McDonough Products, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2010 McDonough "Industry Average" Net sales............................................................................... $700,000 100.0% Cost of goods sold.............................................................. 490,000 57.3 Gross profit.......................................................................... 210,000 42.7 Operating expenses ........................................................... 175,000 29.4 Operating income................................................................ 35,000 13.3 Other expenses.................................................................... 7,000 2.5 Net income .......................................................................... $28,000 10.8% McDonough Products, Inc. Balance Sheet Compared with Industry Average December 31, 2010 McDonough "Industry Average" Current assets...................................................................... $471,200 72.1% Fixed assets, net ................................................................. 114,700 19.0 Intangible assets, net .......................................................... 21,080 4.8 Other assets......................................................................... 13,020 4.1 Total ..................................................................................... 620,000 100.0% Current liabilities ................................................................. 240,560 47.2% Long-term liabilities ............................................................ 135,160 21.0 Stockholders