Exhibits 1 and 2: Aquarius' Financial Statements Aquarius Ales income statements and balance sheets for the previous three years reflect its past growth. Exhibit 1 AQUARIUS ALES BALANCE SHEET Year Ending 2004 2005 2006 Assets Cash $11,642 $13,537 $16,456 Accounts Receivable 2,006 2,483 2,822 Inventory 7,407 8,090 9,193 Other Current Assets 1.171 1.171 1,171 Total Current Assets 22,226 25,281 29,642 Plant, property and equipment 32,546 40,050 45,511 Depreciation 3.444 4.005 4.551 Net PP&E 29,102 36,045 40,960 Other Assets 18.347 18.583 21.117 Total Assets $69,674 $79,909 $91,718 Liabilities Notes Payable $8,473 $9,457 $13,458 Accounts Payable 5,098 6,484 7,343 Reserved for Owners' Taxes 2,067 2,403 2,731 Other Current Liabilities 4.684 6.024 5.944 Total Current Liabilities 20,321 24,367 29,475 Long-term Debt 15.672 12.467 18.022 Total Liabilities 35,993 36,834 47,497 Owners' Equity 33.681 43.075 44.221 Total Liabilities/Owners' Equity $69,674 $79,909 $91,718 Exhibit 2 AQUARIUS ALES INCOME STATEMENT Year Ending 2004 2005 2006 Sales $145,022 $172,468 $205,668 6Exhibit 2 AQUARIUS ALES INCOME STATEMENT Year Ending 2004 2005 2006 Sales $145,022 $172,468 $205,668 6 Cost of Goods Sold 50,758 62,564 69,765 Vending Revenues 800 900 775 Gross Profit $95,064 $1 10,804 $136,677 Selling, general & administrative expense 56,725 67,452 78,024 Depreciation expense 700 750 800 Earnings before interest and taxes 37,640 42,602 57,853 Interest expense 2.220 1.874 2.701 Profit before taxes 35,420 40,728 55.152 Taxes ( 30%) 10,626 12,218 16,546 Net Income 24,794 $ 28,509 $ 38,606 * The taxes represent the Greens personal taxes on their unincorporated business, including self-employment taxes. The tax situation would be different for each potential owner, depending on their personal tax circumstances. Marc and John thought that 30% was reasonable, considering they also would be active owner/managers and would have tax rates similar to the Greens. Like the Greens, Marc and John planned on setting aside funds to pay their personal taxes on the pub income. Exhibit 3: Comparable Analysis Publicly Traded Comparable Companies Applebee's International. Applebee's has 1,670 locations in the U.S. and 12 countries. Applebee's is the single largest casual dining chain. Most are freestanding units, although some are located in malls. The firm owns 25% of its restaurants; the rest are franchised