1) Discuss the differences in the Financial Statements and the effect that these differences have on the Revenues and Receivables.

(BACKGROUND to the financial documents!) ---The financial statements for a medical office were prepared by Jackson and Associates and then the medical office switched to PMI, and they use a different accounting method and thus have slightly different financial documents. ---

Thanks!

Exhibit 1 - Sunset Medical, P.C. Income Statement For Years Ended 2008, 2009, 2010 (Provided by Jackson and Associates, CPA) Sunset Medical, P.C. Income Statements For Years Ended, December 31, 2010 2009 2008 Revenues Medical Revenues* $1,167,041.88 $1,057,322.77 $802,864.47 Expenses Direct Expenses General Expenses Interest Expense Depreciation Ex pense $758,738.98 $393,330.15 $5,804.66 $14,385.00 $1,172,258.79 ($5.216.91) $667,645.64 $358,141.19 $3,133.93 $14,832.92 $1,043,753.68 $465,250.49 $331,243.98 $5,289.70 $14,222.00 $816,006.17 $13,569.09 ($13,141.70) Total Expenses Net Operating Income Other Income Other Expense Total Other Income (Expense) Net Income $203.40 ($228.04) ($24.64) ($5,241.55 $615.25 ($554.67) $60.58 $589.10 ($1,780.02) ($1,190.92) $13,629.67($14.332.62 k Medical Revenues are listed net of Bad Debt Exhibit 1 - Sunset Medical, P.C. Income Statement For Years Ended 2008, 2009, 2010 (Provided by Jackson and Associates, CPA) Sunset Medical, P.C. Income Statements For Years Ended, December 31, 2010 2009 2008 Revenues Medical Revenues* $1,167,041.88 $1,057,322.77 $802,864.47 Expenses Direct Expenses General Expenses Interest Expense Depreciation Ex pense $758,738.98 $393,330.15 $5,804.66 $14,385.00 $1,172,258.79 ($5.216.91) $667,645.64 $358,141.19 $3,133.93 $14,832.92 $1,043,753.68 $465,250.49 $331,243.98 $5,289.70 $14,222.00 $816,006.17 $13,569.09 ($13,141.70) Total Expenses Net Operating Income Other Income Other Expense Total Other Income (Expense) Net Income $203.40 ($228.04) ($24.64) ($5,241.55 $615.25 ($554.67) $60.58 $589.10 ($1,780.02) ($1,190.92) $13,629.67($14.332.62 k Medical Revenues are listed net of Bad Debt