Consolidated Manufacturing, Inc., M. P. Long Living Trust, Merl Philip Long, Trustee, Tax Matters Person - Page 18

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          for delivery of a customer core to Consolidated (Consolidated's             
          procedures for delivery of a customer core).                                
               The following table shows the aggregate number of the                  
          different types of Ford-authorized and Four Star label                      
          remanufactured automobile parts sold by Consolidated and the                
          aggregate number of the different types of corresponding Ford-              
          authorized and Four Star label customer cores that Consolidated's           
          customers decided to provide to Consolidated and that were                  
          delivered to it:                                                            

                          1990                        1991                            
                             Aggregate   Aggregate    Aggregate    Aggregate          
              Type of        Number of   Number of   Number of     Number of          
           Remanufactured Remanufactured Customer   Remanufactured Customer           
          Automobile Part   Automobile    Cores      Automobile     Cores             
          Sold            Parts Sold     Delivered  Parts Sold     Delivered          
          Engines         26,677        24,391      22,130         20,534             
          Transmissions   1,572         1,365       1,793          1,505              
          Crankshafts     24,050        23,425      19,658         19,088             
          Cylinder heads  6,928         5,188       7,172          5,603              
          Small parts     90,128        75,450      89,040         76,356             
               In anticipation that Consolidated's customers would decide             
          to accept its offer to purchase and deliver customer cores to it,           
          even though they were under no obligation to do so, Consolidated            
          provided each of those customers with a form known as a request             
          for core credit at the time that it delivered to them the                   
          remanufactured automobile parts that they had purchased.  The               
          request for core credit was a preprinted form generally con-                
          sisting of three copies:  One for Consolidated's customer, a                
          transportation copy, and a copy that was to be returned to                  
          Consolidated in the event and at the time that a customer                   




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Last modified: May 25, 2011