Comparative Income Statements
For the Year Ended, December 2005
Jeff Boulton
	IRHS Co				Julie's				Boulton Inc
Revenue
Sales Revenue	$ 1,627,500		100.0%		$ 1,950,000		100.0%		$ 1,687,500		100.0%
Sales Returns	(8,100)		(0.5)%		(12,900)		(0.7)%		(36,450)		(2.2)%
Net Sales	1,619,400		99.5%		1,937,100		99.3%		1,651,050		97.8%
Cost of Goods Sold	(1,149,774)		(70.6)%		(1,026,663)		(52.6)%		(1,073,183)		(63.6)%
Gross Profit	469,626		28.9%		910,437		46.7%		577,868		34.2%
Operating Expenses															#DIV/0!				#DIV/0!
Advertising Expense	$ 33,610		2.1%		$ 39,940		2.0%		$ 34,830		2.1%
Car Expense	32,950		2.0%		39,480		2.0%		33,960		2.0%
Depreciation Expense - Furniture	8,330		0.5%		14,000		0.7%		14,100		0.8%
Depreciation Expense - Equipment	5,810		0.4%		7,900		0.4%		8,550		0.5%
Depreciation Expense - Truck	9,520		0.6%		5,100		0.3%		20,550		1.2%
Freight-out	18,665		1.1%		21,710		1.1%		18,665		1.1%
Insurance Expense	6,300		0.4%		14,700		0.8%		14,700		0.9%
Maintenance Expense	7,700		0.5%		6,200		0.3%		10,500		0.6%
Miscellaneous Expense	5,880		0.4%		13,600		0.7%		8,550		0.5%
Rent Expense	520		0.0%		3,400		0.2%		135,000		8.0%
Salaries Expense	1,290		0.1%		7,900		0.4%		14,250		0.8%
Utilities Expense	16,725		1.0%		20,200		1.0%		17,465		1.0%
Total Operating Expenses	147,300		9.1%		194,130		10.0%		331,120		19.6%
Operating Income	$ 322,326		19.8%		$ 716,307		36.7%		$ 246,748		14.6%
Interest Expense	9,555		0.6%		31,518		1.6%		89,738		5.3%
Loss on Sale of Assets	5,775		0.4%		5,500		0.3%		13,500		0.8%
Total Non-Operating Expenses	15,330		0.9%		37,018		1.9%		103,238		6.1%
Net Income	$ 306,996		18.9%		$ 679,290		34.8%		$ 143,510		8.5%
NOTES:
	IRHS Co				Julie's				Boulton Inc
Last year's ending Accounts Receivable:	121,660				110,600				102,500
Last year's ending Inventory:	197,540				232,400				422,000
Last year's ending Total Assets:	2,055,071				2,283,412				4,686,100
All sales are on account.
