Accounts payable

$ 9,500

Accounts receivable

276,050

Accumulated depreciation

3,050,000

Accumulated other comprehensive income

15,000

Allowance for doubtful  accounts

11,500

Cash

115,500

Common stock, $10 par (500,000 shares authorized; 251,000 shares issued)

2,510,000

Deferred income taxes payable (current portion, $4,700)

65,700

Dividends:

Cash dividends for common stock

80,000

Cash dividends for preferred stock

100,000

Stock dividends for common stock

40,000

Dividends payable

25,000

Employee termination benefit obligation  (current)

90,000

Equipment

11,819,050

Income tax payable

55,900

Interest  receivable

2,500

Merchandise inventory (July 31, 2006), at lower of cost (FIFO) or  market

551,500

Paid-in capital from sale of Treasury  stock

$ 5,000

Paid-in capital in excess of par-common stock

996,300

Paid-in capital in excess of par-preferred stock

240,000

Patents

85,000

Preferred 6-2%   stock, $100 par (30,000 shares authorized; 15,000 shares issued) 1,500,000

Prepaid  expenses

15,900

Retained earnings, August 1,  2005

4,231,600

Temporary investments in marketable equity securities (at cost)

95,000

Treasury stock (1,000 shares of common stock at cost of $40 per share)

40,000

Unrealized gain (net of tax) on marketable equity   securities

15,000

Income statement data:

Administrative expenses

$ 140,000

Cost of merchandise sold

984,000

Gain on condemnation of  land

30,000

Income tax:

Applicable to continuing  operations

170,000

Applicable to loss from discontinued  operations

24,000

Applicable to gain on condemnation of   land

10,000

Interest expense

7,500

Interest  revenue

1,500

Loss from disposal of discontinued operations

104,000

Loss from fixed asset impairment

60,000

Restructuring charge

300,000

Sales

2,600,000

Selling expenses

540,000