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Arrangement #2 Jan 1, 2020 Current Assets Non Current assets Total Assets $1,850,000 $4,500,000 $6,350,000 Current Liabilities Non Current Liabilities Total Liabilities $1,150,000 $3,350,000 $4,500,000 Total Shareholders' Equity $1,850,000 Total Liabilities and SE $6,350,000 1.61 Currrent Ratio Debt to Equity Ratio 2.43 Arrangement #2 Jan 1, 2020 Current Assets Non Current assets Total Assets $1,850,000 $4,500,000 $6,350,000 Current Liabilities Non Current Liabilities Total Liabilities $1,150,000 $3,350,000 $4,500,000 Total Shareholders' Equity $1,850,000 Total Liabilities and SE $6,350,000 i U Currrent Ratio Debt to Equity Ratio 1.61 2.43 D B D F H 3 E G Acquisition Arrangement #2 . GBB could purchase the asset for $1.5 million and obtain a secured loan from its bank. The terms of the loan call for principal payments each year beginning January 1, 2020, of $150,000, The interest is to be paid annually each January 1st and is fixed at 8%, which is consistent with the market rate of this type of loan GBB is required to maintain a specified debt to equity ratio or the loan will become immediately payable. Account Name DR Date Jan 1, 2020 CR 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Arrangement #2 Jan 1, 2020 Current Assets Non Current assets Total Assets $1,850,000 $4,500,000 $6,350,000 Current Liabilities Non Current Liabilities Total Liabilities $1,150,000 $3,350,000 $4,500,000 Total Shareholders' Equity $1,850,000 Total Liabilities and SE $6,350,000 1.61 Currrent Ratio Debt to Equity Ratio 2.43 Arrangement #2 Jan 1, 2020 Current Assets Non Current assets Total Assets $1,850,000 $4,500,000 $6,350,000 Current Liabilities Non Current Liabilities Total Liabilities $1,150,000 $3,350,000 $4,500,000 Total Shareholders' Equity $1,850,000 Total Liabilities and SE $6,350,000 i U Currrent Ratio Debt to Equity Ratio 1.61 2.43 D B D F H 3 E G Acquisition Arrangement #2 . GBB could purchase the asset for $1.5 million and obtain a secured loan from its bank. The terms of the loan call for principal payments each year beginning January 1, 2020, of $150,000, The interest is to be paid annually each January 1st and is fixed at 8%, which is consistent with the market rate of this type of loan GBB is required to maintain a specified debt to equity ratio or the loan will become immediately payable. Account Name DR Date Jan 1, 2020 CR 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

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