Please see the attached spreadsheet and assignment rubric. The part I need help with it analysis of the findings from the spreadsheet . This needs to basically sum up what the findings are of the spreadsheets and what the state of the company is financially.

If you look on the rubric it says halfway down report of findings and recommendations. Please help with how to answer this. I have the spreadsheet portion of the assignment completed, I am looking for help specifically with the paper portion shows how

ACC 700 Milestone One Guidelines and Rubric The first milestone is a rough draft of the first artifact for your professional portfolio, financial statements and analysis. You will complete a set of financials as described in the appendix section of the prompt below for a fictitious company called Chester Inc. You will then submit a report of your findings and recommendations. This will be graded using the rubric at the end of this document and is an opportunity for you to organize your thoughts and receive feedback from your instructor for the final submission. You should note that the submission guidelines for this milestone are less demanding than those for the final submission. Once you have submitted this milestone and received feedback from your instructor, it is up to you to incorporate this feedback and complete the artifact by meeting the submission guidelines found in the Final Project Guidelines and Rubric document. Client One - Chester, Inc. (Financial Statements and Analysis) Chester, Inc. is a large, publicly traded client at S.N.H.U., LLC. Your task is to develop a comprehensive, professional report for the board of directors. To do this, you will use Chester, Inc.'s trial balance to compose comparative financial statements, analyze data, and interpret results. These financial statements must be in good form in accordance with Generally Accepted Accounting Principles (GAAP). Next, you will assess the performance of Chester, Inc. using the financial statements that you created, along with industry performance data and the financial statements of a competitor. In addition, Chester, Inc. is considering expanding into the global market. They would like you to highlight key areas of the financial statements you have prepared and identify how they would be reported differently if composed under International Financial Reporting Standards (IFRS) rather than GAAP. Background and Financial Information Chester, Inc. is a large, publicly traded client operating in athletic wear including clothing, shoes, and accessories. Direct competitors include Columbia Sportswear Company (COLM - NYSE) and Under Armour, Inc. (UA - NYSE). All of these companies operate in the textile-apparel clothing industry. Chester Inc. operates on a calendar year. Reference the Milestone One Chester Inc. Trial Balance spreadsheet for the past three years' financials (2013, 2014, and 2015). Additional information: Land with the land improvements were sold at book value (no gain or loss) in 2014. (Note: To evaluate the sale, use the following accounts: land, building and land improvements, and Other Noncurrent Assets) New equipment purchased with cash for $2,739,067 in 2014 New storage building purchased with cash for $135,000 in 2015 No investments have been sold or purchased in 2014 or 2015 There are currently 8,275,000 shares of common stock outstanding. No additional common stock has been sold or repurchased in any of the aforementioned years. Artifact One: Financial Statements and Analysis The first artifact that you will include in your portfolio is the comprehensive, professional report that you create for the board of directors of Chester, Inc.a large publicly traded client at S.N.H.U., LLC. The report should contain your findings with the financial statements package as an appendix (Excel attachment). Incorporate the feedback that you receive from your instructor during the development of this artifact. Appendix: These sections should be completed first, before you write your report. Use