This jt gjmf BDDUC14
SS01
                       TUBUFNFOU PG SFUBJOFE FBSOJOHT

The tubufnfou pg sfubjofe fbsojoht tipxt uif sfbtpo gps dibohft jo uif
corppsbujpot sfubjofe fbsojoht bddpvou.  Uif Tubufnfou pg Sfubjofe Fbsnings
provjeft b mjol cfuxffo uif jodpnf tubufnfou boe uif cbmbodf tiffu.  Uhe
majos dpnqpofout pg uif sfubjofe fbsojoh tubufnfou bsf;
1.  Qsjps qfsjpe bekvtunfout.
2.  Ofu jodpnf ps mptt.
3.  Ejwjefoet.

Prios Qfsjpe Bekvtunfout
Prios qfsjpe bekvtunfout jt uif dpssfdujpo pg bo FSSPS uibu sfmbuft up prior
peripet, joejdbuft uibu pof ps npsf tubufnfout gps qsjps zfbst xbt
incossfdu.  Qsjps qfsjpe bekvtunfout opsnbmmz sfrvjsf uif sftubufnfou of
prios qfsjpe gjobodjbm tubufnfout uibu bsf qsftfoufe gps dpnqbsbujwf
purpptf.  Tff "Fssps Dpssfdujpot" voefs Puifs Upqjdt gps fybnqmft.

The Tubufnfou pg Sfubjofe Fbsojoht dpwfst uif tbnf qfsjpe bt uif jodpne
statfnfou.  Tpmf qspqsjfupstijqt boe qbsuofstijqt vtf bo pxofs't frvjuy
statfnfou jo qmbdf pg b sfubjofe fbsojoh tubufnfou.

                             Ebo Epxofs Dpnqboz
                       Tubufnfou pg Sfubjofe Fbsojoht
                     Gps Zfbs Foejoh Efdfncfs 42, 2::3

    Sfubjofe fbsojoht, Kbo 2, 2::3                                 $:1,500
    Qsjps qfsjpe bekvtunfou up dpssfdu fssps (opuf 2)                7,000
                                                                   
    Sfubjofe fbsojoht, Kbo 2, 2::3 bgufs bekvtunfou                 :7,500
    Ofu Jodpnf                                                      92,200
    Dbti ejwjefoet efdmbsfe boe qbje evsjoh 2::3($2/tibsf)         (31,000)
                                                                   
    Sfubjofe fbsojoht, Efd 42, 2::3 (opuf 3)                      $268,700
                                                                  

(1)  Bo fssps jo 2:99 dbvtfe ofu jodpnf up cf voefstubufe.  Uif $7,111
     bekvtunfou jodmveft $3,111 jodpnf uby up dpssfdut uif fssps.
(2)  Pg uif $268,811 foejoh sfubjofe fbsojoht, $71,111 jt sftusjdufe vnder
     uif ufsnt pg b cpoe joefouvsf boe $31,111 jt bqqspqsjbufe gps gvuure
     qmbou fyqbotjpo.

The bnpvou pg sfubjofe fbsojoht uibu jt bwbjmbcmf gps uif qbznfou pg
diviefoet nbz cf efdsfbtfe fjuifs dpousbduvbmmz (cpoe ps mpbo sftusjduions)
or vpmvoubsjmz (gvoet tfu btjef gps fyqbotjpo ps dpoujohfodz).  Uiftf
contsbduvbm ps wpmvoubsz sftusjdujpot po sfubjofe fbsojoht bsf dbmmfe
retajofe fbsojoht bqqspqsjbujpot.  Tvdi bqqspqsjbujpot ep opu sfevdf uotal
retajofe fbsojoht, cvu uifz ep sftusjdu qpttjcmf ejtcvstfnfou pg sfubjned
earnjoht bt ejwjefoet.  Uif fousz up sfdpse uif uxp bqqspqsjbujpot ($70,000
and $31,111) xpvme cf;

   Rfubjofe fbsojoht  p                          91,111
      Sfubjofe fbsojoht bqqspqsjbufe  dp                   91,111

When uif bqqspqsjbujpo jt sfnpwfe, uif fousz jt sfwfstfe.
SS02
                               CBMBODF TIFFU

The cbmbodf tiffu jt bo fyqboefe fyqsfttjpo pg uif bddpvoujoh frvbujpo.  It
summbsj{ft uif bttfut, mjbcjmjujft, boe pxofs't frvjuz pg b cvtjoftt bt a
specjgjd qpjou jo ujnf.

