SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Transcription

1

2 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS s reported should be from the debtor s books and not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH - ACTUAL column must equal the sum of the four bank account columns. Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR-1 (CON T)] ACCOUNT NUMBER (LAST 4) OPER - DIP Bank of America CREDIT CARD - DIP Bank of America TA SAVINGS - DIP Bank of America OPER - DIP Citibank CREDIT CARD - DIP Citibank TA SAVINGS - DIP Citibank OTHER M&T Bank CURRENT MONTH ACTUAL (TOTAL OF ALL ACCOUNTS) CASH BEGINNING OF MONTH (11,595.24) 1, , , (6,288.76) RECEIPTS CASH SALES 6, , , , ACCOUNTS RECEIVABLE , , PREPETITION ACCOUNTS RECEIVABLE - POSTPETITION 26, , , LOANS AND ADVANCES SALE OF ASSETS OTHER (ATTACH LIST) 22, , , TRANSFERS (FROM DIP ACCTS) 1, , , TOTAL RECEIPTS 58, , , , , DISBURSEMENTS NET PAYROLL 10, , , PAYROLL TAES 5, , , SALES, USE, & OTHER TAES - - 1, , , INVENTORY PURCHASES 11, , , SECURED/ RENTAL/ LEASES INSURANCE 8, , , ADMINISTRATIVE SELLING OTHER (ATTACH LIST) 7, , , OWNER DRAW * TRANSFERS (TO DIP ACCTS) - 1, , , , PROFESSIONAL FEES U.S. TRUSTEE QUARTERLY FEES , , COURT COSTS TOTAL DISBURSEMENTS 44, , , , , , , NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS) 13, (1,016.67) (1,202.63) 2, (15.00) 14, CASH END OF MONTH 2, , , , * COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE THE FOLLOWING SECTION MUST BE COMPLETED DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN) TOTAL DISBURSEMENTS LESS: TRANSFERS TO OTHER DEBTOR IN POSSESSION ACCOUNTS PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES 116, (11,619.30) - 104, FORM MOR-1 2/2008 PAGE 2 OF 12

3 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 ATTACHMENT TO MOR-1 LISTING OF OTHER RECEIPTS AND OTHER DISBURSEMENTS ACCOUNT NUMBER (LAST 4) OPER - DIP Bank of America CREDIT CARD - DIP Bank of America TA SAVINGS - DIP Bank of America OPER - DIP Citibank CREDIT CARD - DIP Citibank TA SAVINGS - DIP Citibank OTHER M&T Bank CURRENT MONTH ACTUAL (TOTAL OF ALL ACCOUNTS) OTHER RECEIPTS SALES TA COLLECTED 2, , , COBRA PAYMENTS , , REFUND - EMPIRE HEALTH VOID O/S PAYROLL CHECKS 20, , TOTAL OTHER RECEIPTS 22, , , OTHER DISBURSEMENTS PAYMENT ON FIN'L FED'L CREDIT 6, , TRUCK PARTS/FUEL EPENSE , , PAYMENT TO CATERPILLAR FIN'L UTILITIES , , RENT , , REPAIRS & MAINTENANCE TELEPHONE , , UNIFORMS DUES & SUBSCRIPTIONS TRUCK TAES , , BANK CHARGES & CREDIT CARD FEES TOTAL OTHER DISBURSEMENTS 7, , , FORM MOR-1 ATT 2/2008 PAGE 3 OF 12

4 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 BANK RECONCILIATIONS Continuation Sheet for MOR-1 A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for this page. (Bank account numbers may be redacted to last four numbers.) BALANCE PER BOOKS OPER - DIP Bank of America CREDIT CARD - DIP Bank of America - TA SAVINGS - DIP Bank of America - OPER - DIP Citibank CREDIT CARD - DIP Citibank TA SAVINGS - DIP Citibank 2, , , OTHER M&T Bank BANK BALANCE (+) DEPOSITS IN TRANSIT (ATTACH LIST) (-) OUTSTANDING CHECKS (ATTACH LIST) : OTHER (ATTACH EPLANATION) 2, , , , ADJUSTED BANK 2, BALANCE * *"Adjusted Bank Balance" must equal "Balance per Books" - - 2, , DEPOSITS IN TRANSIT Date Date Date Date Date Date Date CHECKS OUTSTANDING Ck. # Ck. # Ck. # Ck. # Ck. # Ck. # Ck. # , , , OTHER FORM MOR-1 (CONT.) 2/2008 PAGE 4 OF 12

