Pinnacle Manufacturing Company							Pinnacle Manufacturing Company
Income Statement - All Divisions							Common - Size Income Statement - All Divisions
For the Year Ended December 31							For the Year Ended December 31
	2013		2012		2011			2013	2012	2011
	Dollar Value		Dollar Value		Dollar Value			Percentage Value	Percentage Value	Percentage Value
Sales	150,918,731		148,764,555		144,860,245		Sales	100.00%	100.00%	100.00%
Sales Returns and Allowances	181,103		178,518		173,832		Sales Returns and Allowances	0.12%	0.12%	0.12%
Cost of Sales*	109,284,780		106,255,499		101,988,165		Cost of Sales*	72.41%	71.43%	70.40%
Gross Profit	41,452,848		42,330,538		42,698,248		Gross Profit	27.47%	28.45%	29.48%
OPERATING EXPENSES-Allocated							OPERATING EXPENSES-Allocated
Salaries-Management	2,281,266		2,387,993		2,295,081		Salaries-Management	1.51%	1.61%	1.58%
Salaries-Office	315,169		296,681		306,856		Salaries-Office	0.21%	0.20%	0.21%
Licensing and certification fees	190,650		172,883		162,279		Licensing and certification fees	0.13%	0.12%	0.11%
Security	550,603		637,580		630,353		Security	0.36%	0.43%	0.44%
Insurance	93,197		103,842		108,491		Insurance	0.06%	0.07%	0.07%
Medical benefits	23,721		29,453		28,810		Medical benefits	0.02%	0.02%	0.02%
Advertising	162,512		178,009		165,678		Advertising	0.11%	0.12%	0.11%
Business publications	6,989		5,555		774		Business publications	0.00%	0.00%	0.00%
Property taxes	22,585		178,009		175,692		Property taxes	0.01%	0.12%	0.12%
Bad debts	841,699		1,034,060		992,094		Bad debts	0.56%	0.70%	0.68%
Depreciation expense	5,336,783		4,641,982		4,367,565		Depreciation expense	3.54%	3.12%	3.02%
Accounting fees	273,956		297,777		299,789		Accounting fees	0.18%	0.20%	0.21%
Total operating expenses-Allocated	10,099,130		9,963,824		9,533,462		Total operating expenses-Allocated	6.69%	6.70%	6.58%
OPERATING EXPENSES-Direct							OPERATING EXPENSES-Direct
Salaries-Sales	14,970,669		15,327,777		14,904,392		Salaries-Sales	9.92%	10.30%	10.29%
Wages Rental	491,794		595,389		575,725		Wages Rental	0.33%	0.40%	0.40%
Wages-Mechanics	1,113,539		1,339,626		1,333,411		Wages-Mechanics	0.74%	0.90%	0.92%
Wages-Warehouse	4,891,065		5,340,271		5,473,249		Wages-Warehouse	3.24%	3.59%	3.78%
Garbage collection	27,649		29,771		37,969		Garbage collection	0.02%	0.02%	0.03%
Payroll benefits	2,657,889		2,937,730		2,894,300		Payroll benefits	1.76%	1.97%	2.00%
Rent- Warehouse	802,855		764,346		758,345		Rent- Warehouse	0.53%	0.51%	0.52%
Telephone	32,402		45,173		57,867		Telephone	0.02%	0.03%	0.04%
Utilities	262,393		267,005		274,365		Utilities	0.17%	0.18%	0.19%
Postage	89,763		133,518		151,278		Postage	0.06%	0.09%	0.10%
Linen service	17,282		12,350		16,083		Linen service	0.01%	0.01%	0.01%
Repairs and maintenance	166,985		168,405		178,213		Repairs and maintenance	0.11%	0.11%	0.12%
Cleaning service	89,800		81,589		78,088		Cleaning service	0.06%	0.05%	0.05%
Legal service	396,016		190,540		152,238		Legal service	0.26%	0.13%	0.11%
Fuel	286,547		341,192		279,512		Fuel	0.19%	0.23%	0.19%
Travel and entertainment	103,389		103,842		100,479		Travel and entertainment	0.07%	0.07%	0.07%
Pension expense	228,555		237,350		127,011		Pension expense	0.15%	0.16%	0.09%
Office supplies	149,828		148,340		171,109		Office supplies	0.10%	0.10%	0.12%
Miscellaneous	300,188		105,931		144,012		Miscellaneous	0.20%	0.07%	0.10%
Total operating expenses-Direct	27,078,608		28,170,145		27,707,646		Total operating expenses-Direct	17.94%	18.94%	19.13%
Total Operating Expenses	37,177,738		38,133,969		37,241,108		Total Operating Expenses	24.63%	25.63%	25.71%
Operating Income	4,275,110		4,196,569		5,457,140		Operating Income	2.83%	2.82%	3.77%
Other Expense-Interest	2,181,948		2,299,217		2,397,953		Other Expense-Interest	1.45%	1.55%	1.66%
Income Before Taxes	2,093,162		1,897,352		3,059,187		Income Before Taxes	1.39%	1.28%	2.11%
Federal Income Taxes	883,437		858,941		1,341,536		Federal Income Taxes	0.59%	0.58%	0.93%
Net Income	1,209,725		1,038,411		1,717,651		Net Income	0.80%	0.70%	1.19%
							- Idenitify 3 accounts of concern of misstatement. Include an estimate of potential mistatement for each acct. identified.