1974 - Comp. Annual Financial Report
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M. J. LONG CO.
ACCOUNTANTS AND AUDITORS
TONKA BUIL.DING - EXCEL.SIOR, MINNESOTA 55331
The City Council
City of Shorewood
Shorewood, Minnesota
Gentlemen:
TELEPHONE (6 1 2) 474-8826
ACCOUNTANTS' REPORT
We have examined the balance sheet of the City of Shorewood-
Liquor Fund, a Minnesota Corporation, as of December 31, 1974
and the related statements of income, retained earnings and changes
in financial position for the year then ended. Our examination
was made in accordance with generally accepted auditing standards,
and accordingly included tests of the accounting records and such
other auditing procedures as we considered necessary in the cir-
cumstances.
In our oplnlon, the accompanying balance sheet and statements
of income, retained earnings and changes in financial position pre-
sent fairly the financial position of the City of Shorewood-Liquor
Fund as of December 31, 1974, and the results of its operations
for the year then ended, in conformity with generally accepted ac-
counting principles applied on a basis consistent with that of
the preceding year.
Excelsior, Minnesota
May 30, 1975
Sincerely,
M. J. LONG COMPANY
.
CITY OF SHOREWOOD-LIQUOR FUND
BALANCE SHEET - DECEMBER 31. 1974 AND 1973
1974
ASSETS
1973
CURRENT
Cash, including certificates of
deposit of $23,500
Receivables -
Due from General Fund
Interest
Inventories (Note 1)
Prepaid expenses
Total Assets
43,764 37,898
5,245 5,245
1,982
42,720 39,846
1,694 1.639
95,405 84.628
14,040 14,040
4,163 3,518
3,428 3,428
21,631 20,986
17 . 037 15,487
4,594 5,499
99,999_ ~0,127
Total Current Assets
PROPERTY AND EQUIPMENT (NOTE 1)
Furniture and fixtures
Equipment
Leasehold improvements
Less - Accumulated depreciation
.
Total Property and Equipment
LIABILITIES AND FUND BALANCE
CURRENT
Accounts payable
Payroll taxes
Sales taxes
Total Current Liabilities
9,901
748
1,061
11,710
6,760
957
928
8,645
FUND BALANCE
Retained earnings, per accompanying
statement
88,289
81.482
Total Liabilities and
Fund Balance
99,999
90,127
See Notes to Financial Statements
~
M. J. LO N G CO.
.
CITY OF SHOREWOOD-LIQUOR FUND
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1974 AND 1973
1974
INCOME
SALES
Liquor and wine
Beer
Miscellaneous
132,656
83,533
19,380
235,569
COST OF SALES
184,335
51,234
21. 7%
Gross Margin
Percent to Sales
.
OPERATING EXPENSES
Salaries
Payroll taxes and employee benefits
Rent
Utilities
Telephone
Insurance
23,673
4,193
6,522
2,443
424
2,605
Depreciation
Accounting and auditing
Bad debts
Supplies
Office expense
Repairs
Other
1,550
3,115
140
489
187
537
549
46,427
4,807
2,000
Total operating expenses
Operating income (loss)
OTHER INCOME, principally interest
Net income (loss)
6,807
RETAINED EARNINGS
BALANCE, beginning of year
81,482
ADD (DEDUCT) net income (loss)
6,807
88,289
BALANCE, end of year
~
See Notes to Financial Statements
M. J. LONG CO.
1973
126,287
62,595
16,617
205,499
160 ,424
45,075
21.9%
24,280
4,196
6,453
1,762
354
2,687
1,541
3,065
402
592
280
480
490
46,582
( 1,507)
(
1,293
214)
81,696
(
214)
81,482
.
CITY OF SHOREWOOD-LIQUOR FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE YEARS ENDED DECEMBER 31. 1974 AND 1973
1974
WORKING CAPITAL WAS PROVIDED FROM:
Operations -
Net income (loss)
Add - depreciation, a non-cash
charge
Total from operations
WORKING CAPITAL WAS USED FOR:
Purchase of equipment
Increase in working capital
.
INCREASE IN WORKING CAPITAL WAS
REPRESENTED BY:
Increase (decrease) in current assets
Cash
Receivables
Inventories
Prepaid expenses
Total
Increase (decrease) in current liabilities
Accounts payable
Payroll taxes (
Sales taxes
Total
Increase in Working Capital
6,807
1,550
8,357
645
7,712
5,866
1,982
2,874
55
10.777
3,141
209)
133
3,065
7,712
See Notes to Financial Statements
~
M. J. LO N G CO.
1973
( 214)
1.541
1,327
1,327
404
2,119
( 774)
1,749
259
99
64
422
1,327
.
CITY OF SHOREWOOD-LIQUOR FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31. 1974
1. Summary of Significant Accounting Policies
Inventories -
Inventories are stated at the lower of cost (first-
in, first-out) or market.
Property and Equipment =
Property and equipment are stated at cost. Additions
and improvements are capitalized while maintenance and re-
pair expenditures are charged to expense currently. Upon
retirement or disposal the asset cost and related accumu-
lated depreciation are removed from the accounts and any
gain or loss is included in income.
Depreciation is computed on a straight line basis over
the estimated lives of the assets which are as follows:
.
Description
Furniture and fixtures
Equipment
Leasehold improvements
Life
5 years
3 - 10 years
10 years
2. Lease Commitments
The Liquor Fund leases its present store facility
under a ten year agreement to May, 1977 at annual rentals
of $5,700. In addition, the Fund is required to pay one
half of any increase in real estate taxes over those paid
in 1966.
3. Subsequent Event
In May, 1975 the Liquor Fund opened up a second store
in the Village Shopping Center. The new facility will be
leased under a three year agreement to May, 1978 at annual
rentals of $14,643. Four successive three year options
to renew are available to May, 1990. In addition, the
facility will lease certain fixtures with a cost of $20,000
under a fifteen year agreement to May, 1990 at annual rentals
of $2,580.
."
M. J. LONG CO.