to 2005 Financial Statements
1. The company's consolidated financial statements are prepared in
conformity with United States
generally accepted accounting principles.
2. Inventories are stated at the cost, determined by identified
cost for finished products and work in
3. Property, plant and equipment is stated at cost. Depreciation
of plant, property, and equipment is calculated by the straight-line
method over the estimated lives.
4. For the purpose of the statements of cash flows, the Company
considers all highly liquid investments that are readily convertible
into cash and/or mature within three months or less to be cash
Finance leases of the
Companies other than those where ownership of the lease assets is
transferred to the lessee, are accounted for as operating leases.
Net loss for the year
to Pro Forma Statements
problem was fixed, thus increasing production and sales. In 2006,
revenues increased by 60%. In 2007, revenues increased by 20%. And in
2008, revenues increased by 20%.
Advertising expenses were
increased due to launch of new 37 inch plasma HDTV compatible TV.
decreased significantly due to less subassembly inventory held from
quarter to quarter.
Shipping charges increased
due to an increase in sales.
Research and Development
increased significantly due to new development of a product.
Quality Control expenses
increased to insure a higher level of quality in our products.
Overdraft interest charges
decreased in 2007 and 2008.
Net losses were reported
for the years 2006 and 2007. In 2008, net income of $639,059 may be reported.
No cash is reported on our
balance sheets due to a large overdraft. Our cash goes directly to the
payment of the debt.
overdraft will have decreased from $23 million dollars to $16 million