Comparative Balance Sheets
For the Year Ended, December 2005
Jeff Boulton
	IRHS Co				Julie's				Boulton Inc
Assets
Current Assets
Bank	$ 88,200		3.9%		$ 84,000		1.8%		$ 216,000		3.0%
Accounts Receivable	110,600		4.8%		102,500		2.2%		97,500		1.4%
Merchandise Inventory	232,400		10.2%		422,000		9.0%		601,500		8.5%
Supplies	7,350		0.3%		9,000		0.2%		10,500		0.1%
Prepaid Insurance	1,050		0.0%		19,000		0.4%		19,500		0.3%
Prepaid Rent	4,900		0.2%		13,000		0.3%		37,500		0.5%
Total Current Assets	444,500		19.5%		649,500		13.9%		982,500		13.8%
Fixed Assets
Land	1,157,112		50.7%		3,017,000		64.4%		4,678,500		65.9%
Equipment	922,600		40.4%		1,474,000		31.5%		2,085,000		29.4%
Acc. Dep. - Equipment	(461,300)		(20.2)%		(737,000)		(15.7)%		(1,042,500)		(14.7)%
Delivery Truck	367,500		16.1%		471,000		10.1%		661,500		9.3%
Acc. Dep. - Truck	(147,000)		(6.4)%		(188,400)		(4.0)%		(264,600)		(3.7)%
Total Fixed Assets	1,838,912		80.5%		4,036,600		86.1%		6,117,900		86.2%
Total Assets	$ 2,283,412		100.0%		$ 4,686,100		100.0%		$ 7,100,400		100.0%
Liabilities and Owner's Equity
Current Liabilities
Accounts Payable	$ 133,000		5.8%		$ 144,000		3.1%		$ 150,000		2.1%
GST Payable	15,540		0.7%		29,100		0.6%		27,000		0.4%
GST Recoverable	(6,300)		(0.3)%		(2,500)		(0.1)%		(27,750)		(0.4)%
PST Payable	12,740		0.6%		16,100		0.3%		39,450		0.6%
Current Portion of Mortgage Payable	80,500		3.5%		71,500		1.5%		134,250		1.9%
Loan Payable	70,000		3.1%		114,000		2.4%		318,000		4.5%
Total Current Liabilities	305,480		13.4%		372,200		7.9%		640,950		9.0%
Long-Term Liabilities
Mortgage Payable	805,000		35.3%		715,000		15.3%		1,342,500		18.9%
J. Boulton, Capital
Equity, Beginning of the Period	903,386		39.6%		2,957,611		63.1%		5,008,690		70.5%
Add: Net Income (Loss)	306,996		13.4%		679,290		14.5%		143,510		2.0%
Less: Drawings	37,450		1.6%		38,000		0.8%		35,250		0.5%
Equity, End of the Period	1,172,932		51.4%		3,598,900		76.8%		5,116,950		72.1%
Total Liabilities and Owner's Equity	$ 2,283,412		100.0%		$ 4,686,100		100.0%		$ 7,100,400		100.0%
Comparative Income Statements									THIS IS THE ANSWER KEY
For the Year Ended, December 2005
Jeff Boulton
	IRHS Co				Julie's				Boulton Inc
Revenue
Sales Revenue	$ 1,627,500		100.0%		$ 1,950,000		100.0%		$ 1,687,500		100.0%
Sales Returns	(8,100)		(0.5)%		(12,900)		(0.7)%		(36,450)		(2.2)%
Net Sales	1,619,400		99.5%		1,937,100		99.3%		1,651,050		97.8%
Cost of Goods Sold	(1,149,774)		(70.6)%		(1,026,663)		(52.6)%		(1,073,183)		(63.6)%
Gross Profit	469,626		28.9%		910,437		46.7%		577,868		34.2%
Operating Expenses															#DIV/0!				#DIV/0!
Advertising Expense	$ 33,610		2.1%		$ 39,940		2.0%		$ 34,830		2.1%
Car Expense	32,950		2.0%		39,480		2.0%		33,960		2.0%
Depreciation Expense - Furniture	8,330		0.5%		14,000		0.7%		14,100		0.8%
Depreciation Expense - Equipment	5,810		0.4%		7,900		0.4%		8,550		0.5%
Depreciation Expense - Truck	9,520		0.6%		5,100		0.3%		20,550		1.2%
Freight-out	18,665		1.1%		21,710		1.1%		18,665		1.1%
Insurance Expense	6,300		0.4%		14,700		0.8%		14,700		0.9%
Maintenance Expense	7,700		0.5%		6,200		0.3%		10,500		0.6%
Miscellaneous Expense	5,880		0.4%		13,600		0.7%		8,550		0.5%
Rent Expense	520		0.0%		3,400		0.2%		135,000		8.0%
Salaries Expense	1,290		0.1%		7,900		0.4%		14,250		0.8%
Utilities Expense	16,725		1.0%		20,200		1.0%		17,465		1.0%
Total Operating Expenses	147,300		9.1%		194,130		10.0%		331,120		19.6%
Operating Income	$ 322,326		19.8%		$ 716,307		36.7%		$ 246,748		14.6%
Interest Expense	9,555		0.6%		31,518		1.6%		89,738		5.3%
Loss on Sale of Assets	5,775		0.4%		5,500		0.3%		13,500		0.8%
Total Non-Operating Expenses	15,330		0.9%		37,018		1.9%		103,238		6.1%
Net Income	$ 306,996		18.9%		$ 679,290		34.8%		$ 143,510		8.5%
NOTES:
	IRHS Co	0		0	Julie's				Boulton Inc
Last year's ending Accounts Receivable:	121,660				110,600				102,500
Last year's ending Inventory:	197,540				232,400				422,000
Last year's ending Total Assets:	2,055,071				2,283,412				4,686,100
All sales are on account.
