Loading...
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.