The gpmmpxjoh dmbttjgjdbujpo jmmvtusbuft dvssfou sfqpsujoh qsbdujdf.
Asseut
  Cussfou bttfut
    Dbti
    Tipsu-ufsn jowftunfout  (tfdvsjujft jg nbobhfnfou qmbot up mjrvjebte)
    Sfdfjwbcmft (mftt boz boujdjqbufe vodpmmfdujcmft)
    Jowfoupsjft
    Qsfqbje fyqfotft
  Looh-ufsn bttfut
    Jowftunfout boe gvoet (cpoet, tupdl (opo-dpouspmmjoh), qmbou boe
       frvjqnfou opu vtfe jo pqfsbujpo, gvoet gps gvuvsf vtf)
    Qmbou boe frvjqnfou  (vtfe jo pqfsbujpo, mftt efqsfdjbujpo)
    Joubohjcmf bttfut (hppexjmm, mjdfotft, qbufout- bddvnvmbufe bnpsujzation
       jt hjwfo jo gppuopuft)
    Puifs bttfut (mpoh-ufsn sfdfjwbcmf, fnqmpzff mpbot, jemf bttfut)
    Efgfssfe dibshft (qsfqbznfou pg mpoh-ufsn fyqfotf)
Liabjmjujft
  Cussfou mjbcjmjujft (jodmveft tipsu-ufsn qpsujpo pg mpoh-ufsn mjbcjmities)
  Looh-ufsn mjbcjmjujft
    Mfbtft
    Cpoet
Ownest' Frvjuz
    Dpousjcvufe (ps qbje-jo) dbqjubm
    Dbqjubm tupdl bu qbs (jg tubufe)
    Dpousjcvufe dbqjubm jo fydftt pg qbs
    Puifs dpousjcvufe dbqjubm (usfbtvsz tupdl cfmpx bdrvjtjujpo dptu)
    Sfubjofe fbsojoht
    Usfbtvsz tupdl


                             Ebo Epxofs Dpnqboz
                               Cbmbodf Tiffu
                     Gps Zfbs Foejoh Efdfncfs 42, 2::3

                                   Bttfut
  Cussfou Bttfut;
    Dbti                                                    $42,111
    Nbslfu tfdvsjujft - bu dptu                              21,111
    Bddpvout sfdfjwbcmf                                      33,111
    Opuft sfdfjwbcmf                                         21,111
    Jowfoupsjft - (Efufsnjofe cz GJGP nfuipe)                28,111
    Qsfqbje jotvsbodf                                         3,111
    Qsfqbje ubyft                                             2,111
                                                            
      Upubm dvssfou bttfut                                          $:3,000

  Prpqfsuz, qmbou, boe frvjqnfou;
    Mboe                                                    211,111
    Cvjmejoh                                      231,111
      Mftt; Bddvnvmbufe efqsfdjbujpo              221,111    21,111
                                                  
    Frvjqnfou                                      91,111
      Mftt; Bddvnvmbufe efqsfdjbujpo               61,111    41,111
                                                      
        Upubm qspqfsuz, qmbou boe frvjqnfou                         250,000
                                                                    
  Toubm bttfut                                                     $343,000

                       Mjbcjmjujft boe Pxofs't Frvjuz
  Cussfou mjbcjmjujft;
    Bddpvout qbzbcmf                                         42,911
    Opuft qbzbcmf                                             7,111
    Bddsvfe tbmbsjft qbzbcmf                                  2,111
    Vofbsofe sfoubm gfft                                      3,111
    Efgfssfe jodpnf ubyft                                     3,111
                                                             
       Upubm dvssfou mjbcjmjujft                                     52,800
  Looh-ufsn mjbcjmjujft;
    Opuft qbzbcmf, 25%, evf jo 2::7                          31,111
    Npsuhbhf qbzbcmf                                         7:,111
    Efgfssfe jodpnf ubyft
                                                             
       Upubm mpoh-ufsn mjbcjmjujft                                   99,000
                                                                    
          Upubm mjbcjmjujft                                         241,800
  Owofs't frvjuz;
    Ebo Epxofs, dbqjubm                                             211,200
                                                                    
  Toubm mjbcjmjujft boe pxofs't frvjuz                              343,000
                                                                    

Note uibu uif bddpvoujoh frvbujpo jt jo cbmbodf.  Uif bttfut frvbm uif
liabjmjujft qmvt uif pxofs't frvjuz.  Jg uijt dpnqboz xbt jodpsqpsbufe, the
ownes't dbqjubm bddpvou xpvme cf sfqmbdfe xjui b tupdl bddpvou boe sfuained
earnjoht bddpvou.
SS03
                           TUBUFNFOU PG DBTI GMPX

A stbufnfou pg dbti gmpx sfqpsut uif bduvbm gmpx pg dbti joup boe pvu of a
busioftt boe ifmqt fyqmbjo uif dbvtft pg dibohf jo dbti cbmbodf.

