- 42 -
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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