the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP) and note and explain differences under International Financial Reporting Standards (IFRS) where appropriate: Income statement Balance sheet Statement of retained earnings Statement of cash flows (indirect method) Ratio analysis o Liquidity - minimum of three key ratios with supporting calculations with a minimum of three years of data o Profitability - minimum of three key ratios with supporting calculations with a minimum of three years of data o Solvency - minimum of three key ratios with supporting calculations with a minimum of three years of data Vertical and horizontal analysis o Both vertical and horizontal for the income statement with a minimum of three years of data o Both vertical and horizontal for the balance sheet with a minimum of three years of data Report of Findings and Recommendations: The report is the key section of this artifact and will be written after you complete the analysis in the sections in the appendix above. The report will demonstrate your understanding of financial statements, what they contain, what they mean, and how they are used in strategic decision making. As you know, numbers are useless if we do not know what they mean and how to use them. The financial statements, ratios, and vertical/horizontal analysis should be analyzed and interpreted in order to assess and explain the performance of the organization. In your report, you must: Address all three key ratios in each ratio category. Include what each ratio indicates and how the organization performed against its key competitor and industry averages. Address all key findings in the vertical and horizontal analysis of the income statement and balance sheet. As a general rule, anything over 10% warrants addressing. Guidelines for Submission: All financial calculations should be complete. Your paper must be submitted as a four- to five-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and two to three sources cited in APA format. Round all answers up to the nearest dollar value in any calculations. Note that this milestone is a rough draft and the submission guidelines are different for the final project. The final paper will be 8-10 pages in length with at least five sources. Refer to the guidelines for submission in the Final Project Guidelines and Rubric document. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Income Statement Balance Sheet Statement of Retained Earnings Statement of Cash Flows Ratio Analysis Vertical and Horizontal Analysis Proficient (100%) Completes the income statement using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP) and notes and explains differences under International Financial Reporting Standards (IFRS) where appropriate Completes the balance sheet using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP) and notes and explains differences under International Financial Reporting Standards (IFRS) where appropriate Completes the statement of retained earnings using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP) and notes and explains differences under International Financial Reporting Standards (IFRS) where appropriate Completes the statement of cash flows using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP) and notes and explains differences under International Financial Reporting Standards (IFRS) where appropriate Performs a ratio analysis for liquidity, profitability, and solvency with a minimum of three years of data using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP) and notes and explains differences under International Financial Reporting Standards (IFRS) where appropriate Performs a vertical and horizontal analysis of the income statement and balance sheet using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP) and notes and explains differences under International Financial Reporting Standards (IFRS) where appropriate Not Proficient (0%) Does not complete the income statement using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP); differences