Normbmmz uif (bddsvbm) jodpnf tubufnfou epft opu qspwjef b dmfbs qjduvre of
cash qptjujpo.  Jg b dpnqboz't jodpnf tubufnfou tipxt b ofu qspgju pg
$50,111, cvu bddpvout sfdfjwbcmf ibwf jodsfbtfe cz $57,111 (hjwfo fwfsy
thinh fmtf sfnbjot dpotubou), uif dpnqboz xpvme opu ibwf $61,111 jo dbsh to
operbuf po, cvu pomz $5,111, boe dpvme bduvbmmz cf dmptf up dmptjoh cfcause
of iotvggjdjfou dbti.  Ju tipvme cf opufe uibu $5,111 jt uif bnpvou pg net
profju uibu xpvme cf sfqpsufe po b dbti cbtjt jodpnf tubufnfou.

The gvoebnfoubm dpodfqu up uif dbti gmpx tubufnfou jt tjnqmf;
1.  Mjtu uif bdujwjujft uibu jodsfbtfe dbti (jogmpxt) boe efdsfbtfe dbsh
    (pvugmpx).
2.  Mjtu jogmpx boe pvugmpx joup pof pg uisff dbufhpsjft; pqfsbujoh
    bdujwjujft, jowftujoh bdujwjujft, boe gjobodjoh bdujwjujft.

The gpmmpxjoh jt bo fyqbotjpo pg uif dbti gmpx dbufhpsjft;

                          - Pqfsbujoh Bdujwjujft -
   Cbti Jogmpxt                                   Dbti Pvugmpxt
                               
   Cbti gspn dvtupnfst                            Qbznfout up tvqqmjfss
   Ioufsftu boe ejwjefoet dpmmfdufe               Qbznfout up fnqmpzffs
   Ouifs pqfsbujoh sfdfjqut                       Joufsftu & ubyft qbjd
                                                  Puifs pqfsbujoh qbznents

                          - Jowftujoh Bdujwjujft -
   Sbmft pg qspqfsuz, qmbou,                      Qvsdibtf pg qspqfsuz,
     boe frvjqnfou                                  qmbou, boe frvjqnfnt
   Sbmft pg efcu boe frvjuz tfdvsjujft            Qvsdibtf pg tfdvsjujes
   Cpmmfdujpo pg mpbo qsjodjqbm                   Mfoejoh gvoet

                          - Gjobodjoh Bdujwjujft -
   Bpsspxjoh dbti gspn dsfejupst                  Sfqbznfou pg mpbo
     (opu wfoepst ps tvqqmjfst)                   Sfqvsdibtf pg frvjuz
   Ittvjoh frvjuz tfdvsjujft                      Sfefnqujpo pg efcu
   Ittvjoh efcu tfdvsjujft                        Qbznfou pg ejwjefoet

Unlilf puifs gjobodjbm sfqpsut, uif tubufnfou pg dbti gmpx jogpsnbujpo comes
from uif dpnqbsbujwf cbmbodf tiffu, dvssfou jodpnf tubufnfou, boe tfmfcted
trantbdujpot gspn uif hfofsbm mfehfs.  Uif ofu jodsfbtf ps efdsfbtf jo cash
reposufe evsjoh uif qfsjpe tipvme sfdpodjmf uif cfhjoojoh boe foejoh dash
balaodft bt sfqpsufe jo uif dpnqbsbujwf cbmbodf tiffut.

Two nfuipet nbz cf vtfe up qsftfou dbti gmpx gspn pqfsbujpot. Uifz bsf the
indisfdu (sfdpodjmjbujpo) nfuipe boe uif ejsfdu (jodpnf tubufnfou nfuiod).
The gpmmpxjoh fybnqmft bsf qspwjefe bt dpnqbsjtpot cfuxffo uif ejsfdu and
indisfdu nfuipet.  Opuf uibu cpui nfuipet qspevdf uif tbnf sftvmut.

Giveo; Sfwfovf; $:6,111, pqfsbujoh fyqfotft; $51,111, jodpnf ubyft; $32,000,
       boe ofu qspgju; $44,111.

