EXHIBIT 11st Qtr.

1988 1989 1990 1991Net sales 1697 2013 2694 718Cost of goods sold Beginning inventory 183 239 326 418 Purchases 1278 1524 2042 660

1461 1763 2368 1078Ending inventory 239 326 418 556Total cost of goods sold 1222 1437 1950 522

GROSS PROFIT 475 576 744 196

Operating expense (b) 425 515 658 175Interest expense 13 20 33 10Net income before taxes 37 41 53 11Provision for income taxes 6 7 9 2Net income 31 34 44 9

(a) In the first quarter of 1990 sales were $698,000 and net incomewas $7,000.(b) Operating expenses include a cash salary for Mr. Butler of$75,000 in 1988, $85,000 in 1989, $95,000 in 1990, and $22,000 inthe 1st quarter of 1991. Mr. Butler also received some of theperquisites commonly taken by owners of privately held businesses.EXHIBIT 2

1st Qtr.1988 1989 1990 1991

Cash 58 49 41 31Accounts receivable, net 171 222 317 345Inventory 239 325 418 556 Current assets 468 596 776 932Property, net 126 140 157 162 Total assets 594 736 933 1094

Notes payable, bank 146 233 247Notes payable, Mr. Stark 105

Notes Payable, trade 157Accounts payable 124 192 256 243Accrued expenses 24 30 39 36Long-term debt, current portion 7 7 7 7 Current liabilities 260 375 535 690Long-term debt 64 57 50 47 Total liabilities 324 432 585 737Net worth 270 304 348 357 Total liabilities and 594 736 933 1094 net worth

FUNDS FLOW STATEMENT between 1988 to 1990 1988 1989 1990Sources CR 1.8 1.589333 1.450467Bank borrowing 233 NW/TA 0.454545 0.413043 0.37299Trade credit (accounts and n 132 AR to sales 0.100766 0.110283 0.117669retained earnings 78 Inve/sales 0.140837 0.161451 0.15516cash 17 ITO 5.112971 4.421538 4.665072 0.938849accured expenses 15 Invt. Period71.38707 82.55045 78.24103 388.7739Total Sources 475 ARTO 9.923977 9.067568 8.498423 2.081159

ACP 36.77961 40.25335 42.94915 175.383Uses Payable 10.30645 7.9375 7.976563 2.716049Inventory 179 APP 35.41471 45.98425 45.75906 134.3864AR 146 CCC 72.75197 76.81955 75.43111 429.7706Buy out interest from Mr. Sta 105 AR+Inve 410 547 735 901reduced long term debt 14 (AR+Inve)/ 0.241603 0.271734 0.272829 1.254875increase in FA 31 AP/Sales 0.07307 0.09538 0.095026 0.33844Total Uses 475 Increase from 1988-90 0.021956

financing as % of sales 59.14909increas in AR&Inve 325

B/S % of slaes Forecasting cost of forgoing discount of 2% for 36 days of 1000ASSETS 0.020408cash 0.015219 54.78842 annualized A/R 0.117669 423.608 0.206916inventory 0.15516 558.5746CA 1036.971property (grow with sales) 0.336303 209.7996

total asset 1246.771

LIABILITIES if no discount is taken

notes payable bank (Plug) 619.9613 349.0869accoiunts payable trade (10/365*purcha75.24288 346.1173 270.8744accrured expe (as per sale) 0.014477 52.11581long term debt 7CL 754.32long term debt 47total liability 801.32net worth with retained earning 445.4506total liability and net worth 1246.771

P/L Forecasting % on sales

Sales 3600Less cost of goods sold 0.723831beginning inventory 418

purchase 2746.3653164.365 Tax Calculation

end Inventory 0.15516 558.5746 50 0.15 7.5COGS 0.723831 2605.791 25 0.25 6.25GP 994.2094 54.84935 0.34 18.64878less Operating expe 0.244246 879.2873 32.39878operating income 114.922plus purchase discount (2% 0n purchase) 54.92731less Interest (10*4 qts) 40net income before tax 129.8494tax (15% on 1st 50k, 25% on next 25K 34% on rest) 32.39878net income after tax 97.45057

3600 0.336303 209.7996

0.757981 2728.731

0.723831

0.244246

0.0152190.117669

0.155160.2880480.0582780.346325

00.086488

000

0.0950260.0144770.0025980.198589

0.018560.2171490.1291760.346325

cost of forgoing discount of 2% for 36 days of 1000