Note 3 - Accounts Receivable and Inventory: Accounts receivable policy (Policies)

9 Months Ended

Sep. 30, 2013

Policies

Accounts receivable policy

Accounts receivable represents the net amount due from WEA/Warner Music Group from the sale of Top Sale music CD’s and ESMG’s digital music releases through September 30, 2013. Inventory represents the finished cost of Top Sail’s music CD’s (including prepaid royalties to music artists) available for resale to consumers, less a reserve of $3,729.