DOUBLE MONT TRADING CORPORATION

BALANCE SHEET
December 31, 2016

Assets
Current Assets
Cash (1) 1,375,000
Marketable securities - available-for-sale (2) 1,987,500
Accounts receivable, net (3) 2,637,500
Inventories (4) 9,337,500
Prepaid expenses 375,000
Total Current Assets 15,712,500

Non-current assets
Investment in affiliated companies 2,625,000
Property, plant and equipment (5) 33,000,000
Other assets (Long-term receivable) 900,000
Total Current Assets 36,525,000

Total Assets 52,237,500

Liabilities
Current Liablities
Trade and other payables (6) 2,150,000
Income tax payable 2,083,200
Mortgage payable, current portion 1,500,000
Total Current Liabilities 5,733,200

Non-current Liabilities
10% Debenture Bonds, due January 2026 7,012,500
Mortgage payable, non-current portion 6,000,000
Total Non-current liabilities 13,012,500

Total Liabilities 18,745,700

Shareholders' equity
Preference Shares, 7% cumulative, non-participating,
authorized and issued 75,000 shares, par P100 7,500,000
Ordinary shares, par P100, authorized 375,000 shares,
issued 138,750 of which 750 shares are in the treasury 13,875,000
Subscribed ordinary shares, net of subscription receivable 225,000
Additional paid-in capital, ordinary shares 3,625,000
Total Contributed Capital 25,225,000
Unrealized increase in fair value of AFS Securites 1,275,000
Retained earnings
Unappropriated 5,491,800
Appropriated 1,582,500
Total 33,574,300
Less: Cost of treasury shares -82,500
Total Shareholders' equity 33,491,800

Total Liabilities and Shareholders' Equity 52,237,500

DOUBLE MONT TRADING CORPORATION

INCOME STATEMENT
For the year ended December 31, 2016

Sales 44,250,000
Less: Cost of Goods Sold 32,250,000
Gross profit 12,000,000
Less: Operating expenses 3,975,000
Income from operations 8,025,000
Add (Deduct) Other income (other expenses)
Dividend Income 300,000
Interest expenses -1,762,500
Amortization of bond discount and expenses -52,500
Income before tax 6,510,000
Provision for income tax -2,083,200
Net Income 4,426,800

WINTERFELL CORPORATION
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2016

Sales 7,900,000
Cost of Goods Sold 2,385,000
Gross Profit 5,515,000
Administrative expenses 950,000
Selling expenses 1,400,000
Operating Income 3,165,000
Other income and expenses -65,500
Income before income tax 3,099,500
Income tax expense 929,850
Income from continuing operations 2,169,650
Discontinued operations
Loss for the period from discontinued operations -288,250
Net income for the year 1,881,400

Earnings per ordinary share

Income from continuing operatins 1.972
Loss from discontinued operations -0.262
Earnings per shares 1.710

Total Discontinued Continued

Sales 8,650,000 750,000 7,900,000
Cost of goods sold 2,985,000 600,000 2,385,000
Selling expenses 1,500,000 100,000 1,400,000
Administrative expenses 1,300,000 350,000 950,000
Interest expense 65,000 10,000 55,000

Other income and expenses

Interest expense -55,000
Loss on sale of plant assets -25,500
Gain on the sale of marketable securities 15,000
Other income and expenses -65,500

Income before income tax 3,099,500

Income tax rate 30%
Income tax expense 929,850

Operating loss of discontinued operations

Sales 750,000
Cost of goods sold -600,000
Selling expenses -100,000
Administrative expenses -350,000
Interest expense -10,000
Loss before income tax -310,000
Income tax savings -93,000 0
Net Loss -217,000

Loss on disposal of discontinued segment -95,000

Tax savings -23,750 0
Net -71,250

Loss for the period from discontinued operations -288,250

Weighted average ordinary shares outstanding
(1,000,000 shares x 6/12) 500,000
(1,200,000 shares x 6/12) 600,000
1,100,000
EPS from continuing operations 1.972
EPS from discontinued operations -0.262