Case 5: Fisk Alloy Wire, Inc. and Percon C-57
Exhibit 1 Electroplated Wire Corporation Fisk Alloy Conductors, Inc. Combined Statements of Operations and Comprehensive Income for
the Years Ended December 31, 2007 and 2006
2007 2006
Net Sales $28,643,630 $27,659,810
Cost of sales 19,516,161 16,836,644
Engineering expenses 1,057,621 1,142,037
Selling expenses 1,201,502 909,580
General and administrative expenses 4,880,736 4,748,863
Total 26,656,020 23,637,124
Income from Operations 1,987,610 4,022,686
Other Income (and Expenses)
Interest expense (194,533) (55,203)
Interest income 23,740 32,389
(Loss) gain on disposal of assets (15,094) 53,315
Gain on currency transaction 1,725 1,251
Other income (expense) 75,000 (17,885)
Total Other (Expense) and Income (109,162) 13,867
Income Before Income Taxes 1,878,448 4,036,553
Income Taxes 32,525 37,000
Net Income 1,845,923 3,999,553
Other Comprehensive Income (Loss)
Foreign currency translation adjustment 5,779 (8,586)
Comprehensive Income $1,851,702 $3,990,967
Electroplated Wire Corporation Fisk Alloy Conductors, Inc.
Combined Balance Sheets December 31, 2007 and 2006
Assets
Current Assets
Cash and cash equivalents $655,161 $1,068,587
Accounts receivable, net of allowance for doubtful accounts of $75,000 and $75,000
in 2007 and 2006, respectively4,228,219 3,673,336Inventories 5,751,113 5,819,601
Prepaid expenses and other 462,860 465,268
Total Current Assets 11,097,353 11,026,783
Property and Equipment, Net 3,762,637 3,485,897
Other Assets
Deposits 536,483 485,031
Intangible assets, net 42,698 58,249
Total Other Assets 579,181 543,280
Total Assets $15,439,171 $15,055,960
Liabilities and Equity
Current Liabilities
Loans payable, current portion $1,873,333 $1,441,667
Accounts payable 1,526,134 1,139,203
Accrued expenses 222,378 173,055
Spool deposits—customers 362,250 255,329
Total Current Liabilities 3,984,095 3,009,254
Loan Payable, Net of Current Portion 425,447 673,779
Total Liabilities 4,409,542 3,683,033
Equity
Common stock 26,000 26,000
Paid-in capital 1,054,401 1,054,401
Retained earnings 9,475,973 9,812,550
Accumulated and other comprehensive loss (2,807) (8,586)
Members’ equity 476,062 488,562
Total Equity 11,029,629 11,372,927
Total Liabilities and Equity $15,439,171 $15,055,960