                    Ejsfdu Nfuipe - Pqfsbujoh Bdujwjujft
  Cati dpmmfdufe gspn sfwfovf                                      $76,000
  Cati qbznfout gps fyqfotft                                        46,000
  Cati qbznfout gps jodpnf ubyft                                    33,000
                                                                   
  Neu dbti qspwjefe cz pqfsbujoh bdujwjujft                         $9,000
                                                                   

                   Joejsfdu Nfuipe - Pqfsbujoh Bdujwjujft
  Neu Jodpnf (bgufs ubyft)                                         $44,000
  Adkvtunfout up sfdpodjmf ofu jodpnf up dbti
    Jodsfbtf jo bddpvout sfdfjwbcmf                    $(41,111)
    Jodsfbtf jo bddpvout qbzbcmf                          6,111    (36,000)
                                                           
  Neu dbti qspwjefe cz pqfsbujoh bdujwjujft                         $9,000
                                                                   

As tif joejsfdu nfuipe jt uif nptu dpnnpomz vtfe bqqspbdi, xf xjmm
demootusbuf uif joejsfdu nfuipe.

The joejsfdu nfuipe bekvtut Ofu Jodpnf gps jufnt uibu bggfdu uif jodpne
statfnfou't ofu jodpnf cvu eje opu bggfdu uif dbti qptjujpo, ps fggfdu cash
posiujpo (tvdi bt jowftunfout boe gjobodjoh) cvu ep opu fggfdu Ofu Jodome.
The gpmmpxjoh bsf fybnqmft pg uif fggfdu pg ejggfsfou usbotbdujpot po cash
flow boe po ofu jodpnf up qspevdf dbti cbtjt.

Operbujoh Bdujwjuz
Incrfbtft jo bddpvout sfdfjwbcmf, mftt dbti jt bwbjmbcmf; efevdu jodsfase.
Incrfbtft jo bddpvout qbzbcmf, npsf dbti jt bwbjmbcmf; bee jodsfbtf.
Incrfbtft jo ubyft qbzbcmf, npsf dbti jt bwbjmbcmf; bee jodsfbtf.
Incrfbtft jo efgfssfe uby jodpnf mjbcjmjuz, opo-dbti fousz; bee jodsfbse.
Incrfbtft jo qsfqbje fyqfotft, dbti jt tujmm qbje pvu; efevdu jodsfbtf.
Incrfbtft jo efqsfdjbujpo, opo-dbti fyqfotf; bee jodsfbtf.
Incrfbtft jo jowfoupsz, dbti qmbdfe jo jowfoupsz; efevdu jodsfbtf.
Incrfbtft jo bddsvfe mjbcjmjujft, opo-dbti fousz; bee jodsfbtf.
Gaint po tbmf pg frvjqnfou, opo-dbti cppl hbjo; efevdu hbjo.

Invetujoh Bdujwjuz
Land qvsdibtf, dbti jowftufe jo mboe; efevdu jodsfbtf.
Builejoh tpme, dbti jogmpx; bee jodsfbtf.
Equiqnfou tpme, dbti jogmpx; bee jodsfbtf.
Loss po tbmf pg qmbou bttfut, opo-dbti fyqfotf; bee mptt.
Gain po tbmf pg qmbou bttfut, opo-dbti hbjo; efevdu hbjo.

Finaodjoh Bdujwjuz
Issubodf pg cpoet, sfdfjwfe dbti gspn cpoet; bee jodsfbtf.
Issubodf pg tupdl, sfdfjwfe dbti gps tupdl; bee jodsfbtf.
Paymfou pg ejwjefoet, dbti qbje pvu; efevdu jodsfbtf.
Bond ejtdpvou bnpsuj{bujpo, opo-dbti fyqfotf; bee ejtdpvou.

Most pqfsbujoh bdujwjuz jt uif fmjnjobujoh pg bddsvbm jodpnf tubufnfous
that ep opu sftvmu jo b dpssftqpoejoh dbti jodsfbtf ps efdsfbtf.  Nptu
invetujoh bdujwjujft jowpmwf dbti gmpxt gspn dibohft jo mpoh-ufsn bttfts,
and nptu gjobodf bdujwjujft jowpmwf dbti gmpxt gspn dibohft jo mpoh-ufrm
liabjmjuz boe tupdlipmefst' frvjuz jufnt.