5 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 STATEMENT OF OPERATIONS (Income Statement) The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid. REVENUES MONTH CUMULATIVE - FILING TO DATE Gross Revenues 46, , Less: Returns and Allowances - - Net Revenue 46, , COST OF GOODS SOLD Beginning Inventory 56, , Add: Purchases 14, , Add: Cost of Labor 7, , Add: Other Costs (attach schedule) 9, , Less: Ending Inventory (15,000.00) (15,000.00) Cost of Goods Sold 72, , Gross Profit (26,455.68) 278, OPERATING EPENSES Advertising Auto and Truck Expense 2, , Bad Debts - - Contributions - - Employee Benefits Programs - - Officer/Insider Compensation* 14, , Insurance 10, , Management Fees/Bonuses - - Office Expense , Pension & Profit-Sharing Plans - - Repairs and Maintenance , Rent and Lease Expense 12, , Salaries/Commissions/Fees 3, , Supplies - - Taxes - Payroll 4, , Taxes - Real Estate - - Taxes - Other - - Travel and Entertainment - - Utilities 1, , Other (attach schedule) 2, , Total Operating Expenses Before Depreciation 51, , Depreciation/Depletion/Amortization 22, , Net Profit (Loss) Before Other Income & Expenses (100,626.82) (222,292.46) OTHER INCOME AND EPENSES Other Income (attach schedule) - - Interest Expense 1, , Other Expense (attach schedule) - - Net Profit (Loss) Before Reorganization Items (102,197.45) (232,997.38) FORM MOR-2 2/2008 PAGE 5 OF 12

6 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 REORGANIZATION ITEMS Professional Fees - - U. S. Trustee Quarterly Fees 3, , Interest Earned on Accumulated Cash from Chapter 11 (see continuation - - sheet) Gain (Loss) from Sale of Equipment - - Other Reorganization Expenses (attach schedule) - - Total Reorganization Expenses - - Income Taxes - - Net Profit (Loss) (105,447.45) (237,872.38) *"Insider" is defined in 11 U.S.C. Section 101(31). BREAKDOWN OF OTHER CATEGORY OTHER COSTS Truck Parts/Fuel Expense 9, , Shop Supplies Equipment Rental - 1, OTHER OPERATIONAL EPENSES Postage Telephone 1, , Uniforms Licenses & Permits Dues & Subscriptions Bank Charges , Professional Fees NYS LLC/LLP Filing Fees - 1, OTHER INCOME OTHER EPENSES OTHER REORGANIZATION EPENSES Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11: Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item. FORM MOR-2 2/2008 PAGE 6 OF 12

