Exhibit 1 Monthly Shipments at Selling Price (thousands of dollars)

Month
2012

2013

October
November
December
January
February
March
April
May

Eight months total

June
July
August
September

Forecast as of
September 2012
6,508
6,219
6,250
6,074
5,996
6,291
6,515
6,832
50,685

Actual

Forecast as of
May 2013

6,421
6,302
6,009
6,170
6,006
5,197
4,165
3,744
44,014

Twelve months total

6,759
6,645
6,478
6,433
26,315

12,681
7,374
7,201
7,394
34,650

Fiscal year total

77,000

78,664

Exhibit 2 Balance Sheets, 2012-2013 (thousands of dollars)

2012
August
Cash
Accounts receivable
Inventory
Current assets

Gross PP&E
Accumulated depreciation
Net PP&E
Prepaid expenses
Total assets

Accounts payablec
Notes payable, bank
d

Accrued taxes
Other accrued expenses
Customer advance payments
Current liabilities
Shareholders' equity
Total liabilities and equity
a

Selling term of net 30 days.

Depreciation of $120,000 per month.

Purchase terms of net 30 days.

September

October

November

December

8,350
5,793
7,154
21,297

3,328
5,969
7,364
16,661

3,523
6,421
7,524
17,468

4,511
5,851
7,219
17,581

4,239
6,009
7,277
17,525

45,500
30,368
15,132
242
36,671

45,500
30,488
15,012
58
31,731

45,500
30,608
14,892
23
32,383

45,500
30,728
14,772
45
32,398

45,500
30,848
14,652
47
32,224

4,977

5,197

5,347

5,352

5,110

5,000

5,000

5,000

5,000

252
1,500
1,651
8,380

4
1,542
1,651
13,394

174
1,542
1,651
13,714

331
1,542
1,200
13,425

107
1,542
1,200
12,959

28,291
36,671

18,337
31,731

18,668
32,383

18,973
32,398

19,265
32,224

Outstanding taxes on 2012 fiscal year income were due January 15, 2013. On December 15, 2011, March 15, 2012, June 15, 2012, and Sep
the estimated tax for 2012 ($1,500,000) were due. Taxes payable for 2013 were assumed to be $1,500,000 and would be paid on December 1
September 15, 2013, in equal increments.

2013
January

February

March

April

May

4,878
6,170
7,097
18,145

5,182
5,606
7,529
18,317

3,962
5,197
8,371
17,530

6,277
3,365
11,234
20,876

4,994
3,744
12,163
20,901

45,500
30,968
14,532
52
32,729

45,500
31,088
14,412
65
32,794

45,500
31,208
14,292
46
31,868

45,500
31,328
14,172
46
35,094

45,500
31,448
14,052
54
35,007

5,130

5,162

5,122

6,223

5,969

5,000

5,000

5,000

5,000

5,000

269
1,542
1,200
13,141

417
1,542
800
12,921

140
1,142
800
12,204

216
1,142
2,700
15,281

273
1,142
2,700
15,084

19,588
32,729

19,874
32,794

19,664
31,868

19,813
35,094

19,923
35,007

arch 15, 2012, June 15, 2012, and September 15, 2012, payments of 25% of each of
000 and would be paid on December 15, 2012, March 15, 2013, June 15, 2013, and

Exhibit 3 Income Statements, 2012-2013 (thousands of dollars)

2012
2012 August September
Net sales
COGS
Gross profit
Operating expenses
Depreciation and amortization
Interest income

Profit (loss) before tax

Income taxesc
Net income
Dividends

2012
October

2012
2012
November December

6,321
4,994
1,327

5,969
4,727
1,242

71,642
56,955
14,687

6,421
5,003
1,418

6,302
4,914
1,388

6,009
4,695
1,314

773
120

763
120

9,509
1,440

777
120

788
120

733
120

25

25

25

13
447

14
373

120
3,858

6
502

6
461

8
443

152
295
0

127
246
200

1,312
2,546
400

171
331
0

157
304
0

151
293
0

Interest expensea
b

Fiscal Year
Ending
09/30/2012

6% annualized interest rate charged on outstanding bank loans.

2% annualized rate of return on beginning monthly cash balances.

The federal tax rate on all earnings was 34%.

2013
January

2013
February

2013
March

2013
April

2013
May

Eight
Months
Total

6,170
4,815
1,355

6,006
4,692
1,314

5,197
4,087
1,110

4,165
3,215
950

3,744
2,876
868

44,014
34,297
9,717

728
120

744
120

685
120

587
120

566
120

5,608
960

25

25

25

25

25

200

7
489

8
433

9
289

7
225

10
167

60
3,009

166
323
0

147
286
0

98
191
400

76
148
0

57
111
0

1,023
1,986
400