Mountain State Sporting Goods (Fraud Investigation Phases I-III.)

Appendix A-4 Mountain State Sporting Goods Balance Sheet Analysis Source: U.S. Income Tax Return for S Corporation (Form 1120S)

2002 2003 2004 2005 2006 2007 2008 Assets

Current Assets Cash 72,963 60,540 65,057 38,220 54,162 82,803 63,904 Inventory 169,025 204,032 214,046 236,681 264,575 281,147 296,776

Tot. Current Assets 241,988 264,572 279,103 274,901 318,737 363,950 360,680

Fixed Assets Equipment 43,996 47,124 49,735 64,642 80,118 83,498 123,498 Accumulated Deprec. (31,497) (36,904) (42,729) (54,376) (60,236) (66,824) (73,358)

Net Fixed Assets 12,499 10,220 7,006 10,266 19,882 16,674 50,140

Other Assets 1,253 1,253 1,253 1,253 1,253 1,253 1,253

Total Assets 255,740 276,045 287,362 286,420 339,872 381,877 412,073

Liabilities & Equity Current Liabilities Payroll Taxes Payable 4,879 5,560 15,843 30,190 49,169 51,789 Sales Tax Payable 10,901 12,199 12,456 13,802 16,593 18,410 Other Current Liabilities 12,821

Tot. Current Liabilities 12,821 15,780 17,759 28,299 43,992 65,762 70,199

Long-Term Debt 110,186 89,690 67,056 24,534 34,441 44,441 42,579

Total Liabilities 123,007 105,470 84,815 52,833 78,433 110,203 112,778

Equity Capital Stock 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Retained Earnings 131,733 169,575 201,547 232,587 260,439 270,674 298,295

Total Equity 132,733 170,575 202,547 233,587 261,439 271,674 299,295

Total Liabilities & Equity 255,740 276,045 287,362 286,420 339,872 381,877 412,073