1. Law 514 Corporations Instructor: Dwight Drake Copyright 2005 Dwight Drake. All Rights Reserved. Business Planning: Closely Held Enterprises www. drake-business-planning.com Auditor’s Financial Statement Opinion “We have conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States)” “In our opinion, the financial statements of [Company] present fairly, in all material respects, the financial position of [Company] as of [Date] and the results of operations and cash flows for the year then ended in conformity with U.S. generally accepted accounting principals.”

2. Law 514 Corporations Instructor: Dwight Drake Copyright 2005 Dwight Drake. All Rights Reserved. Business Planning: Closely Held Enterprises www. drake-business-planning.com Management’s Sarbanes Internal Control Obligation Have internal controls that provide “reasonable assurance” that:  Financials are prepared in accordance with GAAP  Records accurately and fairly reflect transactions and asset dispositions  Receipts and expenditures are made in accordance with appropriate authorizations  Prevent or timely detect unauthorized acquisition, use or disposition of assets that would have material effect

3. Law 514 Corporations Instructor: Dwight Drake Copyright 2005 Dwight Drake. All Rights Reserved. Business Planning: Closely Held Enterprises www. drake-business-planning.com Auditor’s Internal Control Opinion “In our opinion, management’s assessment that the Company maintained effective internal control over financial reporting as of [Date] is fairly stated, in all material respects, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of Treadway Commission.” “In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of [Date] based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of Treadway Commission.”

4. Law 514 Corporations Instructor: Dwight Drake Copyright 2005 Dwight Drake. All Rights Reserved. Business Planning: Closely Held Enterprises www. drake-business-planning.com Basic Balance Sheet Equation: ASSETS = LIABILITIES + EQUITY Asset Terms: Current vs. Non-current Tangible vs. Intangible Valuation: Historical Cost (Basis) vs. Fair Market Value Liability Terms: Short-term Debt vs. Long-Term Debt Inside Debt vs. Outside Debt Subordinated Debt vs. Non-Subordinated Debt Secured Debt vs. Unsecured Debt Equity Sources: Common Stock Paid in Capital Preferred Stock Paid in Capital Retained Earnings

5. Law 514 Corporations Instructor: Dwight Drake Copyright 2005 Dwight Drake. All Rights Reserved. Business Planning: Closely Held Enterprises www. drake-business-planning.com General Electric Balance Sheet @ 12/31/06 Assets Liabilities & Equity

6. Law 514 Corporations Instructor: Dwight Drake Copyright 2005 Dwight Drake. All Rights Reserved. Business Planning: Closely Held Enterprises www. drake-business-planning.com General Electric Income Statements

7. Law 514 Corporations Instructor: Dwight Drake Copyright 2005 Dwight Drake. All Rights Reserved. Business Planning: Closely Held Enterprises www. drake-business-planning.com General Electric Cash Flow Statements

8. Law 514 Corporations Instructor: Dwight Drake Copyright 2005 Dwight Drake. All Rights Reserved. Business Planning: Closely Held Enterprises www. drake-business-planning.com General Electric Per Share / Supplemental Data

9. Law 514 Corporations Instructor: Dwight Drake Copyright 2005 Dwight Drake. All Rights Reserved. Business Planning: Closely Held Enterprises www. drake-business-planning.com General Electric Key Ratio / Market Data Stock Price @ 10/11/07 $ 41.81 Book Value per share @ 12/31/06 $10.93 Price/Earnings Ration 19.8 Price/Book Value 3.7 Price to Sales 2.5 Dividend Yield % 2.7% Gross Profit % 56.2% Operating Margin 27.8% Earnings Before Taxes % 15.0% Return on Assets 2.8% Return of Equity 18.26% Debt/Equity Ration 5.2 to 1 52 week stock price range $ 33.90 to $42.15 5 year stock price range $ 21.41 to $42.15