Sketson Skydiving Adventures

Income Statements
For the Years 2010 and 2011
2011 2010
Sales $ 3,500,000 $ 3,230,000
Cost os Goods 2,273,300 2,162,500
Gross Profit 1,226,700 1,067,500
Depreciation 84,000 71,000
Selling & Admin. Expense 869,800 835,000
Lease Expense 65,000 65,000
Net Operating Income 207,900 96,500
Interest Expense 112,000 68,000
Earnings Before Taxes 95,900 28,500
Taxes 33,565 9,975
Net Income $ 62,335 $ 18,525
 Sketson Skydiving Adventures
Balance Sheet
For the Year Ended December 31, 2011
2011 2010
Assets
Cash $ 52,000 $ 41,000
Marketable Securities 2,435 21,000
Accounts Receivable 420,000 372,000
Inventory 515,000 420,000
Total Current Assets 989,435 854,000
Gross Fixed Assets 2,680,000 2,170,000
Accumulated Depreciation 569,000 485,000
Net Plant & Equipment 2,111,000 1,685,000
Total Assets $ 3,100,435 $ 2,539,000

Liabilities & Owner's Equity

Accounts Payable $ 505,000 $ 290,000
Accured Expenses 35,000 30,000
Total Current Liabities 540,000 320,000
Long Term Debt 1,171,100 1,061,000
Total Liabilities 1,711,100 1,381,000
Common Stock ($2 par) 100,000 80,000
Additional Paid-in-Capital 691,000 542,000
Retained Earnings 598,335 536,000
Total Owner's Equity 1,389,335 1,158,000
Total Liab. & Owner's Equity $ 3,100,435 $ 2,539,000
 Sketson Skydiving Adventures
Income Statements
For the Years 2010 and 2011
2011 2010
Sales 100% 100%
Cost os Goods 64.95% 66.95%
Gross Profit 35.05% 33.05%
Depreciation 2.40% 2.20%
Selling & Admin. Expense 24.85% 25.85%
Lease Expense 1.86% 2.01%
Net Operating Income 5.94% 2.99%
Interest Expense 3.20% 2.11%
Earnings Before Taxes 2.74% 0.88%
Taxes 0.96% 0.31%
Net Income 1.78% 0.57%
 Sketson Skydiving Adventures
Balance Sheet
For the Year Ended December 31, 2011
2011 2010
Assets
Cash 1.68% 1.61%
Marketable Securities 0.08% 0.83%
Accounts Receivable 13.55% 14.65%
Inventory 16.61% 16.54%
Total Current Assets 31.91% 33.64%
Gross Fixed Assets 86.44% 85.47%
Accumulated Depreciation 18.35% 19.10%
Net Plant & Equipment 68.09% 66.36%
Total Assets 100% 100%

Liabilities & Owner's Equity

Accounts Payable 16.29% 11.42%
Accured Expenses 1.13% 1.18%
Total Current Liabities 17.42% 12.60%
Long Term Debt 37.77% 41.79%
Total Liabilities 55.19% 54.39%
Common Stock ($2 par) 3.23% 3.15%
Additional Paid-in-Capital 22.29% 21.35%
Retained Earnings 19.30% 21.11%
Total Owner's Equity 44.81% 45.61%
Total Liab. & Owner's Equit 100% 100%
 Elvis Products International
Income Statement
For the Year Ended Dec. 31, 2011
2011
Sales $ 3,850,000
Cost of Goods Sold $ 3,250,000
Gross Profit $ 600,000
Selling and G&A Expense $ 330,300
Fixed Expense $ 100,000
Depreciation Expense $ 20,000
EBIT $ 149,700
Interest Expense $ 76,000
Earnings Before Taxes $ 73,700
Taxes $ 29,480
Net Income $ 44,220

Notes:
Tax Rate 40%
 Elvis Products International
Income Statement
For the Year Ended Dec. 31, 2011
2011 2010
Sales $ 3,850,000 $ 3,432,000
Cost of Goods Sold $ 3,250,000 $ 2,864,000
Gross Profit $ 600,000 $ 568,000
Selling and G&A Expense $ 330,300 $ 240,000
Fixed Expense $ 100,000 $ 100,000
Depreciation Expense $ 20,000 $ 18,900
EBIT $ 149,700 $ 209,100
Interest Expense $ 76,000 $ 62,500
Earnings Before Taxes $ 73,700 $ 146,600
Taxes $ 29,480 $ 58,640
Net Income $ 44,220 $ 87,960