Comparative Balance Sheets									THIS IS THE ANSWER KEY
For the Year Ended, December 2005
Jeff Boulton
	IRHS Co				Julie's				Boulton Inc
Assets
Current Assets
Bank	$ 88,200		3.9%		$ 84,000		1.8%		$ 216,000		3.0%
Accounts Receivable	110,600		4.8%		102,500		2.2%		97,500		1.4%
Merchandise Inventory	232,400		10.2%		422,000		9.0%		601,500		8.5%
Supplies	7,350		0.3%		9,000		0.2%		10,500		0.1%
Prepaid Insurance	1,050		0.0%		19,000		0.4%		19,500		0.3%
Prepaid Rent	4,900		0.2%		13,000		0.3%		37,500		0.5%
Total Current Assets	444,500		19.5%		649,500		13.9%		982,500		13.8%
Fixed Assets
Land	1,157,112		50.7%		3,017,000		64.4%		4,678,500		65.9%
Equipment	922,600		40.4%		1,474,000		31.5%		2,085,000		29.4%
Acc. Dep. - Equipment	(461,300)		(20.2)%		(737,000)		(15.7)%		(1,042,500)		(14.7)%
Delivery Truck	367,500		16.1%		471,000		10.1%		661,500		9.3%
Acc. Dep. - Truck	(147,000)		(6.4)%		(188,400)		(4.0)%		(264,600)		(3.7)%
Total Fixed Assets	1,838,912		80.5%		4,036,600		86.1%		6,117,900		86.2%
Total Assets	$ 2,283,412		100.0%		$ 4,686,100		100.0%		$ 7,100,400		100.0%
Liabilities and Owner's Equity
Current Liabilities
Accounts Payable	$ 133,000		5.8%		$ 144,000		3.1%		$ 150,000		2.1%
GST Payable	15,540		0.7%		29,100		0.6%		27,000		0.4%
GST Recoverable	(6,300)		(0.3)%		(2,500)		(0.1)%		(27,750)		(0.4)%
PST Payable	12,740		0.6%		16,100		0.3%		39,450		0.6%
Current Portion of Mortgage Payable	80,500		3.5%		71,500		1.5%		134,250		1.9%
Loan Payable	70,000		3.1%		114,000		2.4%		318,000		4.5%
Total Current Liabilities	305,480		13.4%		372,200		7.9%		640,950		9.0%
Long-Term Liabilities
Mortgage Payable	805,000		35.3%		715,000		15.3%		1,342,500		18.9%
J. Boulton, Capital
Equity, Beginning of the Period	903,386		39.6%		2,957,611		63.1%		5,008,690		70.5%
Add: Net Income (Loss)	306,996		13.4%		679,290		14.5%		143,510		2.0%
Less: Drawings	37,450		1.6%		38,000		0.8%		35,250		0.5%
Equity, End of the Period	1,172,932		51.4%		3,598,900		76.8%		5,116,950		72.1%
Total Liabilities and Owner's Equity	$ 2,283,412		100.0%		$ 4,686,100		100.0%		$ 7,100,400		100.0%