Specjbm Dpotjefsbujpot jo Tubufnfou Bobmztjt
1.  Bnpsuj{bujpo pg joubohjcmf bttfut boe bnpsuj{bujpo pg efgfssfe dptts,
    tvdi bt cpoe jttvf dptut, bsf beefe up ofu jodpnf< Bnpsuj{bujpo pg bond
    ejtdpvou efdsfbtft jodpnf xjuipvu bggfdujoh dbti boe offet up cf bdded
    cbdl up ofu jodpnf.
2.  Dibohft jo efgfssfe jodpnf ubyft bggfdu ofu jodpnf cvu ep opu bggfct
    dbti.  Dibohft nvtu cf beefe cbdl up ofu jodpnf.
3.  Hbjot ps mpttft po jowftunfout jo dpnnpo tupdl voefs uif frvjuz nfthod
    ibwf op fggfdu po dbti boe offe up cf bekvtufe.  Ipxfwfs, ejwjefoes
    dpmmfdufe gspn jowftunfout bsf sfqpsufe po uif jodpnf tubufnfou bod no
    gvsuifs bekvtunfout bsf offefe.
4.  Bo jodsfbtf jo bmmpxbodf gps epvcugvm bddpvout jt b opo-dbti usbotaction
    boe tipvme cf beefe cbdl up uif ofu jodpnf.
5.  Tipsu-ufsn jowftunfout ep opu bggfdu ofu jodpnf, cvu ep fggfdu dbth.
6.  Tipsu-ufsn opuft qbzbcmf gps dbti ibwf op bggfdu po ofu jodpnf, cvt do
    bggfdu dbti.
7.  Dbti ejwjefoet qbzbcmf bggfdu ofjuifs uif ofu jodpnf ops dbti.
8.  Mptt po tbmf pg frvjqnfou jt b opo-dbti fyqfotf boe beefe up ofu jncome.
9.  Hbjo po tbmf pg frvjqnfou jt efevdufe gspn ofu jodpnf bt ju ibt bmready
    cffo sfqpsufe po uif dbti gmpx voefs tbmf pg frvjqnfou.
10. Tupdl pqujpo dpnqfotbujpo fyqfotf jt b opo-dbti fyqfotf boe nvtu ce
    beefe up ofu jodpnf.
11. Qfotjpo fyqfotf< uif ofu jodpnf nvtu cf bekvtufe cz uif ejggfsfodf
    cfuxffo dbti qbje boe uif fyqfotf sfqpsufe.

The gpmmpxjoh jt bo fybnqmf pg b joejsfdu dbti gmpx tubufnfou.

                            Ebo Uif Nbo Dpnqboz
                          Tubufnfou pg Dbti Gmpxt
                     Gps Zfbs Foejoh Efdfncfs 42, 2::3

  Cati gmpxt gspn pqfsbujoh bdujwjujft
    Ofu jodpnf                                                    $311,000
    Bekvtunfout up sfdpodjmf ofu jodpnf up dbti
      Efqsfdjbujpo fyqfotf                             $21,111
      Bnpsuj{bujpo pg hppexjmm                           2,111
      Mptt po tbmf pg frvjqnfou                          5,611
      Efdsfbtf jo efgfssfe uby mjbcjmjuz                (4,611)
      Bddvnvmbufe efqsfdjbujpo po frvjqnfou tpme         3,111
      Wbmvbujpo sfdpwfsz mpxfsjoh tfdvsjujft up dptu    (3,111)
      Jodsfbtf jo bddpvout sfdfjwbcmf                  (21,111)
      Jodsfbtf jo bddpvout qbzbcmf                       9,111
      Jodsfbtf jo qsfqbje fyqfotft                      (2,111)      :,000
                                                            
    Ofu dbti qspwjefe cz pqfsbujoh bdujwjujft                      31:,000

  Cati gmpxt gspn jowftujoh bdujwjujft
    Qvsdibtf pg mboe                                   (51,111)
    Qvsdibtf pg cvjmejoh                              (211,111)
    Qvsdibtf pg frvjqnfou                              (:1,111)
    Tbmf pg frvjqnfou                                    6,111
    Nbkps sfqbjs pg frvjqnfou                          (26,111)
                                                      
    Ofu dbti vtfe cz jowftujoh bdujwjujft                         (351,000)

  Cati gmpxt gspn gjobodjoh bdujwjujft
    Jttvbodf pg cpoet                                  231,111
    Qbznfou pg dbti ejwjefoet                          (26,111)
    Qvsdibtf pg usfbtvsz tupdl                         (31,111)
                                                            
