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Quarter 7 IndoV INDUSTRY A Co.# 1

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** INCOME STATEMENT ** ** BALANCE SHEET **
Gross Revenue (Fare .4) 2300133 Cash 6156
- Commissions 195976 Short-Term Investment 996000
- Refunds(Reliability= 0.93 %) 170209 Accounts Receivable 920053
+ Interest Income 12449 Total Current Assets 1922209
Net Revenue 1946397
Expenses: Aircraft:
Flight Operations 489901 Cost 2500000
Fuel 448579 - Depreciation 1106250
Maintenance 478647 Net Aircraft 1393750
Passenger Service # 1 349189 Facilities-Net 65000
Cabin Service 30774 Total Fixed Assets 1458750
Insurance 33840
Promotion & Advertising 5000
Sales Force Cost 12000 Total Assets 3380959
Add. Emp Compensation 2000
Quality and Training 8000
Hiring/OJT Cost 30000
Social Performance 1003 Accounts Payable 669036
Market Research 0 Short Term Loans 150000
Interest Exp(net) 12387 Total Current Liab 819036
Lease Payment 162000
Administrative Exp 150000 Long Term Loans 350599
Depreciation 48750 Total Liabilities 1169635
Other Expense 16800
Total Operating Exp 2278870 Common Stock 2551000
Operating Profit/Loss -332473 Retained Earnings -339676
+/- Other Profits/Losses 0 Total Equity 2211324
Cargo Profit/loss less Mkting 42857
Profit Before Tax -289616 Total Liab & Equity 3380959
Less Income Tax 0
Net Profit After Tax -289616
Dividends Paid 0
Profits Retained -289616

** CASH FLOW ANALYSIS ** **OTHER DATA**

Economic Index this Qtr 103
Beginning Cash 74420 Total Aircraft/Seats 5/94
Short Term Investment 50000 Total Passengers 27,977
60% of Gross Revenue 1380079 Miles Flown per day 8,900
Accounts Receivable + 785634 Maximum Mileage/day 8,660
Stock Sold &Int Income+ 1008449 Avail Seat Miles 13,392,000
Loan Proceeds + 92000 Rev Pass Miles 5,892,830
Oth Income & A/C Sale + 0 Pass Load Factor 0.44
Cargo Income less Exp + 42857 Yield per Rev Pass Mi 0.39
Total Cash Inflow 3433440 Cost per Aval Seat Mi 0.198
Yield per Avail Seat Mi 0.172
Commissions/Refunds - 366185 Quality Index (0-100) 57
70% Of Oper Expense - 1561084 Total Salespersons 1
Accounts Payable - 496860 Total Employees 136
Income Tax - 0 Employee Turnover( 7.35 %) 10
Total Loan Payments - 7155 Fuel:Spot Pr This Qtr 1.14
Purchase S-T Invest - 996000 Fuel:Contract Next Qtr 1.1
Dividends - 0 Line of Credit 4,172,348
Equipment Purchase - 0 Short Term Int Rate 12%
Net Cash 6156 Shares Stock Outstnd 255,267
Overdraft Loan 0 Stock Price: Per Share 9.58
Ending Cash 6156 Earnings Per Share -1.13

** AIRLINE Simulation 4th Ed Jerald Smith and Peggy Golden(c)Prentice Hall **

Page 2 Quarter 7 ** COMPANY INFORMATION ** INDUSTRY A COMPANY 1
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*** FLEET STATUS REPORT ***

SERIAL A/C ACCUMULATED BOOK QUARTERLY

NUMBER TYPE COST DEPRECIATION VALUE LEASE COST
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1 A 700000 285750 414250 0
2 A 800000 348000 452000 0
3 A 1000000 472500 527500 0
4 B 0 0 0 82000
5 A 0 0 0 80000

*** MARKET RESEARCH STUDIES ***

*** NEWS MESSAGES TO YOUR FIRM INCLUDING INCIDENT FEEDBACK ***

The Chairman of the Board of Directors is very upset that your management team
did not buy enough market research this quarter.
Rumors abound in the industry concerning possible drug traffic by certain
airlines. However, no indictments have been issued.
The FAA has fined your firm $ 16800 for lack of maintenance on one aircraft as
you flew over the maximum mileage and missed a major maintenance procedure.
Customers who make reservations and then do not show up for their flight
have forced all airlines to overbook, causing passenger complaints.
Reminder: Stock redemption cannot exceed $500,000 per quarter.
Also, must have no less than 150,000 shares.
Mileage was to be reduced this quarter. Remember? Return to normal mileage in Qtr 8.

*** INDUSTRY NEWS MESSAGES ***

Use Incident H next Quarter.
Overall affluence and good vacation weather should boost resort market demand.

Stock Prices for Co's 1 thru 7 :

9.58 21.55 16.32 46.61 6.91 5.62 5

Total Aircraft/Total Seats for Each Co:

5/94 4/75 6/111 4/192 4/74 4/131 4/84

Current Return Return Return Debt to Daily Seat Yield/ Profit

Ratio on Sales on Eqty on Assets Equity Productivty ASM per Seat
2.01 -.248 -.015 -.326 3.071 4.11 .188 -4231

*** AIRLINE: A Strategic Management Simulation - 4th Edition(c)Prentice Hall ***

Page 3 Quarter 7 ** DAILY SALES by MARKET ** Co. # 1
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Ma Est. Note: Your firm will be in the left hand column with following format:
rk Total FltsPerDay/SeatsPerDay/FareSale/SeatsSold. Competitors will be
et Seats to the right with Format: Co#/FltsPerDay/SeatsPerDay/FareSale
# Sold Competitor's sales will not be listed. Sales are rounded.
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1 6/114/0/48 2/1/19/1 7/2/38/1
2 7/1/19/1
3 5/90/0/41 2/6/114/1
4 5/95/0/41 3/2/37/0
5
6 6/4/136/2
7 2/2/38/1
8
9 3/2/38/0 7/2/36/0
10 3/2/38/0 7/2/36/1
11 3/2/38/0
12 3/2/36/0
13 3/3/54/1
14 6/2/68/2*
15 5/4/74/1
16 5/4/74/1*
17 4/4/192/2
18 5/4/74/1 6/2/60/1*
19 6/2/74/2*
20 4/4/192/2
21 2/6/114/1 7/1/30/0
22 7/1/18/1
23 6/4/120/1
24 5/95/1/45# 3/2/37/1
25
26 6/4/148/2
27 7/1/18/0
28 3/1/18/0
29 4/3/146/3
30 7/1/30/0
31 7/2/48/0
32 7/2/48/0
33 3/2/38/0 7/2/48/0
34 3/3/54/1*
35 3/1/18/0
Note: # = first quarter in a new market * = 2nd quarter in a new market
Note: TOTAL SEATS SOLD column will have values if $8,000 Mkt Res was purchased.