7 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from post-petition obligations. ASSETS BOOK VALUE AT END OF CURRENT REPORTING MONTH BOOK VALUE AT END OF BOOK VALUE ON PETITION PRIOR REPORTING MONTH DATE OR SCHEDULED CURRENT ASSETS Unrestricted Cash and Equivalents 8, (6,288.76) (4,388.99) Restricted Cash and Cash Equivalents (see continuation sheet) Accounts Receivable (Net) 501, , , Notes Receivable Inventories 15, , , Prepaid Expenses Professional Retainers Other Current Assets (attach schedule) TOTAL CURRENT ASSETS 525, , , PROPERTY & EQUIPMENT Real Property and Improvements Machinery and Equipment 2,164, ,164, ,164, Furniture, Fixtures and Office Equipment Leasehold Improvements Vehicles Less: Accumulated Depreciation (1,988,843.47) (1,981,475.10) (1,930,256.08) TOTAL PROPERTY & EQUIPMENT 175, , , OTHER ASSETS s due from Insiders* Other Assets (attach schedule) 1,527, ,542, ,631, TOTAL OTHER ASSETS 1,527, ,542, ,631, TOTAL ASSETS 2,228, ,322, ,421, LIABILITIES AND OWNER EQUITY BOOK VALUE AT END OF CURRENT REPORTING MONTH BOOK VALUE AT END OF CURRENT REPORTING MONTH BOOK VALUE ON PETITION DATE LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition) Accounts Payable 49, , Taxes Payable (refer to FORM MOR-4) 4, , Wages Payable Notes Payable Rent / Leases - Building/Equipment Secured Debt / Adequate Protection Payments Professional Fees s Due to Insiders* 20, Other Post-petition Liabilities (attach schedule) TOTAL POST-PETITION LIABILITIES 74, , LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition) Secured Debt 165, , , Priority Debt 105, , , Unsecured Debt 1,655, ,655, ,655, TOTAL PRE-PETITION LIABILITIES 1,926, ,931, ,956, TOTAL LIABILITIES 2,001, ,989, ,956, OWNERS' EQUITY Capital Stock Additional Paid-In Capital Partners' Capital Account 227, , , Owner's Equity Account Retained Earnings - Pre-Petition Retained Earnings - Post-petition Adjustments to Owner Equity (attach schedule) Post-petition Contributions (attach schedule) NET OWNERS EQUITY 227, , , TOTAL LIABILITIES AND OWNERS' EQUITY 2,228, ,322, ,421, *"Insider" is defined in 11 U.S.C. Section 101(31). BALANCE SHEET FORM MOR-3 2/2008 PAGE 7 OF 12

8 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 BALANCE SHEET - continuation section ASSETS Other Current Assets BOOK VALUE AT END OF CURRENT REPORTING MONTH BOOK VALUE AT END OF PRIOR REPORTING MONTH BOOK VALUE ON PETITION DATE Other Assets DUE FROM ANTONIO ENTERPRISES, LLC 30, , , INTANGIBLE ASSETS - NET 12, , , GOODWILL - NET 1,485, ,499, ,586, LIABILITIES AND OWNER EQUITY Other Post-petition Liabilities BOOK VALUE AT END OF CURRENT REPORTING MONTH BOOK VALUE ON PETITION DATE Adjustments to Owner s Equity Post-Petition Contributions Restricted Cash: Cash that is restricted for a specific use and not available to fund operations. Typically, restricted cash is segregated into a separate account, such as an escrow account. FORM MOR-3 2/2008 PAGE 8 OF 12

9 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 STATUS OF POST-PETITION TAES The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes. Attach photocopies of any tax returns filed during the reporting period. Beginning Tax Withheld and/or Accrued Paid Check # or EFT Federal Date Paid Ending Tax Withholding - 2, , various EFT - FICA-Employee - 1, , various EFT - FICA-Employer - 1, , various EFT - Unemployment Income Other: Total Federal Taxes - 6, , State and Local Withholding - 1, , various EFT - Sales 9, , , various 1007, , Excise Unemployment - 1, , various EFT - Real Property Personal Property Other: MTCMT various EFT - Total State and Local 9, , , , Total Taxes 9, , , , SUMMARY OF UNPAID POST-PETITION DEBTS Attach aged listing of accounts payable. Number of Days Past Due Current Over 91 Total Accounts Payable 23, , , , Wages Payable Taxes Payable 4, , Rent/Leases-Building Rent/Leases-Equipment Secured Debt/Adequate Protection Payments Professional Fees s Due to Insiders Other: Other: Total Post-petition Debts 27, , , , Explain how and when the Debtor intends to pay any past due post-petition debts. FORM MOR-4 2/2008 PAGE 9 OF 12

10 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 ACCOUNTS RECEIVABLE RECONCILIATION AND AGING Accounts Receivable Reconciliation Total Accounts Receivable at the beginning of the reporting period Plus: s billed during the period Less: s collected during the period Total Accounts Receivable at the end of the reporting period 546, , , , Accounts Receivable Aging 0-30 Days Days Days 91+ Days Total 0-30 days old 49, days old 35, days old 21, days old 395, Total Accounts Receivable 501, Less: Bad Debts ( considered uncollectible) - Net Accounts Receivable 49, , , , , TAES RECONCILIATION AND AGING Taxes Payable 0-30 Days Days Days 91+ Days Total 0-30 days old 4, days old days old days old , Total Taxes Payable , Total Accounts Payable 23, , ,356, ,391, FORM MOR-5 2/2008 PAGE 10 OF 12

