Gateway Redevelopment Group

     2007 Balance Sheet

     Accrual Basis as of December 31, 2007

     ASSETS

        Current Assets

           Checking/Savings

             1000 · Checking                                                     3,807.92

             1001 · Savings                                                      1,158.06

           Total Checking/Savings                                                4,965.98

            Accounts Receivable

             1200 · Accounts Receivable

                1201 · 730 Gains - Jipp                                  21,768.37

                1202 · 822 Gains - Stone Soup                            30,000.00

             Total 1200 · Accounts Receivable                                   51,768.37

            Total Accounts Receivable                                            51,768.37

         Total Current Assets                                                    56,734.35

         Fixed Assets

           1500 · Jipp

             1501 · Phase 1 - Stabilization

                1502 · Building Materials                           6,366.80

                1503 · Demolition                                     300.00

                1504 · Masonry                                      6,795.00

                1506 · Roofing                                      1,278.50

             Total 1501 · Phase 1 - Stabilization                        14,740.30

              1510 · Phase 2 - Restoration

                1511 · Building Materials                           2,526.85

                1512 · Electrical and Mechanical                    2,206.91

                1513 · Flooring                                    10,772.00

                1514 · Framing                                      1,608.00

                1515 · Masonry                                      2,590.00

                1516 · Real Estate Taxes                            1,149.00

                1517 · Roofing                                     36,883.00

                1518 · Finishing                                    2,315.38

             Total 1510 · Phase 2 - Restoration                          60,051.14

            Total 1500 · Jipp                                                    74,791.44

            1550 · 822 Gains

             1551 · Mechanical                                           19,361.64

             1552 · Framing                                              38,333.17

             1553 · Windows                                               6,395.20

             1554 · Interior                                             14,317.42

             1555 · Painting                                              2,856.13

             1556 · Staircase                                             3,268.05

             1557 · Applinances, Cabinets, Fixtures                       4,196.85

             1558 · Siding and Porch                                      8,932.92

             1559 · 822 Misc                                                846.19

             1560 · Hauling                                                 994.00

             1562 · Loan Interest                                         2,523.00

           Total 1550 · 822 Gains                                              102,024.57

         Total Fixed Assets                                                     176,816.01

      TOTAL ASSETS                                                              233,550.36

      LIABILITIES & EQUITY

        Liabilities

           Current Liabilities

             Accounts Payable

                2000 · Accounts Payable                                         43,735.76

             Total Accounts Payable                                             43,735.76

            Total Current Liabilities                                            43,735.76

            Long Term Liabilities

             2500 · Notes Payable Loans

                2505 · 822 Gain St.                                      30,000.00

                2515 · QuadCities Housing Cluster                        30,000.00

             Total 2500 · Notes Payable Loans                                   60,000.00

            Total Long Term Liabilities                                          60,000.00

         Total Liabilities                                                      103,735.76

         Equity

           1110 · Retained Earnings                                            130,622.65

           3000 · Opening Bal Equity                                              -143.14

           Net Income                                                             -664.91

        Total Equity                                                           129,814.60

      TOTAL LIABILITIES & EQUITY                                                233,550.36

Gateway Redevelopment Group, Davenport, Iowa