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    Cash Flows using provided Income Statement and Balance Sheet

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    Eromdt Inc. Corp.
    Income Statement (in $)
    For the Period Ending
    2003 2002
    Net Sales 3,074,000 2,567,000
    COGS 2,077,000 1,711,000
    Gross Profit 997,000 856,000

    Selling exp 100,000 108,000
    G&A 194,000 187,000
    Dep Exp 223,000 223,000
    Lease exp 35,000 35,000
    Total Operating Exp 552,000 553,000

    Operating Earnings 445,000 303,000

    Other Inc (Exp)
    Int Exp 93,000 91,000

    Income before tax 352,000 212,000

    Income Tax Benefit (Expense) (102,080) (63,600)
    30% 2002 and 29% 2003

    Net Income 249,920 148,400

    WEEK 4 BALANCE SHEET

    Eromdt Inc. Corp. Balance Sheet (in $) as of December 31

    Assets 2003 2002

    Current assets:
    Cash 500,000 350,000
    Marketable Securities 0 0
    Net Cash and Marketable Securities 500,000 350,000
    Accounts receivable, trade 489,470 588,550
    Less allowance for doubtful accounts (18,000) (24,000)
    Net accounts receivable, trade 471,470 564,550
    Inventories:
    Raw materials 106,666 75,000
    Work-in-process 106,666 75,000
    Finished goods 106,667 75,000
    Total inventories 320,000 225,000
    Total current assets 1,291470 1,139,550
    Property and equipment, at cost: 390,000 360,000
    Less accumulated depreciation and amortization (150,000) (100,000)
    Net property and equipment 240,000 260,000
    TOTAL ASSETS 1,531,470 1,399,550

    Liabilities and Stockholders' Equity

    Current Liabilities:
    Accounts payable 275,000 200,000
    Accrued payroll and related taxes 67,000 60,000
    Current portion of long-term notes payable 75,000 65,000
    Other current liabilities 35,000 35,000
    Total current liabilities 452,000 360,000
    Other Liabilities:
    Long-term notes payable, net of current portion 280,000 351,000
    Total other liabilities 280,000 351,000
    TOTAL LIABILITIES 732,000 711,000

    Stockholders' Equity
    Common Stock-$2.50 par 100,000 issued and outstanding 250,000 250,000
    Paid in Capital in excess of par value 50,000 50,000
    Preferred Stock-$100 par,10% cumulative, 1000 shares authorized and issued 100,000 100,000
    Current Year Net Income 249,920 148,400
    Retained Earnings 373,550 225,150
    Accumulated Dividend Paid Preferred and Common (224,000) (85,000)

    NET STOCKHOLDERS' EQUITY 799,470 688,550

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,531,470 1,399,550

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