11 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 PAYMENTS TO INSIDERS AND PROFESSIONALS Of the total disbursements shown on the Cash Receipts and Disbursements Report (MOR-1) list the amount paid to insiders (as defined in Section 101(31) (A)-(F) of the U.S. Bankruptcy Code) and to professionals. For payments to insiders, identify the type of compensation paid (e.g. Salary, Bonus, Commissions, Insurance, Housing Allowance, Travel, Car Allowance, Etc.). Attach additional sheets if necessary. INSIDERS NAME TYPE OF PAYMENT AMOUNT PAID TOTAL PAID TO DATE TOTAL PAYMENTS TO INSIDERS PROFESSIONALS NAME DATE OF COURT ORDER AUTHORIZING PAYMENT AMOUNT APPROVED AMOUNT PAID TOTAL PAID TO DATE TOTAL INCURRED & UNPAID* TOTAL PAYMENTS TO PROFESSIONALS * INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED POST-PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS SCHEDULED MONTHLY PAYMENT DUE AMOUNT PAID DURING MONTH TOTAL UNPAID POST- PETITION NAME OF CREDITOR CATERPILLAR FIN'L 1, , FINANCIAL FED'L CR. 6, , KEY EQUIPMENT 1, , TOTAL PAYMENTS 6, , FORM MOR-6 2/2008 PAGE 11 OF 12

12 In re Suffolk Ready Mix, LLC DIP Case No reg Debtor Reporting Period: 1/1/10-1/31/10 DEBTOR QUESTIONNAIRE Must be completed each month. If the answer to any of the Yes No questions is Yes, provide a detailed explanation of each item. Attach additional sheets if necessary. Have any assets been sold or transferred outside the normal course of 1 business this reporting period? Have any funds been disbursed from any account other than a debtor in 2 possession account this reporting period? * Is the Debtor delinquent in the timely filing of any post-petition tax 3 returns? Are workers compensation, general liability or other necessary insurance 4 coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies? 5 Is the Debtor delinquent in paying any insurance premium payment? Have any payments been made on pre-petition liabilities this reporting 6 period? Are any post petition receivables (accounts, notes or loans) due from 7 related parties? 8 Are any post petition payroll taxes past due? 9 Are any post petition State or Federal income taxes past due? 10 Are any post petition real estate taxes past due? 11 Are any other post petition taxes past due? 12 Have any pre-petition taxes been paid during this reporting period? 13 Are any amounts owed to post petition creditors delinquent? 14 Are any wage payments past due? Have any post petition loans been received by the Debtor from any 15 party? 16 Is the Debtor delinquent in paying any U.S. Trustee fees? Is the Debtor delinquent with any court ordered payments to attorneys or 17 other professionals? Have the owners or shareholders received any compensation outside of 18 the normal course of business? *Bank Service Charge only. FORM MOR-7 2/2008 PAGE 12 OF 12

13

14

15

16

17

18

19

20

21 01/31/10 Suffolk Ready Mix, LLC DIP SUFFRDIP Journal Page 1 Reference Date Reference Account Description Total 01/19/ NYS SALES TA 1, , /25/ SUFFOLK READY MI LLC /25/ NYS SALES TA 9, , /11/ SERVICE CHARGE /08/ SERVICE CHARGE /06/ TRANSFER 1, , /04/ MERCHANT FEES /04/ AME FEES /05/ AME DISCOUNT /08/ SERVICE CHARGE /12/ TRANSFER 2, , /20/ TRANSFER 1, , /05/ PAYROLL TAES 3, , /05/ PAYPRO /08/ ESSE CEMENT 2, , /08/ WIRE TRANSFER FEE /12/ ESSE CEMENT 2, , /12/ WIRE TRANSFER FEE /12/ PAYROLL TAES 2, , /12/ PAYPRO /12/ AOL /12/ ESSE CEMENT 2, , /12/ WIRE TRANSFER FEE /15/ ESSE CEMENT 4, , /15/ WIRE TRANSFER FEE /20/ BANK CHARGES /29/ FDIC ASSESSMENT /14/ SPRINT /15/ TFR TO SAVINGS 2, , /20/ TFR TO SAVINGS 4, , /20/ PAYROLL TAES 2, , /20/ PAYPRO

