and for the first quarter 2007 (thousands of dollars)

Exhibit 1

2004 2005Net sales $1,624 $1,916 Cost of goods sold $1,304 $1,535 Gross profit on sales $320 $381

$272 $307 Interest expense $27 $30 Net income before taxes $21 $44

Provision for income taxes $7 $15 Net income $14 $29

Exhibit 1 Operating Statements for Years Ending December 31, 2004-2006,

Operating expense b

and March 31, 2007 (thousands of dollars)

Exhibit 2

First Quarter Remaining Q.2006

$2,242 $608 $608 $608 Cash$1,818 $499 $499 $499 Accounts receivable

$424 $109 $109 $109 InventoryTotal current assets

$347 $94 $94 $94 $31 $8 $8 $8 Property & equipment$46 $7 $7 $7 Accumulated depreciation

Total PP&E, net$16 $2 $2 $2 $30 $5 $5 $5 Total assets

Accounts payableLine of credit payableAccrued expensesLong term debt, current portionCurrent liabiliities

Long-term debtTotal liabilities

Net worthTotal liabilities and net worth

Exhibit 2

2007 a 2007 a 2007 a

and March 31, 2007 (thousands of dollars)

Exhibit 2

2004 2005$45 $53

Accounts receivable $187 $231 Inventory $243 $278 Total current assets $475 $562

Property & equipment $187 $202 Accumulated depreciation ($74) ($99)Total PP&E, net $113 $103

Total assets $588 $665

Accounts payable $36 $42 Line of credit payable $149 $214 Accrued expenses $13 $14 Long term debt, current portion $24 $24 Current liabiliities $222 $294

Long-term debt $182 $158 Total liabilities $404 $452

Net worth $184 $213 Total liabilities and net worth $588 $665

Exhibit 2 Balance Sheet as of December 31, 2004-2006

First Quarter2006 2007$23 $32

$264 $290 $379 $432 $666 $755

$252 $252 ($134) ($142)$118 $110

$784 $865

$120 $203 $249 $250

$14 $12 $24 $24

$407 $489

$134 $128 $541 $617

$243 $248 $784 $865

Student Spreadsheet