Northwestern Indiana Telephone Company - Page 42

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            1989        5,281,159        9,939,632          712,732                                    
            1990        6,305,070       11,675,809        1,736,177                                    
            1991        6,860,118       12,688,043        1,012,234                                    
            1992        7,780,380       14,544,105        1,856,062                                    
            1993        8,726,683       15,250,005          705,900                                    

                  During 1987 through 1989, NITCO's current assets consisted                           
            mostly of cash or other liquid assets.  Its customer accounts                              
            receivable and National Exchange Carriers Association accounts                             
            receivable (i.e., long-distance call access charges) were billed                           
            monthly.                                                                                   
                  During 1987 through 1989, NITCO's net current liquid assets,                         
            as adjusted by two loans it made, respectively, to a local                                 
            Indiana bank's employee stock option plan and to the bank's                                
            president,7 and if not depleted by certain payments it made to                             
            support the individual Mussman family members during these years,                          
            would have been as follows:                                                                
            Year        Net Current Liquid Assets                                                      
            1987               $5,183,131                                                              
            1988                4,726,973                                                              
            1989                4,455,217                                                              

                  NITCO's working capital requirements for 1987, 1988, and                             
            1989, were $75,569, $278,646, and $190,312, respectively.                                  


            7After its renegotiation in August 1987, the ESOP loan                                     
            essentially was required to be repaid to NITCO on NITCO's demand.                          
            The $400,000 loan to the bank president occurred on June 15,                               
            1987, and was made out of a loan repayment NITCO received from                             
            the ESOP.  Although a promissory note bearing a December 1988                              
            execution date was later issued by the bank president, the note                            
            obligated the bank president to repay the $400,000 loan to Mr.                             
            Mussman, rather than to NITCO, in 4 years.                                                 



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