Statements of Financial Position As of 6/30/2005, 2004 and 2003 (In Thousands) June 30. 2005 June 30. 2004 June 30. 2003 $ 2,388 $ 1,695 $ 453 Current assets: Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts of $56: $171; and $105 June 30, 2005, 2004 and 2003, respectively Inventories Current portion of notes receivable Deferred income taxes Other current assets 5,592 9,434 2,681 211 1.157 3,432 5,034 1,592 209 971 2,094 3,266 622 299 552 Total current assets 21,463 12,933 7,286 910 Equipment and leasehold improvements, net Other assets Deferred income tax Intangible assets 6.940 183 222 274 167 126 251 600 163 34 252 Total assets $ 29,082 $ 14,387 $ 8,335 $ 1,328 Current Liabilities: Notes payable Current portion of long-term obligations under capital leases Accounts payable and accrued expenses Income taxes payable 103 $ 1,625 136 5,862 614 $ 1,021 95 2,307 86 3,871 591 Total current liabilities 8,237 5,893 3,509 161 Long-term obligations under capital leases Deferred income taxes 367 242 37 Stockholders' equity: Common Stock Additional paid-in capital Retained earnings 183 14,213 5,840 56 7,086 1,191 3,810 900 20,236 8,333 4.747 Total stockholders' equity Total liabilities and stockholders' equity $ 29,082 $14,387 $ 8,335 Statements of Income For the Periods Ending 6/30/2005, 2004 and 2003 in Thousands) 2005 2004 2003 $ Sales Cost of Goods Sold Gross Margin $ 18,848 10,598 8,250 $ 12,445 6,833 8,213 4,523 3,690 5,612 General & Administrative Expenses Research & Development Costs 967 149 3,366 1,335 1,889 895 911 906 Income from Operations Net Interest Expense Loss on Sale on Receivables, factored 7,134 217 77 847 Income Before Income Taxes Provision for Income Taxes 6.917 2,268 668 284 556 Net Income $ 4,649 $ 291 Schedule of Equipment and Leasehold Improvements anns Beginning Balance Additions Retirements Ending Balance Equipment Leasehold Improvements 626,510 143,421 131,440 15,565 16,610 741,340 158,986 769,931 147,005 16,610 900,326 2004 Beginning Balance Ending Balance Additions Retirements Equipment Leasehold Improvements 741,340 158,986 396,790 46,885 40,602 1,097,528 205,871 900,326 443,675 40,602 1,303,399 2005 weginning Balance Ching Balance Additions Retirements Equipment Leasehold Improvements 1,097,528 205,871 6,953, 306 135.642 125,864 7,924,970 341,513 1,303,399 7,088,948 125,864 8,266,483 Depreciation Schedule | Beginning Balance Additions Ending Balance Retirements Equipment Leasehold Improvements 185,696 24,668 84,325 19,768 14,500 255,521 44,436 210,364 104,093 14,500 299,957 2004 Beginning Balance Additions Retirements Ending Balance Equipment Leasehold Improvements 35,101 255,521 44,436 105,718 23,144 326,138 67,580 299,957 128,862 35,101 393,718 2005 Beginning Balance Enging Balance Additions Retirements 109,875 Equipment Leasehold Improvements 326,138 67,580 1,024,587 17,828 1.240,850 85,408 393,718 1,042,415 109,875 1,326,258 Does the relationship between Accounts Receivable and Allowance for Doubtful Accounts" appear reasonable? Why or Why not