INCOME STATEMENTS 2006 2007 2008 Net Sales $16,200 $17,450 $16,500 Cost of Goods Sold 10,445 11,956 11,950 Gross Profit $5,755 $5,494 $4,550 Selling and Administration 3,054 3,130 3,379 Depreciation 396 720 756 Operating Income $2,305 $1,644 $415 Other Income Interest Income 21 10 2 Other Expense Interest Expense 246 291 407 Income Before Taxes $2,080 $1,363 $10 Income Taxes 624 409 3 Net Income $1,456 $954 $7 Exhibit 2 BALANCE SHEETS 2006 2007 2008 Current Assets Cash $234 $122 $61 Temporary Investment 1,034 488 Accounts Receivable, Net 99 3,250 3,450 2,854 Raw Materials Inventory 1,025 WIP Inventory 1,350 1,395 200 138 Finished Goods Inventory 42 2,030 1,700 Prepaid Expenses 1,200 182 143 Total Current Assets 188 $7,955 Fixed Assets $7,391 $5,839 Land , Plant, and Equipment $4,893 $7,076 Less: Accumulative Depreciation 9,590 Net Land, Plant, Equipment 1,380 2,100 2,856 3,513 4,976 6.734 Total Assets $11,468 $12,367 Current Liabilities $12,573 Accounts Payable $534 $543 500 Income Taxes Payable 54 35 Current Portion of Long-term Debt 23 1,000 Total Current Liabilities 1,145 1,340 31,588 $1,723 $1,863 Long-term Liabilities 3,190 3,500 4,059 Shareholders' Equity Common Shares 1,350 1,350 1,350 Retained Earnings 5,340 5,794 Total Shareholders' Equity 5.301 $6,690 $7,144 Total Liabilities and Shareholders' Equity $6,651 $11,468 $12,367 $12,573