*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C

CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 6-1, QUARTER 5 PAGE 1
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (U.S. ) (U.K. ) (C.EUROPE) (PACIFIC )
----------- ----------- ----------- ----------- -----------

ACTIVE PRODUCT? YES YES YES YES YES

SALES (Units) 71,434 37,484 9,951 17,547 6,452
UNFILLED ORDERS 0 0 0 0 0

PRICE 587 590 580 580 600

DEALER REBATES 13 5 10 30 20

REVENUE 41,935,600 22,115,560 5,771,580 10,177,260 3,871,200

PRODUCT COSTS 21,169,435 11,108,368 2,948,974 5,200,046 1,912,047
REBATES OFFERED 942,380 187,420 99,510 526,410 129,040
SALES COMMISSIONS 873,467 221,155 230,860 305,316 116,136
TRANSPORTATION 1,817,441 749,680 278,628 543,957 245,176
----------- ----------- ----------- ----------- -----------
GROSS MARGIN 17,132,877 9,848,937 2,213,608 3,601,531 1,468,801

FIXED COSTS:
ADMINISTRAT O/H 547,457 128,054 110,541 153,872 154,990
ADVERTISING 4,350,000 1,225,000 1,000,000 1,000,000 1,125,000
PROMOTION 4,400,000 1,000,000 1,100,000 1,150,000 1,150,000
SALES SALARIES 1,209,000 390,000 292,500 390,000 136,500
SALES O/H 2,082,467 611,155 523,360 695,316 252,636
TOTAL FIXED COSTS 12,588,924 3,354,209 3,026,401 3,389,188 2,819,126
----------- ----------- ----------- ----------- -----------
OPERATING INCOME 4,543,953 6,494,728 -812,793 212,343 -1,350,325

***************************************************
OTHER DECISION VARIABLES FOR PRODUCT 6-1 AND FIRM 6
***************************************************

MEDIA CONTENT & MIX 7 & 95557 13 & 95557 9 & 95557 7 & 95557
PROMOTIONAL TYPE 10 49 29 10

SALES FORCE:
SIZE 50 50 50 50
TIME ALLOCATION (%s) 100 75 100 35
EFFORT 50.00 37.50 50.00 17.50
SALARY + COMMISSION 2,600 + 1 2,600 + 4 2,600 + 3 2,600 + 3

SALES FORECAST (Units) 48,000 11,000 27,000 10,000

PRODUCT COMPOSITION 30/30/30/ 5/ 5/5/5

PRODUCTION ORDER (Units) 85,000

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 250,000

PLANT CAPACITY ORDER (Units) 30,000

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
ADVERTISING MEDIA MIX ALLOCATIONS, PRODUCT 6-1, QUARTER 5 PAGE 2
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (U.S. ) (U.K. ) (C.EUROPE) (PACIFIC )
----------- ----------- ----------- ----------- -----------

MEDIA MIX [#s] 95557 95557 95557 95557

ADVERTISING SPENDING
Direct Marketing 1,262,901 355,645 290,322 290,322 326,612
Magazines 701,611 197,580 161,290 161,290 181,451
Newspapers 701,611 197,580 161,290 161,290 181,451
Radio 701,611 197,580 161,290 161,290 181,451
Television 982,256 276,612 225,806 225,806 254,032
----------- ----------- ----------- ----------- -----------
Total 4,350,000 1,225,000 1,000,000 1,000,000 1,125,000

*****************************************************************************
CUMULATIVE PRODUCT OPERATING STATEMENT, PRODUCT 6-1, QUARTER 5 PAGE 2
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (U.S. ) (U.K. ) (C.EUROPE) (PACIFIC )
----------- ----------- ----------- ----------- -----------

SALES (Units) 71,434 37,484 9,951 17,547 6,452

UNFILLED ORDERS 0 0 0 0 0

PRICE 587 590 580 580 600

DEALER REBATES 13 5 10 30 20

REVENUE 41,935,600 22,115,560 5,771,580 10,177,260 3,871,200

PRODUCT COSTS 21,169,435 11,108,368 2,948,974 5,200,046 1,912,047
REBATES OFFERED 942,380 187,420 99,510 526,410 129,040
SALES COMMISSIONS 873,467 221,155 230,860 305,316 116,136
TRANSPORTATION 1,817,441 749,680 278,628 543,957 245,176
----------- ----------- ----------- ----------- -----------
GROSS MARGIN 17,132,877 9,848,937 2,213,608 3,601,531 1,468,801

