a.

Change Analysis

Apple Blossom Cologne Company

Working Trial Balance - Balance Sheet
12-31-03

Per Audit Per Books Dollar

Item
12-31-02 12-31-03 Change
Assets :
101 Cash - Big City National Bank 513,617 846,541 332,924
102 Cash - Second National Bank 5,918 36,968 31,050
103 Petty Cash 420 500 80
105 Accounts Receivable 139,504 212,705 73,201
106 Allowance for Bad Debts - 11,889 - 19,919 - 8,030
107 Miscellaneous Receivables - - -
109 Inventory 873,766 719,647 - 154,119
110 Prepaid Insurance 35,336 38,636 3,300
111 Prepaid Rent 5,000 1,250 - 3,750
112 Office Supplies Inventory 8,657 9,964 1,307
113 Small Tools Inventory 7,162 6,541 - 621
115 Investment in Securities 474,518 223,033 - 251,485
116 Aloow. For Unreal. Gain/Loss 6,473 6,473 -
201 Long-Term Investment - - -
210 Land 82,250 82,250 -
220 Buildings 276,263 276,263 -
221 Accum. Depr. - Buildings - 65,416 - 74,625 - 9,209
230 Machinery and Equipment 540,845 1,006,045 465,200
231 Accum. Depr. - Mach. & Equip. - 160,866 - 189,848 - 28,982
240 Automotive Equipment 99,425 99,425 -
241 Accum. Depr. - Auto. Equip. - 52,798 - 77,654 - 24,856
250 Office Furniture & Fixtures 106,433 114,833 8,400
251 Accum. Depr. - Off. Furn. & Fix. - 37,581 - 43,113 - 5,532
Total Assets 2,847,037 3,275,915 428,878
Liabilities
301 Accounts Payable 223,161 135,550 - 87,611
302 Accrued Payroll Taxes 113,846 86,253 - 27,593
303 Wages and Salaries Payable 81,239 - 81,239
304 Accrued Property Taxes 14,113 21,988 7,875
305 Accrued Interest 10,625 15,833 5,208
306 Dividends Payable 17,575 23,125 5,550
307 Federal Income Tax Payable 63,772 25,000 - 38,772
308 Notes Payable - Short Term 125,000 - - 125,000
350 Lease Obligation - Short Term - - -
401 Notes Payable - Long Term - 475,000 475,000
450 Lease Obligation - Long Term - - -
Total Liabilities 649,331 782,749 133,418
Owners Equity
501 Common Stock 925,000 925,000 -
 505 Other Contributed Capital 736,550 736,550 -
506 Unreal. Gain/Loss Investments 6,473 6,473 -
601 Retained Earnings 272,435 529,683 257,248
605 Dividends - 17,575 - 23,125 - 5,550
610 Current Net Income 274,823 318,585 43,762
Total Owners Equity 2,197,706 2,493,166 295,460
Total Liabilities & Owners Equity 2,847,037 3,275,915 428,878

Apple Blossom Cologne Company

Working Trial Balance - Income Statement
12-31-03

Per Audit Per Books Dollar

Item
12-31-02 12-31-03 Change
Revenue :
701 Sales 3,906,577 4,272,623 366,046
703 Sales Return & Allowances - 29,820 - 33,051 - 3,231
Net Sales 3,876,757 4,239,572 362,815
Expenses :
801 Cost of Goods Sold 1,596,800 1,742,503 145,703
Gross Margin 2,279,957 2,497,069 217,112
Operating Expenses :
820 Wages and Salary Expense 1,528,700 1,618,643 89,943
821 Payroll Tax Expense 129,959 128,033 - 1,926
822 Depreciation Expense 64,422 80,459 16,037
823 Rent Expense 3,750 3,750 -
824 Office Supplies Expense 9,683 12,380 2,697
825 Small Tools Expense 3,359 6,419 3,060
826 Advertising Expense 12,714 44,934 32,220
827 Insurance 28,930 32,765 3,835
828 Repairs and Maintenance 17,869 14,240 - 3,629
829 Property Tax 14,113 21,988 7,875
830 Utilities 11,742 14,760 3,018
831 Professional Fees 13,347 37,140 23,793
832 Miscellaneous Expense 494 825 331
833 Provision for Bad Debts 11,156 22,790 11,634
834 Freight Expense 31,641 46,310 14,669
Total Operating Expenses 1,881,879 2,085,436 203,557
Net Income from Operations 398,078 411,633 13,555
Other Income (Expense) :
901 Interest Expense - 27,500 - 21,146 6,354
910 Gain (Loss) Sale of Investments - 25,975 25,975
920 Income from Investments 9,379 7,393 - 1,986
930 Gain (Loss) Sale of Fixed Assets 18,638 - 15,270 - 33,908
950 Miscellaneous Income - 10,000 10,000
Net Other Income 517 6,952 6,435
Net Income Before Taxes 398,595 418,585 19,990
940 Federal Income Tax 123,772 100,000 - 23,772
Net Income 274,823 318,585 43,762
Percent
Change

65%
525%
19%
52%
68%
-
-18%
9%
-75%
15%
-9%
-53%
0%
-
0%
0%
14%
86%
18%
0%
47%
8%
15%
15%

-39%
-24%
-100%
56%
49%
32%
-61%
-100%
-
-
-
21%

0%
 0%
0%
94%
32%
16%
13%
15%

Percent
Change

9%
11%
9%

9%
10%

6%
-1%
25%
0%
28%
91%
253%
13%
-20%
56%
26%
178%
67%
104%
46%
11%
3%

-23%
-
-21%
-182%
-
1245%
5%
-19%
16%