HYNES & HOWES INSURANCE COUNSELORS, INC. Statement of Cash Flow For the Three Months Ended December 31, 1996 and 1995 Increase (Decrease) in Cash and Cash Equivalents (Unaudited) Three Months Ended December 31, 1996 1995 Cash Flows from Operating Activities: Interest Received $ 43,275 $ 41,879 Other Income Received 736 0 Interest Paid (24,695) (25,767) Legal, Audit and Management Fees Paid (7,950) (7,950) Cash Paid to Suppliers for Operating Expenses (461) (1,796) Net Cash Provided by Operating Activities $ 10,905 $ 6,366 Cash Flow from Investing Activities: Principal Collected on Sale of Tanglefoot Apartments Contract 3,498 2,804 Purchase of Real Estate Contracts (2,223) (187) Payment on Real Estate Mortgage (21,305) (10,234) Buyers Escrow Received (Paid) 12,098 (12,848) Tax Certificates Collected 2,049 107 Net Cash Provided (Used) by Investing Activities $ (5,883) $ (20,358) Cash Flow from Financing Activities: Loan Proceeds $ 10,000 $ 0 Net Cash Provided by Financing Activities $ 10,000 $ 0 Net Increase (Decrease) in Cash and Cash Equivalents $ 15,022 $ (13,992) Cash & Cash Equivalents at Beginning of Period $ 6,479 $ 29,579 Cash and Cash Equivalents at End of Period $ 21,501 $ 15,587