3. The Board has also requested that the accounting department provide pro-forma consolidated financial statements for the 75% stock acquisition scenario as of December 31, 2017 and December 31, 2018 (using the cost method).

Income statement,

Statement of retained earnings,

Balance sheet

below is the balance sheet just before acquistion 1/1/17

Here is additional information:

Exhibit A The Paddle-Up acquisition team discovered during their due diligence that Stream Company did not realize the following key facts:

Stream Company management and board did not realize their patents and brands had significant value. Thus, they did not include these asset values in their own internal evaluation of the potential sale to Paddle-Up Inc.

Stream Company management and board does not fully understand that more than 25% of their employees will be let go (fired) within 6 months of the acquisition.

Stream Company management and board do not realize that their long-term customers will be faced with dramatic price increases to be implemented by Paddle-Up In

Balance Sheet and related information as of 1/1/17 (just before acquisition Paddle-up Inc Stream Co Stream Co Fair Value Assets Cash 145,000,000 7,000,000 7,000,000 19,000,000 26,000,000 21,000,000 Accounts receivable Inventory 38,000,000 62,000,000 50,000,000 275,000,000 32,000,000 95,000,000 Equipment Build in 50,000,000 5,000,000 5,000,000 Land 12,000,000 4,000,000 2,000,000 Patent Rights 10,000,000 30,000,000 Brand Value 546,000,000 Total Assets 179,000,000 Liabilities and Stockholders' Equ Liabilities Accounts payable 42,000,000 44,000,000 44,000,000 2,000,000 8,000,000 Notes payable (short-term) 2,000,000 Notes payable (long-term) 185,000,000 75,000,000 75,000,000 Long-Term Debt 110,000,000 other contaminated Land 3,000,000 Total Liabilities 345,000,000 121,000,000 Stockholders' Equity Common stock, (Note 1 10,000,000 3,000,000 APIC 125,000,000 17,000,000 66,000,000 38,000,000 Retained Earnings Equity 20,000,000 S Total Stockholders' 58,000,000 Total Liabilities and Stockholders' Equity 179.000.000 000 Note 1: Common Stock: $2 par (Paddle-Up) and $1 par (Stream Co Note 2: Paddle-Up Stock has a Market Value of $18 share as of 1/1/17