140

1,341,256

$2,011,884

$2,011,884

250,000

$1,761,884

atement

r2
 5 6

80,000 50,000

60,000 60,000

200,000 200,000

311,250 311,250

0 0

989,000 667,500

312,500 312,500

0 0

300,000 300,000

Next 5000 Over 7000

$3.00 $8.00

$49.00 Plant $334.00

Next 20,000 Over 120,000

$25.00 $33.00