FIXED COSTS:
ADMINISTRAT O/H 547,457 128,054 110,541 153,872 154,990
ADVERTISING 4,350,000 1,225,000 1,000,000 1,000,000 1,125,000
PROMOTION 4,400,000 1,000,000 1,100,000 1,150,000 1,150,000
SALES SALARIES 1,209,000 390,000 292,500 390,000 136,500
SALES O/H 2,082,467 611,155 523,360 695,316 252,636
TOTAL FIXED COSTS 12,588,924 3,354,209 3,026,401 3,389,188 2,819,126
----------- ----------- ----------- ----------- -----------
OPERATING INCOME 4,543,953 6,494,728 -812,793 212,343 -1,350,325

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 6-2, QUARTER 5 PAGE 3
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

 REGIONS (U.S. ) (U.K. ) (C.EUROPE) (PACIFIC )
----------- ----------- ----------- ----------- -----------

ACTIVE PRODUCT? YES NO YES NO NO

SALES (Units) 4,727 0 4,727 0 0
UNFILLED ORDERS 1,052 0 1,052 0 0

PRICE 1,000 625 1,000 625 625

DEALER REBATES 10 0 10 0 0

REVENUE 4,727,000 0 4,727,000 0 0

PRODUCT COSTS 3,975,672 0 3,975,672 0 0
REBATES OFFERED 47,270 0 47,270 0 0
SALES COMMISSIONS 189,080 0 189,080 0 0
TRANSPORTATION 132,356 0 132,356 0 0
----------- ----------- ----------- ----------- -----------
GROSS MARGIN 382,622 0 382,622 0 0

FIXED COSTS:
ADMINISTRAT O/H 115,379 0 115,379 0 0
ADVERTISING 1,000,000 0 1,000,000 0 0
PROMOTION 1,100,000 0 1,100,000 0 0
SALES SALARIES 97,500 0 97,500 0 0
SALES O/H 286,580 0 286,580 0 0
TOTAL FIXED COSTS 2,599,459 0 2,599,459 0 0
----------- ----------- ----------- ----------- -----------
OPERATING INCOME -2,216,837 0 -2,216,837 0 0

***************************************************
OTHER DECISION VARIABLES FOR PRODUCT 6-2 AND FIRM 6
***************************************************

MEDIA CONTENT & MIX 1 & 55555 13 & 95557 1 & 55555 1 & 55555
PROMOTIONAL TYPE 10 49 10 10

SALES FORCE:
SIZE 50 50 50 50
TIME ALLOCATION (%s) 0 25 0 0
EFFORT .00 12.50 .00 .00
SALARY + COMMISSION 2,600 + 1 2,600 + 4 2,600 + 3 2,600 + 3

SALES FORECAST (Units) 0 4,000 0 0

PRODUCT COMPOSITION 30/30/60/30/ 5/8/8

PRODUCTION ORDER (Units) 2,000

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 0

PLANT CAPACITY ORDER (Units) 30,000

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
ADVERTISING MEDIA MIX ALLOCATIONS, PRODUCT 6-2, QUARTER 5 PAGE 4
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (U.S. ) (U.K. ) (C.EUROPE) (PACIFIC )
 ----------- ----------- ----------- ----------- -----------

MEDIA MIX [#s] 55555 95557 55555 55555

ADVERTISING SPENDING
Direct Marketing 290,322 0 290,322 0 0
Magazines 161,290 0 161,290 0 0
Newspapers 161,290 0 161,290 0 0
Radio 161,290 0 161,290 0 0
Television 225,806 0 225,806 0 0
----------- ----------- ----------- ----------- -----------
Total 1,000,000 0 1,000,000 0 0

*****************************************************************************
CUMULATIVE PRODUCT OPERATING STATEMENT, PRODUCT 6-2, QUARTER 5 PAGE 4
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (U.S. ) (U.K. ) (C.EUROPE) (PACIFIC )
----------- ----------- ----------- ----------- -----------

