Avery Slings & Arrows, Inc.

Income Statement

For year ending 12/31/2004

Sales 6,600,000
Earnings of affiliates (equity method) 150,000
Realized loss on sale of equipment -65,000
Realized gain on sale of investments 53,000
Interest and dividend revenue 15,000
Total revenues 6,753,000

Cost of goods sold 3,490,000

Salaries and wages 632,000
Other operating expenses 421,000
Bad debt expense 45,000
Depreciation expense 757,000
Amortization of intangibles 5,000
Accretion expense 25,000
Interest expense 935,000
Income tax expense 177,000 6,487,000
Net income 266,000

Avery Slings & Arrows

Balance Sheet

12/31/2004 12/31/2003
Current Assets
Cash 2,261,000 2,850,000

Securities Available for Sale (at market) 258,000 100,000

Accounts Receivable (net) 1,947,000 1,900,000
Merchandise Inventory 602,000 900,000
Prepaid Expenses 4,000 50,000
5,072,000 5,800,000
Noncurrent Assets
Investments in affiliated companies
2,121,000 2,000,000
(equity method)
Land, building & equipment 20,715,000 17,800,000
Less Accumulated Depreciation -2,181,000 -1,800,000
Intangible Assets 568,000 73,000
Total assets 26,295,000 23,873,000

Current Liabilities
Accounts Payable 347,000 650,000
Salaries Payable 18,000 21,000
Interest payable 156,000 55,000
Income Taxes Payable 45,000 32,000
Dividends Payable 128,000 60,000
694,000 818,000
Noncurrent Liabilities
Bonds Payable 7,000,000 4,000,000
Premium/Discount on Bonds Payable 642,000 656,000
Convertible Bonds Payable 1,500,000 3,000,000
Lease obligation 2,108,000 1,825,000
Asset retirement obligation 275,000 250,000
Deferred Income Taxes 122,000 75,000
Other long term liabilities 590,000 2,590,000
12,237,000 12,396,000

Stockholder's Equity
Common stock, $10 par 5,125,000 3,000,000
Additional paid in capital - common 3,525,000 1,600,000
Other paid in capital 13,000 0
Unrealized (gain)/loss AFS invest 27,000 -80,000
Treasury stock (at cost) -38,000 -10,000
Retained Earnings 4,712,000 6,149,000
13,364,000 10,659,000

Total liabilities and equity 26,295,000 23,873,000

 Cashflow from Direct Method
Avery Slings & Arrows
Statement of Cash Flows
For year ended December 31, 2004

Cash from Operating Activities

Inflows
Cash collected from customers 6,508,000
Interest & dividends received 44,000
Total cash reciept 6,552,000
Outflows
Cash paid for merchandise -3,495,000
Cash paid to employees -635,000
Other operating disbursements -375,000
Interest paid -848,000
Income taxes paid -117,000
Total Cash Payment -5,470,000
Net cash flow from operating activities 1,082,000

Cash provided by investing activities

Proceeds from sale of equipment 59,000
Cash outlay to acquire equipment -2,767,000
Cash outlay to acquire patent -500,000
Proceeds from sale of securities 275,000
Cash outlay to buy securities -273,000
Net cash flow from investing activities -3,206,000

Cash provided by financing activities

Dividends paid -135,000

Sold treasury stock 23,000

Purchased treasury stock -38,000
Payments on long term debt -2,000,000

Payments on capital leases -365,000

Common stock issued 1,050,000
Proceeds from issuing nonconvertible bonds 3,000,000
Net cash flow from financing activities 1,535,000

Net deccrease in cash -589,000

cash balance at beginning of year 2,850,000

cash balance at end of year 2,261,000

 Cashflow from Indirect Method
Avery Slings & Arrows
Statement of Cash Flows
For year ended December 31, 2004

Cash from Operating Activities

Net income 266,000

Add Depreciation expense 757,000
Total cash reciept 1,023,000
Cash paid for merchandise -3,495,000
Cash paid to employees -635,000
Other operating disbursements -375,000
Interest paid -848,000
Income taxes paid -117,000
Total Cash Payment -5,470,000
Net cash flow from operating activities -4,447,000

Cash provided by investing activities

Proceeds from sale of equipment 59,000
Cash outlay to acquire equipment -2,767,000
Cash outlay to acquire patent -500,000
Proceeds from sale of securities 275,000
Cash outlay to buy securities -273,000
Net cash flow from investing activities -3,206,000

Cash provided by financing activities

Dividends paid -135,000

Sold treasury stock 23,000

Purchased treasury stock -38,000
Payments on long term debt -2,000,000
Payments on capital leases -365,000

Common stock issued 1,050,000

Proceeds from issuing nonconvertible bonds 3,000,000
Net cash flow from financing activities 1,535,000

Net increase in cash -6,118,000

Beginning balance - Cash 2,850,000

Ending balance - Cash

-3,268,000