Please provide the full adjusted income and comparative income statements. The last two pictures are about the case to reference.

BANK OF GREEN VALLEY 1il'lul'eltnesday, gril 13, 2005 9:43 am: \"Congratulations are in order! You remember that I told you last year that we would be submitting your opinion about ZonTech's nancial statements to a bank to get some nancing for our planned addition of a production facility. Don't you? Well, the Bank of Green Valley just notied me that the loan committee approved our three million dollars loan after analyzing this year's audited nancial statements. The committee was really impressed that while everyone else in our industry operated at a loss orjust broke even, we showed a substantial prot this period,\" crowed Roger Shaw, CFO of ZonTech, in a telephone call to Michael Free, an auditing manager at "u'ictor Hines, LLP. Michael headed the audit team that issued an unqualied opinion on ZonTech's nancial statements for each of the last four years. \"That's great!" Michael responded. \"The loan means that you'll be able to complete that new circuit board production facility that you told me about, doesn't it? That circuit board is the product your budget shows is going to increase sales revenue and cash ow next year. It's a good thing you were able to generate a prot and get the loan. Without the new product, things looked pretty bleak." ZonTech designs and manufacturers circuit boards for low-tech applications, such as those used in major household appliances. Sales in the appliance circuit board industry had declined or been flat in the past 18 months because of people's reluctance to buy new appliances in a poor economy. ZonTech's new circuit board was for washers and dryers that compete with Maytag's Neptune series. 2onTech's customer {a major competitor of Maytag} was launching a new washerldryer with characteristics similar to the Neptune series, but they expected the price to be about 25% below that charged by Maytag. ZonTech had developed a circuit board to meet the engineering specications of the new product, but could only land the business if they had new production facilities. Lily Meza, an auditing staff member assigned to one of Michael's jobs, overheard the conversation between Michael and Roger on the speakerphone while sitting in Michael's ofce. \"Michael, I didn't know that the company operated at a prot this year!\" exclaimed Lily. \"During my eldwork, I analyzed the monthly income statements through November, and they showed that the company operated at a loss almost every month! How did they report a substantial prot at year-end?\" Michael replied, \"Several years ago they made an investment in the stock of a closely held company that they thought might be a good strategic alliance. Unfortunately, that opportunity didn't work out. Until December 2cm, 2onTech had been holding the investment and hadn't been receiving any dividends. The CFO of ZonTech actively searched for a company to buy the stock, and in December 2004, located a strategic buyer who took it off their hands at a substantial gain!" Michael continued. " Since ZonTech frequently buys and sells stock investments, the gain is a part of their income from continuing operations." \"Oh, that's clever!" Lily responded. \"But if it were such a large transaction, why didn't they just use the cash flow from the stock sale to nance the new manufacturing facility?" \"Well,\" Michael explained, 'the company that ZonTech sold the stock to, GreenSeI, is having their own cash flow problems right now. They couldn't afford to give ZonTech cash, so EonTech accepted a non- interest bearing note due in 5 years. Although ZonTech won't see the cash for ve years, since the title to the stock has passed to the new owners, it can record the gain on the sale." Lily pondered this information for a few minutes, and then queried, \"Why a non -interest beating note? Most companies with a credit rating like GreenSeI are paying about 15% on loans for transactions like this one.\" "ZonTech didn't have any loans against the investment, so they aren't incurring any interest cost on the stock or the new note. They figured that there isn't any need to hurt GreenSel's cash flow when Zon Tech doesn't have any interest cost on the investment," Michael responded "Michael, you sure know a lot about this transaction," teased Lily. "You'd think that you had found the buyer and negotiated the deal." "Well, I am pretty excited," Michael responded. " I worked with the CFO on the transaction, reviewing the entry in the general journal and its reporting in ZonTech's income statement. I may not have arranged the deal, but I was instrumental in getting out the audited statements just in time. As you know, ZonTech really needed some serious cash infusion as soon as possible from some lender to complete a production facility for that new circuit board." "Since I missed all the excitement while I was working on a different client, why don't you share the details of the transaction?" demanded Lily. "Well, ZonTech was carrying the investment at $5, 100,000 and sold it to GreenSel for $8,000,000. So they booked a $2,900,000 gain on the transaction," Michael confidentially replied. Lily looked troubled and finally confided to Michael, "I'm enrolled in a CPA review course, and last week we studied long-term receivables and payables. I learned that generally accepted accounting principles (GAAP) require notes receivable due in more than one year to be carried at their present value. Wouldn't that affect the profit you reported?" Michael looked at Lily like she was trying to put him on the spot and icily replied, "I explained that ZonTech didn't incur any interest on this investment before the sale, so present value calculations aren't necessary! And, yes, the income statement we audited is consistent with GAAP.* ZonTech Income Statements For the four years ended December 31, 2004 (in 000's except per share amounts) 2004 2003 2002 2001 Net Revenues and Gains $27,500 $26,300 $25, 100 $20,900 Expenses and Losses Cost of Sales 15,200 12, 150 9,845 9,200 Operating Expenses 3,160 3,075 2,890 2,300 Other 4,570 3,966 3,146 2,214 Taxes 1,690 2,671 3,318 2,515 Net Income $2,880 $4,438 $5,901 $4,671 Common Shares Outstanding 3,000 3,000 3,000 3,000A B C D E F G H K M N O P Q Bank of Green Valley 2 Income Statement 3 For the Year Ended December 31, 2004 4 2004 Adjustment 2004 5 Account (unadjusted) (adjusted) 6 Net Revenues and Gains $27,500,000 Cost of Sales 15,200,000 8 Operating Expenses 3,160,000 9 Other Expenses 4,570,000 10 Net Income Before Taxes 4,570,000 11 Taxes 1,690,000 12 Net Income After Taxes $2,880,000 13 14 Tax Rate (imputed) 36.98% 15 16 17 18 19 20B D E F G H K M N O P Q R S Comparative Income Statements 3 For the Years Ended December 31, 2001 to December 31, 2004 4 5 (ordered chronologically) 2001 2002 2003 2004 Account (adjusted 8 Net Revenues and Gains $20,900,000 $25,100,000 $26,300,000 9 Cost of Sales 9,200,000 9,845,000 12,150,000 10 Gross Profit 11,700,000 15,255,000 14,150,000 11 Operating Expenses 2,300,000 2,890,000 3,075,000 12 Other Expenses 2,214,000 3,146,000 3,966,000 13 Net Income Before Taxes 7,186,000 9,219,000 7,109,000 14 Taxes 2,515,000 3,318,000 2,671,000 15 Net Income After Taxes $4,671,000 $5,901,000 $4,438,000 16 17 Common Shares Outstanding 3,000,000 3,000,000 3,000,000 3,000,000 18 19 20 Other Yearly Calculations 21 Tax Rate (imputed) 22 23 Earnings per Share 24 25 Gross Profit % 26 Return on Sales % 27 28 29 Other Year-to-Year Calculations 30 Change -- Net Revenues and Gains 31 Change -- Net Income Before Taxes Calculations Adjusted Income Comparative Income Statements Process | PV