=+For the Years Ended December 31, 2010 and 2009 2010 2009 Sales (all on account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,245,000 $3,675,000 Sales returns and allowances . . . . . . . . . . . . . . . . . . . . . . . 35,000 22,500 __________ __________ Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,210,000 $3,652,500 Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,866,150 1,725,000 __________ __________ Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,343,850 $1,927,500 __________ __________ Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 907,500 $ 862,500 Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 607,500 570,000 __________ __________ Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . $1,515,000 $1,432,500 __________ __________ Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 828,850 $ 495,000 Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 45,000 __________ __________

$ 888,850 $ 540,000 Other expense (interest) . . . . . . . . . . . . . . . . . . . . . . . . . . 196,000 90,000 __________ __________ Income before income tax . . . . . . . . . . . . . . . . . . . . . . . . . $ 692,850 $ 450,000 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,000 142,500 __________ __________ Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 482,850 $ 307,500 __________ __________ __________ __________