Pulsar Components International, Inc. - Page 8

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          its traders.  The Officers recruited, interviewed, hired, and               
          trained petitioner’s employees.                                             
               The Officers also were petitioner’s executive officers and             
          managers.  They were directly responsible for profit                        
          maximization, long-term business planning, office automation,               
          cash management, physical plant expansion, marketing, and all               
          other management functions.  When not trading, Mr. Woll focused             
          on administrative functions and was in charge of cash                       
          disbursements, cash receipts, billing, receivables, and                     
          investigating credit.  Mr. Woll also dealt with petitioner’s                
          accountants, lawyers, and bankers, and he supervised petitioner's           
          bookkeeping staff.  The Officers supervised the shipping staff,             
          and they personally inspected every part received by petitioner             
          in order to ensure that the parts were not counterfeit or                   
          defective.                                                                  
          3.  Petitioner's Operations                                                 
               For the 3-year period ended with the year in issue,                    
          petitioner's gross receipts (net of returns and allowances),                
          gross income, book income, taxable income, Officers'                        
          compensation, Officers' compensation percentages, and Officers'             
          equity were (rounded to the nearest dollar):                                
          Taxable                                                                     
          Year       Gross                                                            
          Ended     Receipts  Net Income   Taxable       Officers'     Gross          
          July 31    (Net)    Per Books   Net Income1   Compensation    Income        
          19832   $2,671,061    $88,903     $88,903        $26,000    $279,158        
          1984    29,763,657  1,796,032   1,823,904      1,449,000   5,415,936        




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