under International Financial Reporting Standards (IFRS) are not noted or explained Value 5 Does not complete the balance sheet using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP); differences under International Financial Reporting Standards (IFRS) are not noted or explained 10 Does not complete the statement of retained earnings using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP); differences under International Financial Reporting Standards (IFRS) are not noted or explained Does not complete the statement of cash flows using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP); differences under International Financial Reporting Standards (IFRS) are not noted or explained 10 Does not perform a ratio analysis for liquidity, profitability, and solvency with a minimum of three years of data using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP); differences under International Financial Reporting Standards (IFRS) are not noted or explained 10 Does not perform a vertical and horizontal analysis of the income statement and balance sheet using the proper format for each section in accordance with Generally Accepted Accounting Principles (GAAP); differences under International Financial Reporting Standards (IFRS) are not noted or explained 10 10 Key Ratios Vertical and Horizontal Analysis Articulation of Response Addresses all three key ratios in each ratio category; includes what each ratio indicates and how the organization performed against its key competitor and industry averages Addresses all key findings in the vertical and horizontal analysis of the income statement and balance sheet Submission has no major errors related to citations, grammar, spelling, syntax, or organization Does not address all three key ratios in each ratio category or include what each ratio indicates and how the organization performed against its key competitor and industry averages Does not address all key findings in the vertical and horizontal analysis of the income statement and balance sheet Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Earned Total 20 20 5 100% Chester, Inc. Trial Balances for years ending December 31, 2013, 2014, and 2015 Account Description Cash on Hand Regular Checking Account Savings Account Accounts Receivable Allowance for Doubtful Accounts Other Receivables Inventory Reserve for Inventory Obsolescence Prepaid Insurance Prepaid Rent Office Supplies Land Buildings and Land Improvements Machinery, Equipment, Office Furniture Accum. Depreciation Investments Other Noncurrent Assets Taxes Receivable/payable Accounts Payable Wages Payable FICA Employee Withholding Medicare Withholding Federal Payroll Taxes Payable State Payroll Taxes Payable FICA Employer Withholding Medicare Employer Withholding Line of Credit Current Portion Long-Term Debt Interest payable Bonuses payable Dividend payable Common Stock Paid-in Capital Retained Earnings Dividends Sales Sale Returns Warranty Expense Income from Investments Interest Income 2013 $ 2,484 $ 247,646 3,806,198 20,513,628 (1,578,525) 23,531,507 (3,765,000) 929,143 250,000 9,259 146,250 779,882 541,521 (205,000) 715,864 67,301 (5,791,398) (36,838) (1,648) (730) (7,541) (3,519) (1,648) (730) (12,500,000) (6,000,000) (10,131,250) (9,278,750) (2,773,901) 6,000,000 (307,716,148) 5,621,979 1,375,352 (255,379) 2014 2,548 253,960 4,083,071 57,697,091 (1,387,691) 1,400,000 75,851,471 (12,136,103) 2,830,474 9,565 131,040 698,775 3,280,589 (764,692) 2,238,634 (3,205,440) (22,488,866) (264,513) (9,452) (12,785) (132,256) (61,720) (9,452) (12,785) (49,731,360) (13,440,000) (470,311) (504,000) (15,250,000) (10,131,250) (9,278,750) (2,238,105) 15,250,000 (271,839,067) 12,432,247 1,297,104 (1,227,199) (147,707) Cost of Goods Sold Freight Advertising Expense Auto Expenses Research and Development Depreciation Expense Warehouse Salaries Property Tax Expense Legal and Professional Expense Bad Debt Expense Insurance Expense Maintenance Expense Utilities Phone 176,961,527 5,378,689 1,121,425 261,218 39,015,418 166,250 