TEAMMATES, INC.

INCOME STATEMENT
For the Year Ended December 31st
% OF
NET SALES
Operating Revenue:
Sales 2,059 5 4 0 00
Less: Sales Discount 5 6 5 7 00
Sales Returns and Allowances 24 5 6 8 00 30 2 2 5 00
Net Sales 2,029 3 1 5 00 100.0%
Cost of Merchandise Sold:
Merchandise Inventory, January 1st 215 1 6 0 00
Purchases 1,474 8 9 8 00
Less: Purchases Discount 11 0 0 6 00
Purch. Returns and Allowances 5 7 1 0 00 16 7 1 6 00
Net Purchases 1,458 1 8 2 00
Total Cost of Mdse. Available For Sale 1,673 3 4 2 00
Less: Mdse. Inventory, December 31st 227 4 5 0 00
Cost of Merchandise Sold 1,445 8 9 2 00 71.3%
Gross Profit on Operations 583 4 2 3 00 28.7%
Operating Expenses:
Advertising Expense 32 9 9 5 00
Credit Card Fee Expense 20 4 6 8 00
Depr. Expense - Office Equipment 3 0 0 00
Depr. Expense - Store Equipment 9 0 0 00
Insurance Expense 7 3 7 5 00
Miscellaneous Expense 22 3 8 3 00
Payroll Tax Expense 23 7 2 0 00
Rent Expense 57 4 0 0 00
Salary Expense 251 9 3 2 00
Supplies Expense 12 1 0 0 00
Uncollectible Accounts Expense 5 3 2 00
Utilities Expense 5 1 2 8 00
Total Operating Expenses 435 2 3 3 00 21.4%
Income from Operations 148 1 9 0 00 7.3%
Other Revenue:
Gain on Plant Assets 2 2 5 00
Interest Income 2 7 3 75
Total Other Revenue 4 9 8 75
Other Expenses:
Cash Short and Over 3 00
Interest Expense 2 3 2 8 33
Loss on Plant Assets 4 7 0 00
Total Other Expenses 2 8 0 1 33
Net Deduction 2 3 0 2 58 0.1%
Net Income Before Federal Income Tax 145 8 8 7 42 7.2%
Less: Federal Income Tax Expense 40 1 4 6 09 2.0%
Net Income After Federal Income Tax 105 7 4 1 33 5.2%
 TEAMMATES, INC.
STATEMENT OF STOCKHOLDERS' EQUITY
For the Year Ended December 31st
Capital Stock:
$100.00 Per Share
January 1st — 1,500 Shares Issued 150 0 0 0 00
Issued During Current Year — None 0 00
Balance, December 31st — 1,500 Shares Issued 150 0 0 0 00
Retained Earnings:
Balance, January 1st 149 1 1 8 00
Net Income After Federal Income Tax for the Year 105 7 4 1 33
Less Dividends Declared During the Year 90 0 0 0 00
Net Increase During the Year 15 7 4 1 33
Balance — December 31st 164 8 5 9 33
Total Stockholders' Equity — December 31st 314 8 5 9 33
 TEAMMATES, INC.
BALANCE SHEET
December 31st
Assets
Current Assets:
Cash 57 8 3 0 59
Petty Cash 3 0 0 00
Notes Receivable 2 5 0 00
Interest Receivable 3 1 25
Accounts Receivable 3 3 0 6 00
Less: Allowance For Uncollectible Accounts 1 3 7 2 00 1 9 3 4 00
Merchandise Inventory 227 4 5 0 00
Supplies 4 0 5 5 00
Prepaid Insurance 7 3 7 5 00
Total Current Assets 299 2 2 5 84
Plant Assets:
Office Equipment 17 7 5 0 00
Less: Accumulated Depreciation–Office Equipment 3 5 2 5 00 14 2 2 5 00
Store Equipment 76 8 9 0 00
Less: Accumulated Depreciation–Store Equipment 9 7 8 5 00 67 1 0 5 00
Total Plant Assets 81 3 3 0 00
Total Assets 380 5 5 5 84
Liabilities
Current Liabilities:
Notes Payable 7 8 0 0 00
Interest Payable 3 3 33
Accounts Payable 14 5 5 0 00
Employee Income Tax Payable 2 3 4 0 00
Federal Income Tax Payable 5 5 4 6 09
FICA Tax Payable 2 6 9 5 00
Sales Tax Payable 11 3 7 2 84
Unemployment Tax Payable–Federal 4 7 00
Unemployment Tax Payable–State 3 1 7 25
Health Insurance Premiums Payable 9 9 5 00
Dividends Payable 20 0 0 0 00
Total Liabilities 65 6 9 6 51
Stockholders' Equity
Capital Stock 150 0 0 0 00
Retained Earnings 164 8 5 9 33
Total Stockholders' Equity 314 8 5 9 33
Total Liabilities and Stockholders' Equity 380 5 5 5 84