Sedona Financial Statements

Sedona Merchandising Company Income Statement For The Year Ended 12/31/99 Revenue From Sales Sales Less: Sales Returns & Allowances Sales Discounts Net Sales Cost Of Merchandise Sold Gross Profit Operating Expenses Selling Expenses: Sales Salaries Expense Advertising Expense Depreciation Expense-Store Equip. Store Supplies Expense Misc. Selling Expense Total Selling Expenses Administrative Expenses: Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense-Office Equip. Office Supplies Expense Misc. Administrative Expense Total Administrative Expenses Total Operating Expenses Income From Operations Other Income & Expense Interest Expense Rent Income Net Other Expense Net Income

$895,000 $11,900 7,100

19,000 876,000 486,200 389,800

$80,150 25,000 7,500 2,950 1,335 $116,935

$45,150 26,000 6,260 3,800 1,350 1,650 84,210 201,145 188,655

$12,600 800 11,800 $176,855

Sedona Merchandising Company Statement of Owner's Equity For The Year Ended 12/31/99 Agee Capital - 1/1/99 Add: Net Income

$175,510 $176,855

Less: Withdrawals Net Increase in Equity Agee Capital - 12/31/99

40,000 136,855 $312,365

Sedona Merchandising Company Balance Sheet December 31, 1999 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Store Supplies Office Supplies Total Current Assets Property Plant & Equipment Store Equipment Less:Accum. Deprec. - Store Equip. Office Equipment Accum. Deprec. - Office Equip. Total Net Plant Assets Total Assets

$38,175 112,500 220,000 3,440 1,300 750 $376,165

$132,000 47,800 50,000 21,000

84,200 29,000 113,200 $489,365

Liabilities & Equity Current Liabilities Accounts Payable Salaries Payable Unearned Rent Income

$66,700 4,900 400 $72,000

Long-Term Liabilities Note Payable (Final Pay't. 6/08) Total Liabilities Owner's Equity Agee - Capital 12/31/99

105,000 $177,000

312,365 $489,365