1. William J. Coles, President and MD of New England Wire and Cable. Annual Report. Ponomarenko V. V.

2. NEW ENGLAND WIRE AND CABLE Balance Sheet December 31 Assets Current Assets Cash $10,000, 000 Accounts receivable 6,000, 000 Inventories 12,000, 000 U.S. Government and other marketable securities 2,000, 000 Total Current Assets $30,000, 000 Property, plant, and equipment Land $100, 000 Equipment 120,000,000 Building 500,000 Accumulated Depreciation: Equipment 60,000, 000 Accumulated Depreciation: Building 400,000 Total PP and E $60,200, 000 Total Assets $90,200 000

3. NEW ENGLAND WIRE AND CABLE Balance Sheet December 31 Liabilities and Stockholders’ Equity Current Liabilities Accounts payable $2,200, 000 Accrued Taxes (other than income taxes) 250,000 Accrued Compensation and Benefits 50,000 Advances from Customers on Contract 2,500, 000 Total Current Liabilities $5,000 000 Stockholders’ Equity Common Stock $40,000, 000 Authorized and outstanding (4,000,000 shares of $10 par value) Paid in Capital in Excess of Par 5,000,000 Retained Earnings 37,200,000 Total Stockholders’ Equity $85,200,000 Total Liabilities and Stockholders’ Equity $90,200,000

4. NEW ENGLAND WIRE AND CABLE Combined Statement of Income And Retained Earnings For the Year Ended December 31 Sales revenue $20,000,000 Cost of Goods Sold 13,750,000 Depreciation Expense 2,000,000 Compliance Expense 2,500,000 Selling and administrative Expenses 1,625,000 Net Income $125,000 Retained earnings Jan.1 37,200,000 Cash Dividends Declared and Paid 125,000 Retained Earnings Dec.31 $37,200,000

5. Financial ratios Current ratio (current assets/current liabilities) - 6 Quick ratio ((current assets - inventories)/current liabilities) – 3,6 ROA (return on assets: net income/total assets) – 0,0014 ROE (return on equity: net income/total stockholders’ equity) – 0,0015 EPS (earnings per share: net earnings (income)/number of shares) – 0,03125 PER (price/earnings: share price / EPS)- 448

6. Ways of improvement increasing liabilities and reinvestment; reducing expenses modernizing technology and materials partial reengineering and restructuring call for tender subsidies for further professional training leverage schemes intensifying manufacture for highways and bridges rebuilding R&D new business contacts renovating equipment branching out into new fields promotion campaign

7. Thank You For Your Attention!