SALES (Units) 4,727 0 4,727 0 0

UNFILLED ORDERS 1,052 0 1,052 0 0

PRICE 1,000 0 1,000 0 0

DEALER REBATES 10 0 10 0 0

REVENUE 4,727,000 0 4,727,000 0 0

PRODUCT COSTS 3,975,672 0 3,975,672 0 0
REBATES OFFERED 47,270 0 47,270 0 0
SALES COMMISSIONS 189,080 0 189,080 0 0
TRANSPORTATION 132,356 0 132,356 0 0
----------- ----------- ----------- ----------- -----------
GROSS MARGIN 382,622 0 382,622 0 0

FIXED COSTS:
ADMINISTRAT O/H 115,379 0 115,379 0 0
ADVERTISING 1,000,000 0 1,000,000 0 0
PROMOTION 1,100,000 0 1,100,000 0 0
SALES SALARIES 97,500 0 97,500 0 0
SALES O/H 286,580 0 286,580 0 0
TOTAL FIXED COSTS 2,599,459 0 2,599,459 0 0
----------- ----------- ----------- ----------- -----------
OPERATING INCOME -2,216,837 0 -2,216,837 0 0

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
CURRENT PRODUCT OPERATING STATEMENT, PRODUCT 6-3, QUARTER 5 PAGE 5
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (U.S. ) (U.K. ) (C.EUROPE) (PACIFIC )
----------- ----------- ----------- ----------- -----------

ACTIVE PRODUCT? YES NO NO NO YES

SALES (Units) 40,000 0 0 0 40,000
UNFILLED ORDERS 127,157 0 0 0 127,157
PRICE 950 625 625 625 950
DEALER REBATES 10 0 0 0 10

REVENUE 38,000,000 0 0 0 38,000,000

PRODUCT COSTS 24,295,825 0 0 0 24,295,825
REBATES OFFERED 400,000 0 0 0 400,000
SALES COMMISSIONS 1,140,000 0 0 0 1,140,000
TRANSPORTATION 1,520,000 0 0 0 1,520,000
----------- ----------- ----------- ----------- -----------
GROSS MARGIN 10,644,175 0 0 0 10,644,175

FIXED COSTS:
ADMINISTRAT O/H 100,000 0 0 0 100,000
ADVERTISING 1,400,000 0 0 0 1,400,000
PROMOTION 1,200,000 0 0 0 1,200,000
SALES SALARIES 253,500 0 0 0 253,500
SALES O/H 1,393,500 0 0 0 1,393,500
TOTAL FIXED COSTS 4,347,000 0 0 0 4,347,000
----------- ----------- ----------- ----------- -----------
OPERATING INCOME 6,297,175 0 0 0 6,297,175

***************************************************
OTHER DECISION VARIABLES FOR PRODUCT 6-3 AND FIRM 6
***************************************************

MEDIA CONTENT & MIX 1 & 55555 1 & 55555 1 & 55555 16 & 55555
PROMOTIONAL TYPE 10 10 10 26

SALES FORCE:
SIZE 50 50 50 50
TIME ALLOCATION (%s) 0 0 0 65
EFFORT .00 .00 .00 32.50
SALARY + COMMISSION 2,600 + 1 2,600 + 4 2,600 + 3 2,600 + 3

SALES FORECAST (Units) 0 0 0 40,000

PRODUCT COMPOSITION 83/35/37/94/ 5/5/5

PRODUCTION ORDER (Units) 40,000

EMERGENCY PRODUCTION LIMIT (%) 0
RESEARCH & DEVELOPMENT 0

PLANT CAPACITY ORDER (Units) 30,000

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
ADVERTISING MEDIA MIX ALLOCATIONS, PRODUCT 6-3, QUARTER 5 PAGE 6
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (U.S. ) (U.K. ) (C.EUROPE) (PACIFIC )
----------- ----------- ----------- ----------- -----------

MEDIA MIX [#s] 55555 55555 55555 55555

ADVERTISING SPENDING
Direct Marketing 280,000 0 0 0 280,000
 Magazines 280,000 0 0 0 280,000
Newspapers 280,000 0 0 0 280,000
Radio 280,000 0 0 0 280,000
Television 280,000 0 0 0 280,000
----------- ----------- ----------- ----------- -----------
Total 1,400,000 0 0 0 1,400,000

