Statement of Retained Earnings
				Prophy Research Corporation
				Years 1996-2000
				(in dollars)
				2000		1999		1998		1997		1996
Balance of retained earnings				-56,775		-55,448		-53,864		-50,627		-49,524
or (loss) at year beginning
+ or - earnings or (loss)				-1,284		-1,327		-1,584		-3,237		-1,103
during year
Balance of retained earnings				-58,059		-56,775		-55,448		-53,864		-50,627
or (loss) at year end
				Sources and Uses of Funds
Sources of funds
	Cash from stockholders			1,259		1,552		1,147		3,752		998
	Cash decrease			25		0		437		0		105
	Total sources			1,284		1,552		1,584		3,752		1,103
Uses of funds
	Cash expenses			1,284		1,327		1,584		3,237		1,103
	Cash increase			0		225		0		515		0
	Total uses			1,284		1,552		1,584		3,752		1,103
				Bank Statement
Cash (Ray's pocket)				0		0		0		0		0
Bank (corporate account)				1,077		1,102		877		1,314		799
Total cash				1,077		1,102		877		1,314		799