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

388, 066 Vehicles 13, 656 12, 845 811 Cooler Boxes I Total $ 1, 423, 967 689, 719 $ 734, 248 10 I  K___' o o Note 7 continued) In addition, the company has agreed to pay its former president, R. H.. Merritt, Jr. 6, 250 per month for consulting services. The agreement is for a 5 year period. Note 8 other Assets December 31, 1981 1980 utility Deposits 146 $ 146 Investments 2, 343 2, 343 cash surrender value of Life Insurance 11, 055 Total 13, 544 $ 2, 489 Note 9 Notes payable December 31, 1981 1980 Notes payable to GMAC at various interest rates, due on various d~ tes, collateralized by vehicle. 923 9, 042 Notes payable to Associates Commercial at various interest rates, due on various dates, collateralized by vehicles. 1, 477 12, 719 Notes payable to West Florida Bank at various interest rates, due on various dates, collateralized by vehicles. 2, 251 18, 838 Notes payable to century National Bank at various interest rates, due on various dates, collateralized by vehicles. 91, 930 158, 108 Note payable to century Natio~al Bank, bearing interest at CNB prime plus 2. 5%, borrowed on line of credit of $ 475, 000, due on demand, collateralized by inventory and the continuing guarantee of the shareholders. 1 390, 100 15. 22% note payable to commercial credit, due August 8, 1982, secured by a copy machine. . 1, 147 2, 665 16. 52% Note payable to Barnett Bank, due November 27, 1984, collateralized by truck. 11, 778 9. 25% Mortgage payable to Ellis National Bank, due March, 1991, collateralized by real estate in Fort ~ alton Beach. 31, 257 32, 791 14. 92% Note payable to Intech Leasinq corp., due December 18, 1985, collateralized by computer equipment. 45, 897 58, 151 15. 75% Note payable to Gator Building partnership ( a related entity), due on demand. 125, 000 13  o o 0- , Note 12 ( continued) December 31, 1981 1980 Dollars Percent Dollars Percent Expected" Tax on Pretax Earnings $ 370, 814 46. 00% $ 138, 661 46. 00 surtax Exemption ( 19, 250) 2. 39 ) ( 19, 250) ( 6. 39 Investment Tax credits ( 7, 766) . 96 ) ( 15, 453) ( 5. 13 Recapture of Investment Tax credits 2, 457 . 30 10, 345 3. 43 state Income Tax 20, 271 2. 52 11, 674 3. 87 Non- deductible Officers' Life Insurance ( Income) 283) . 04 4, 645 1. 54 Non~ ded~ ctible Amortization of Goodwill 806 . 10 805 . 28 Non- deductible Amortization of Excess Cost OVer Book value 33, 592 4. 17 Timing Difference of Financial and Tax Depreciation 10, 009) 1.24 ) ( 8, 867) 2. 94 Deferred Income Taxes 7, 885 . 97 9, 672 3. 21 Timing Difference Due to capitalization of Lease 12, 809 1. 59 18, 157 6. 02 Effect of the Lower capital Gains Tax Rate 16, 508) 2. 05 Tax ordinary Gain related to Timing on Difference of Depreciation Expense for Assets Sold During 1981 3, 525 . 44 1980 Over accrual Applied to 1981 7, 929) . 98 Penalty for Underpayment of 1980 Estimated Taxes 12, 655 1. 57 Total Income Tax Expense $ 403, 069 50. 00% $ 150, 389 49. 89% Note 13 Deferred Income Taxes Deferred income taxes represents the amount of taxes deferred to a later period as a result of the use of different methods of depreciation for financial reporting and tax purposes. The timing differences will reverse themselves in future periods. Note 14 Consolidation of Corporation During 1981, Gator Distribution, Inc. ( subsidiary) was liquidated into its parent company, Gator Holding co., Inc. The corporate name of the surviving corporation was changed to j Gator Distributors, Inc. Note 15 Related party Transaction I Gator Distributors, Inc. capital lease with Gator Building is the lessee under a partnership for its location in Pensacola. The lease is a 30 year lease with lease 1 payments of $ 21, 300 per month. The capitalization amount and future minimum lease I payments are disclosed in Note 6. Gator Distributors, Inc. leased an automobile from the president of the company, R. W. Moore. The lease payments totaled $ 2, 700 for the year ended December 31, 1981. Gator Distributors, Inc. has a non- interest bearing notp payable due to Gator Building partnerShip of $ 140, 000 at December 31, 1981. The partners of Gato~. Bui1ding partner- ship are the same as the shareholders of Gator Distributors, Inc. 15  CENTOtv PERSONAL FINANCIAL STA Q( BAN< IMPORTANT:' Rad...... ~ rl before comptellntJ thIe Statement. TEMO I. end not .... ....,.,..,. Of nselS of another P4" son . s lhe bal' l lot r~ yment ollhe cred, l reque$led. o " YOU'" ~.. incIivO.oII c: recIII in.... _ _ NIP'O-,.." __ enct...