Pinnacle Manufacturing Company
Income Statement
For the Year ended December 31
	2011	2010
Net sales	$150,737,628	$148,586,037
Cost of goods sold	109,284,780	106,255,499
Gross profit	41,452,848	42,330,538
Operating expenses	37,177,738	38,133,969
Income from operations	4,275,110	4,196,569
Other revenues and gains
Other expenses and losses	2,181,948	2,299,217
Income before income tax	2,093,162	1,897,352
Income tax	883,437	858,941
Net income for the year	1,209,725	1,038,411
Earnings per share	$1.21	$1.04
Pinnacle Manufacturing Company
Balance Sheet
As of December 31
Assets	2011	2010
Current assets
Cash and cash equivalents	$7,721,279	$7,324,846
Net receivables	13,042,165	8,619,857
Inventory	32,236,021	25,537,198
Other current assets	172,278	143,206
Total current assets	53,171,743	41,625,107
Property, plant and equipment	62,263,047	61,635,530
Total assets	$ 115,434,790	$ 103,260,637
Liabilities
Current liabilities
Accounts payable	$ 12,969,686	$ 9,460,776
Short/current long-term debt	15,375,819	10,298,668
Other current liabilities	2,067,643	1,767,360
Total current liabilities	30,413,148	21,526,804
Long-term debt	24,420,090	22,342,006
Total liabilities	54,833,238	43,868,810
Stockholders equity
Common stock	1,000,000	1,000,000
Additional paid-in capital	15,717,645	15,717,645
Retained earnings	43,883,907	42,674,182
Total stockholders equity	60,601,552	59,391,827
Total liabilities & stockholders equity	$115,434,790	$103,260,637
STATEMENT OF CASH FLOWS--INDIRECT METHOD?