Molly's Munchies Balance Sheet December 31, 2011 Assets Current Assets Cash Accounts Receivable Less: Allowance

for Doubtful Accounts Net Accounts Receivable Inventory Prepaid Insurance Total Current Assets Fixed Assets Equipment Less: Accumulated Depreciation Subtotal Land Net Fixed Assets Other Assets Security Deposit Total Assets Liabilities Current Liabilities Accounts Payable Wages Payable Taxes Payable Rent Payable Interest Payable Current Maturities of Long-Term Debt Total Current Liabilities Long-Term Debt Note Payable Total Liabilities Owners' Equity Common Stock Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity

$ $ 80,000 (12,000)

90,000

68,000 70,000 1,500 229,500

35,000 6,000 16,000 8,000 6,500 10,000 81,500

340,000 (80,000) 260,000 120,000 380,000

120,000 201,500

$ 300,000 120,000 420,000

12,000 $621,500

$ 621,500

Molly's Munchies Income Statement For the Year Ended December 31, 2011 Sales Cost of Goods Sold Gross Margin Operating Expenses Wage Expense Depreciation Expense Rent Expense Office Expense Bad Debt Expense Insurance Expense Total Operating Expenses Operating Income Other Revenues & <Expenses> Interest Expense Net Other Revenues & <Expenses> Income Before Taxes Tax Expense Net Income $ 1,200,000 575,000 625,000

260,000 60,000 24,000 70,000 15,000 9,000 438,000 187,000 0 (14,000) (14,000) 173,000 52,000 121,000 0.47

$ $

Earnings Per Share ($121,000/((180,000*3/12)+(240,000*3/12)+(300,000*6/12))

Molly's Munchies Statement of Cash Flows For the Year Ended December 31, 2011 Operating Activities Net Income Adjustments to Net Income: Add: Depreciation Expense Changes in: Increase in Net Accounts Receivable Decrease in Inventory Decrease in Prepaid Insurance Increase in Accounts Payable Decrease in Wages Payable Increase in Rent Payable Increase in Taxes Payable Decrease in Interest Payable Cash Provided by Operating Activities Investing Activities Purchases of Equipment Purchase of Land Purchase of Security Deposit Cash Used for Investing Activities Financing Activities Payments on Note Payable Issuances of Common Stock Payment of Dividends Cash Used for Financing Activities Net Cash Flow Beginning Cash, December 31, 2005 Ending Cash, December 31, 2006 (50,000) (60,000) (2,000) (112,000)

$ 121,000 60,000

(33,000) 20,000 1,500 5,000 (4,000) 2,000 11,000 (500) 183,000

(10,000) 60,000 (51,000) (1,000) 70,000 20,000 $ 90,000

Supplemental Cash Flow Information Cash payments for interest Cash payments for income taxes Noncash investing & financing activities Exchanged 60,000 shares of common stock for payment on land

$ 14,500 41,000

60,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

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