MR.

FULANATION AND WIFE

FINANCIAL STATEMENT
December 31, 2012

VlezMedina & Co.

A4 Reparto Mendoza
Ponce, P.R. 00791
Phone (787) 850-7164

Fax (787) 905-7926

To Mr. FULANATION and Wife

Ponce, Puerto Rico
Independent Accountants Compilation Report
I have compiled the accompanying statement of financial condition of Mr.
FULANATION and Wife, Mrs. FULANATIAN, as of December 31, 2012. I have not
audited or reviewed the accompanying financial statement and, accordingly, do not
express an opinion or provide any assurance about whether the financial statement is in
according with accounting principles generally accepted in the United States of America.
The owner is responsible for the preparation and fair presentation of the financial
statement in accordance with accounting principles generally accepted in the United
States of America and for designing, implementing, and maintaining internal control
relevant to the preparation and fair presentation of the financial statement.
My responsibility is to conduct the compilation in accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants. The objective of a compilation is to assist the owner in
presenting financial information in the form of financial statement without undertaking to
obtain or provide any assurance that there are no material modifications that should be
made to the financial statement.

April 9, 2013
License number xxxx
In Force

MR. FULANATION AND WIFE

FINANCIAL STATEMENT
December 31, 2012

Assets:
Cash
Investments:
Marketable Securities (Note 2)
Real Estate (Note 3)
Residence (Nota 3)
Personal Effects (Note 4)
Motor Vehicles (Note 4)
Total assets

$24,632
35,717
5,270,000
466,000
95,000
46,000
$5,937,349

Liabilities and Net Worth:

Accounts payable and accrued expenses
Line of credit
Long term debts (Note 5)
Estimated income taxes on the difference
between the estimated current values of assets
and the estimated current amounts of liabilities
and their income tax bases (Note 6)
Net Worth

$1,393
0
1,398,200

257,500
4,280,256

Total liabilities and net worth

$5,937,349

See Accountants Report and

Notes to Financial Statement.

MR. FULANATION AND WIFE

NOTES TO FINANCIAL STATEMENT
December 31, 2012

Note 1 - General
The enclosed financial statement shows the assets and liabilities of Mr.
FULANATION and Wife, Mrs. FULANATIAN. The assets are presented at their
estimated current values and the liabilities at the estimated current amounts.
Note 2 Marketable Securities
The estimated current value of the investments are either: (a) their quoted closing
prices or (b) for securities not traded on the financial statement date, amounts that fall
within the range of quoted bid and asked prices, as follows:
Name

No. of Shares

Value

Pepsiamericas, Inc.
Popular, Inc.
Bristol Myers Squib Co.
Staples, Inc.
Time Warner Cable, Inc.
Time Warner, Inc.
FINI, Corp.
Facebook, Inc.

25
700
200
400
1
6
10
300

$1,710
$14,553
$6,518
$4,560
$97
$286
$7
$7,986
$35,717

Note 3 - Estimated Current Value of Real Estate

The estimated current value of the real property was calculated based on the
original cost of improvements and compared to the selling price of similar properties in
the area.
The properties are as follows:

Value

Rental property located at____________,

Ponce, P.R.

$250,000

Rental property located at____________,

Ponce, P.R., pledge to secure note payable

$125,000

Rental property located at____________,

Ponce, P.R., pledge to secure mortgage payable

$140,000

MR. FULANATION AND WIFE

NOTES TO FINANCIAL STATEMENT
December 31, 2012

Note 3 - Estimated Current Value of Real Estate (continued)

Value

Commercial property located at _____________,

Ponce, P.R., pledge to secure note payable

$350,000

Commercial property located at _____________,

Ponce, P.R., pledge to secure note payable

$300,000

Commercial property located at _____________,

Ponce, P.R., pledge to secure note payable

$300,000

Commercial property located at _____________,

Ponce, P.R., pledge to secure note payable

$800,000

Commercial property located at _____________,

Ponce, P.R., pledge to secure note payable

$350,000

Lot of land of 499 sq. mts. and commercial building located at ___.
Yabucoa, P.R.

$300,000

Lot of land of 1.9 Spanish Cuerdas located at __________,

Yabucoa, P.R.

$200,000

Lot of land of 2,958 sq. mts. and a Gas Station located at ______
Ponce, P.R.

