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ROHL NETWORKS LIMITED PARTNERSHIP <br /> STATEMENTS OF CASH FLOWS <br /> (SEE INDEPENDENT ACCOUNTANT'S REVIEW REPORT) <br /> FOR THE YEARS ENDED OCTOBER 31, <br /> 2013 2012 <br /> CASH FLOWS FROM OPERATING ACTIVITIES: <br /> Net(loss)income $ (1,638,835) $ 499,625 <br /> Adjustments to reconcile net(loss)income to net cash <br /> (used in)provided by operating activities: <br /> Depreciation and amortization 97,971 62,196 <br /> Inventory writedown 75,000 111,103 <br /> Changes in operating assets and liabilities: <br /> Decrease(increase)in: <br /> Contracts receivable including retainage 1,107,176 1,550,783 <br /> Costs and estimated earnings in excess of <br /> billings on uncompleted contracts 21,388 (118,105) <br /> Inventories 578,200 (1,211,619) <br /> Prepaid expenses and other assets 14,538 1,990 <br /> Increase(decrease)in: <br /> Accounts payable and accrued expenses (114,631) (461,045) <br /> Billings in excess of costs and estimated <br /> earnings on uncompleted contracts (427,461) 652,109 <br /> TOTAL ADJUSTMENTS 1,352,181 587,412 <br /> NET CASH(USED IN)PROVIDED BY OPERATING ACTIVITIES (286,654) 1,087,037 <br /> CASH FLOWS FROM INVESTING ACTIVITIES: <br /> Other assets (6,625) 18,638 <br /> Purchases of property and equipment (47,512) (10,044) <br /> NET CASH(USED IN)PROVIDED BY INVESTING ACTIVITIES (54,137) 8,594 <br /> CASH FLOWS FROM FINANCING ACTIVITIES: <br /> Borrowings from partner 500,000 200,000 <br /> Distributions (244,069) (1,686,390) <br /> Repayments on notes payable (68,759) (47,526) <br /> NET CASH PROVIDED BY(USED IN)FINANCING ACTIVITIES 187,172 (1,533,916) <br /> NET DECREASE IN CASH AND CASH EQUIVALENTS (153,619) (438,285) <br /> CASH AND CASH EQUIVALENTS-BEGINNING 200,537 638,822 <br /> CASH AND CASH EQUIVALENTS-ENDING $ 46,918 $ 200,537 <br /> SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: <br /> Cash paid during the year for interest $ 20,538 $ 14,270 <br /> • SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: <br /> Purchases of property and equipment with notes payable $ 84,113 $ 188,955 <br /> Note receivable from partner netted against due to partner $ - $ 81,940 <br /> The accompanying notes are an integral part of these financial statements. <br /> -4- <br />