Exhibit 2 Balance Sheet and Cash Flow Forecasts for American Rayon, Inc.

(millions of dollars)

At December 31, 1960

ASSETS LIABILITIES & NET WORTH
Cash $ 2.6 Accounts payable $ 2.9
U. S. Government Accrued items 1.1
Securities 20.0
Accounts receivable 11.9
Inventories 10.5
Net plant 23.9
Other .3 Net worth 65.2
TOTAL $ 69.2 TOTAL $ 69.2

Pro Forma Cash Flow Forecasts

1961 1962 1963 1964 1965 1966 1967
Sales $ 55 $ 55 $ 55 $ 52 $ 48 $ 43 $ 40
Net earnings 2.5 2.8 2.8 1.9 1.4 1.0 .4
Depreciation 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Cash flow from operations 5.5 5.8 5.8 4.9 4.4 4.0 3.4