5,791,730 100,619 4,506,417 2,028,032 1,067,428 76,420 169,554 95,467 161,029,981 4,749,095 1,161,276 235,763 592,335 581,012 5,348,208 111,252 10,435,113 5,875,403 1,045,085 96,220 170,855 58,911 Postal Miscellaneous Office Expense Payroll Tax Exp Pension/Profit-Sharing Plan Ex Rent or Lease Expense Administrative Wages Expense Bonus expense Interest Expense Income Tax Expense - Federal Income Tax Expense - State Loss on Legal Settlement 160,042 21,279 1,938,736 3,750,000 3,254,357 21,094,132 1,093,750 2,956,250 536,250 23,965,000 0 87,140 27,879 1,767,149 3,696,000 1,351,363 18,344,399 504,000 3,373,056 14,142,240 2,503,200 (0) 3, 2014, and 2015 2015 $ 2,599 243,802 4,205,563 49,042,528 (2,942,552) 1,200,000 65,990,780 (10,558,525) 2,667,722 9,182 131,040 833,775 3,280,589 (1,381,847) 2,070,736 (6,011,540) (13,850,648) (198,384) (7,089) (9,589) (99,192) (46,290) (7,089) (9,589) (44,177,211) (12,084,720) (568,429) (459,000) (15,000,000) (10,131,250) (9,278,750) (9,185,791) 15,000,000 (288,876,206) 23,110,096 1,444,381 (1,138,905) (142,168) (559,692) 179,103,248 4,325,068 1,057,591 214,713 3,080,313 617,155 4,870,689 101,319 9,503,406 13,963,800 951,774 87,629 155,600 53,651 79,360 25,390 1,609,368 3,366,000 2,230,705 19,706,506 459,000 2,842,147 7,269,540 1,258,000 0 Chester, Inc. Comparative Income Statement for years ending De 2013 Amount $ Revenue from sales: Sales 2014 Percent Amount $ 307,716,148 271,839,067 5,378,689 4,749,095 5,621,979 12,432,247 Cost of Goods Sold 176,961,527 161,029,981 Gross Profit on Sales 119,753,953 93,627,744 1,375,352 1,297,104 1,121,425 1,161,276 39,015,418 592,335 Freight Sales Returns Operating Expenses: Selling Expenses Warranty Expense Advertising Expense Research and Development Expense Depreciation Expense Administrative Expenses: Warehouse Salaries Property Tax Expense Legal and Professional Expense Auto Expenses Bad Debt Expense Insurance Expense Maintenance Expense Utilities Phone Postal Miscellaneous Office Expense Payroll Tax Exp Pension/Profit-Sharing Plan Ex Rent or Lease Expense Administrative Wages Expense Bonus expense Income Tax Expense - Federal Income Tax Expense - State Total Operating Expenses Other Expense: Interest Expense Interest Income 166,250 581,012 41,678,445 3,631,727 5,791,730 5,348,208 100,619 111,252 4,506,417 10,435,113 261,218 235,763 2,028,032 5,875,403 1,067,428 1,045,085 76,420 96,220 169,554 170,855 95,467 58,911 160,042 87,140 21,279 27,879 1,938,736 1,767,149 3,750,000 3,696,000 3,254,357 1,351,363 21,094,132 18,344,399 - 504,000 2,956,250 14,142,240 536,250 2,503,200 47,807,933 65,800,180 89,486,377 69,431,908 1,093,750 3,373,056 255,379 147,707 Legal Settlement Income from Investments Net Income 23,965,000 - 5,464,204 1,227,199 22,197,686 ment for years ending December 31, 2013, 2014, and 2015 Increase (Decrease) Amount Percent 2015 Increase (Decrease) Amount Amount $ 35,877,081 13.20% 288,876,206 (17,037,138) 629,595 13.26% 4,325,068 424,026 (6,810,268) -54.78% 23,110,096 (10,677,849) 15,931,546 9.89% 179,103,248 (18,073,266) 82,337,793 (45,364,227) 6.03% 1,444,381 (147,277) 45,627,953 78,248 (39,851) -3.43% 1,057,591 103,685 38,423,083 6486.72% 3,080,313 (2,487,978) (414,762) -71.39% 38,046,717 443,522 8.29% 617,155 (36,142) 6,199,439 (2,567,712) 4,870,689 477,519 (10,633) -9.56% 101,319 9,933 (5,928,695) -56.81% 9,503,406 931,707 25,455 10.80% 214,713 21,050 (3,847,371) -65.48% 13,963,800 (8,088,397) 22,343 2.14% 951,774 93,311 (19,800) -20.58% 87,629 8,591 (1,301) -0.76% 155,600 15,255 36,556 62.05% 53,651 5,260 72,901 83.66% 79,360 7,780 (6,600) -23.67% 25,390 2,489 171,587 9.71% 1,609,368 157,781 54,000 1.46% 3,366,000 330,000 1,902,994 140.82% 2,230,705 (879,343) 2,749,734 14.99% 19,706,506 (1,362,107) (504,000) -100.00% 459,000 45,000 (11,185,990) -79.10% 7,269,540 6,872,700 (1,966,950) -78.58% 1,258,000 1,245,200 (17,992,247) -27.34% 65,906,451 (106,270) 20,054,470 28.88% 72,105,890 (2,673,983) (2,279,306) -67.57% 2,842,147 530,909 142,168 1,138,905 16,733,482 75.38% 8,670,829 (13,526,857) Percent -5.90% 9.80% -46.20% -10.09% -10.20% 9.80% -80.77% -5.86% 9.80% 9.80% 9.80% 9.80% -57.92% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% -39.42% -6.91% 9.80% 94.54% 98.98% -0.16% -3.71% 18.68% -156.00% Chester, Inc. Comparative Balance Sheet for years ending December 31, 2013, 2014, and 2015 2013 2014 4,056,328 4,339,579 20,513,628 57,697,091 Assets Current Assets: Cash Accounts Receivable Other Receivables Allowance for Doubtful Accounts Inventory Reserve for Inventory Obsolescence Prepaid Insurance Prepaid Rent Office Supplies Investments Other Noncurrent Assets Land Buildings and Land Improvements Machinery, Equipment, Office Furniture Accum. Depreciation Total Assets - 1,400,000 (1,578,525) (1,387,691) 23,531,507 75,851,471 (3,765,000) (12,136,103) 929,143 2,830,474 250,000 9,259 9,565 715,864 2,238,634 67,301 - 146,250 131,040 779,882 698,775 541,521 3,280,589 (205,000) (764,692) 45,992,158 134,188,731 Liabilities Current Liabilities: Taxes Payable Accounts Payable Wages Payable FICA Employee Withholding Medicare Withholding Federal Payroll Taxes Payable State Payroll Taxes Payable FICA Employer Withholding Medicare Employer Withholding Line of Credit Long term Liabilities: Current Portion Long-Term Debt Interest payable Bonuses payable Dividend payable Total Liabilities Owners Equity Common Stock Paid-in Capital Retained Earnings - 3,205,440 5,791,398 22,488,866 36,838 264,513 1,648 9,452 730 12,785 7,541 132,256 3,519 61,720 1,648 9,452 730 12,785 12,500,000 49,731,360 - 13,440,000 - 470,311 - 504,000 6,000,000 15,250,000 24,344,053 105,592,941 10,131,250 10,131,250 9,278,750 9,278,750 2,238,105 9,185,791 Total Equity 21,648,105 28,595,791 Total Liabilities & Owners Equity 45,992,158 134,188,732 3, 2014, and 2015 2015 4,451,964 49,042,528 1,200,000 (2,942,552) 65,990,780 (10,558,525) 2,667,722 9,182 2,070,736 131,040 833,775 3,280,589 (1,381,847) 114,795,391 6,011,540 13,850,648 198,384 7,089 9,589 99,192 46,290 7,089 9,589 44,177,211 12,084,720 568,429 459,000 15,000,000 92,528,771 10,131,250 9,278,750 2,856,620 22,266,620 114,795,391 Chester, Inc. Comparative Statement of Retained Earnings for years endin Increase (Decrease) 2014 Amount Percent 2,238,105.00 535,796.00 22,197,686.00 (16,733,482.00) 24,435,791.00 Retained Earnings Net Income Total 2013 2,773,901.00 5,464,204.00 8,238,105.00 Dividends Retained Earnings December 31 6,000,000 15,250,000 2,238,105.00 9,185,791.00 (9,250,000) 0.24 (0.75) -0.606557377 nings for years ending December 31, 2013, 2014, and 2015 2015 Amount Percent 9,185,791.00 6,947,686.00 0.7563514127 8,670,829.00 (13,526,857.00) -1.5600419522 17,856,620.00 15,000,000 2,856,620.00 250,000 0.0166666667 Chester, Inc. Comparative Statement of Cash Flows for years ending December 31 2014, and 2 Cash flows from operating activities Net Income Adjustments to reconcile net income Depreciation Expense (Increase)/Decrease in Prepaid Expenses (Increase)/decrease in Accounts Receivable (Increase)/decrease in other receivables (Increase)/decrease in Inventory (Increase)/Decrease in Prepaid Rent (Increase)/Decrease in Office Supplies (Decrease)/Increase inTaxes Payable (Decrease)/Increase in Accounts Payable (Decrease)/Increase in Wages Payable (Decrease)/Increase in FICA Employee With (Decrease)/Increase in Medicare Withholdin (Decrease)/Increase in Federal Payroll Tax (Decrease)/Icrease inState Payroll Taxes P (Decrease)/Increase in FICA Employer With (Decrease)/Increase in Medicare Employer (Decrease)/Increase in Bonus Payable (Decrease)/Increase in Interest Payable (Decrease)/Increase in Line of Credit 2014 22,197,686 581,012 -1,901,331 -37,374,297 -1,400,000 -43,948,861 250,000 -306 3,205,440 16,697,468 227,675 7,804 12,055 124,715 58,200 7,804 12,055 504,000 470,311 37,231,360 Net Cash used by operating activities -25,234,896 617155 162,752 10,209,424 200,000 8,283,113 0 383 2,806,100 -8,638,219 -66,128 -2,363 -3,196 -33,064 -15,430 -2,363 -3,196 -45,000 98,118 -5,554,149 -3,037,210 Cash flor from investing activities Purchase of