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Dreamgirls Enterprises

Income Statement
For the period ended December 31, 2009

Note

NET SALES REVENUE 1

LESS: COST OF SALES 2

GROSS PROFIT

ADD: OTHER INCOME 3

TOTAL INCOME

LESS: OPERATING EXPENSES

DISTRIBUTION COSTS 4

ADMINISTRATIVE EXPENSES 5

INTEREST EXPENSE

NET INCOME
s

r 31, 2009

2,519,000.00

1,259,500.00

1,259,500.00

53,725.00

1,313,225.00

473,100.00

703,975.00

108,400.00 1,285,475.00

27,750.00
Dreamgirls Enterprises
Statement of Changes in Owner's Equity
For the period ended December 31, 2009

J. Hudson, Capital - January 1, 2009


Add: Net Income 27,750.00
Additional Investment 2,687,500.00
Sub-total
Less: J. Hudson, Drawing
2,705,000.00

2,715,250.00
5,420,250.00
1,475,000.00
3,945,250.00
Dreamgirls Enterprises
Statement of Financial Position
As of December 31, 2009

Note

ASSETS

Current Assets
Cash 1,013,355.00
Investment in Trading Securities 107,000.00
Trade and Other Receivables - net 6 606,700.00
Merchandise Inventory 366,220.00
Prepaid Expenses 7 237,200.00

Non-current Assets
Property, Plant and Equipment - net 8

Total Assets

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Trade and Other Payables 9

Non-current Liabilities
Mortgage Payable 1,250,000.00
Loans Payable 1,000,000.00

Owner's Equity
J. Hudson, Capital

Total Liabilities and Owner's Equity


2,330,475.00

4,407,150.00

6,737,625.00

542,375.00

2,250,000.00

3,945,250.00

6,737,625.00
Dreamgirls Enterprises
Statement of Cash Flows
For the Period Ended December 31, 2009

Cash flows from operating activities


Receipts:
Cash received from customers
Payments:
Interest paid
Purchase of store supplies
Investment of trading securities
Purchase of merchandise
Operating expenses
Net cash provided by (used in) operating activities

Cash flows from investing activities


Proceeds from sale of furniture and fixtures
Acquisition of store equipment
Net cash provided by (used in) investing activities

Cash flows from financing activities


Proceeds from mortgage payable
Proceeds from loans payable
Additional cash investment
Withdrawals
Net cash provided by (used in) financing activities

Net increase (decrease) in cash


Cash balance, January 1, 2007
Cash balance, December 31, 2007
ises
lows
ber 31, 2009

1,903,500.00

(83,400.00)
(88,000.00)
(107,000.00)
(928,345.00)
(1,088,900.00)
(392,145.00)

16,000.00
(328,000.00)
(312,000.00)

1,250,000.00
1,000,000.00
142,500.00
(1,475,000.00)
917,500.00

213,355.00
800,000.00
1,013,355.00
NOTES TO FINANCIAL STATEMENTS

Note 1 - Net Sales Revenue


Sales
Less: Sales Returns and Allowances
Sales Discount
Net Sales Revenue

Note 2 - Cost of Sales


Merchandise Inventory, January 1, 2009
Add: Net Cost of Purchases
Purchases
Less: Purchase Returns and Allowances 223,500.00
Purchase Discount 10,430.00
Net Purchases
Add: Freight-in
Cost of Goods Available for Sale
Less: Merchandise Inventory, December 31, 2009
Cost of Sales

Note 3 - Other Income


Subscription Income
Interest Income
Gain on Sale of Furniture and Fixtures
Total

Note 4 - Distribution Costs


Sales Commission
Freight-out
Store Supplies Expense
Representation and Entertainment Expense
Advertising Expense
Depreciation Expense - Store Equipment
Total

Note 5 - Administrative Expenses


Salaries Expense
Taxes and Licenses
Doubtful Accounts Expense
Rent Expense
Depreciation Expense - Building
Depreciation Expense - Furniture and Fixtures
Total

Note 6 - Trade and Other Receivables


Accounts Receivable 562,500.00
Less: Allowance for Doubtful Accounts 56,250.00
Notes Receivable
Interest Receivable
Total

Note 7 - Prepaid Expenses


Store Supplies
Prepaid Rent
Prepaid Advertising
Total

Note 8 - Property, Plant and Equipment

Land
Cost 2,545,000.00
Less: Accumulated Depreciation -
Carrying Value 2,545,000.00

Note 9 - Trade and Other Payables


Accounts Payable 279,375.00
Notes Payable 168,000.00
Interest Payable 25,000.00
Unearned Subscriptions Income 70,000.00
Total 542,375.00
2,843,000.00
300,000.00
24,000.00 324,000.00
2,519,000.00

250,000.00

1,541,000.00

233,930.00
1,307,070.00
68,650.00 1,375,720.00
1,625,720.00
366,220.00
1,259,500.00

50,000.00
2,450.00
1,275.00
53,725.00

142,150.00
137,250.00
74,800.00
54,500.00
48,000.00
16,400.00
473,100.00

231,000.00
227,000.00
56,250.00
100,000.00
75,000.00
14,725.00
703,975.00
506,250.00
98,000.00
2,450.00
606,700.00

13,200.00
200,000.00
24,000.00
237,200.00

Furniture and
Building Store Equipment Fixtures Total
1,500,000.00 328,000.00 139,500.00 4,512,500.00
75,000.00 16,400.00 13,950.00 105,350.00
1,425,000.00 311,600.00 125,550.00 4,407,150.00