Fort Walton Beach Resolution — 82-22-Ind Revenue Bonds-Gator Distributors — reading text

160, 490) 365, 616) Decrease ( Increase) in current Liabilities Bank OverdraftS 49, 709 57, 244) Notes payable - current Maturities 440, 026 414, 684) Accounts payable - Trade 247, 640 95, 745 Accrued Taxes payable 7, 575 136, 245) payable to Related Parties 51, 241 Other Accrued Expenses 12, 595) 31, 322 Obligations under capital Lease 19) 14) corporate Income Taxes payable 301, 799) 430, 537 429, 879) Increase ( Decrease) in Workin~ c~pital ($ 270, 047 795, 495) The accompanying Notes to Financial statements are an integral part of this statement. 8  o o Gator Distributors, Inc. pensacola, Florida Notes to Financial statements December 31, 1981 and 1980 Note 1 Summary of significant Accounting policies Accrual Method of The company maintains its records under the accrual method Accounting - of accounting for both financial reporting and tax purposes. Under this method, income is recognized when earned, rather than when received, and expenses are recognized when incurred rather than when paid. Accounts Receivable - Trade accounts receivable are reduced by an allowance for doubtful accounts, based on the amount of accounts receivable more than 60 days past due. ( See Note 3). lower of cost or market, using the last- in, Inventory - Inventory is stated at the first-out method. This method of costing has the effect of valuing cost of goods sold at current prices. ( See Note 4). property, EqUipment, and Related Depreciation - property, plant, and equipment acquired by the company are carried at cost for both financial reporting and tax purposes. Major additions and betterments are charged to the property accounts while replacements, and which do not extend the lives of the respective assets are maintenance, repairs When property is retired or otherwise disposed of, the cost of the property is expensed. removed from the asset account, accumulated depreciation is charged with an amount equal to the depreciation provided, and the difference, if any, is charged or credited to income. The provision for depreciation is predicated on the estimated useful lives of the various classes of assets. For placed in service prior t~ January 1, 1981, both double declining and straight assets line methods of depreciation are used for financial reportiny purposes, while the double declining method is primarily used for tax purposes. The accelerated cost recovery system is utilized for property placed in service after 1980. Deferred Income Taxes - Tax benefits resulting from timing differences in depreciation as computed for financial reporting and tax purposes are deferred in the books of account. The amount , deferred is included in Other Liabilities and will be transferred to earnings as the timing differences reverse themselves. Investment Tax credits - Investment tax credits are accounted for using the flow- through method which reduces federal income tax expese for the year in which qualified property is placed in service. which provides Profit Sharing Plan - The c~ ny has a contributory profit sharing plan foxw-:annual contributions in an amount not to exceed the maxiaua allowable by law. I Note 2 cash and cash It... Included in cash at Dec~ 31, 1981, 18 a repurchase nt with 8gre... 8 bank for $ 95, 000, bearing intereat at 11. 69'_ 1 9 1  o o Note 3 Accounts Receivable December 31, 1981 1980 Trade Receivables, Less provision for Doubtful 194, 653 $ 161, 519 Accounts of $ 10, 000 in 1981 and $ 24, 806 in 1980 6, 145 33, 599 Miscellaneous 30, 923 1, 780 other 231, 721 $ 196, 898 Total is based upon all accounts over 60 days old and is The provision for doubtful accounts considered adequate. Note 4 Inventories December 31, 1981 1980 526, 447 $ 602, 333 Merchandise $ 33, 848 16, 463 pallets and Dunnage FUel 15, 353 14, 864 575 , 648 $ 633, 660 Total $ Merchandise inventories used in computing cost of goods sold are valued at the lower of cost or market determined on the last- in, first out ( LIFO) basis. This has the effect of costing merchandise sold at current market prices. Pallets and dunnage and fuel valued at the lower of cost or market determined on the first- in, first- inventories are out ( FIFO) basis. Note 5 property and Equipment classes of assets: property and Equipment represents the net book value of the following Accumulated Cost Depreciation Book value December 31, 1981 Land $ 249, 322 $ $ 249, 322 i Buildings Leasehold Improvements 172, 110 56, 580 104, 661 8, 319 449 67,. 48, 261 130, 303 70, 715 59, 588 warehouse EqUipment 60, 661 22, 860 37, 801 1 FUrniture and Equipment 571, 999 279, 460 j Vehicles 851, 459 11, 650 11, 17 3 477 cooler Boxes I II! Total f# $ 1, 532, 085 $ 789, 727 $ 742, 358 December 31, 1980 152, 85'5 J Land $ 3ui1dings 152, 856 $ $ 172, 110 97, 461 74, 649 18, 239 6, 324 11, 915 Leasehold Improvements 119, 376 56, 874 62, 502 warehouse Equipment I Furniture and Equipment 57, 651 890, 079 14, 202 502, 013 43, 449