Notes:
Tax Rate 40%
 Table 2-1
EPI's 2010 INCOME AND EXPENSE
Category Value
Sales $ 3,432,000
Cost of Goods Sold $ 2,864,000
SG&A Expense $ 240,000
Depreciation Expense $ 18,900
Interest Expense $ 62,500
 Elvis Products International
Balance Sheet
As of Dec. 31, 2011
Assets 2011 2010
Cash and Equivalents $ 52,000 $ 57,600
Accounts Receivable $ 402,000 $ 351,200
Inventory $ 836,000 $ 715,200
Total Current Asset $ 1,290,000 $ 1,124,000
Plant & Equipment $ 527,000 $ 491,000
Accumulated Depreciation $ 166,200 $ 146,200
Net Fixed Assets $ 360,800 $ 344,800
Total Assets $ 1,650,800 $ 1,468,800
Liabilities and Owner's Equity
Accounts Payable $ 175,200 $ 145,600
Short-term Notes Payable $ 225,000 $ 200,000
Other Current Liabilities $ 140,000 $ 136,000
Total Current Liabilities $ 540,200 $ 481,600
Long-term Debt $ 424,612 $ 323,432
Total Liabilities $ 964,812 $ 805,032
Common Stock $ 460,000 $ 460,000
Retained Earnings $ 225,988 $ 203,768
Total Shareholder's Equity $ 685,988 $ 663,768
Total liabilities and Owner's Equity $ 1,650,800 $ 1,468,800
 Elvis Products International
Income Statement
For the Year Ended Dec. 31, 2011
2011 2010
Sales 3,850,000 3,432,000
Cost of Goods Sold 3,250,000 2,864,000
Gross Profit 600,000 568,000
Selling and G&A Expense 330,300 240,000
Fixed Expense 100,000 100,000
Depreciation Expense 20,000 18,900
EBIT 149,700 209,100
Interest Expense 76,000 62,500
Earnings Before Taxes 73,700 146,600
Taxes 29,480 58,640
Net Income 44,220 87,960

Notes:
Tax Rate 40%

Custom Number
 Table 2-1
EPI's 2010 INCOME AND EXPENSE
Category Value
Sales $ 3,432,000
Cost of Goods Sold $ 2,864,000
SG&A Expense $ 240,000
Depreciation Expense $ 18,900
Interest Expense $ 62,500
 Elvis Products International
Balance Sheet
As of Dec. 31, 2011
Assets 2011 2010
Cash and Equivalents $ 52,000 $ 57,600
Accounts Receivable $ 402,000 $ 351,200
Inventory $ 836,000 $ 715,200
Total Current Asset $ 1,290,000 $ 1,124,000
Plant & Equipment $ 527,000 $ 491,000
Accumulated Depreciation $ 166,200 $ 146,200
Net Fixed Assets $ 360,800 $ 344,800
Total Assets $ 1,650,800 $ 1,468,800
Liabilities and Owner's Equity
Accounts Payable $ 175,200 $ 145,600
Short-term Notes Payable $ 225,000 $ 200,000
Other Current Liabilities $ 140,000 $ 136,000
Total Current Liabilities $ 540,200 $ 481,600
Long-term Debt $ 424,612 $ 323,432
Total Liabilities $ 964,812 $ 805,032
Common Stock $ 460,000 $ 460,000
Retained Earnings $ 225,988 $ 203,768
Total Shareholder's Equity $ 685,988 $ 663,768
Total liabilities and Owner's Equity $ 1,650,800 $ 1,468,800
 Elvis Products International
Income Statement
For the Year Ended Dec. 31, 2011
2011 2010
Sales $ 3,850,000 $ 3,432,000
Cost of Goods Sold $ 3,250,000 $ 2,864,000
Gross Profit $ 600,000 $ 568,000
Selling and G&A Expense $ 330,300 $ 240,000
Fixed Expense $ 100,000 $ 100,000
Depreciation Expense $ 20,000 $ 18,900
EBIT $ 149,700 $ 209,100
Interest Expense $ 76,000 $ 62,500
Earnings Before Taxes $ 73,700 $ 146,600
Taxes $ 29,480 $ 58,640
Net Income $ 44,220 $ 87,960

Notes:
Tax Rate 40%

Elvis Products International

Income Statement
For the Year Ended Dec. 31, 2011
2011 2010
Sales 100.00% 100.00%
Cost of Goods Sold 84.42% 83.45%
Gross Profit 15.58% 16.55%
Selling and G&A Expense 8.58% 6.99%
Fixed Expense 2.60% 2.91%
Depreciation Expense 0.52% 0.55%
EBIT 3.89% 6.09%
Interest Expense 1.97% 1.82%
Earnings Before Taxes 1.91% 4.27%
Taxes 0.77% 1.71%
Net Income 1.15% 2.56%

Notes:
Tax Rate 40%
 Table 2-1
EPI's 2010 INCOME AND EXPENSE
Category Value
Sales $ 3,432,000
Cost of Goods Sold $ 2,864,000
SG&A Expense $ 240,000
Depreciation Expense $ 18,900
Interest Expense $ 62,500

