MARTIN MANUFACTURING COMPANY

A PRO FORMA INCOME STATEMENT

FOR THE YEAR ENDED DEC,31,2010

Sales Revenue $6.500.000

Less : Cost Of Goods Sold ($4.745.000)
Gross Profits $1.755.000
Less : Operating Expense
Selling Expense $ 832.512
General and Administrative Expense $ 532.808
Depreciation Expense $ 185.000
Total Operating Expense ($1.550.320)
Operating Profits $ 204.680
Less : Interest Expense $ (97.000)
Net Profit Before Taxes $ 107.680
Less : Taxes ( Rate=40%) $ (43.072)
Net Profit After Taxes $ 64.608
Less : Preffered Stock Dividends $ (20.000)
Earnings Available For Common Stockholders $ 44.608
 MARTIN MANUFACTURING COMPANY
A PRO FORMA BALANCE SHEET
FOR THE YEAR ENDED DEC,31,2010

Current Assets
Cash $ 25.000
Account Receiveable $ 890.411
Inventories $ 677.857
Total Current Assets $1.593.268
Gross Fixed Assets (at cost) $2.493.819
Less : Accumulated Depreciation $ 685.000
Net Fixed Assets $1.808.819
Total Assets $3.402.087

Current Liabilities
Account Payable $ 276.000
Notes Payable $ 311.000
Accruals $ 75.000
Total Current Liabilities $ 662.000
Long Term Debt $1.165.250
Total Liabilities $1.827.250
Stockholders' Equity
Preferred Stock $ 50.000
Common Stock $ 400.000
Paid In Capital In Excess Of Par Value $ 593.750
Retained Earnings $ 344.608
Total Stockholders' Equity $1.388.358
External Financing Required $ 186.479
Total Liabilities and Stockholders' Equity $3.402.087