Change Analysis

Balance Sheet Accounts

Per Audit Per Audit Dollar
12/31/02 12/31/03 Change
Assets :
101 Cash - Big City National Bank 513,617 846,541 332,924
102 Cash - Second National Bank 5,918 36,968 31,050
103 Petty cash 420 500 80
105 Accounts receivable 139,504 209,127 69,623
-
-
106 Allowance for bad debts (11,889) (5,589) 6,300
-
107 Miscellaneous receivable -
109 Inventory 873,766 752,487 (121,279)
-
110 Prepaid Insurance 35,336 38,636 3,300
111 Prepaid rent 5,000 1,250 (3,750)
112 Office supplies inventory 8,657 9,964 1,307
113 Small tools inventory 7,162 6,541 (621)
115 Investment in securities 474,518 223,033 (251,485)
116 All for unrealized gain/loss 6,473 6,473 -
201 Long term investment -
210 Land 82,250 82,250 -
220 Building 276,263 276,263 -
221 Acc. depr - building (65,416) (74,625) (9,209)
230 Machinery and equipment 540,845 1,012,295 471,450
231 Acc. depr - mach & equip (160,866) (185,835) (24,969)
240 Automobile equipment 99,425 99,425 -
241 Acc. depr - auto. equip (52,798) (77,654) (24,856)
250 Office furniture & fixtures 106,433 114,833 8,400
251 Acc. depr - off furn & fix (37,581) (43,113) (5,532)
260 Lease equipment 74,800 74,800
261 Acc. depr - lease equip (3,740) (3,740)
-
Total Assets 2,847,037 3,400,830 553,793
-
Liabilities : -
301 Accounts payable 223,161 186,200 (36,961)
-
-
-
-
302 Accrued payroll taxes 113,846 86,253 (27,593)
 303 Wages and salaries payable 81,239 (81,239)
304 Accrued property taxes 14,113 21,988 7,875
305 Accrued interest 10,625 15,833 5,208
306 Dividends payable 17,575 23,125 5,550
307 Federal income tax payable 63,772 25,000 (38,772)
308 Notes payable - short term 125,000 (125,000)
309 Miscellaneous payable -
350 Lease obligation - short term -
401 Notes payable - long term 475,000 475,000
450 Lease obligation - long term 74,800 74,800
451 Lease obligation current portion 1 year -
Total Liabilities 649,331 908,199 258,868
-
-
Owners' Equity -
501 Common Stock 925,000 925,000 -
505 Other contributed capital 736,550 736,550 -
506 Unrealized gain/loss invest 6,473 6,473 -
601 Retained earnings 272,435 529,683 257,248
605 Dividends (17,575) (23,125) (5,550)
610 Current net income 274,823 318,050 43,227
-
Total Owners' equity 2,197,706 2,492,631 294,925
-
Total liabilities & owners' eq 2,847,037 3,400,830 553,793
 Change Analysis
Income Statements Accounts
Percentage Per Audit Per Audit
Change (%) 12/31/02 12/31/03
REVENUE :
64.82 701 Sales 3,906,577 4,271,543
524.67 703 Sales return and allowances (29,820) (34,799)
19.05 Net sales 3,876,757 4,236,744
49.91
- EXPENSES :
- 801 Cost of good sales 1,596,800 1,758,983
(52.99)
- Gross Margin 2,279,957 2,477,761
-
(13.88) OPERATING EXPENSES :
- 820 Wage and salary expense 1,528,700 1,618,643
9.34 821 Payroll tax expense 129,959 128,033
(75.00) 822 Depreciation expense 64,422 80,186
15.10 823 Rent expense 3,750 3,750
(8.67) 824 Office supplies expense 9,683 12,380
(53.00) 825 Small tools expense 3,359 6,419
- 826 Advertising expense 12,714 44,934
- 827 Insurance 28,930 32,765
- 828 Repairs and maintenance 17,869 7,990
- 829 Property tax 14,113 21,988
14.08 830 Utilities expense 11,742 15,860
87.17 831 Profesional fees 13,347 37,140
15.52 832 Miscellaneous expense 494 1,055
- 833 Provision for bad debts 11,156 22,790
47.08 834 Freigft expense 31,641 46,310
7.89 835 bad debt expense (13,580)
14.72 Total Operating Expenses 1,881,879 2,066,663
- Net Income from operation 398,078 411,098
-
-
19.45 OTHER INCOME (EXPENSE) :
- 901 Interest expense (27,500) (21,146)
- 910 Gain (loss) sale of investment 25,975
(16.56) 920 Income from investments 9,379 7,393
- 930 Gain (loss) sale fixed assets 18,638 (15,270)
- 950 Miscellaneous income 10,000
- Net Other Income 517 6,952
- Net income before taxes 398,595 418,050
(24.24) 940 Federal Income tax 123,772 100,000
(100.00)
55.80 Net Income 274,823 318,050
49.02
31.58
(60.80)
(100.00)
-
-
-
-
-
39.87
-
-
-
-
-
-
94.43
31.58
15.73
-
13.42
-
19.45
Dollar Percentage
Change Change (%)