22 01/31/10 Suffolk Ready Mix, LLC DIP SUFFRDIP Journal Page 2 Reference Date Reference Account Description Total 01/20/ BANKDIRECT CAPITAL /22/ TFR TO SAVINGS /26/ PAYROLL TAES 2, , /26/ PAYPRO /27/ SPRINT /27/ LIPA /29/ TFR TO SAVINGS /08/ SERVICE CHARGE /05/ LAWSON PRODUCTS /05/ DELUE BUSINESS CHECKS /05/ JO ANN RUGGIERO /06/ NYS DOT /07/ LIPA /07/ CABLEVISION /08/ BANKDIRECT CAPITAL 8, , /08/ FINANCIAL FEDERAL CREDIT 4, /08/ FINANCIAL FEDERAL CREDIT 1, , /07/ Anthony Persico 2, , /07/ Joann Ruggiero /07/ Adin Canales /07/ Anthony S Cavallaro 1, , /07/ Daniel C Costa /07/ Luis A Medrano /07/ George Seus /07/ Richard M Valentino /14/ Anthony Persico 2, , /14/ Joann Ruggiero /14/ Anthony S Cavallaro 1, , /21/ Anthony Persico 2, , /21/ Joann Ruggiero /21/ Anthony S Cavallaro 1, , /21/ Daniel C Costa

23 01/31/10 Suffolk Ready Mix, LLC DIP SUFFRDIP Journal Page 3 Reference Date Reference Account Description Total 01/28/ Anthony Persico 2, , /28/ Joann Ruggiero /28/ Anthony S Cavallaro 1, , /08/ TOCE BROTHERS /08/ EZPASS NY /11/ CINTAS /11/ ZURICH INSURANCE /11/ ZURICH INSURANCE /13/ PITNEY BOWES /13/ VERIZON WIRELESS /13/ INTEGRATED SYSTEMS RESEAR /13/ NYS DOT /13/ TOWN OF SMITHTOWN /14/ PRIME PETROLEUM 2, , /15/ ACF SECURITY SYSTEMS /19/ CARQUEST /20/ U.S. TRUSTEES 3, , /20/ VOID /20/ DRIVE TRAIN TRUCK PARTS 2, , /21/ ANTONIO ENTERPRISES 12, , /21/ VELVETOP /22/ VERIZON /22/ WATER BOY /22/ WINTERS BROS /26/ COMM. OF MOTOR VEHICLES /26/ PRIME PETROLEUM 2, , /27/ COMM. OF MOTOR VEHICLES /27/ NYS DOT /27/ NATIONAL GRID /27/ LIPA /27/ INTEGRATED SYSTEMS RESEAR

24 01/31/10 Suffolk Ready Mix, LLC DIP SUFFRDIP Journal Page 4 Reference Date Reference Account Description Total 01/28/ NYS DOT /28/ COMM. OF MOTOR VEHICLES /28/ COMM. OF TA & FINANCE /29/ EMPIRE BLUE CROSS /28/ INDIANA PHOENI /29/ EMBLEM HEALTH 2, , /29/ COMM. OF TA & FINANCE Transaction Balance 116, Total Debits 116, Total Credits 0.00 A/C Hash Total Number of Transactions 102