Investments Sale/(Purchase) of Land Purchase equipment Net cash used by investing activities -1,522,770 163,619 -2,739,067 Cash flows from financing activities Raising of Long Term debt Payment of cash dividend Net cash provided by financing activities 13,440,000 -6,000,000 167,898 -135,000 -4,098,218 Net Increase in Cash Cash at beginning of year Cash at the end of year Difference due to dep. Figure Information for investments is not clear. These have reduced without sale. Depreciation on equipment differ in Income statement and increas in dep. Dep as per Horizontal Analysis -1,355,280 -15,250,000 7,440,000 304,572 4,056,328 4,360,900 4339579 21,321 559,692 Dep as per Income Statement Difference 581012 21,320 ember 31 2014, and 2015 2015 8,670,829 8,013,936 16,684,765 32,898 -16,605,280 112,383 4,339,579 4,451,962 4,451,964 -2 Due to rounding Chester, Inc. Ratio Analysis for years ending December 31, 2013, 2014, and 2015 2013 2014 2015 Liquidity Current Ratio Quick Ratio 2.41 1.29 1.72 0.85 1.74 8.07 Solvency Total Debt to Assets Total Debts to Equity Long term Debts to Total assets 0.53 1.12 0.13 0.79 3.69 0.22 0.81 4.16 0.24 1.78% 38.92% 11.88% 8.17% 34.44% 16.54% 3.00% 28.50% 7.55% Profitability Net Profit Margin Gross Profit Margin Return on Investment 3, 2014, and 2015 Chester, Inc. Comparative Balance Sheet for years ending December 31, 2013, Horizontal Analysis 2013 Assets Current Assets: Cash Accounts Receivable Other Receivables Allowance for Doubtful Accounts Inventory Reserve for Inventory Obsolescence Prepaid Insurance Prepaid Rent Office Supplies Investments Other Noncurrent Assets Land Buildings and Land Improvements Machinery, Equipment, Office Furniture Accum. Depreciation Total Assets 4,056,328 20,513,628 0 (1,578,525) 23,531,507 (3,765,000) 929,143 250,000 9,258.53 715,864 67,301 146,250 779,882 541,521 (205,000) 45,992,158 Liabilities Current Liabilities: Taxes Payable Accounts Payable Wages Payable FICA Employee Withholding Medicare Withholding Federal Payroll Taxes Payable State Payroll Taxes Payable FICA Employer Withholding Medicare Employer Withholding Line of Credit Long term Liabilities: Current Portion Long-Term Debt Interest payable Bonuses payable Dividend payable 5,791,398 36,838 1,648 730 7,541 3,519 1,648 730 12,500,000 6,000,000 Total Liabilities 24,344,053 Owners Equity Common Stock Paid-in Capital Retained Earnings 10,131,250 9,278,750 2,238,105 Total Equity Total Liabilities & Owners Equity 21,648,105 45,992,158 Chester, Inc. Comparative Incom 2013 Revenue from sales: Sales Freight Sales Returns Cost of Goods Sold Gross Profit on Sales Operating Expenses: Selling Expenses Warranty Expense Advertising Expense Research and Development Expense Depreciation Expense Administrative Expenses: Warehouse Salaries Property Tax Expense Legal and Professional Expense Auto Expenses Bad Debt Expense Insurance Expense Maintenance Expense Utilities Phone Postal Miscellaneous Office Expense Payroll Tax Exp Pension/Profit-Sharing Plan Ex Rent or Lease Expense Administrative Wages Expense Bonus expense Income Tax Expense - Federal Income Tax Expense - State 307716148 5378689 5621979 176961527 119753953 1375352 1121425 39015418 166250 41678445 5791730 100619 4506417 261218 2028032 1067428 76420 169554 95467 160042 21279 1938736 3750000 3254357 21094132 0 2956250 536250 47807933 Total Operating Expenses 89486377 Other Expense: Interest Expense Interest Income Legal Settlement Income from Investments 1093750 255379 23965000 0 Net Income 5464204 Verticle Analysia Chester, Inc. Comparative Balance Sheet for years ending December 31, 2013, Horizontal Analysis 2013 Assets Current Assets: Cash Accounts Receivable Other Receivables Allowance for Doubtful Accounts Inventory Reserve for Inventory Obsolescence Prepaid Insurance Prepaid Rent Office Supplies Investments Other Noncurrent Assets Land Buildings and Land Improvements Machinery, Equipment, Office Furniture Accum. Depreciation Total Assets 4,056,328 20,513,628 0 (1,578,525) 23,531,507 (3,765,000) 929,143 250,000 