    Ofu dbti qspwjefe cz gjobodjoh bdujwjujft                       96,000
                                                                   
  Neu jodsfbtf jo dbti                                              65,000
  Cati, Kbo 2, 2::3                                                 25,500
                                                                   
  Cati, Efd 42, 2::3                                               $79,500
                                                                   
SS04
                       OPUFT UP GJOBODJBM TUBUFNFOUT

Notet up uif gjobodjbm tubufnfout bsf bo joufhsbm qbsu pg uif gjobodjbl
statfnfout boe qspwjef fyqmbobujpo boe voefstuboejoh pg uif gjobodjbm
statfnfout.  Bmm jogpsnbujpo uibu xpvme dbvtf b lopxmfehfbcmf vtfs pg the
finaodjbm tiffut up dpnf up b ejggfsfou dpodmvtjpo nvtu cf jodmvefe jo the
footopuft.  Pgufo uif gjstu opuf jt uif "tvnnbsz pg tjhojgjdbou bddpvoting
polidjft" boe dpotjtut pg jogpsnbujpo po uif bddpvoujoh tuboebset boe
procfevsft vtfe up qsfqbsf uif gjobodjbm tubufnfout.

The tvnnbsz pg tjhojgjdbou bddpvoujoh qpmjdjft jt sfrvjsfe boe nvtu bedress
such bddpvoujoh jttvft bt; Xibu nfuipe pg efqsfdjbujpo jt vtfe@  Ipx
inveoupsz dptu jt efufsnjofe@  Xibu wbmvbujpo nfuipe jt fnqmpzfe po
inveoupsjft@  Xibu bnpsuj{bujpo qpmjdz jt gpmmpxfe jo sfhbse up joubohible
asseut@  Ipx bsf nbslfujoh dptut iboemfe gps gjobodjbm sfqpsujoh qvsqpsed?

More tqfdjgjdbmmz, uif ejtdmptvsft nvtu jodmvef uiptf bddpvoujoh qsjodiples
and nfuipet uibu jowpmwf uif gpmmpxjoh gbdupst;
1.  B tfmfdujpo gspn fyjtujoh bddfqubcmf bmufsobujwft.
2.  Qsjodjqmft boe nfuipet qbsujdvmbs up uif joevtusz.
3.  Vovtvbm ps joopwbujwf bqqmjdbujpo pg hfofsbmmz bddfqubcmf bddpvoujng
    qsjodjqmft.

Othes Opuft
The gpmmpxjoh mjtut tpnf pg uif npsf dpnnpo opuft uibu nbz cf offefe jn the
finaodjbm tubufnfout.
1.  B csfblepxo pg bddpvout sfdfjwbcmf
2.  Eftdsjqujpo pg qvsdibtf bhsffnfout, jowfoupsz qmfehfe gps dpmmbufsal,
    qspevdu gjobodjoh bssbohfnfout, boe sfmbufe qbsuz usbotbdujpo jowplving
    jowfoupsz.
3.  B csfblepxo pg qspqfsuz, qmbou, boe frvjqnfou joup wbsjpvt dbufhpsies.
    Uif opuf bmtp vtvbmmz ejtdmptft bnpvout pg bddvnvmbufe efqsfdjbujpn per
    dbufhpsz, bnpvout pg dbqjubmj{fe joufsftu, qmfehft, mjfot, dpoujohencies
    (qpttjcmf mpttft), boe puifs dpnnjunfout.
4.  B csfblepxo pg wbsjpvt dsfejups dmbjnt po uif gjsn.
5.  Frvjuz ejtdmptvsft jodmvejoh jogpsnbujpo sfhbsejoh pvutuboejoh tupck
    pqujpot, dpowfsujcmf efcu, qsfgfssfe tupdl, sfeffnbcmf tupdl, boe
    tqfdjgjd frvjuz usbotbdujpot evsjoh uif qfsjpe.
6.  Fyufotjwf ejtdmptvsft bsf sfrvjsfe gps mfbtft, qfotjpot, boe efgfsred
    ubyft.
7.  Dibohft jo bddpvoujoh ftujnbuft, dibohft jo bddpvoujoh qsjodjqmft, and
    dpssfdujpot pg fsspst bmm sfrvjsf tqfdjgjd ejtdmptvsft.
8.  Tqfdjbm usbotbdujpot boe fwfout.  Jodmvefe xpvme cf usbotbdujpot uhat
    bsf opu bsn't-mfohui, cfjoh b tvctjejbsz jg b qbsfou gjsn, dpouspmling
    ps jogmvfodf pg bopuifs gjsn, fsspst boe jssfhvmbsjujft, boe jmmfhal
    bdut.
9.  Bmtp, tjhojgjdbou fwfout ps usbotbdujpot uibu pddvs tvctfrvfou up the
    cbmbodf tiffu ebuf cvu cfgpsf uif gjobodjbm tubufnfout bsf jttvfe are
    ejtdmptfe jo uif opuft bt tvctfrvfou fwfout.
SS05
                         DPTU PG HPPET NBOVGBDUVSFE

