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Exhibit 1

Lawn Master Mowers, Inc

Balance Sheet as of December 31, 2000-2002(in thousands)

2000 2001 2002

Cash 3449 891 508

A/R 1170 1292 1680

Inventory 1972 2280 2960

Total current assets 6591 4463 5148

Plant and other equip 6341 8483 9439

Other assets 302 355 370

TOTAL 13234 13301 14957

Bank Loan 0 0 1620

A/P-Trade 690 720 780

Reserve for federal income tax 110 130 150

Misc. accruals 79 121 148

Mortgage, current 250 250 250

Total current liabilities 1129 1221 2948

Mortgage payable 3750 3500 3250

Common stock 6000 6000 6000

(500,000 share @12.00par)

Earned Surplus 2355 2580 2759TOTAL 13234 13301 14957



Exhibit 2

Lawn Master Mowers, Inc

Income and retained earnings statements, 2000-2002(in thousands)

2000 2001

Net sales 11546 12761

COGS** 9756 10527

Gross Profit 1790 2257

Operating expenses*** 727 755

Profit before income and taxes 1063 1479

Mortgage interest 0 354

Profit before taxes 1063 1125

Provision for federal income taxes 528 550

Profit after taxes 535 575

Dividends 350 350

Retained Earnings 185 225

** includes straight-line depreciation of:

2000 $355

2001 $370

2002 $470

*** includes interest on bank loan but not mortgage interest



2002

14822

12302

2520

834

1686

332

1354

675

679

500

179



Exhibit 3

Lawn Masters Mowers, Inc

Estimated monthly sales and month-end

Accounts Receivable for 2003

(in thousands)Net Sales A/R end of month

January 1240 2300

February 1750 3290

March 2470 4730

April 2550 5720

May 2850 6180

June 1610 5240

July 1340 3300

August 1120 2730

September 640 1820

October 600 1310

November 630 1320

December 1200 1980




Income Statement

2003

Sales $18,000 (Given page 3)Cost of Goods Sold $14,900 (Given page 3)

Gross Proft $3,100

less Operating expense $900 (Given page 2)

less Mortgage interest $310 (Page 3,See note-> )

Net income before tax $1,890

U.S Taxes $945 (50% of 1890)

Net After Tax $945

less Dividends $500 (Exhibit 2)

Added to Retained Earnings $445



Mortgage interest is calculated at an annual rate of 9% of the unpaid balance of the mortga

loan at the time of payment.

3500 * 0.09 * 6/12= 158 (3500 =leftover balance in exhibit 1 balance s

3375 * 0.09 * 6/12= 152 (3500-125 payment in june =3375)

310



e

eet)




Balance Sheet

12/31/2003

Assets

Cash $500 (Given as minimum, Page 3)

A/R $1,980 (Given Exhibit 3)Inventory* $3,310 ( See note->)

Total current assets $5,790

Fixed Assets Net** $9,579 ( See note ->)

Other Assets $370 (Given Exhibit 1)

Total Assets $15,739

Liabilities

Bank Loan $2,142 (Plug)

A/P $750 (Page 2, one month purchases)

Reserve for federal income tax*** $245 (See note->)

Misc. Accruals $148 (Page 2, Exhibit 1)

Mortgage,current $250 (Exhibit 1)

Current Liabilities $3,535

Mortgagae Payable $3,000 (Exhibit 1 -250, page 3)

Common Stock $6,000 (Exhibit 1)

Retained Earnings**** $3,204 (See note->)

Total Liabilities $15,739



*Inventory:

Beg. Balance 2,960 (Exhibit 1)

+ Purcases 8,750 ( Page 2, 11 months @ 750 + 1 month @ 500)+ Labor & overhead 6,000 ( Page 2, 12 months @ 500 each)

+ Depreciation 500 ( Page 2)

Cost of gds manufactured 18,210

- COGS (14,900) ( Page 3)

Ending balance 3,310

**Fixed Assets:

End of prior period 9,439 (Exhibit 1)

+New equiptment 400 (Given top of page 3)

+recurring equip outlays 240 (Given top of page 3)

- depreciation current year (500) ( Page 2)

end of period 9,579

*** Federal income tax:

Total est. tax liability from I/S 945 ( from I/S, 50% of profit)

- 4 estimated payments in 2003 (700) ( Page 3, 4 payments of 175)

Net Due at 12/31/03 245

****Retained Earnings:

Beg Balance 2759 (Exhibit 1)

+ Net income 945 Income statement- Dividends (500) (Exhibit 2)

Ending balance 3204



Lawn Master Mowers,Inc

Projected monthly cash budget January through December, (in thous

Jan Feb Mar Apr May

Beginning A/R 1680 2300 3290 4730 5720

Current months credit sales 1240 1750 2470 2550 2850

less ending A/R (2300) (3290) (4730) (5720) (6180)Collections of A/R 620 760 1030 1560 2390

Drawdown of bank account 8

Total cash inflow 628 760 1030 1560 2390

Disbursements:

Payment of A/P 780 750 750 750 750

Overhead and labor 500 500 500 500 500

Operating expenses 75 75 75 75 75

Recurring equipment outlays 20 20 20 20 20

New equipment purchases 100 100 100

Repayment of mortgage principal

Mortgage interest

Balance of '02 taxes+'03 taxes 75 175

Dividends 250

Total Disbursements 1375 1345 1770 1620 1445

Monthly net inflow(+) or outflow(-) (747) (585) (740) (60) 945

Previous balance of bank loan 1620 2367 2952 3692 3752

Final bank credit required 2367 2952 3692 3752 2807



ands)

June July Aug Sep Oct Nov Dec

6180 5240 3300 2730 1820 1310 1320 (Exhibit 3)

1610 1340 1120 640 600 630 1200 (Exhibit 3)

(5240) (3300) (2730) (1820) (1310) (1320) (1980) (Exhibit 3)2550 3280 1690 1550 1110 620 540

2550 3280 1690 1550 1110 620 540

750 750 750 500 750 750 750 (Exhibit 1 &

500 500 500 500 500 500 500 (Page 2)

75 75 75 75 75 75 75 (Page 2, 90

20 20 20 20 20 20 20 (Page 3)

100 (Page 3)

125 125 (Page 3)

158 152 (page 3, ex

250 175 175 (Page 3,top

250 (Page 3)

1978 1345 1345 1520 1345 1345 1797

572 1935 345 30 (235) (725) (1257) (Total cash

2807 2235 300 (45) (75) 160 885

2235 300 (45) (75) 160 885 2142



page 2)

0/12 mos)

lained in I/S)

)

inf - total disbursements)



Lawn Master Mowers

Statement of cash flows 2003

Cash flow from operating activities:

Net Income $945

Additions (Sources of cash)Depreciation $500 (Page 2)

Increase in other current liabilities $95 federal inc

Deductions (Uses of cash)

Increase in net receivables ($300)

Increase in inventory ($350)

Decrease in accounts payable ($30)

Net Cash Flow from operating Activities $860

Cash flow from investing activities:

Acquisition of fixed assets (640) (400 machi

Cash flow from financing activities:

Increase in notes payable $522 (B/S 2142-

Increase(decrease) long-term debt ($250) (3250-3000

Common dividends paid ($500) (03 Income

Net cash flow from financing activities (228)

Net increase(decrease) in cash (8) (508-500 c

Beginning cash 508 (Exhibit 1)

Ending cash 500 (12/31/03



me tax 03 -federal income tax 02, 245-150)

nery + 240 recurring equipment expenditures page 3)

620 in exhibit 1)

, 250 mortgage paid)

statement)

sh)

alance sheet)

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