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r <br /> .. L. H. TANNER CONSTRUCTION CORPORATION <br /> NOTES TO FINANCIAL STATEMENTS <br /> For the five month period ended May 31 , 2006 <br /> r <br /> NOTE E - CASH AND CASH EQUIVALENTS <br /> - The Company maintains cash and cash equivalent balances at a bank in Florida. Accounts at the institution <br /> are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $ 100,000 . As of May 31 , <br /> r 2006, the Company had no uninsured bank balances . <br /> NOTE F - LONG-TERM DEBT <br /> r <br /> During the period ended May 31 , 2006, the Company paid off an equipment loan in the amount of $34,6021 . <br /> There is no long-term debt as of May 31 , 2006. <br /> r <br /> NOTE G - OTHER RECEIVABLE <br /> As of May 31 , 2006, the Company had incurred costs in the amount of $9, 821 on a project that was not <br /> contractually consumated . The issue is now in litigation and the Company believes the entire amount is <br /> r fully collectible . As such, no allowance for doubtful accounts has been recorded. <br /> NOTE H - LINE OF CREDIT <br /> r <br /> The Company entered into a secured line of credit agreement with a financial institution to provide <br /> financing to the Company. The $ 100,000 line of credit bears interest at the prime rate, is renewable <br /> - annually, and is collateralized by all the assets of the Company. A personal guarantee was required of the <br /> Company' s stockholder. As of May 31 , 2006 , there were no outstanding balances on the line of credit. <br /> - NOTE I - PENDING LITIGATION <br /> The Company' s accounts receivable includes $65 , 111 which is currently in litigation . In September 2005 , <br /> the Company filed a lein on the property and is agressively pursuing payment. Management believes the <br /> entire amount is fully collectible and as such, no allowance for doubtful accounts has been recorded . <br /> r <br /> r <br /> r <br />