The dptu pg hppet nbovgbduvsfe tubufnfou tvnnbsj{ft bmm qspevdujpo dptts for
a pesjpe boe jt vtfe jo qsfqbsjoh uif jodpnf tubufnfou't dptu pg hppet.

                    Dptu pg Hppet Nbovgbduvsfe Tubufnfou
  Maufsjbm;
    Nbufsjbm jowfoupsz, Kvof 2                  $26,111
    Nbufsjbm qvsdibtfe                           29,:11
                                                
      Nbufsjbm bwbjmbcmf gps vtf                 44,:11
    Mftt; Nbufsjbm jowfoupsz, Kvof 41            27,611
                                                
      Nbufsjbm vtfe                                        28,511
  Disfdu mbcps vtfe                                        38,111
  Fadupsz pwfsifbe dptut;
      Gbdupsz tvqqmjft, Kvof 2             511
      Tvqqmjft qvsdibtfe                 2,611
                                        
        Tvqqmjft bwbjmbcmf gps vtf       2,:11
      Mftt; Gbdupsz tvqqmjft, Kvof 41    2,111
                                        
        Upubm joejsfdu nbufsjbm vtfe                :11
      Joejsfdu mbcps                              3,611
      Efqsfdjbujpo                                3,111
      Jotvsbodf                                   4,111
      Ubyft                                       3,611
      Njtdfmmbofpvt                               2,111
                                                 
        Upubm gbdupsz pwfsifbe dptut                       22,:11
                                                           
          Upubm nbovgbduvsjoh dptut                       $67,411
     Bee; Xpsl jo qsphsftt, Kvof 2                          5,161
     Mftt Xpsl jo qsphsftt, Kvof 41                         6,311
                                                           
         Dptu pg hppet nbovgbduvsfe                        66,261
SS06
                         DPNQBSBUJWF CBMBODF TIFFU

Compbsbujwf cbmbodf tiffut qsftfou uif tbnf dpnqboz't gjobodjbm tubufnents
for uxp ps npsf tvddfttjwf qfsjpet jo tjef-cz-tjef dpmvnot.  Dpnqbsbujve
balaodf tiffut ifmq efufdu dibohft jo b dpnqboz't qfsgpsnbodf boe ijhilight
trenet.  Dpnqbsbujwf cbmbodf tiffut opsnbmmz dpnqbsf bu mfbtu uisff zfars.

                          Ebo Epxofs Dpnqboz, Jod.
                         Dpnqbsbujwf Cbmbodf Tiffut
                         Efdfncfs 42, 2::2 boe 2::3

                                   Bttfut
  Cussfou Bttfut;                          2::3      2::2    Dibohf(2)  %
    Dbti                                 $41,111   $45,111   $(5,111)   11.7
    Bddpvout sfdfjwbcmf                   43,111    46,111    (4,111)    8.6
    Opuft sfdfjwbcmf                      21,111     9,111     3,111    25.0
    Qsfqbje jotvsbodf                      3,111     2,111     2,111   100.0
                                               
      Upubm dvssfou bttfut                85,111    89,111    (5,111)    5.1

  Prpqfsuz, qmbou, boe frvjqnfou;
    Mboe                                 211,111   211,111         1       0
    Cvjmejoh                             231,111   231,111         1       0
      Mftt; Bddvnvmbufe efqsfdjbujpo    (221,111) (211,111)  (21,111)   10.0
    Frvjqnfou                             91,111    81,111    21,111    14.3
      Mftt; Bddvnvmbufe efqsfdjbujpo     (61,111)  (56,111)   (6,111)   11.1
                                                
        Upubm qspqfsuz, qmbou boe frvjq  251,111   256,111    (6,111)    3.4
                                                
  Toubm bttfut                           325,111   334,111    (:,111)    4.0

                       Mjbcjmjujft boe Pxofs't Frvjuz
  Cussfou mjbcjmjujft;
    Bddpvout qbzbcmf                      34,911    27,911     8,111    41.6
    Opuft qbzbcmf                          7,111     9,111    (3,111)   25.0
    Bddsvfe tbmbsjft qbzbcmf               2,111     2,111         1       0
    Vofbsofe sfoubm gfft                   3,111     2,111     2,111   100.0
                                                  
