SouthWare Demo Company PAGE 1 Income Statement June 1998 June 1998 June 1998 June 1997 June 1997 PTD Actual YTD Actual PTD Actual YTD Actual Sales Sales 250.00 1,678.60 .00 .00 Sales 22,117.55 132,528.54 .00 .00 ------------- ------------- ------------- ------------- Total Sales $ 22,367.55 $ 134,207.14 $ .00 $ .00 Cost of Goods Sold Cost of Sales .00 100.00 .00 .00 Cost of Sales 11,648.83 73,455.42 .00 .00 Cost of Sales - Miscellaneous .00 150.00 .00 .00 ------------- ------------- ------------- ------------- Total Cost of Goods Sold $ 11,648.83 $ 73,705.42 $ .00 $ .00 ------------- ------------- ------------- ------------- Gross Profit $ 10,718.72 $ 60,501.72 $ .00 $ .00 Operating Expenses Salaries 2,700.00 15,435.00 .00 .00 Officer Salaries 1,800.00 10,800.00 .00 .00 Wages 1,846.20 10,875.80 .00 .00 Payroll Tax Expense - FICA 485.47 2,843.84 .00 .00 Payroll Tax Expense - FUI 24.37 254.98 .00 .00 Payroll Tax Expense - SUI 31.46 266.76 .00 .00 Building/Land Lease 750.00 4,500.00 .00 .00 Utilities 118.89 608.64 .00 .00 Telephone 105.52 643.20 .00 .00 Repair and Maintenance 86.62 149.37 .00 .00 Mileage Expense .00 (150.00) .00 .00 Insurance - Employees 90.00 560.00 .00 .00 Insurance - Business 425.50 2,553.00 .00 .00 Depreciation 242.70 1,337.40 .00 .00 ------------- ------------- ------------- ------------- Total Operating Expenses $ 8,706.73 $ 50,677.99 $ .00 $ .00 ------------- ------------- ------------- ------------- Net Income from Operations $ 2,011.99 $ 9,823.73 $ .00 $ .00 Other Revenue Purchase Discounts .00 200.00 .00 .00 SouthWare Demo Company PAGE 2 Income Statement June 1998 June 1998 June 1998 June 1997 June 1997 PTD Actual YTD Actual PTD Actual YTD Actual Other Income .00 1.00 .00 .00 Other Income 8.00 291.28 .00 .00 ------------- ------------- ------------- ------------- Total Other Revenue $ 8.00 $ 492.28 $ .00 $ .00 Other Expenses Sales Discounts 17.59 338.07 .00 .00 ------------- ------------- ------------- ------------- Total Other Expenses $ 17.59 $ 338.07 $ .00 $ .00 ------------- ------------- ------------- ------------- Net Income (Loss) $ 2,002.40 $ 9,977.94 $ .00 $ .00 ============= ============= ============= ============= SouthWare Demo Company PAGE 1 Balance Sheet As of 06/30/98 June 1998 Total June 1997 Total YTD Actual YTD Actual YTD Actual YTD Actual Assets Current Assets Petty Cash 500.00 .00 Cash in Bank 15,520.66 .00 Savings 96,900.41 .00 Accounts Receivable Customers (4,059.93) .00 Accounts Receivable Customers 32,128.45 .00 Accts Rec Cust - Tax Exempt 100.00 .00 Inventory - Merchandise (35.00) .00 Inventory - Merchandise 44,378.28 .00 Inventory - Merchandise 4,125.00 .00 Inventory/Office Supplies 1,887.36 .00 Inventory/Office Supplies 700.00 .00 Inventory -Receivings Clearing (9,450.00) .00 Inventory -Receivings Clearing (4,825.00) .00 WIP - Other 500.00 .00 Prepaid Insurance 1,702.00 .00 ------------- ------------- Total Current Assets $ 180,072.23 $ .00 Fixed Assets Equipment 60,750.61 .00 Accumulated Depreciation - E (1,239.95) .00 Furniture & Fixtures 1,949.00 .00 Accum Depr - Furn & Fixtures (97.45) .00 ------------- ------------- Total Fixed Assets $ 61,362.21 $ .00 ------------- ------------- Total Assets $ 241,434.44 $ .00 ============= ============= Liabilities and Capital Current Liabilities Accounts Payable 450.00 .00 Unearned Revenue (Deposits) 4,595.83 .00 Unearned Revenue (Deposits) 2,392.15 .00 Retainage Payable 50.00 .00 SUI Taxes Payable 119.77 .00 FUI Taxes Payable 109.40 .00 Local Taxes Payable 189.76 .00 SouthWare Demo Company PAGE 2 Balance Sheet As of 06/30/98 June 1998 Total June 1997 Total YTD Actual YTD Actual YTD Actual YTD Actual Sales Tax Payable - Alabama 470.11 .00 Sales Tax Payable - Georgia 434.42 .00 Sales Tax Payable - Lee County 117.53 .00 Sales Tax Payable - Auburn 293.27 .00 Sales Tax Payable - Atlanta 162.91 .00 ------------- ------------- Total Current Liabilities $ 9,385.15 $ .00 Long Term Liabilities ------------- ------------- Total Long Term Liabilities $ .00 $ .00 ------------- ------------- Total Liabilities $ 9,385.15 $ .00 Capital Common Stock 3,000.00 .00 Retained Earnings 219,071.35 .00 Net Income (Loss) 9,977.94 .00 ------------- ------------- Total Capital $ 232,049.29 $ .00 ------------- ------------- Total Liabilities and Capital $ 241,434.44 $ .00 ============= =============