1965 Liquor Dispensary
BROEKER HENDRICKSON g CO.
Certified 'Public Accountants
NORTHWESTERN BANK BUILDING
MINNEAPOLIS, MINNESOTA 55402
To the Village Council
Village of New Hope
Hennepin County, Minnesota
We have examined the balance sheet of the VILLAGE OF NEW
HOPE LIQUOR DISPENSARY FUND and the VILLAGE OF NEW HOPE LIQUOR STORE
FUND as of December 31, 1965, and the related statements of income and
retained earnings for the year then ended. Our examination was made
in accordance with generally accepted auditing standards, and accord-
ingly included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
In our opinion, the accompanying balance sheet and statements
of income and retained earnings present fairly the financial position
of the Village of New Hope Liquor Dispensary Fund and the Village of
New Hope Liquor Store Fund at December 31, 1965, and the results of
their operations for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with that
of the preceding year.
Minneapolis, Minnesota ~ II~ ~ c
.
April 30, 1966
VILLAGE OF NEW HOPE
LIQUOR DISPENSARY FUND
AND
-
VILLAGE LIQUOR STORE FUND
COMBINED BALANCE SHEET - DECEMBER 31, 1965
A S S E T S
Liquor Village
Dispensary Liquor
CURRENT ASSETS: Fund Store Fund Total
Cash on hand $ 2,170.87 $ - $ 2,170.87
Cash in bank 2,849.68 977.42 3,827.10
Inventory, at cost 15,588.92 22,686.13 38,275.05
Prepaid expenses - 250.00 250.00
Total current assets .$ 20,609.47 .$ 23,913.55 $ 44,523.02
INVESTMENTS:
Restricted (Note 1) $ 37,000.00 $ - $ 37,000.00
Unrestricted 51.954.19 - 8,954.19
-
,$ 45.!' 954 .19 $ - $ 45,954.19
FIXED ASSETS, at cost: $ 12,016.64 $ $ 12,016.64
Land -
Building 57,556.53 - 57,556.53
Furniture and fixtures 21,101.60 9,631.13 30,732.73
Leasehold improvements - 835.00 835.00
$ 90,674.77 $ 10,466.13 $101,140.90
Less- Accumulated depreciation 19,635.23 3,195.92 22,831.15
<~ 71,039.54 ..L 7,270.21 1_78,309.75
.$137,603.20 $ 31,183.76 $168,786.96
L I A B I LIT I E S
CURRENT LIABILITIES:
Current maturity of bonds payable $ 5,000.00 $ - $ 5,000.00
Accollilts payable 2,288.91 1,635.98 3,924.89
Due to other funds - 20,000.00 20,000.00
Accrued Public Employees Retire-
ment Association contributions 3,474.89 624.92 4,099.81
Accrued interest on Municipal
Building Revenue Bonds payable 755.41 - 755.41
Total current liabilities ,$ 11,519.21 _$ 22,260.90 $ 33,780.11
MUNICIPAL BUILDING REVENUE BONDS
PAYABLE, exclusive of current
maturity included above (Note 2) ,~ 32,000.00 $ - $ 32,000.00
RESERVE FOR RESTRICTED ASSETS $ 37,000.00 $ - $ 37,000.00
RETAI~mD EARNINGS=-per accompany- j 57,083..29 .! $ 66,006.85
ing statement 8,922.86
.$137,603.20 $ 31,183.76 j168,786.96
The accompanying notes are an integral part
of tnis balance sheet.
VILLAGE OF NEW HOPE
LIQUOR DISPENSARY FUND
A~
VILLAGE LIQUOR STORE FUND
NOTES TO FINANCIAL STATEMENTS
1 . Restricted investments consist of a certificate of deposit appro-
priated for the payment of bonds, covering reserve requirements
as set forth in the bond indenture.
2. The provisions underlying the Municipal Building Revenue Bonds
payable provides, in part, the following:
a. Annual original bond maturities varied from $5,000 to
$10,000 for each of the years 1966 through 1973. Bonds
maturing in the year 1966 are payable on their respec-
tive maturity dates without option of prior payment.