25 Tax Liability Variance Suffolk Ready Mix, LLC Company (3031) Check Dates: 01/07/2010 to 01/28/2010 Process: to Page 1 FITW and Related Taxes Frequency Liability Date Process Liabilities Deposits Balance Semi-Weekly 01/07/ , , Semi-Weekly 01/07/ , Semi-Weekly 01/14/ , , Semi-Weekly 01/14/ , Semi-Weekly 01/21/ , , Semi-Weekly 01/21/ , Semi-Weekly 01/28/ , , Semi-Weekly 01/28/ , Totals for FITW and Related Taxes 6, , FUTA and Related Taxes Frequency Liability Date Process Liabilities Deposits Balance Quarterly 01/07/ Quarterly 01/14/ Quarterly 01/21/ Quarterly 01/28/ Totals for FUTA and Related Taxes NY and Related Taxes Frequency Liability Date Process Liabilities Deposits Balance Second Business Day 01/07/ Second Business Day 01/07/ Second Business Day 01/14/ Second Business Day 01/14/ Second Business Day 01/21/ Second Business Day 01/21/ Second Business Day 01/28/ Second Business Day 01/28/ Totals for NY and Related Taxes 1, , NY-MTA1 and Related Taxes Frequency Liability Date Process Liabilities Deposits Balance Second Business Day 01/07/ Second Business Day 01/07/ Second Business Day 01/14/ Second Business Day 01/14/ Second Business Day 01/21/ Second Business Day 01/21/ Second Business Day 01/28/ Second Business Day 01/28/ Totals for NY-MTA1 and Related Taxes NYSDI-E and Related Taxes Frequency Liability Date Process Liabilities Deposits Balance Never 01/07/ Never 01/14/ Never 01/21/ Never 01/28/ Totals for NYSDI-E and Related Taxes NYSUI and Related Taxes Frequency Liability Date Process Liabilities Deposits Balance Quarterly 01/07/ Quarterly 01/14/ , Quarterly 01/21/ , Quarterly 01/28/ , Totals for NYSUI and Related Taxes 1, , Totals Across All Taxes 10, , , ************* Some Information May Be Suppressed Due To Company Security Settings ************* Paypro Corporation "The Different Solution" MPI_3201 (08/19/2009) MPAY Run Date: 02/13/10 Run Time: 9:36 AM

26

27

28 SUFFR 02/03/2010 3:31 PM 1065 U.S. Return of Partnership Income 12/01/08 11/30/09 OMB No Form For calendar year 2008, or tax year beginning Department of the Treasury , ending Internal Revenue Service See separate instructions A Principal business activity Name of partnership D Employer identification number Use the IRS MANUFACTURIN label. SUFFOLK READY MI, LLC DIP B Principal product or service Other- Number, street, and room or suite no. If a P.O. box, see the instructions. E Date business started READY MI wise, 131 OLD NORTHPORT ROAD 9/18/1998 C print F Total assets (see the Business code number City or town, state, and ZIP code instructions) or type. $ G Check applicable boxes: (1) Initial return (2) Final return (3) Name change (4) Address change (5) Amended return H Check accounting method: (1) Cash (2) Accrual (3) Other (specify) I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year J (6) KINGS PARK NY Technical termination - also check (1) or (2) 2,348,526 Check if Schedule M-3 attached Caution. Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information. Income (see the instructions for limitations) Deductions Sign Here 1a Gross receipts or sales a b Less returns and allowances b 1c 2 Cost of goods sold (Schedule A, line 8) Gross profit. Subtract line 2 from line 1c Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) Net farm profit (loss) (attach Schedule F (Form 1040)) Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (loss) (attach statement) Total income (loss). Combine lines 3 through Salaries and wages (other than to partners) (less employment credits) Guaranteed payments to partners Repairs and maintenance Bad debts Rent Taxes and licenses Interest a Depreciation (if required, attach Form 4562) a 107,083 b Less depreciation reported on Schedule A and elsewhere on return b 16c 17 Depletion (Do not deduct oil and gas depletion.) Retirement plans, etc Employee benefit programs Other deductions (attach statement) Total deductions. Add the amounts shown in the far right column for lines 9 through Ordinary business income (loss). Subtract line 21 from line Paid Preparer's Use Only Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Signature of general partner or limited liability company member manager Date Preparer's signature Firm's name (or yours if self-employed), address, and ZIP code For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Date WAGNER & ZWERMAN LLP 450 WIRELESS BLVD HAUPPAUGE, NY ,951,509 Check if self-employed Phone no. 1,951,509 1,303, , , ,280 2, ,200 SEE STATEMENT 1 57,543 SEE STATEMENT 2 31, ,083 0 SEE STATEMENT 3 223, ,269-49,698 Preparer's SSN or PTIN 2/03/10 P EIN Form 1065 (2008) DAA