364,966 9.34
(4,979) 16.70
359,987 9.29
-
-
162,183 10.16
-
197,804 8.68
-
-
89,943 5.88
(1,926) (1.48)
15,764 24.47
- 0.00
2,697 27.85
3,060 91.10
32,220 253.42
3,835 13.26
(9,879) (55.29)
7,875 55.80
4,118 35.07
23,793 178.26
561 113.56
11,634 104.28
14,669 46.36
(13,580)
184,784 9.82
13,020 3.27
-
-
-
6,354 (23.11)
25,975
(1,986) (21.17)
(33,908) (181.93)
10,000
6,435 1244.68
19,455 4.88
(23,772) (19.21)
 -
43,227 15.73
Per Books Adjustment Per Audit
12/31/03 Debit Credit 12/31/03

846,541 846,541
36,968 36,968
500 500
212,705 1,080 3 209,127
1,748 2
750 1
(19,919) 750 1 (5,589)
13,580 8
-
719,647 33,440 5 1,000 4 752,487
400 5
38,636 38,636
1,250 1,250
9,964 9,964
6,541 6,541
223,033 223,033
6,473 6,473
-
- 82,250
- 276,263
(74,625) (74,625)
1,006,045 6,250 14,15 1,012,295
(189,848) 4,013 6 (185,835)
99,425 99,425
(77,654) (77,654)
114,833 114,833
(43,113) (43,113)
74,800 7 74,800
(3,740)

2,917,402 3,400,830

135,550 33,440 5 186,200

400 5
1,100 11
15,480 10
230 12
86,253 86,253

21,988 21,988
 15,833 15,833
23,125 23,125
25,000 25,000

475,000 475,000
74,800 7 74,800

782,749 908,199

- -
- -
- -
529,683 529,683
(23,125) (23,125)
318,585 (535) 318,050

825,143 824,608

1,607,892 1,732,807
 925,000 925,000 925,000
736,550 736,550 736,550
6,473 6,473 6,473
272,435 529,683 529,683
(17,575) (23,125) (23,125)
274,823 318,585 (535) 318,050

2,197,706 2,493,166 2,492,631

2,197,706 2,493,166 2,492,631

Per Audit Per Books Adjustment Per Audit
12/31/02 12/31/03 Debit Credit 12/31/03

### ### 1,080 3 4,271,543

(29,820) (33,051) 1,748 2 (34,799)
### ### 4,236,744

### ### 1,000 4 1,758,983

15,480 10
### ### 2,477,761

### ### 1,618,643

129,959 128,033 128,033
64,422 80,459 3,740 9 4,013 6 80,186
3,750 3,750 3,750
9,683 12,380 12,380
3,359 6,419 6,419
12,714 44,934 44,934
28,930 32,765 32,765
17,869 14,240 6,250 14,15 7,990
14,113 21,988 21,988
11,742 14,760 1,100 11 15,860
13,347 37,140 37,140
494 825 230 12 1,055
11,156 22,790 22,790
31,641 46,310 46,310
13,580 8 (13,580)
### ### 2,066,663
398,078 411,633 411,098

(27,500) (21,146) (21,146)

25,975 25,975
9,379 7,393 7,393
18,638 (15,270) (15,270)
10,000 10,000
517 6,952 6,952
398,595 418,585 418,050
123,772 100,000 100,000

274,823 318,585 318,050