Financial Statements Consolidated Balance Sheets  Liabilities and Stockholders’ Equity Commitments and Contingencies (see Note 10) Current liabilities Accounts payable $17,788,964 ) $15,551,685 ) Accrued expenses 8,449,617 ) 7,721,682 ) Income taxes payable 5,806,883 ) 3,352,049 ) Total current liabilities 32,045,464) 26,625,416) Bonds payable 50,000,000 ) 50,000,000 ) Deferred tax liabilities 3,955,229 ) 8,283,601 ) Total liabilities 86,000,694) 84,909,017) Current assets Cash and cash equivalents $125,092,393 ) $81,280,409 ) Short-term investments 19,747,205 ) 26,282,961 ) Accounts receivable, less allowance for doubtful accounts of  $2,471,732 and $3,882,099 in 2002 and 2001, respectively 38,882,390 ) 60,598,867 ) Other receivables 4,459,734 ) 9,609,478 ) Inventory, net 39,926,384 ) 56,849,470 ) Prepaid expenses 2,649,039 ) 3,486,470 ) Deferred tax assets 4,799,390 ) 5,904,755 ) Total current assets 235,556,535) 244,012,410) Property, plant and equipment, net 106,173,833 ) 120,133,445 ) Other assets 469,000 ) 489,000 ) Deferred tax assets 2,682,464 ) Long-term investments 176,330,988 ) 157,901,718 ) Total assets $521,212,820) $522,536,573) Stockholders’ equity Common stock, par value $.01 per share;  200,000,000 shares authorized; 39,445,198  shares issued in 2002 and 2001 394,452 ) 394,452 ) Additional paid-in capital 96,982,075 ) 96,384,091 ) Accumulated other comprehensive income 3,096,669 ) 9,374,389 ) Retained earnings 375,009,894 ) 350,233,932 ) Less treasury stock at cost: 2,062,621 and  910,236 shares in 2002 and 2001, respectively (40,270,963) (18,759,308) Total stockholders’ equity 435,212,127) 437,627,556) Total liabilities and stockholders’ equity $521,212,820) $522,536,573) The accompanying notes are an integral part of these consolidated financial statements. 20 ADTRAN 2002 Annual Report Assets At December 31, 2002) 2001)