Appalachian Freight Company Balance Sheet 31-Dec-05 Assets Current Assets: Cash Accounts Receivable Less: Allowance for

Uncollectible Accounts Inventories Prepaid Total current assets Noncurrent Assets: Property, Plant and Equipment Less: Accumulated Depreciation Other noncurrent asset Salary Advances Total noncurrent assets Total assets Liabilities Current Liabilities: Accounts Payable Salaries Payable Tax Payable Loans Payable Total current liabilities Noncurrent Liabilities Loans Payable Deferred Income tax liability Total noncurrent liabilities Total liabilities Stockholders' Equity Contributed Capital: Preferred Stock Common Stock Excess PIC: C/S, P/S Retained Earnings Total Stockholders' Equity Total liabilities and stockholders' equity 125,000 9,000 149,600 283,600 179,650 463,250 703,250 91,500 9,500 18,250 25,000 144,250 51,200 44,550 95,750 240,000 45,050 112,500 4,800 107,700 159,000 8,800 320,550

471,800 95,000

376,800 5,900 382,700 703,250

Delicious Bakery Balance Sheet 31-Dec-05 Assets Current Assets: Cash Accounts Receivable (fully collectible) Notes Receivable (bankrupt customers) Investment Securities (MV: $ 2575) Inventory Supplies Cash Surrender value of insurance on officer's lives Total current assets Property, Plant and Equipment Land Building Less: Acc. Dep: Building Fixtures Less: Acc. Dep: Fixtures Vehicle (Truck) Total asset Liabilities Current Liabilities: Trade Creditors Mortgage Payable, Current Interest Payable Accrued Misc. items Total current liabilities Noncurrent Liabilities Mortgage Payable Total noncurrent liabilities Other Liabilities Taxes Payable Total liabilities Stockholders' Equity Contributed Capital: Common Stock APIC: C/S Retained Earnings Total Stockholders' Equity Total liabilities and stockholders' equity 25,000 30,000 55,000 32,835 87,835 137,665 29,000 4,000 880 350 34,230 12,000 12,000 3,600 3,600 49,830 10,600 12,500 1,000 4,250 8,040 425 4,100 40,915

30,000 62,000 7,750 12,500 2,100 54,250 10,400 2,100 96,750 137,665