29 SUFFR 02/03/2010 3:31 PM Schedule A SUFFOLK READY MI, LLC DIP Cost of Goods Sold (see the instructions) Form 1065 (2008) Page 2 1 Inventory at beginning of year Purchases less cost of items withdrawn for personal use Cost of labor Additional section 263A costs (attach statement) Other costs (attach statement) Total. Add lines 1 through Inventory at end of year Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line a Check all methods used for valuing closing inventory: (i) (ii) Cost as described in Regulations section Lower of cost or market as described in Regulations section (iii) Other (specify method used and attach explanation) b Check this box if there was a writedown of "subnormal" goods as described in Regulations section (c) c Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? Yes No e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? Yes No If "Yes," attach explanation. Schedule B Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No a Domestic general partnership b Domestic limited partnership c Domestic limited liability company d Domestic limited liability partnership e Foreign partnership f Other At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including 3 a an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), 56, , ,901 SEE STATEMENT 4 107,083 SEE STATEMENT 5 349,097 1,318,938 15,000 1,303,938 or a nominee or similar person? At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), or trust own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If Yes, complete (i) through (v) below (i) Name of Entity (ii) Employer (iii) Type of (iv) Country of (v) Maximum Identification Number (if any) Entity Organization Percentage Owned in Profit, Loss, or Capital b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If Yes, complete (i) through (iv) below (i) Name of Individual or Estate (ii) Social Security Number or (iii) Country of (iv) Maximum Employer Identification Number Citizenship Percentage Owned in (if any) (see instructions) Profit, Loss, or Capital SEE STATEMENT 6 4 a At the end of the tax year, did the partnership: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If Yes, complete (i) through (iv) below (i) Name of Corporation (ii) Employer Identification (iii) Country of (iv) Percentage Number (if any) Incorporation Owned in Voting Stock Form 1065 (2008) DAA

30 SUFFR 02/03/2010 3:31 PM SUFFOLK READY MI, LLC DIP Form 1065 (2008) b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If Yes, complete (i) through (v) below (i) Name of Entity (ii) Employer (iii) Type of Entity (iv) Country of Organization Identification Number (if any) Page 3 Yes No (v) Maximum Percentage Owned in Profit, Loss, or Capital a b c d 12a b Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details Does the partnership satisfy all four of the following conditions? The partnership's total receipts for the tax year were less than $250,000. The partnership's total assets at the end of the tax year were less than $1 million. Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. The partnership is not filing and is not required to file Schedule M If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. Is this partnership a publicly traded partnership as defined in section 469(k)(2)? During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? At any time during calendar year 2008, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F , Report of Foreign Bank and Financial Accounts. If "Yes," enter the name of the foreign country At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions Is the partnership making, or had it previously made (and not revoked), a section 754 election? See instructions for details regarding a section 754 election. Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If Yes, attach a statement showing the computation and allocation of the basis adjustment. See instructions Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (including a disregarded entity) At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return Designation of Tax Matters Partner (see the instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP Address of designated TMP DAA Identifying number of TMP ANTHONY PERSICO KETAY DRIVE NORTH EAST NORTHPORT NY Form 1065 (2008)

