CHICO ELECTRONICS

Balance Sheet ($ thousands)

As of December 31

Assets

Current assets

Cash

$ 683

$325

Accounts receivable

1,490

3,599

Inventories

1,415

2,423

Prepaid expenses

15

13

Total current assets

3,603

$6,360

Property, plant and equipment, net

1,066

$1,541

Other assets

123

157

Total assets

$4,792

$8,058

Liabilities and Shareholders" Equity

Current liabilities

Notes payable to bank

$ -

$875

Current portion of long-term debt

38

$116

Accounts payable

485

933

Estimated income tax liability

588

472

Accrued expenses.

576

586

Customer advance payments

34

963

Total current liabilities

1,721

$3,945

Long-term debt

122

179

Other liabilities

81

131

Total liabilities

1,924

4,255

Shareholders" equity

Common stock, $1.00 par value; 1,000,000 shares authorized;

550,000 and 829,000 outstanding, respectively

Preferred stock, Series A 10%; $25 par value; 25,000 authorized

550

829

20,000 and 18,000 outstanding, respectively

500

450

Additional paid-in capital

450

575

Retained earnings

1,368

1,949

Total shareholders" equity

2,868

3,803

Total liabilities and shareholders" equity

$4,792

$8,058

CHICO ELECTRONICS

Income Statement ($ thousands)

For Years Ending December 31

Year 4

Year 5

Net sales

7,570

$12,065

Other income, net

$261

345

Total revenues.

7,831

12,410

Cost of goods sold

4,850

8048

General, administrative, and

1,531

2025

marketing expense

Interest expense

22

78

Total costs and expenses

6403

10151

Net income before tax

1,428

2,259

Income tax

628

994

Net income

$800

$1,265