9,258.53 715,864 67,301 146,250 779,882 541,521 (205,000) 45,992,158 Liabilities Current Liabilities: Taxes Payable Accounts Payable Wages Payable FICA Employee Withholding Medicare Withholding Federal Payroll Taxes Payable State Payroll Taxes Payable FICA Employer Withholding Medicare Employer Withholding Line of Credit Long term Liabilities: Current Portion Long-Term Debt Interest payable Bonuses payable Dividend payable 5,791,398 36,838 1,648 730 7,541 3,519 1,648 730 12,500,000 6,000,000 Total Liabilities 24,344,053 Owners Equity Common Stock 10,131,250 Paid-in Capital Retained Earnings 9,278,750 2,238,105 Total Equity 21,648,105 45,992,158 Total Liabilities & Owners Equity Chester, Inc. Comparative Incom 2013 Revenue from sales: Sales Freight Sales Returns Cost of Goods Sold Gross Profit on Sales Operating Expenses: Selling Expenses Warranty Expense Advertising Expense Research and Development Expense Depreciation Expense Administrative Expenses: Warehouse Salaries Property Tax Expense Legal and Professional Expense Auto Expenses Bad Debt Expense Insurance Expense Maintenance Expense Utilities Phone Postal Miscellaneous Office Expense Payroll Tax Exp Pension/Profit-Sharing Plan Ex Rent or Lease Expense Administrative Wages Expense Bonus expense Income Tax Expense - Federal Income Tax Expense - State Total Operating Expenses Other Expense: 307716148 5378689 5621979 176961527 119753953 1375352 1121425 39015418 166250 41678445 5791730 100619 4506417 261218 2028032 1067428 76420 169554 95467 160042 21279 1938736 3750000 3254357 21094132 0 2956250 536250 47807933 89486377 Interest Expense Interest Income Legal Settlement Income from Investments Net Income 1093750 255379 23965000 0 5464204 , Inc. ng December 31, 2013, 2014, and 2015 2014 4,339,579 Increase(Decrease) % 134,188,731 3,205,440 22,488,866 264,513 9,452 12,785 132,256 61,720 9,452 12,785 49,731,360 3,205,440 16,697,468 227,675 7,804 12,055 124,715 58,200 7,804 12,055 37,231,360 288.32% 618.04% 473.44% 1651.37% 1653.77% 1653.73% 473.44% 1651.37% 297.85% 13,440,000 470,311 504,000 15,250,000 13,440,000 470,311 504,000 9,250,000 81,248,888 154.17% 333.75% 92,528,771 (1,355,280) -10.08% 98,118 20.86% (45,000) -8.93% (250,000) -1.64% (13,064,170) -12.37% 0 0 6,947,686 6,947,686 88,196,574 0.00% 10,131,250 0.00% 9,278,750 310.43% 2,856,620 32.09% 22,266,620 191.76% 114,795,391 0 0.00% 0 0.00% (6,329,171) -68.90% (6,329,171) -22.13% (19,393,341) -14.45% 698,775 3,280,589 (764,692) 105,592,941 10,131,250 9,278,750 9,185,791 28,595,791 134,188,732 49,042,528 1,200,000 (2,942,552) 65,990,780 (10,558,525) 2,667,722 6,011,540 13,850,648 198,384 7,089 9,589 99,192 46,290 7,089 9,589 44,177,211 12,084,720 568,429 459,000 15,000,000 112,385 (8,654,564) (200,000) (1,554,861) (9,860,691) 1,577,578 (162,752) % -12.09% 222.34% 222.34% 204.63% -100.00% 3.31% 9,182 212.72% 2,070,736 -100.00% -10.40% 131,040 -10.40% 833,775 505.81% 3,280,589 273.02% (1,381,847) 191.76% 114,795,391 9,565 2,238,634 131,040 4451964 Increase(Decrease) 283,251 37,183,463 1,400,000 190,834 52,319,964 (8,371,103) 1,901,331 (250,000) 306 1,522,770 (67,301) (15,210) (81,108) 2,739,067 (559,692) 88,196,573 57,697,091 1,400,000 (1,387,691) 75,851,471 (12,136,103) 2,830,474 6.98% 181.26% 2015 2.59% -15.00% -14.29% 112.05% -13.00% -13.00% -5.75% (383) -4.00% (167,898) -7.50% 0 0 0.00% 135,000 19.32% 0 0.00% (617,155) 80.71% (19,393,340) -14.45% 2,806,100 (8,638,219) (66,128) (2,363) (3,196) (33,064) (15,430) (2,363) (3,196) (5,554,149) 87.54% -38.41% -25.00% -25.00% -25.00% -25.00% -25.00% -25.00% -25.00% -11.17% Comparative Income Statement for years ending December 31, 2013, 2014, and 2015 2014 Increase(Decrease) % 2015 Increase(Decrease) % 271,839,067 4,749,095 12,432,247 161,029,981 93,627,744 (35,877,081) (629,595) 6,810,268 (15,931,546) (26,126,209) -11.66% -11.71% 121.14% -9.00% -21.82% 288876206 4325068 23110096 179103248 82337793 17037138 6.27% -424026 -8.93% 10677849 85.89% 18073266 11.22% -11289950 -12.06% 1,297,104 1,161,276 592,335 581,012 3,631,727 (78,248) 39,851 (38,423,083) 414,762 (38,046,717) -5.69% 3.55% -98.48% 249.48% -91.29% 1444381 1057591 3080313 617155 6199439 147277 11.35% -103685 -8.93% 2487978 420.03% 36142 6.22% 2567712 70.70% 5,348,208 111,252 10,435,113 235,763 5,875,403 1,045,085 96,220 170,855 58,911 87,140 27,879 1,767,149 3,696,000 1,351,363 18,344,399 504,000 14,142,240 2,503,200 65,800,180 (443,522) 10,633 5,928,695 (25,455) 3,847,371 (22,343) 19,800 1,301 (36,556) (72,901) 6,600 (171,587) (54,000) (1,902,994) (2,749,734) 504,000 11,185,990 1,966,950 17,992,247 -7.66% 10.57% 131.56% -9.74% 189.71% -2.09% 25.91% 0.77% -38.29% -45.55% 31.02% -8.85% -1.44% -58.48% -13.04% 378.38% 366.80% 37.63% 4870689 101319 9503406 214713 13963800 951774 87629 155600 53651 79360 25390 1609368 3366000 2230705 19706506 459000 7269540 1258000 65906451 -477519 -8.93% -9933 -8.93% -931707 -8.93% -21050 -8.93% 8088397 137.67% -93311 -8.93% -8591 -8.93% -15255 -8.93% -5260 -8.93% -7780 -8.93% -2489 -8.93% -157781 -8.93% -330000 -8.93% 879343 65.07% 1362107 7.43% -45000 -8.93% -6872700 -48.60% -1245200 -49.74% 106270 0.16% 69,431,908 (20,054,470) -22.41% 72105890 3,373,056 147,707 2,279,306 (107,672) (23,965,000) 1,227,199 208.39% -42.16% -100.00% 2842147 142168 1,227,199 1138905 2673983 3.85% -530909 -15.74% -5539 -3.75% 0 -88294 -7.19% 22,197,686 16,733,482 306.24% 8670829 , Inc. ng December 31, 2013, 2014, and 2015 % 8.82% 44.60% 2014 4,339,579 57,697,091 1,400,000 (1,387,691) 75,851,471 (12,136,103) 2,830,474 -3.43% 51.16% -8.19% 2.02% 0.54% 0.02% 9,565 1.56% 2,238,634 0.15% 0.32% 131,040 1.70% 698,775 1.18% 3,280,589 -0.45% (764,692) 100.00% 134,188,731 % 2015 3.23% 4451964 43.00% 49,042,528 1.04% 1,200,000 -1.03% (2,942,552) 56.53% 65,990,780 -9.04% (10,558,525) 2.11% 2,667,722 0.00% 0.01% 9,182 1.67% 2,070,736 0.00% 0.10% 131,040 0.52% 833,775 2.44% 3,280,589 -0.57% (1,381,847) 100.00% 114,795,391 % 3.88% 42.72% 1.05% -2.56% 57.49% -9.20% 2.32% 0.00% 0.01% 1.80% 0.00% 0.11% 0.73% 2.86% -1.20% 100.00% 3,205,440 22,488,866 264,513 9,452 12,785 132,256 61,720 9,452 12,785 49,731,360 2.39% 16.76% 0.20% 0.01% 0.01% 0.10% 0.05% 0.01% 0.01% 37.06% 6,011,540 13,850,648 198,384 7,089 9,589 99,192 46,290 7,089 9,589 44,177,211 5.24% 12.07% 0.17% 0.01% 0.01% 0.09% 0.04% 0.01% 0.01% 38.48% 0.00% 13,440,000 0.00% 470,311 0.00% 504,000 13.05% 15,250,000 52.93% 105,592,941 10.02% 0.35% 0.38% 11.36% 78.69% 12,084,720 568,429 459,000 15,000,000 92,528,771 10.53% 0.50% 0.40% 13.07% 80.60% 7.55% 10,131,250 8.83% 12.59% 0.08% 0.00% 0.00% 0.02% 0.01% 0.00% 0.00% 27.18% 22.03% 10,131,250 -13526857 -60.94% 20.17% 9,278,750 4.87% 9,185,791 47.07% 28,595,791 100.00% 134,188,732 6.91% 9,278,750 6.85% 2,856,620 21.31% 22,266,620 100.00% 114,795,391 8.08% 2.49% 19.40% 100.00% Comparative Income Statement for years ending December 31, 2013, 2014, and 2015 % 2014 % 2015 % 100.00% 1.75% 1.83% 57.51% 38.92% 271839067 4749095 12432247 161029981 93627744 100.00% 1.75% 4.57% 59.24% 34.44% 288876206 4325068 23110096 179103248 82337793 100.00% 1.50% 8.00% 62.00% 28.50% 0.45% 0.36% 12.68% 0.05% 13.54% 1297104 1161276 592335 581012 3631727 0.48% 0.43% 0.22% 0.21% 1.34% 1444381 1057591 3080313 617155 6199439 0.50% 0.37% 1.07% 0.21% 2.15% 1.88% 0.03% 1.46% 0.08% 0.66% 0.35% 0.02% 0.06% 0.03% 0.05% 0.01% 0.63% 1.22% 1.06% 6.86% 0.00% 0.96% 0.17% 15.54% 5348208 111252 10435113 235763 5875403 1045085 96220 170855 58911 87140 27879 1767149 3696000 1351363 18344399 504000 14142240 2503200 65800180 1.97% 0.04% 3.84% 0.09% 2.16% 0.38% 0.04% 0.06% 0.02% 0.03% 0.01% 0.65% 1.36% 0.50% 6.75% 0.19% 5.20% 0.92% 24.21% 4870689 101319 9503406 214713 13963800 951774 87629 155600 53651 79360 25390 1609368 3366000 2230705 19706506 459000 7269540 1258000 65906451 1.69% 0.04% 3.29% 0.07% 4.83% 0.33% 0.03% 0.05% 0.02% 0.03% 0.01% 0.56% 1.17% 0.77% 6.82% 0.16% 2.52% 0.44% 22.81% 29.08% 69431908 25.54% 72105890 24.96% 0.36% 0.08% 7.79% 0.00% 3373056 147707 2842147 142168 1227199 1.24% 0.05% 0.00% 0.45% 1138905 0.98% 0.05% 0.00% 0.39% 1.78% 22197686 8.17% 8670829 3.00% 2015 2015