$800,000

Lot of land of 628.093 sq. mts. and building located at ________

Ponce, P.R.

$100,000

Lot of land of 512 sq. mts. and house located at _____________

Ponce, P.R.

$125,000

Lot of land of 4,115 sq. mts. located at ____________

Ponce, P.R. pledge to secure note payable

$300,000

Rental property and lot of land of 2,880 sq. mts. located at _____
Fajardo, P.R. pledge to secure note payable

$300,000

Farm land of 2 Spanish Cuerdas located at ___________,

Ponce, P.R.

$150,000

MR. FULANATION AND WIFE

NOTES TO FINANCIAL STATEMENT
December 31, 2012

Note 3 - Estimated Current Value of Real Estate (continued)

Apartment No. 210 at ________________________,
Hato Rey, P.R.

Value

$170,000

Commercial property located at _____________________,

Ponce, P.R. pledge to secure note payable

$210,000
$5,270,000

Note 4 - Personal Effects

Represents the estimated current value of this type of assets as of December 31,
2012, based on the fair market value of similar assets.
Note 5 - Long term debts
Consists of the following:
Mortgage payable to a financial institution
in monthly installments of $761
(including interests at 7.2%). This
debt is secured by rental property,
is due on 2033 and its
current balance is
$91,644
Note payable to a financial institution
in monthly installments of $9,867
(including interests at 6.25%). This
debt is secured by commercial property,
is due on 2022 and its
current balance is

859,776

Note payable to a financial institution

in monthly installments of $2,076
(including interests at 7.0%). This
debt is secured by commercial property,
is due on 2019 and its
current balance is

126,002

MR. FULANATION AND WIFE

NOTES TO FINANCIAL STATEMENT
December 31, 2012

Note 5 - Long term debts (Continued)

Note payable to a financial institution
in monthly installments of $1,353
(including interests at 8.75%) and a final
ballon payment of $130,882. This debt is
unsecured, is due on 2014 and its
current balance is

138,574

Note payable to a financial institution

in monthly installments of $1,369
(including interests at 7.25%). This
debt is secured by rental property,
is due on 2027 and its
current balance is

146,699

Loan payable to a financial institution

in monthly installments of $634
(including interests at 5.70%). This
debt is secured by a motor vehicle,
is due on 2017 and its
current balance is

35,505
$1,398,200

MR. FULANATION AND WIFE

NOTES TO FINANCIAL STATEMENT
December 31, 2012

Note 6 - Estimated income taxes on the differences between the estimated current values
of assets and their tax bases.
The estimated current amounts of liabilities equaled their tax bases. Estimated
income taxes have been provided on the excess of the estimated current values of assets
over their tax bases as if the estimated current values of the assets had been realized on
the statement date, using applicable tax laws and regulations. The provision will
probably differ from the amount of income taxes that eventually might be paid because
that amount is determined by the timing and the method of disposal or realization and the
tax laws and regulations in effect at the time of disposal or realization.
The estimated current values of assets exceeded their tax bases by $2,575,000 as
of December 31, 2012.
The income tax has been estimated at $257,500 using applicable tax laws and
regulations.
Asset

Base

FMV

% Difference

Marketable Securities
$35,717
$35,717 10
Real Estate
2,911,000 5,270,000 10
Residence
250,000
466,000 10

$0
2,359,000
216,000

Tax
$0
235,900
21,600

Note 7 - Other Income

Mr. FULANATION and Wife receive monthly rental income of approximately
$21,850. See the attached income statement for the year ended December 31, 2012, and
for the three months ended March 31, 2013.

MR. FULANATION AND WIFE

NOTES TO FINANCIAL STATEMENT
December 31, 2012

INCOME STATEMENT
12/31/12

3/31/13

$262,107
6,887
549
121
17,372
$287,036

$65,527
1,722
4,343
$71,592

Expenses:
Interests
Property taxes
Vehicles
Utilities
Insurances
Professional Services
Maintenance
Depreciation
Total

81,856
20,143
8,575
11,522
9,777
3,875
62,110
39,230
237,088

20,464
5,036
2,144
2,881
2,444
969
15,528
9,808
59,272

Net Income

$49,948

$12,320

Revenues:
Rental Income
Social Security Benefits
Dividends
Interests
Pension Mrs. Fulanatian
Total