FINAL DECISION ON ACCRUAL VALUE

Tom has come to a decision on what to do with the ubiquitous accrual value.
60% of this value should be credited to Greg's Transport expense on a monthly
basis. Tom, in turn, will cover Ed on this portion of the expense.

For example:

Accrual Value comes out to be $300,000 for the month of April.

This means that:

Greg's portion of this value is 60% of $300,000 = $180,000
Tom's portion of this value is 40% of $300,000 = $120,000

Greg's Transport Expense is ($700,000)
So, Tom will cover $180,000 of this expense
Greg's adjusted Expense is ($520,000)

Greg's P&L is net better off by the $180,000 of accrual value
Tom's P&L is net better off by $120,000 of accrual value which had not been
previously recognized.
Ed's P&L is net unchanged from all of the above.

Call with questions.

Eric
x3-0977