*****************************************************************************
CUMULATIVE PRODUCT OPERATING STATEMENT, PRODUCT 6-3, QUARTER 5 PAGE 6
*****************************************************************************

ALL REGION 1 REGION 2 REGION 3 REGION 4

REGIONS (U.S. ) (U.K. ) (C.EUROPE) (PACIFIC )
----------- ----------- ----------- ----------- -----------

SALES (Units) 40,000 0 0 0 40,000

UNFILLED ORDERS 127,157 0 0 0 127,157

PRICE 950 0 0 0 950

DEALER REBATES 10 0 0 0 10

REVENUE 38,000,000 0 0 0 38,000,000

PRODUCT COSTS 24,295,825 0 0 0 24,295,825
REBATES OFFERED 400,000 0 0 0 400,000
SALES COMMISSIONS 1,140,000 0 0 0 1,140,000
TRANSPORTATION 1,520,000 0 0 0 1,520,000
----------- ----------- ----------- ----------- -----------
GROSS MARGIN 10,644,175 0 0 0 10,644,175

FIXED COSTS:
ADMINISTRAT O/H 100,000 0 0 0 100,000
ADVERTISING 1,400,000 0 0 0 1,400,000
PROMOTION 1,200,000 0 0 0 1,200,000
SALES SALARIES 253,500 0 0 0 253,500
SALES O/H 1,393,500 0 0 0 1,393,500
TOTAL FIXED COSTS 4,347,000 0 0 0 4,347,000
----------- ----------- ----------- ----------- -----------
OPERATING INCOME 6,297,175 0 0 0 6,297,175

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
CURRENT DIVISIONAL OPERATING STATEMENT, FIRM 6, QUARTER 5 PAGE 7
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

PRODUCTS 6-1 6-2 6-3
----------- ----------- ----------- -----------

SALES (Units) 116,161 71,434 4,727 40,000

UNFILLED ORDERS 128,209 0 1,052 127,157

PRICE 728 587 1,000 950

DEALER REBATES 11 13 10 10

REVENUE 84,662,600 41,935,600 4,727,000 38,000,000

PRODUCT COSTS 49,440,932 21,169,435 3,975,672 24,295,825
REBATES OFFERED 1,389,650 942,380 47,270 400,000
SALES COMMISSIONS 2,202,547 873,467 189,080 1,140,000
TRANSPORTATION 3,469,797 1,817,441 132,356 1,520,000
----------- ----------- ----------- -----------
GROSS MARGIN 28,159,674 17,132,877 382,622 10,644,175

FIXED COSTS:
ADMINISTRAT O/H 762,836 547,457 115,379 100,000
ADVERTISING 6,750,000 4,350,000 1,000,000 1,400,000
CONSULTING FEES 0
CORPORATE O/H 750,000
DEPRECIATION 2,295,585
DISPOSAL SALES 0 0 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 800,000 400,000 0 400,000
INVENTORY CHARG 415,578 354,403 61,175 0
MARKET RESEARCH 317,384
PROD ORDER COST 300,000 100,000 100,000 100,000
PROMOTION 6,700,000 4,400,000 1,100,000 1,200,000
REFORMULATIONS 925,812 0 0 925,812
RESEARCH & DEV 250,000 250,000 0 0
SALES EXPENSES 0
SALES SALARIES 1,560,000 1,209,000 97,500 253,500
SALES O/H 3,762,547 2,082,467 286,580 1,393,500
TOTAL FIXED COSTS 25,589,742 13,693,327 2,760,634 5,772,812
----------- ----------- ----------- -----------
OPERATING INCOME 2,569,932 3,439,550 -2,378,012 4,871,363
----------- ----------- ----------- -----------
NON-OPERAT INCOME 635,891
LESS: TAXES 1,602,911
===========
NET INCOME 1,602,912
===========

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
CUMULATIVE DIVISIONAL OPERATING STATEMENT, FIRM 6, QUARTER 5 PAGE 8
*****************************************************************************