31 SUFFR 02/03/2010 3:31 PM Form 1065 (2008) Page 4 Schedule K Partners' Distributive Share Items Total amount Income (Loss) Deductions Credits Foreign Transactions Alternative Minimum Tax (AMT) Items Other Information DAA SUFFOLK READY MI, LLC DIP Self- Employ- ment 1 Ordinary business income (loss) (page 1, line 22) Net rental real estate income (loss) (attach Form 8825) a Other gross rental income (loss) a b Expenses from other rental activities (attach statement) b c Other net rental income (loss). Subtract line 3b from line 3a c 4 Guaranteed payments Interest income Dividends: a Ordinary dividends a b Qualified dividends b 7 Royalties Net short-term capital gain (loss) (attach Schedule D (Form 1065)) a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) a b Collectibles (28%) gain (loss) b c Unrecaptured section 1250 gain (attach statement) c 10 Net section 1231 gain (loss) (attach Form 4797) Other income (loss) (see instructions) Type Section 179 deduction (attach Form 4562) a Contributions a b Investment interest expense b c Section 59(e)(2) expenditures: (1) Type (2) 13c(2) d Other deductions (see instructions) Type.. SEE STATEMENT d 14a Net earnings (loss) from self-employment a b Gross farming or fishing income b c Gross nonfarm income c 15a Low-income housing credit (section 42(j)(5)) a b Low-income housing credit (other) b c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) c d Other rental real estate credits (see instructions) Type d e Other rental credits (see instructions) Type e f Other credits (see instructions) Type f 16a Name of country or U.S. possession b Gross income from all sources b c Gross income sourced at partner level c Foreign gross income sourced at partnership level d Passive category e General category f Other 16f Deductions allocated and apportioned at partner level g Interest expense h Other h Deductions allocated and apportioned at partnership level to foreign source income i Passive category j General category k Other 16k l Total foreign taxes (check one): Paid Accrued l m Reduction in taxes available for credit (attach statement) m n Other foreign tax information (attach statement) a Post-1986 depreciation adjustment a b Adjusted gain or loss b c Depletion (other than oil and gas) c d Oil, gas, and geothermal properties-gross income d e Oil, gas, and geothermal properties-deductions e f Other AMT items (attach statement) f 18a Tax-exempt interest income a b Other tax-exempt income b c Nondeductible expenses c 19a Distributions of cash and marketable securities a b Distributions of other property b 20a Investment income a b Investment expenses b c Other items and amounts (attach statement) ,698 SEE STATEMENT , ,571 SEE STATEMENT ,526 Form 1065 (2008)

32 SUFFR 02/03/2010 3:31 PM SUFFOLK READY MI, LLC DIP Form 1065 (2008) Page 5 Analysis of Net Income (Loss) 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 16l ,798 2 Analysis by (ii) Individual (iii) Individual (v) Exempt (i) Corporate (iv) Partnership (vi) Nominee/Other partner type: (active) (passive) organization a General partners b Limited partners -49,798 Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash ,458 5,681 2a Trade notes and accounts receivable , ,139 b Less allowance for bad debts , ,139 3 Inventories ,450 15,000 4 U.S. government obligations Tax-exempt securities Other current assets (attach statement) Mortgage and real estate loans Other investments (attach statement) a Buildings and other depreciable assets ,510,931 2,164,621 b Less accumulated depreciation ,213, ,598 1,974, ,515 10a Depletable assets b Less accumulated depletion Land (net of any amortization) a Intangible assets (amortizable only) ,670,596 2,670,596 b 965,379 1,705,217 1,143,418 1,527, Less accumulated amortization Other assets (attach statement) Total assets Liabilities and Capital 15 Accounts payable Mortgages, notes, bonds payable in less than 1 year 17 Other current liabilities (attach statement) All nonrecourse loans Mortgages, notes, bonds payable in 1 year or more 20 Other liabilities (attach statement) Partners' capital accounts Total liabilities and capital Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions). 1 Net income (loss) per books Income recorded on books this year not included 2 Income included on Schedule K, lines 1, 2, 3c, on Schedule K, lines 1 through 11 (itemize): 5, 6a, 7, 8, 9a, 10, and 11, not recorded on a books this year Tax-exempt interest $ (itemize): Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1 insurance) through 13d, and 16I, not charged against 4 Expenses recorded on books this year not book income this year (itemize): included on Schedule K, lines 1 through 13d, and 16I (itemize): a Depreciation $ a Depreciation $ b Travel and entertainment $ Add lines 6 and Income (loss) (Analysis of Net Income (Loss), 5 Add lines 1 through line 1). Subtract line 8 from line Schedule M-2 SEE STMT 10 30,013 30,013 2,632,590 2,348,526 1,582, ,292 1,393,224 77,089 SEE STMT , ,901-50,172 Analysis of Partners' Capital Accounts 127, , , ,381 2,632,590 2,348,526-49,798-49, ,079 1 Balance at beginning of year Distributions: a Cash Capital contributed: a Cash b Property Other decreases b Property (itemize): Net income (loss) per books , Other increases (itemize): Add lines 6 and Add lines 1 through Balance at end of year. Subtract line 8 from line 5 427,907 85,526 85, ,381 DAA Form 1065 (2008)