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Craig A. Smith & Associates, Inc. and MPS3D, LLC <br />Combined Statement of Cash Flows <br />See accompanying notes to combined financial statements and accountant's review report <br />-5- <br />70 <br />December 31, <br />December 31, <br />Cash Flows From Operating Activities <br />2014 <br />2013 <br />Combined net profit / (loss) <br />$ 353,974 <br />$ (534,718) <br />Adjustments to reconcile combined net profit (loss) to net cash provided by <br />operating activities: <br />Depreciation and amortization <br />52,540 <br />49,223 <br />Allowance for doubtful accounts <br />(37,150) <br />9,321 <br />Loss on sale of equipment <br />6,943 <br />- <br />Changes in operating assets and liablitlies: <br />Decrease in accounts receivables <br />(207,458) <br />4,195 <br />Increase in costs and estimated earnings in excess of billings <br />40,996 <br />(36,486) <br />Decrease in prepaid expenses <br />6,750 <br />132,409 <br />Decrease (Increase) in other receivables <br />569 <br />(1,364) <br />Decrease (Increase) in other assets <br />(465) <br />(150) <br />Decrease in bank overdraft <br />- <br />- <br />Decrease (Increase) in accounts payable <br />(40,098) <br />80,617 <br />Increase (Decrease) in accrued expenses <br />117,805 <br />(24,481) <br />Increase (Decrease) in deferred rent <br />32,357 <br />24,164 <br />Total adjustments <br />(27,211) <br />237,448 <br />Net cash provided (used) by operating activities <br />326,763 <br />(297,270) <br />Cash Flows from Investing Activities <br />Proceeds from sale of assets <br />19,672 <br />- <br />Capital expenditures <br />(68,267) <br />(57,326) <br />Net cash provided (used) in investing activities <br />(48,595) <br />(57,326) <br />Cash Flows from Financing Activities <br />Payments received on note receivable <br />13,134 <br />12,375 <br />(Repayments)/Advances from line of credit, net <br />(29,981) <br />185,000 <br />Issuance/(Repayments) of notes payable - related parties <br />(97,413) <br />185,000 <br />Payments of notes payable <br />(129,326) <br />(121,562) <br />Stockholders' distribution <br />- <br />(29,167) <br />Increase (Decrease) in lease obligations <br />14,441 <br />30,444 <br />Net cash provided (used) in financing activities <br />(229,145) <br />262,090 <br />Net increase (decrease) in Cash <br />49,023 <br />(92,506) <br />Cash on Hand - Beginning of Year <br />3,522 <br />96,028 <br />Cash on Hand - End of Year <br />$ 52,545 <br />$ 3,522 <br />Supplemental Disclosure of Cash Flow Information: <br />Cash paid during the period for: <br />Interest <br />$ 57,070 <br />$ 53,481 <br />See accompanying notes to combined financial statements and accountant's review report <br />-5- <br />70 <br />