BOYER COMPANY

Income Statement

For Year Ended December 31, 2002

Sales

$19,000

Operating expenses:

Depreciation expense

$ 2,300

Other operating expenses

12,000

14,300

Operating income

4,700

Loss on sale of land

1,500

Income before tax expense

3,200

Tax expense

1,000

Net income

$2,200

Supplemental information:

a. Dividends declared and paid

$ 800

b. Land purchased

3,000

c. Land sold

500

d. Equipment purchased

2,000

e. Bonds payable retired

2,000

f. Common stock sold

1,400

g. Land acquired in exchange for common stock

3,000

h. Increase in accounts receivable

400

i. Increase in inventories

800

j. Increase in accounts payable

500

k. Decrease in income taxes payable

400