diff --git a/ps2/ps02q/alu.v b/ps2/ps02q/alu.v
new file mode 100644
index 0000000..b51f38b
--- /dev/null
+++ b/ps2/ps02q/alu.v
@@ -0,0 +1,71 @@
+///////////////////////////// info header [part 1 of the Verliog file]
+// Author - Imants Pulkstenis
+// Date - 16.02.2020
+// Project name - PS02
+// Module name - alu
+//
+// Detailed module description:
+//
+// Arithmetic Logic Unit for PS02 project
+//
+//
+//
+//
+// Revision:
+// A - initial design
+// B - VHDL code are replaced with Verilog
+//
+/////////////////////////////
+
+//no need for libraries [part 2 of the Verilog file]
+
+
+//Entity declaration [part 3 of the Verilog file].
+module alu #( parameter
+	data_width = 32
+)
+	input                                   clk,
+	input signed        [data_width - 1:0]  A,
+	input signed        [data_width - 1:0]  B,
+	input unsigned      [3:0]               op,
+	output signed       [data_width - 1:0]  R,
+	output                                  flag);
+
+
+//define inside of the module
+//define inside use signals and components [part 4 of the VHDL file]
+
+reg signed [data_width:0] reg_R  = 'h0; // width is 33 to capture overflow or underflow                 
+
+//define the operation of the module! [part 5 of the VHDL file]
+always@(posedge clk) begin
+    case (op)        
+            4'h0: reg_R   <= A - B;
+            4'h1: reg_R   <= A + B;
+            4'h2: reg_R   <= ~(A & B);
+            4'h3: reg_R   <= A & B;
+            4'h4: reg_R   <= A | B;
+            4'h5: reg_R   <= ~(A | B);
+            4'h6: reg_R   <= A ^ B;
+            4'h7: reg_R   <= ~A;
+            4'h8: reg_R   <= ~B;
+            4'h9: reg_R   <= B + 1;
+            4'ha: reg_R   <= A + 1;
+            4'hb: reg_R   <= A - 1;
+            4'hc: reg_R   <= B - 1;
+            4'hd: reg_R   <= A << 1;    // <<	Shift Left, Logical (fill with zero)
+                                        // <<<	Shift Left, Arithmetic (keep sign)
+            4'he: reg_R   <= A >> 1;    // >>	Shift Right, Logical (fill with zero)
+                                        // >>>	Shift Right, Arithmetic (keep sign)
+            4'hf: reg_R   <= 'b0;  
+            default: reg_R <= 'b0;
+    endcase
+end
+
+assign R    = reg_R(data_width - 1:0);
+assign flag = (reg_R[data_width]==1'b1) ? 1'b1 : 1'b0; //optional
+
+endmodule
+
+
+
diff --git a/ps2/ps02q/ps02.v b/ps2/ps02q/ps02.v
index 4e5229f..94db519 100644
--- a/ps2/ps02q/ps02.v
+++ b/ps2/ps02q/ps02.v
@@ -24,40 +24,39 @@
 module ps02 #( parameter
 	data_width = 32
 )(
-	input                       clk, 
-	input                       rst,
-	output  [data_width - 1:0]  R,
-	output                      flag
+	input                               clk, 
+	input                               rst,
+	output signed [data_width - 1:0]    R,
+	output                              flag
 );
 
     //define inside of the module
 	 //define inside use signals
-	wire [data_width - 1:0]     A;
-	wire [data_width - 1:0]     B;
-	wire [3:0]                  op;
+	wire signed     [data_width - 1:0]      A;
+	wire signed     [data_width - 1:0]      B;
+	wire unsigned   [3:0]                   op;
 	
-	 //component declaration for A, B, op signal generator
+    //component declaration for A, B, op signal generator
     //port map for A, B, op signal generator
 ps02_siggen #(
         .data_width(data_width)
     ) name_of_unit (
         .clk(clk),
-	     .rst(rst),
-	     .A(A),
-	     .B(B),
-	     .op(op)
+        .rst(rst),
+        .A(A),
+        .B(B),
+        .op(op)
 );
 
-	 //component declaration for alu  (TASK 1)
+    //component declaration for alu  (TASK 1)
     //port map for ALU (TASK 1)
-
 alu #(
         .data_width(data_width)
     ) name_of_alu_unit (
         .clk(clk),
-	     .A(A),
-	     .B(B),
-	     .op(op),
+        .A(A),
+        .B(B),
+        .op(op),
         .R(R),
         .flag(flag)
 );