ALL PRODUCT PRODUCT PRODUCT

PRODUCTS 6-1 6-2 6-3
----------- ----------- ----------- -----------

SALES (Units) 116,161 71,434 4,727 40,000

UNFILLED ORDERS 128,209 0 1,052 127,157

PRICE 728 587 1,000 950

DEALER REBATES 11 13 10 10

REVENUE 84,662,600 41,935,600 4,727,000 38,000,000

PRODUCT COSTS 49,440,932 21,169,435 3,975,672 24,295,825
REBATES OFFERED 1,389,650 942,380 47,270 400,000
SALES COMMISSIONS 2,202,547 873,467 189,080 1,140,000
TRANSPORTATION 3,469,797 1,817,441 132,356 1,520,000
----------- ----------- ----------- -----------
GROSS MARGIN 28,159,674 17,132,877 382,622 10,644,175

FIXED COSTS:
ADMINISTRAT O/H 762,836 547,457 115,379 100,000
ADVERTISING 6,750,000 4,350,000 1,000,000 1,400,000
 CONSULTING FEES 0
CORPORATE O/H 750,000
DEPRECIATION 2,295,585
DISPOSAL SALES 0 0 0 0
EMERG PREMIUMS 0 0 0 0
INTRODUCTIONS 800,000 400,000 0 400,000
INVENTORY CHARG 415,578 354,403 61,175 0
MARKET RESEARCH 317,384
PROD ORDER COST 300,000 100,000 100,000 100,000
PROMOTION 6,700,000 4,400,000 1,100,000 1,200,000
REFORMULATIONS 925,812 0 0 925,812
RESEARCH & DEV 250,000 250,000 0 0
SALES EXPENSES 0
SALES SALARIES 1,560,000 1,209,000 97,500 253,500
SALES O/H 3,762,547 2,082,467 286,580 1,393,500
TOTAL FIXED COSTS 25,589,742 13,693,327 2,760,634 5,772,812
----------- ----------- ----------- -----------
OPERATING INCOME 2,569,932 3,439,550 -2,378,012 4,871,363
----------- ----------- ----------- -----------
NON-OPERAT INCOME 635,891
LESS: TAXES 1,602,911
===========
NET INCOME 1,602,912
===========

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
DIVISIONAL BALANCE SHEET, FIRM 6, QUARTER 5 PAGE 9
*****************************************************************************

ASSETS
------
CASH 6,773,007
MARKETABLE SECURITIES 20,118,273
FINISHED GOODS INVENTORY:
PRODUCT 6-1 ( 30,380 Units) [$ 296.35 Per Unit] 9,003,103
PRODUCT 6-2 ( 0 Units) [$ .00 Per Unit] 0
PRODUCT 6-3 ( 0 Units) [$ .00 Per Unit] 0
PLANT:
CURRENT PLANT [CAPACITY = 90,973] 68,680,067
PLANT ON ORDER FOR 1 QUARTER HENCE [CAPACITY = 30,000] 22,750,000
TOTAL ASSETS 127,324,450

LIABILITIES AND EQUITY

----------------------
LOANS 0
INITIAL (QUARTER 0) CORPORATE CAPITALIZATION 120,000,000
- DIVIDENDS PAID, PRIOR TO THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 1 OF THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 2 OF THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 3 OF THIS YEAR 0
- DIVIDENDS PAID, END OF QUARTER 4 OF THIS YEAR 0
+ RETAINED EARNINGS (AFTER-TAX INCOME PRIOR TO THIS YEAR) 5,721,538
+ YEAR-TO-DATE EARNINGS (AFTER-TAX INCOME THIS YEAR) 1,602,912
TOTAL LIABILITIES AND EQUITY 127,324,450
*****************************************************************************
FINISHED GOODS INVENTORY TRANSACTIONS, FIRM 6, QUARTER 5 PAGE 9
*****************************************************************************

PRODUCT PRODUCT PRODUCT

6-1 6-2 6-3
--------- --------- ---------

BEGINNING INVENTORY 16,814 2,727 0

+ PRODUCTION 85,000 2,000 40,000
+ EMERGENCY PRODUCTION 0 0 0
= AVAILABLE FOR SALE 101,814 4,727 40,000
- SALES
REGION 1 (U.S. ) -37,484 0 0
REGION 2 (U.K. ) -9,951 -4,727 0
REGION 3 (C.EUROPE) -17,547 0 0
REGION 4 (PACIFIC ) -6,452 0 -40,000
= ENDING INVENTORY 30,380 0 0