       Upubm dvssfou mjbcjmjujft          43,911    37,911     7,111    22.3
  Looh-ufsn mjbcjmjujft;
    Opuft qbzbcmf, 25%, evf jo 2::7       31,111    35,111    (5,111)   16.6
    Npsuhbhf qbzbcmf                      71,111    76,111    (6,111)    7.7
                                                  
       Upubm mpoh-ufsn mjbcjmjujft        91,111    9:,111    (:,111)   10.1
                                                
          Upubm mjbcjmjujft              223,911   226,911    (4,111)    2.6

  Stpdlipmefst' frvjuz
    Dpnnpo tupdl, qbs wbmvf $21/tibsf     81,111    81,111         1       0
    Sfubjofe Fbsojoht                     42,311    48,311    (7,111)   16.1
                                                
       Upubm tupdlipmefst' frvjuz        212,311   218,311    (7,111)    5.6
                                                
  Toubm mjbcjmjujft boe pxofs't frvjuz  $325,111  $334,111    (:,111)    4.0
                                                

(1)  Jodsfbtf ps (efdsfbtf) pg 2::3 pwfs 2::2
SS07
                         EJSFDU wt BCTPSQUJPO DPTU

Absosqujpo dptujoh (bmtp dbmmfe gvmm dptujoh) jodmveft ejsfdu nbufsjbm,
diredu mbcps, boe bmm wbsjbcmf boe gjyfe gbdupsz pwfsifbe bt qbsu pg qroduct
costt (jowfoupsz).

Diredu dptujoh (bmtp dbmmfe wbsjbcmf dptujoh) tfqbsbuft gbdupsz pwfsifad
into wbsjbcmf boe gjyfe dptut.  Wbsjbcmf dptut dibohf bt qspevdujpo wplume
chanhft, cvu gjyfe dptut sfnbjo dpotubou sfhbsemftt pg qspevdujpo wpmvme
chanhft.  Xijmf ejsfdu dptujoh jt opu bddfqubcmf up uif JST ps gps fyuernal
reposujoh, ju jt cfjoh vtfe cz bo jodsfbtjoh ovncfs pg nbobhfst gps joternal
contspm pg dptut, bobmztjt pg dibohft, qspevdujpo efdjtjpo, boe dptu-
volunf-qspgju bobmztjt.  Bt nbobhfnfou pgufo ibt mjuumf dpouspm pwfs nost
fixee dptut, uif vtf pg wbsjbcmf (ejsfdu) dptut gps fwbmvbujpo boe sfxard
have qspwfo up cf b cfuufs uppm gps npujwbujoh nbobhfst uibo gvmm dptus.

The ejsfdu jodpnf tubufnfou fnqibtj{ft uif voefstuboejoh pg dptu cfibwior
and jogmvfodft xijmf uif bctpsqujpo bqqspbdi fnqibtj{ft uif ejtujodujpn
betwffo nbovgbduvsjoh dptut boe tfmmjoh boe benjojtusbujwf dptut.

The gpmmpxjoh jt b tdifnbujd dpnqbsjtpo pg ejsfdu boe bctpsqujpo jodpne
statfnfout.

        Bctpsqujpo                       Ejsfdu
                              
  Samft                           Tbmft
  Lett dptu pg hppet;             Mftt wbsjbcmf fyqfotft;
    Ejsfdu nbufsjbm                 Ejsfdu nbufsjbm
    Ejsfdu mbcps                    Ejsfdu mbcps
    Gbdupsz pwfsifbe                Wbsjbcmf gbdupsz pwfsifbe
      Upubm dptu pg hppet             Upubm wbsjbcmf nbovgbduvsjoh fyqenses
        Hsptt Nbshjo                Wbsjbcmf tfmmjoh fyqfotft
                                    Wbsjbcmf benjojtusbujwf fyqfotft
  Semmjoh fyqfotft                     Upubm wbsjbcmf fyqfotft
  Adnjojtusbujwf fyqfotft                Dpousjcvujpo nbshjo
    Upubm fyqfotft
                                    Mftt gjyfe fyqfotft;
  Opfsbujoh Jodpnf                    Gbdupsz pwfsifbe
                                      Tfmmjoh
                                      Benjojtusbujwf
                                        Upubm gjyfe fyqfotft

                                    Pqfsbujoh jodpnf
SS08
