VICTORY CHRISTIAN CENTER INC. Financial Statements Year Ended December 31, 2010 (Unaudited - See Notice To Reader). VICTORY CHRISTIAN CENTER INC, Index to Financial Statements Year Ended December 31, 2010 (Unaudited - See Notica To Reader) Page NOTICE TO READER FINANCIAL STATEMENTS Statement of Financial Position Statement of Operations Statement of Net Assets Statement of Cash Flows Note to Financial Statements . 2 3 4 5 6 . 1 LOEWEN KRUSE CHARTERED ACCOUNTANTS NOTICE TO READER On the basis of information provided by management, we have compiled the statement of financial position of Victory Christian Center Inc. as at December 31, 2010 and the statements of operations, net assets and cash flows for the year then ended. We have not performed an audit or a review engagement in respect of these financial statements and, accordingly, we express no assurance thereon. Readers are cautioned that these statements may not be appropriate for their purposes. Burnaby, British Columbia June 27,2011 Chartered Accountants 505-4211 Kingsway - Burnaby, BC V5H 1Z6 o TEL 604.736.4300 * FAX 604.736.4S14 - TOLL FREE 1.877.LOEWENS VICTORY CHRISTIAN CENTER INC: Statement of Financial Position December 31,2010 2010 ASSETS CURRENT Cash Accounts receivable Recoverable from government authorities Loan receivable Interest receivable $ 292,358 5,241 9,866 2,475,000 110,000 2,892,465 INVESTMENT CERTIFICATE ADVANCES TO VICTORY CHRISTIAN SCHOOL CAPITAL ASSETS (Note 1) $ LIABILITIES AND NET ASSETS oCURRENT Accounts payable and accrued liabilities Payable to government authorities $ 90,101 $ 93,569 222,199 3,133,421 6,341,654. $ $ 2009 174,690 253 13,898 2,475,000 105,000 2,768,841 93,232 214,457 3,151,674 6,228,204 46,710 3,495 50,205 6.177,999 90,101 NET ASSETS Operating fund - page 4 $ 6,251,553 6,341,654 $ 6,228,204 'dor See notes to finatrcial staleme VICTORY CHRISTIAN CENTER INC. Statement of Operations Year Ended December 31, 2010 2010 REVENUE General offerings Daycare receipts Daycare government grants Interest Conferences Banquet Bookstore sales Victory Bible College receipts Other revenue 2009 $ 973,340 407,821 132,172 105,945 34,273 33,101 10,072 6,743 3,812 1,707,279 $ 907,17,7 415,592 148,676 101,710 29,737 - 11,384 6,472 2,772 1,623,520 829,402 270,972 60,326 27,457 54,551 23,293 33,930 37,109 30,136 22,357 31 ,474 34,897 29,659 23,460 33,703 13,714 8,324 3,814 3,293 3,361 10YI6Q 4,497 4,296 314 1,866 210 EXPENDITURES Salaries and wages Church supplies and services Telephone and utilities Gifts to qualified donees Seminars, training and education Building maintenance Advertising Amortization Repairs and maintenance vehicles Office supplies and services Interest and bank charges Insurance Photocopier operating costs Daycare Rental equipment and facilities Accounting and legal HST/GST expensed Conferences --Dues-and-subseriptionsHonorariums Courier Computer repairs and maintenance Equipment maintenance Miscellaneous Property taxes Currency Exchange Bad debt expense . 764,702 334,651 70,314 60,231 54,901 43,014 41,007 37,396 37,200 37,005 28;083 25,605 23,160 22,978 10,238 9,470 9,034 5,693 .~ 4,9204,125 3,493 2,693 2,343 1,107 308 4 - 1T633,725 EXCESS OF REVENUE OVER EXPENDITURES - page 4 $ 73,554 $ 1,596,580 ' 26,940 See notes to financial statements VICTORY CHRISTIAN CENTER INC. Statement of Net Assets Year Ended December 31, 2010 2010 2009 NET ASSETS - BEGINNING OF YEAR Excess of revenue over expenditures - page 3 NET ASSETS - END OF YEAR - page 2 $ 6,177,999 73,554 6,251,553 $ 6,151,059 26,940 6,177,999 See notes to financial statements VICTORY CHRISTIAN CENTER INC. Statement of Cash Rows Year Ended December 31, 2010 2010 OPERATING ACTIVITIES Excess of revenue over expenditures - page 3 Item not affecting cash: Amortization 2009 $ 7,5 354 3,9 736 110,950 $ 2,4 690 37,109 6,4 409 Changes in non-cash working capital: Increase in current assets Increase in current liabilities ' (5) 96 3,9 986 3,4 890 (,6) 837 7,901 (6) 46 63,583 Cash flow from operating activities INVESTING ACTIVITIES Increase in investment certificate Net purchase of capital assets Increase in loan receivable Increase in loan interest receivable Loan advances to Victory Christian School Cash flow used by investing activities INCREASE (DECREASE) IN CASH FLOW Cash - beginning of year CASH - END OF YEAR $ 149,890 (3) 37 (19,143) (,0) 500 (,4) 772 (222 3,2) 117,668 1460 7,9 2238 9,5 $ : (,0) 207 (515 5,2) (,7,0) 24500 (0,0) 1500 (,6) 366 (,4,9) 26078 (,7,1) 25725 27195 ,5,0 174,690 See notes to financial statements VICTORY CHRISTIAN CENTER INC. Notes to Financial Statements Year Ended December 31, 2010 1. CAPITAL ASSETS Cost $ Accumulated amortization 420 2010 Met book value 3,OQO;00G 3> ' 1l[o75 23,840 633 2009 Net book value 3,000,000 o 11,237 29,800 791 30 Land Buildings Audio/sound equipment Music equipment Video satellite equipment Church equipment TV equipment Daycare equipment Automotive Computers 3,000,000 $ 11,495 153,572 27,158 11,407 299,628 172,908 16,627 255,988 30,648 3.979,429 $ 129,732 26,523 11,383 267,372 168,515 13,242 215,539 13.282 846,008 $ 24 ' 32,256 4,393 3,385 40,449 17,366 3,133.421 $ 34,954 5,491 o 4,232 57,784 7,355 3,151.674 _$