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
CASH FLOW ANALYSIS REPORT, FIRM 6, QUARTER 5 PAGE 10
*****************************************************************************

STARTING "CASH" BALANCE (FINAL "CASH" BALANCE, QUARTER 4) 5,570,106

+ "MARKETABLE SECURITIES" (CONVERTED TO "CASH" IN QUARTER 5) 28,261,852
- "LOANS" (LIQUIDATED DURING QUARTER 5) 0
+ "FINISHED GOODS INVENTORY" INVESTMENT CHANGES
PRODUCT 6-1 (From 5,173,039 To 9,003,103) -3,830,064
PRODUCT 6-2 (From 2,447,037 To 0) 2,447,037
PRODUCT 6-3 (From 0 To 0) 0
+ "PLANT" INVESTMENT CHANGE (From 84,269,504 To 91,430,067) -7,160,563
+ "NET INCOME" 1,602,912
= INITIAL END-OF-QUARTER "CASH" BALANCE 26,891,280
- "DIVIDENDS" (PAID AT END OF QUARTER 5) 0
= ACTUAL "CASH" BALANCE (END OF QUARTER 5) 26,891,280
- OPERATING "CASH" EXCESS (TO "MARKETABLE SECURITIES") -20,118,273
+ OPERATING "CASH" DEFICIT (FROM "LOANS") 0
= FINAL "CASH" BALANCE (END OF QUARTER 5) 6,773,007

*** NOTES ***

(1) "MARKETABLE SECURITIES" and "LOANS" in the second and third lines above
refer to the values on last quarter's balance sheet.
(2) INVESTMENT CHANGEs can be positive, negative, or zero. A positive
(negative) {zero} INVESTMENT CHANGE corresponds to an increase (a
decrease) {no change} in the dollar-value of the investment from last
quarter to this quarter which leads to a decrease (an increase) {no
change} in current-quarter "CASH" balance.
(3) In every quarter, plant capacity depreciates. The depreciation process
results in additions to cash, by converting investment in plant capacity
to cash which may be used for other operating and investment purposes.
The net "PLANT" INVESTMENT CHANGE includes this cash-increasing effect
as well as the cash-decreasing impact of ordering new plant capacity.
(4) At most, one of OPERATING "CASH" EXCESS and OPERATING "CASH" DEFICIT will
be non-zero; it is possible for both to be zero. Recall that "CASH" must
be between 5.0% and 8.0% of current-quarter sales revenues. Excess
"CASH" (above 8.0% of revenues) is invested in marketable securities;
 shortfalls in "CASH" (below 5.0% of revenues) result in loans.

*****************************************************************************
OPERATING PERFORMANCE REPORT, FIRM 6, QUARTER 5 PAGE 10
*****************************************************************************

MARKET SHARES (%)

-----------------
REVENUES ($) EARNINGS ($) ROI (%) VOLUME DOLLAR
------------ ------------ ------- ------- -------

CURRENT QUARTER 84,662,600 1,602,912 5.1 17.31 20.13

PREVIOUS QUARTER 69,626,337 -1,886,557 -6.3 15.80 15.52
CHANGE RATE 21.6% -185.0% -181.1% 9.6% 29.7%

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
DETAILED VARIABLE COST CALCULATIONS, FIRM 6, QUARTER 5 PAGE 11
*****************************************************************************

PRODUCT PRODUCT PRODUCT

COST COMPONENTS 6-1 6-2 6-3
---------------------------------------- -------- -------- --------

RAW MATERIAL #1 [SYNTECH] 22.50 22.50 62.25

RAW MATERIAL #2 [PLUMBO] 31.50 31.50 36.75
RAW MATERIAL #3 [GLOMP] 13.50 27.00 16.65
RAW MATERIAL #4 [TRIMICRO] 1.50 9.00 28.20
RAW MATERIAL #5 [FRALANGE] .75 .75 .75
RAW MATERIAL (Experience Curve Adjust.) -26.16 .00 .00
LABOR (Base) 30.00 30.00 30.00
LABOR (Smoothing Adjustment) 2.86 13.80 30.00
LABOR (Experience Curve Adjustment) -14.17 .00 .00
PRODUCTION (Base) 60.00 60.00 60.00
PRODUCTION (Smoothing Adjustment) 2.86 13.80 60.00
PRODUCTION (Experience Curve Adjustment) -27.10 .00 .00
PACKAGING 10.00 10.00 10.00
VARIABLE DEPRECIATION 104.68 104.68 104.68

