ALPHA FINANCIALS

ALPHA MANUFACTURING, INC.

Shred  &  Burn,  C.P.A.’s

P.O.  Box  555
Philadelphia,  PA  19103  
(215)  555-­4141

Alpha  Manufacturing  Company,  Inc.

The  Board  of  Directors  and  Stockholder

We  have  reviewed  the  accompanying  balance  sheets,  statements  of  income  and  retained  earnings,  and  statements  of  
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substantially  less  in  scope  than  an  examination  in  accordance  with  generally  accepted  auditing  standards,  the  objective
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express  such  an  opinion.

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statements  in  order  for  them  to  be  in  conformity  with  generally  accepted  accounting  principles.

The  information  included  in  the  accompanying  schedules  of  selling,  general  and  administrative  expenses  is  presented  only  
for  supplementary  analysis  purposes.  Such  information  has  not  been  subjected  to  the  inquiry  and  analytical  procedures
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management  without  audit  or  review.  Accordingly,  we  do  not  express  an  opinion  or  any  other  form  of  assurance  on  the  
supplementary  information.

Shred  &  Burn,  C.P.A.’s

February  29,  2013

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ALPHA FINANCIALS

ALPHA MANUFACTURING, INC.

BALANCE SHEET

    As  Of     As  Of     As  Of

    Dec  31,  2012     Dec  31,  2011     Dec  31,  2010
CURRENT  ASSETS:
  Cash     $6,829     $95,901     $32,053
  Accounts  Receivable     430,790     234,849     311,217
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  Prepaid  Expenses  &  Other  Assets     47,676     52,836     40,257
Total  Current  Assets     $626,068     $514,113     $522,874
________________________________________________________________________________________________
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  Leasehold  improvements     19,619     19,619     19,619
  Furniture  &  Fixtures     11,194     11,194     11,194
Total  Fixed  Assets     185,243     169,557     153,761
  Accumulated  Depreciation     (98,139)     (71,896)     (72,540)
Net  Fixed  Assets     87,104     97,661     81,221
TOTAL  ASSETS     $713,172     $611,774     $604,095
________________________________________________________________________________________________
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  Bank  Line  of  Credit     $55,000     $0     $39,050
  Notes  Payable  Bank     14,389     17,584     0
  Notes  Payable  Other     13,349     11,782     15,410
  Accounts  Payable     397,568     325,035     389,107
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  Accrued  Expenses  and  Other  Liabilities     33,418     36,213     29,369
Total  Current  Liabilities     $533,724     $410,614     $492,936
________________________________________________________________________________________________
Notes  Payable,  Bank     12,839     27,232     0
Notes  Payable,  Other     21,375     24,546     27,516
Total  Long  Term  Debt     34,214     51,778     27,516
TOTAL  LIABILITIES     $567,938  $   462,392     $520,452
________________________________________________________________________________________________
Paid  in  Capital     11,000     11,000     11,000
Retained  Earnings     134,234     138,382     72,643
TOTAL  STOCKHOLDERS  EQUITY     145,234     149,382     83,643
________________________________________________________________________________________________
TOTAL  LIABILITIES  &  EQUITY     $713,172     $611,774     $604,095

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ALPHA FINANCIALS

ALPHA MANUFACTURING, INC.

INCOME STATEMENT

    FYE     FYE     FYE

    Dec  31,  2012     Dec  31,  2011     Dec  31,  2010
 
Net  Sales     $2,258,118     $2,095,343     $1,929,488
Cost  of  Goods  Sold     (1,681,408)     (1,477,348)     (1,360,618)
GROSS  PROFIT     576,710     617,995     568,870
________________________________________________________________________________________________
Selling,  General  &  Administrative  Expenses     518,450     510,215     507,220
Total  Operating  Expenses     518,450     510,215     507,220
OPERATING  INCOME     58,260     107,780     61,650
________________________________________________________________________________________________
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EARNINGS  BEFORE  INTEREST  &  TAXES     38,260     87,780     41,650
________________________________________________________________________________________________
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PROFIT  BEFORE  TAXES     28,280     80,193     33,330
________________________________________________________________________________________________
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NET  INCOME     $28,280     $80,193     $33,330

STATEMENT OF RETAINED EARNINGS

    FYE     FYE     FYE

    Dec  31,  2012     Dec  31,  2011     Dec  31,  2010

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PLUS  beginning  Retained  Earnings     138,382     72,643     76,438
Distribution  to  Stockholders     (32,428)     (14,454)     (37,125)
Ending  Retained  Earnings     $134,234     $138,382     $72,643

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ALPHA FINANCIALS

ALPHA MANUFACTURING, INC.

CASH FLOW STATEMENT

    FYE     FYE     FYE

    Dec  31,  2012   Dec  31,  2011     Dec  31,  2010

Cash  Flow  From  Operations  

Net  income    $28,280     $80,193     $33,330
Adjustments  to  reconcile  to  Cash  Provided
(Used)  in  Operations
  Depreciation     26,243     (644)     12,829
  Accounts  Receivable     (195,941)     76,368     80,412
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  Prepaid  Expenses     5,160     (12,579)     (4,296)
  Accounts  Payable     72,533     (64,072)     38,202
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  Accrued  Expenses     (2,795)     6,844     (32,056)
Net  Cash  Flow  From  Operations     (76,766)     94,930     92,155
________________________________________________________________________________________________
Cash  Flows  From  Investing
Purchase  of  Fixed  Assets     (15,686)     (15,796)     (4,920)
Net  Cash  Flow  From  Investing  (15,686)  (15,796)  (4,920)
________________________________________________________________________________________________
Cash  Flow  From  Financing
Borrowing  (Repayment)  of  Bank  Credit  Line     55,000     (39,050)     (14,200)
Borrowing  (Repayment)  of  Notes  Payable,  Bank     (17,588)     44,816     0
Borrowing  (Repayment)  of  Notes  Payable,  Other     (1,604)     (6,598)     (13,638)
Distribution  to  Stockholder     (32,428)     (14,454)     (37,125)
Cash  Flow  From  Financing     3,380     (15,286)     (64,963)
________________________________________________________________________________________________
NET  Increase  (Decrease)  in  Cash     (89,072)     63,848     22,272
________________________________________________________________________________________________
Cash  Beginning  of  Period     95,901     32,053     9,781
Cash  End  of  Period     $6,829     $95,901     $32,053

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