Financial Statements (kept on a GAAP basis): Modern Day Clothing, Inc. Balance Sheet Assets: 1/01/2013 12/31/2013 Cash $ 340,000 $ 385,000 Accounts Receivable-Credit Cards 205,000 232,000 Accounts Receivable-Trade 63,000 58,000 Less: Allowance for Bad Debts (13,000) 11,500) Inventory 2,908,000 3,010,000 Tax-exempt Securities 100,000 100,000 U.S. Treasury Bonds 200,000 200,000 Fixed Assets 4,010,000 4,650,000 Less: Acc. Depreciation (2,875,000) (3,055,000) Land-Unimproved (tax and GAAP basis) 250,000 Prepaid Rent 165,000 168,000 Total Assets: $5,353,000 $5,736,500 Liabilities and Shareholders' Equity: Accounts Payable 99,000 93,000 Accrued Employee Wages 27,000 31,000 Accrued Officer Bonuses 110,000 145,000 Accrued Employee Vacation 19,000 21,000 Note Payable-First Bank of NC (Credit Line) 536,000 812,000 Note Payable-First Bank of Charlotte 3,655,000 3,139,750 Capital Stock 1,000 1,000 Additional paid-in Capital 99,000 99,000 Retained Earnings 807,000 1,394,750 Total Liabilities and Shareholders' Equity $5,353,000 $5,736,500