The effects on the Company’s balance sheet at December 31, 2013 as a result of the retroactive application of the change in accounting principle in accordance with ASC 250 were as follows:

	December 31, 2013
	As reported previously			As adjusted			Effect of change
Cash and cash equivalents	$	2,112,700		$	2,112,700		$	-
Accounts receivable, net		3,313,700			3,303,800			(9,900	)
Finance leases receivable		1,895,200			1,895,200			-
Aircraft and aircraft engines held for lease, net		152,375,200			152,954,600			579,400
Assets held for sale		735,000			735,000			-
Prepaid expenses and other		3,633,000			3,633,000			-
Total assets	$	164,064,800		$	164,634,300		$	569,500
Accounts payable and accrued expenses	$	1,175,300		$	1,202,700		$	27,400
Notes payable and accrued interest		77,527,300			77,527,300			-
Maintenance reserves and accrued maintenance costs		13,254,100			18,283,900			5,029,800
Security deposits		6,265,000			6,265,000			-
Unearned revenues		646,700			646,700			-
Deferred income taxes		16,099,700			14,573,800			(1,525,900	)
Total liabilities		114,968,100			118,499,400			3,531,300
Preferred stock		-			-			-
Common stock		1,600			1,600			-
Paid-in capital		14,780,100			14,780,100			-
Retained earnings		34,819,100			31,857,300			(2,961,800	)
Treasury stock		(504,100	)		(504,100	)		-
Total stockholders’ equity		49,096,700			46,134,900			(2,961,800	)
Total liabilities and stockholders’ equity	$	164,064,800		$	164,634,300		$	569,500

The effects on the Company’s statement of operations for the year ended December 31, 2013 as a result of the retroactive application of the change in accounting principle in accordance with ASC 250 were as follows:

	For the Year Ended December 31, 2013
	As reported previously		As adjusted		Effect of change
	As reported previously		As adjusted		Effect of change


Operating lease revenue, net	$	18,794,200	$	18,794,200	$	-
Maintenance reserves income, net		8,878,300		14,910,400		6,032,100
Gain on disposal of assets and other income		4,527,000		4,527,000		-
		32,199,500		38,231,600		6,032,100

Maintenance		8,765,000		6,962,400		(1,802,600	)
Depreciation		7,312,500		7,363,100		50,600
Management fees		4,352,400		4,369,300		16,900
Interest		4,075,000		4,075,000		-
Professional fees, general and administrative and other		1,532,100		1,532,100		-
Insurance		1,166,400		1,166,400		-
Other taxes		90,200		90,200		-
		27,293,600		25,558,500		(1,735,100	)

Income before taxes		4,905,900		12,673,100		7,767,200
Tax provision		1,688,400		4,329,200		2,640,800
Net income	$	3,217,500	$	8,343,900	$	5,126,400
Earnings per share:
Basic	$	2.08	$	5.41	$	3.33
Diluted	$	2.03	$	5.26	$	3.23

The effects on the Company’s statement of cash flows for the year ended December 31, 2013 as a result of the retroactive application of the change in accounting principle in accordance with ASC 250 were as follows:

	For the Year Ended December 31, 2013
	As reported previously			As adjusted			Effect of change
Operating activities:
Net income	$	3,217,500		$	8,343,900		$	5,126,400
Adjustments to reconcile net income to net cash provided by operating activities:
Net gain on disposal of assets		(3,808,200	)		(3,808,200	)		-
Depreciation		7,312,500			7,363,100			50,600
Non-cash interest		1,113,600			1,113,600			-
Deferred income taxes		1,680,500			4,321,300			2,640,800
Changes in operating assets and liabilities:
Accounts receivable		(106,000	)		(96,100	)		9,900
Finance lease receivable		246,000			246,000			-
Income taxes receivable		2,000			2,000			-
Prepaid expenses and other		(772,400	)		(772,400	)		-
Accounts payable and accrued expenses		(40,300	)		(23,400	)		16,900
Accrued interest on notes payable		(38,400	)		(38,400	)		-
Maintenance reserves and accrued costs		(1,284,200	)		(9,128,800	)		(7,844,600	)
Security deposits		(525,200	)		(525,200	)		-
Unearned revenue		(105,700	)		(105,700	)		-
Income taxes payable		(19,100	)		(19,100	)		-
Net cash provided by operating activities		6,872,600			6,872,600			-
Investing activities:
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees		10,018,700			10,018,700			-
Proceeds from sale of assets held for sale, net of re-sale fees		945,100			945,100			-
Purchases of aircraft and aircraft engines		(24,965,500	)		(24,965,500	)		-
Net cash used in investing activities		(14,001,700	)		(14,001,700	)		-
Financing activities:
Borrowings under Credit Facility		19,000,000			19,000,000			-
Repayments of Credit Facility		(9,300,000	)		(9,300,000	)		-
Debt issuance costs		(2,055,000	)		(2,055,000	)		-
Net cash provided by financing activities		7,645,000			7,645,000			-
Net increase in cash and cash equivalents		515,900			515,900			-
Cash and cash equivalents, beginning of year		1,596,800			1,596,800			-
Cash and cash equivalents, end of year	$	2,112,700		$	2,112,700		$	-