Bonds maturing in the years 1971 thro~h 1973 were
redeemed during 1965 in the amount of 30,000. Bonds
maturing in the years 1967 through 1970 are subject to
redemption on or after August 1, 1966. All prepayments
are at the option of the Village and are payable at par
plus accrued interest and a premium of $50 per $1,000
bond. The Village had, at December 31, 1965, established
a reserve for the payment of all remaining bonds
($37,000) with the intent of retiring such bonds in 1966.
b. The annual interest on the unredeemed bonds is 4.9%.
c . Bond interest and principal shall be payable from net
revenues, as defined, and the excess shall be allocated
to certain specific accounts. At December 31, 1965, the
Village had net revenues of $127,741.71 and had paid
principal and interest on such revenue bonds to December 31,
1965 in the amount of $86,453.00, leaving surplus net
revenues of $41,288.71.
Inasmuch as the Village had sufficient cash on hand in the
form of a certificate of deposit equal to the total
amount of bonds outstanding, no allocation of net revenues
to specific accounts was made.
VILLAGE OF NEW HOPE
LIQUOR DISPENSARY FUND
AND
VILLAGE LIQUOR STORE FUND
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1965
INCOME
Liquor Village
Dispensary Liquor
Fund Store Fund Total
SALES:
On sale $100,582.58 $ - $100,582.58
Off sale 111,885.72 139,710.72 251, 596 ,l~4
Total sales $212,468.30 $139,710.72 $352,179.02
COST OF SALES 126,010.69 109,759.96 235,770.65
Gross profit on sales $ 86,457.61 $ 29,950.76 $116,408.37
Per cent to sales 40 . 7% 21.4% 33.0%
OPERATING EXPENSES:
Selling- $ 25,719.72 $ $ 34,164.22
Salaries 8,444.50
Public Employees Retirement
Association contribution 1,761.44 423.18 2,184.62
Supplies 1,904.89 305.37 2,210.26
Laundry 309.46 183.90 493.36
Licenses and taxes 81.00 54.00 135.00
Cash short 7.04 - 7.04
Total selling expenses .$ 29,783.55 j 9,410.95 $ 39,194.50
Overhead-
utilities $ 2,196.16 $ 1,241.76 $ 3,437.92
Rent - 3,000.00 3,000.00
Maintenance and repairs 784.89 58.50 843.39
Cleaning 2,450.40 158.12 2,608.52
other contractual services 468.00 216.00 684.00
Supplies 57.57 48.03 105.60
Insurance 3,541.07 1,021.96 4,563.03
Taxes 40.96 - 40.96
Depreciation 2,951.02 827.63 3,778.65
Total overhead expenses .$ 12,490.07 $ 6,572.00 j 19,062.07
Administration and general- $ 10,182.68 $ $ 11,766.68
Salaries 1,584.00
Public Employees Retirement
Association contribution 731.97 - 731.97
Legal and accounting 365.00 200.00 565.00
Office supplies 145.57 98.23 243.80
other 108.35 80.00 188.35
Total administration and
general expenses .$ 11,533. 57 $ 1,962.23 $ 13,495.80
Total operating expenses .$ 53,807.19 j 17,945.18 j 71,752.37
Operating income $ 32,650.42 $ 12,005.58 $ 44,656.00
INTEREST EXPENSE (Net) 1,733.23 - 1,733.23
Net income for the year _$ 30,917.19 ill 12,.005.58 ~ 42,922.77
VILLAGE OF NEW HOPE
LIQUOR DISPENSARY FUND
AND
-
VILLAGE LIQUOR STORE FUND
STATEMENTS OF INCOME AND RETAINED EARNINGS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1965
RETAINED EARNINGS
Liquor Village
Dispensary Liquor
Fund Store Fund Total
BALANCE, DECEMBER 31, 1964
(deficit) $ 34,016.80 $( 3,082.72) $ 30,934.08
ADD- Net income for the year,
per statement of income 30,917.19 12,005.58 42,922.77
$ 64,933.99 $ 8,922.86 $ 73,856.85
DEDUCT- Increase in reserve for
restricted assets 7,850.00 - 7,850.00
BALANCE, DECE:MBER 31, 1965 j 57,083.99 $ 8,922.86 j 66,006.85
The accompanying notes are an integral part of these
statements of income and retained earnings.