continuation John Dawson 3

aph TS Styles 12 3 4 5 61 Note 4: Income Taxes: Deferred income taxes are provided for income and expenses that are recognized in different accounting periods for financial reporting than for income tax purposes. The temporary differences and the related deferred taxes are as follows: 2007 2008 2009 2010 $28 excess of tax over book depreciation $22 $25 $5 66 23 77 deferred income on instalment sales 104 others 13 3 (68) 15) Total $91 $48 $34 $104 EXHIBIT 2 DAWSON STORES, INC. Comparative Statements of Income and Retained Earnings For the Years Ending January 31 (amounts in thousands) 1 2007 2008 2009 2010 Revenues Cost of sales $18,297 12,816 5,481 4,789 692 $19,558 13,884 5,674 5,023 651 $21.976 15,163 6,813 5,422 1,391 $24,128 16,527 7,601 5,830 1,771 Operating expenses Eamings before income taxes Income taxes: Current Deferred 813 104 275 48 323 328 4,297 124 4,501 337 355 4,058 116 $ 4,297 $ 355 Net income Retained earnings, beginning of the year Less Dividends Retained earnings, end of year Earings per share (100,000 shares issued and outstanding) 690 34 724 667 4,501 145 5,023 6.67 917 854 5,023 187 $ 5,690 $ 8.54 $ 3.28 OM BE X W aph TS Styles 12 3 4 5 61 Note 4: Income Taxes: Deferred income taxes are provided for income and expenses that are recognized in different accounting periods for financial reporting than for income tax purposes. The temporary differences and the related deferred taxes are as follows: 2007 2008 2009 2010 $28 excess of tax over book depreciation $22 $25 $5 66 23 77 deferred income on instalment sales 104 others 13 3 (68) 15) Total $91 $48 $34 $104 EXHIBIT 2 DAWSON STORES, INC. Comparative Statements of Income and Retained Earnings For the Years Ending January 31 (amounts in thousands) 1 2007 2008 2009 2010 Revenues Cost of sales $18,297 12,816 5,481 4,789 692 $19,558 13,884 5,674 5,023 651 $21.976 15,163 6,813 5,422 1,391 $24,128 16,527 7,601 5,830 1,771 Operating expenses Eamings before income taxes Income taxes: Current Deferred 813 104 275 48 323 328 4,297 124 4,501 337 355 4,058 116 $ 4,297 $ 355 Net income Retained earnings, beginning of the year Less Dividends Retained earnings, end of year Earings per share (100,000 shares issued and outstanding) 690 34 724 667 4,501 145 5,023 6.67 917 854 5,023 187 $ 5,690 $ 8.54 $ 3.28 OM BE X W