Exhibit 1. Comparative Financial Statements Balance Sheets as of December 31, 2010 and 2011 ($000) Assets Cash Accounts receivable Inventory Accumulated depreciation 2010 $19,000 24,000 31,000 $ 74,000 $ 48,000 (12,000) 20,000 $130,000 Total current Plant and equipment Land Total Liabilities and equity Accounts payable $16,000 Notes payable (short-term) 7,000 Total current $23,000 Bonds payable $ 0 Contributed capital 80,000 Retained earnings 27,000 Total $130,000 2011 $ 30,000 15,000 59,000 $104,000 $ 72,000 (24,000) 20,000 $172,000 $ 20,000 0 $ 20,000 $ 20,000 80,000 52,000 $172,000 Income Statements for the Years Ended December 31, 2010 and 2011 ($000) Revenues Less: Cost of goods sold Gross margin Other expenses: Administrative salaries $15,000. Depreciation 9,500 Other 7,200 Income from operations Interest expense Income before tax Income tax Net income 2010 $150,000 105,000 $ 45,000 31,700 $ 13,300 800 $ 12,500 5,000 $ 7,500 $17,000 12,000 3,600 2011 $200,000 130,000 $ 70,000 32,600 $ 37,400 1,900 $35,500 10,500 $ 25,000