Exhibit 99.2
C.L. McIntosh & Associates, Inc.
Statement of Financial Position
(Unaudited)
September 30, 1996
Assets
Current assets:
Cash $ 210,516
Accounts receivable 832,514
Prepaid insurance 8,000
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Total current assets 1,051,030
Fixed assets:
Computer equipment 112,752
Office furniture and fixtures 225,303
Leasehold improvements 104,854
Accumulated depreciation (237,285)
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205,624
Other assets:
Security deposits 5,961
Total assets $1,262,615
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Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 166,405
Accrued expenses payable 34,742
Current portion of long-term debt 9,121
Client retainers 125,072
Accrued salaries 119,820
Accrued bonus payroll 6,831
Accrued profit sharing 67,500
Short-term debt 60,000
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Total current liabilities 589,491
Shareholders' equity:
Common Stock 100
Retained earnings 673,024
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Total shareholders' equity 673,124
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Total liabilities and shareholders' equity $1,262,615
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C.L. McIntosh & Associates, Inc.
Statements of Operations
(Unaudited)
Nine Months Ended
September 30,
-----------------
1996 1995
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Revenue:
Service fees $2,713,933 $2,894,400
Cost of sales 1,514,232 1,796,310
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Gross profit 1,199,701 1,098,090
Operating expenses:
Selling and marketing 13,212 31,826
General and administrative 942,673 686,397
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Total operating expenses 955,885 718,223
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Income from operations 243,816 379,867
Interest expense, net (4,638) (9,516)
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Net income $ 239,178 $ 370,351
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C.L. McIntosh & Associates, Inc.
Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
-----------------
1996 1995
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Operating activities
Net income $ 239,178 $ 370,351
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 40,500 56,000
Changes in operating assets and liabilities:
Accounts receivable 104,522 (437,774)
Prepaid insurance (4,001) (13,334)
Security deposits 2,523 (5,000)
Accounts payable 82,405 (29,342)
Accrued expenses payable 6,421 391
Client retainers 37,930 68,759
Accrued salaries 15,278 55,528
Accrued bonus payroll (30,408) 15,000
Accrued profit sharing (22,500) (1,550)
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Net cash provided by operating activities 471,848 79,029
Investing activities
Purchases of fixed assets (148,105) (24,149)
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Net cash used in investing activities (148,105) (24,149)
Financing activities
Payments on short-term and long-term debt (29,832) (27,652)
Distributions to shareholders (250,000) (19,715)
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Net cash used in financing activities (279,832) (47,367)
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Increase in cash 43,911 7,513
Cash at beginning of year 166,605 34,674
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Cash at end of year $ 210,516 $ 42,187
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