financial statement
Balance Sheet
ASSETS December 31, 2009
Cash $20,900,000
Marketable Securities $117,000,000
Accounts Receivable $33,000,000
Less: Allowance for Bad Debts $(880,000)
Net Accounts Receivable $32,120,000
Inventory
Raw Materials $2,000,000
Work-in-process $1,000,000
Finished Goods $5,000,000
Inventory Purchased for Resale $24,000,000
Total Inventory $32,000,000
Plant, Property and Equipment $6,700,000
Less: Accumulated Depreciation $(320,000)
Net Plant, Property and Equipment $6,380,000
Prepaid Expenses $200,000
Goodwill and Other Purchased Intangibles $28,000,000
Less: Amortization $(700,000)
Net Goodwill and Other Purchased Intangibles $27,300,000
Total Assets $235,900,000
LIABILITIES AND OWNERS’ EQUITY
Accounts Payable $22,000,000
Accrued Advertising $11,800,000
Other Liabilities and Accrued Expense $1,400,000
Current Portion of Long-Term Debt $2,300,000
Long Term Debt $57,400,000
Preferred Stock, $100 par value per share,
100,000 authorized, 0 shares issued and outstanding $0
Common Stock, $1 par value per share,
250,000,000 shares authorized, 13,000,000 shares
issued, 12,900,000 outstanding $13,000,000
Additional Paid-in-Capital in excess of par value, Common Stock $117,000,000
Treasury Stock $(1,000,000)
Retained Earnings (less Cash Dividends Paid) $12,000,000 $11,000,000
Total Liabilities and Owner’s Equity $235,900,000
Income Statement
December 31, 2009 December 31, 2008
Sales Revenues $51,000,000 $10,300,000
Less: Sales Returns $(1,000,000) $(300,000)
Net Sales Revenues $50,000,000 $10,000,000
Less: Cost of Goods Sold $(9,000,000) $(4,000,000)
Gross Profit $41,000,000 $6,000,000
Operating Expenses:
Advertising and Sales $(26,000,000) $(3,000,000)
Depreciation $(160,000)
Salaries and Wages $(1,700,000) $(1,400,000)
Product Development $(4,000,000) $(1,200,000)
Merger and Acquisition Related Costs, including
Amortization of Goodwill and Other Intangibles $(700,000) $0
Total Operating Expenses $(32,560,000)
Income from Continuing Operations Before Income Taxes $8,440,000
Less: Income Taxes at 35% $(2,954,000)
Income from Continuing Operations $5,486,000
Discontinued Operations:
Income from Operations of Discontinued Division
(less applicable income taxes) $350,000
Loss on Disposal of Discontinued Division
(less applicable income taxes) $(150,000)
Total Gain from Discontinued Operations $200,000
Extraordinary Items:
Loss from fire (less applicable income taxes) $(200,000)
Net Income $5,486,000
Divisional Revenues
Books $15,000,000 $7,000,000
Online gaming $25,000,000
Customized MP3/CD/DVD $10,000,000 $3,000,000
Customized MP3/CD/DVD Inventory at end of 2009 $8,000,000