SUB-TOTAL VARIABLE COSTS 212.71 323.03 439.28

COMPATIBILITY (Cost Premium Impact) 34.03 158.28 70.28

WARRANTY (Cost Premium Impact) 47.37 283.01 97.84

TOTAL VARIABLE COSTS 294.11 764.32 607.40

*****************************************************************************
PRODUCT COST ANALYSIS ESTIMATES, FIRM 6, QUARTER 6 PAGE 11
*****************************************************************************

ESTIMATES OF NEXT QUARTER

EXPERIENCE CURVE ADJUSTED
VARIABLE (Per Unit) COSTS MARGIN ANALYSIS
-------------------------------- ==========================
 RAW PDCOST PROD
MATERI +PKCST +LABOR TOTAL PRICE COST MARGIN
------ ------ ------ -------- -------- -------- --------

PRODUCT 6-1 41.19 100.59 47.83 262.18 587.00 262.18 324.82

PRODUCT 6-2 90.75 100.59 90.00 665.69 1,000.00 665.69 334.31
PRODUCT 6-3 144.60 100.59 90.00 463.48 950.00 463.48 486.52

*** NOTES ***

(1) The variable depreciation cost (PDCOST) figure in this table has been
estimated under the assumption that production next quarter is equal to
plant capacity.
(2) In this table, PKCST refers to packaging cost.
(3) MARGIN ANALYSIS figures do not include transportation and shipping costs;
also, dealer rebates have been assumed to be $0.
(4) TOTAL includes cost-premium impacts of Compatibility and Warranty.

*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
SALES FORECASTING ACCURACY REPORT, FIRM 6, QUARTER 5 PAGE 12
*****************************************************************************

MARKET SALES ACTUAL ACCURACY

PRODUCT REGION FORECAST SALES SCORE
------- ------ -------- ------- --------

6-1 1 48,000 37,484 71.95

6-1 2 11,000 9,951 89.46
6-1 3 27,000 17,547 46.13
6-1 4 10,000 6,452 45.01
6-2 2 4,000 4,727 84.62
6-3 4 40,000 40,000 100.00
AVERAGE (Current Quarter) 72.86

ON 6 SALES VOLUME FORECASTS IN THE CURRENT YEAR:

CUMULATIVE (Total) FORECASTING SCORE POINTS = 437.16
AVERAGE FORECASTING SCORE (Per Forecast) = 72.86

*** NOTE ***

Only forecasts associated with actual market shares of at least 2.5% in a
market region are counted in the calculation of forecasting accuracy scores.

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STOCK MARKET REPORT, FIRM 6, QUARTER 5 PAGE 12
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CURRENT STOCK PRICE (Per Share), FIRM 1 $ 85 1/8

CURRENT STOCK PRICE (Per Share), FIRM 2 $ 89 3/8
CURRENT STOCK PRICE (Per Share), FIRM 3 $ 7 7/8
CURRENT STOCK PRICE (Per Share), FIRM 4 $ 150 5/8
CURRENT STOCK PRICE (Per Share), FIRM 5 $ 86 3/8
CURRENT STOCK PRICE (Per Share), FIRM 6 $ 102 1/4
CURRENT STOCK PRICE (Per Share), FIRM 7 $ 164 7/8
CURRENT STOCK PRICE (Per Share), FIRM 8 $ 87 3/8
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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
MARKETING RESEARCH BILLINGS, FIRM 6, QUARTER 5 PAGE 13
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STUDY UNIT
# MARKETING RESEARCH STUDY DESCRIPTION COST TIMES COST
----- ---------------------------------------- ------- ------- ---------