Table 2-1
EPI's 2010 INCOME AND EXPENSE
Category Value
Sales $ 3,432,000
Cost of Goods Sold $ 2,864,000
SG&A Expense $ 240,000
Depreciation Expense $ 18,900
Interest Expense $ 62,500
 Elvis Products International
Balance Sheet
As of Dec. 31, 2011
Assets 2011 2010
Cash and Equivalents $ 52,000 $ 57,600
Accounts Receivable $ 402,000 $ 351,200
Inventory $ 836,000 $ 715,200
Total Current Asset $ 1,290,000 $ 1,124,000
Plant & Equipment $ 527,000 $ 491,000
Accumulated Depreciation $ 166,200 $ 146,200
Net Fixed Assets $ 360,800 $ 344,800
Total Assets $ 1,650,800 $ 1,468,800
Liabilities and Owner's Equity
Accounts Payable $ 175,200 $ 145,600
Short-term Notes Payable $ 225,000 $ 200,000
Other Current Liabilities $ 140,000 $ 136,000
Total Current Liabilities $ 540,200 $ 481,600
Long-term Debt $ 424,612 $ 323,432
Total Liabilities $ 964,812 $ 805,032
Common Stock $ 460,000 $ 460,000
Retained Earnings $ 225,988 $ 203,768
Total Shareholder's Equity $ 685,988 $ 663,768
Total liabilities and Owner's Equity $ 1,650,800 $ 1,468,800
 Elvis Products International
Balance Sheet
As of Dec. 31, 2011
Assets 2011 2010
Cash and Equivalents 3.15% 3.92%
Accounts Receivable 24.35% 23.91%
Inventory 50.64% 48.69%
Total Current Asset 78.14% 76.53%
Plant & Equipment 31.92% 33.43%
Accumulated Depreciation 10.07% 9.95%
Net Fixed Assets 21.86% 23.47%
Total Assets 100.00% 100.00%
Liabilities and Owner's Equity
Accounts Payable 10.61% 9.91%
Short-term Notes Payable 13.63% 13.62%
Other Current Liabilities 8.48% 9.26%
Total Current Liabilities 32.72% 32.79%
Long-term Debt 25.72% 22.02%
Total Liabilities 58.45% 54.81%
Common Stock 27.87% 31.32%
Retained Earnings 13.69% 13.87%
Total Shareholder's Equity 41.55% 45.19%
Total liabilities and Owner's Equity 100.00% 100.00%
 Elvis Products International
Balance Sheet
As of Dec. 31, 2011
Assets 2011 2010
Cash and Equivalents $ 52,000 $ 57,600
Accounts Receivable $ 402,000 $ 351,200
Inventory $ 836,000 $ 715,200
Total Current Asset $ 1,290,000 $ 1,124,000
Plant & Equipment $ 527,000 $ 491,000
Accumulated Depreciation $ 166,200 $ 146,200
Net Fixed Assets $ 360,800 $ 344,800
Total Assets $ 1,650,800 $ 1,468,800
Liabilities and Owner's Equity
Accounts Payable $ 175,200 $ 145,600
Short-term Notes Payable $ 225,000 $ 200,000
Other Current Liabilities $ 140,000 $ 136,000
Total Current Liabilities $ 540,200 $ 481,600
Long-term Debt $ 424,612 $ 323,432
Total Liabilities $ 964,812 $ 805,032
Common Stock $ 460,000 $ 460,000
Retained Earnings $ 225,988 $ 203,768
Total Shareholder's Equity $ 685,988 $ 663,768
Total liabilities and Owner's Equity $ 1,650,800 $ 1,468,800

Table 2-2
Determining the change in the cash balance

Beginning Cash Balance $ 52,000

+ Cash inflows $ 3,850,000.0
- Cash outflows $ 3,805,780.0
Ending Cash Balance $ 52,000
 Elvis Products International
Balance Sheet
As of Dec. 31, 2011
Assets
Net Income 44.22
Depreciation Expense 20.00
Change in Account Receivable - 50.80
Change in Inventories - 120.80
Change in Accounts Payable 29.60
Change in Other Current Liabilities 4.00
Total Cash Flows from Operation - 73.78
Cash Flows from Investing
Change in Plant &Equipment - 36.00
Total Cash Flows from Investing - 36.00
Cash Flows from Financing
Change in Short-term Notes Payable 25.00
Change in Long-term Debt 101.18
Change in Common Stock 00.00
Cash Devidends Paid to Shareholders - 22.00
Total Cash Flows from Financing 104.18
Net Cchange in Cash Balance - 5.60
 Elvis Products International
Statement of Cash Flows
For the Year Ended Dec. 31, 2011 ($ in 000's)
Total Cash Flows from Operations -73.78
Total Cash Flows from Investing -36.00
Total Cash Flows from Financing 104.18
Net Change in Cash Balance -5.6