FSA, Inc.

Unaudited Audited Audited

12/31/X7 12/31/X6 12/31/X5

Cash in bank - general 4,000 12,000 53,000

Cash in bank - payroll 4,000 4,000 8,000
Petty cash 500 500 500
Notes receivable - current 8,000 6,000 10,000
Accounts receivable-trade 300,000 150,000 220,000
Allowance for doubtful accounts (12.000) (12.000) (12.000)
Interest receivable 600 400 500
Investments - current 7,000 2,000 6,000
Raw materials and purchased parts inventory 270,000 80,000 100,000
Goods in process 4,500 12,000 30,000
Finished goods inventory 300,000 180,000 266,000
Prepaid expenses -current 8,000 5,900 7,800
Plant assets - net 1,620,000 1,210,000 1,200,000
Intagible assets - net 350,000 115,000 120,000
Other assets 7,000 4,000 6,000
Total assets 2,871,600 1,769,800 2,012,800
Notes payable - trade 2,000 7,000 3,000
Accounts payable - trade 199,086 113,586 120,000
Taxes payable 8,000 6,000 20,000
Accrued liabilities 5,800 6,500 7,800
Mortgage note payable - current 200,000 200,000 147,000
Note payable - 10 % - current 100,000
Note payable - 10 % - due 19X9 900,000
Mortgage note payable - 8 % 400,000 520,000 720,000
Common stock - no par 300,000 300,000 300,000
Additional paid - in capital 120,000 120,000 120,000
Retained earnings 636,714 496,714 575,000

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 FSA, Inc.
for the years ending

Unaudited Audited Audited

12/31/X7 12/31/X6 12/31/X5

Sales 1,800,000 1,300,000 2,860,000

Cost of goods sold 800,000 620,000 1,700,000
Gross profit 1,000,000 680,000 1,160,000
Operating expenses 600,000 488,954 520,000
Income before income taxes 400,000 191,046 640,000
Income taxes 180,000 154,332 250,000
Net income 220,000 36,714 390,000
Retained earnings - BOY 496,714 575,000 300,000

Total
Dividends

Retaines earnings - EOY

Selected Industry Averages:

Inventory turnover 3,00
Accounts receivable turnover 10,00
Profit margin 5.00%
Debt : equity ration 50.00%
Current ratio 2:1

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