10 CONJOINT ANALYSIS 1 56,384 56,384

18 PATENT SEARCH 1,000 3 3,000
22 AGGREGATE MARKET STATISTICS 1,000 1 1,000
23 REFORMULATION ACTIVITY 1,000 1 1,000
24 MARKET SHARES 2,500 1 2,500
25 DEALER PRICES 2,500 1 2,500
26 DEALER REBATES 3,000 1 3,000
32 BRAND SALES VOLUME FORECASTS 5,000 1 5,000
33 REFORMULATION ACTIVITY - DETAILED 1,000 45 45,000
35 ADVERTISING PROGRAM EXPERIMENT 15,000 5 75,000
38 PROMOTION EXPERIMENT 15,000 5 75,000
47 SELF-REPORTED ATTRIBUTE PREFERENCES 5,000 4 20,000
55 INFORMATION SYSTEMS COSTS {PAGE COUNTS} 1,000 28 28,000

TOTAL 317,384

*** NOTE ***

This marketing research billing report is based on marketing research pre-
ordered for quarter 4 and billed in connection with quarter 5. Marketing
research study premium rates, in connection with syndicated and custom
marketing research, are based on quarter 4.

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
FINANCIAL AND OPERATING STATEMENT MESSAGES, FIRM 6, QUARTER 5 PAGE 14
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CAPACITY USAGE SITUATION

Current capacity is 90,973 units; pending capacity is 30,000 units.
With no change in production, next quarter capacity usage will be 139.6%.
Next quarter capacity is 78.3% of current quarter sales volume.
Forecast capacity utilization is more than 100%.
### WARNING: Major Overcapacity Utilization Problem May Be Imminent ###

EMERGENCY PRODUCTION ACTIVITY

No products have emergency production this quarter.

INVENTORY LEVELS
Product 6-1 inventory is 30,380 units, which represents .4 quarters
of sales, at the current sales volume levels for this product.

PRODUCT FORMULATION STATUS

Product 6-1 has formulation 30/30/30/ 5/ 5/5/5 and patent zone of 7.
Product 6-2 has formulation 30/30/60/30/ 5/8/8 and patent zone of 22.
Product 6-3 has formulation 83/35/37/94/ 5/5/5 and patent zone of 25.

SALES FORECASTING ACCURACY SCORES

 Product 6-1, region 3, sales forecasting accuracy is very poor [ 46.13].
Product 6-1, region 4, sales forecasting accuracy is very poor [ 45.01].
Product 6-3, region 4, sales forecasting accuracy is excellent [100.00].

REGIONAL GROSS MARGINS

Product 6-2 in region 2 only has a contribution margin of 8.1%.

SPECIAL NOTES, REMINDERS, AND WARNING MESSAGES

Product 6-3 reformulation try #1 violates one or more current patents.
Product 6-3 reformulation try #2 violates one or more current patents.
Product 6-3 reformulated to 83/35/37/94/ 5/5/5; successful on try #3.
Product 6-2, region 2, has unfilled sales orders of 1,052 units:
With total potential sales volume of 5,779 units {SALES (Units)
plus UNFILLED SALES} and an emergency production limit of 0%, a
maximum of 0 units of emergency production are possible for
sale in this market region.
Product 6-3, region 4, has unfilled sales orders of 127,157 units:
With total potential sales volume of 167,157 units {SALES (Units)
plus UNFILLED SALES} and an emergency production limit of 0%, a
maximum of 0 units of emergency production are possible for
sale in this market region.

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY C
SPECIAL BRANDMAPS NOTICES, FIRM 6, QUARTER 5 PAGE 15
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BRANDS: ONLY SOME BRANDMAPS BRANDS ARE AVAILABLE FOR USE AT THIS TIME
Brand 1 is available for use.
Brand 2 is available for use.
Brand 3 is available for use.
Brand 4 is not available for use.

VAPORWARE TECHNOLOGY CONSTRAINTS

Product attributes #1-#5 must sum to between 50 and 300.
Attribute #5 [Fralange ] must equal 5.

TRANSPORTATION AND SHIPPING COSTS

Transportation and shipping costs for Region 1 (U.S. ) = $ 20.00/unit.
Transportation and shipping costs for Region 2 (U.K. ) = $ 28.00/unit.
Transportation and shipping costs for Region 3 (C.EUROPE) = $ 31.00/unit.
Transportation and shipping costs for Region 4 (PACIFIC ) = $ 38.00/unit.