Sample Construction Company, Inc.

Sample Construction Company, Inc.

Financial Statements and Additional Information for the year ended December 31, 20XX

Sample Construction Company, Inc.

Financial Statements and Additional Information Table of Contents

Page

Independent Auditor's Report

2

Balance Sheet

4

Statement of Income and Retained Earnings

5

Statement of Cash Flows

7

Notes to the Financial Statements

9

Independent Auditor's Report on Additional Information

S-1

Earnings from Construction Contracts

S-2

Construction Contracts Completed

S-3

Construction Contracts in Progress

S-4

General and Administrative Expenses

S-5

? GALLINA LLP

-1-

(9/14)

Independent Auditor's Report

To the Board of Directors and Stockholders of Sample Construction Company, Inc.

We have audited the accompanying financial statements of Sample Construction Company, Inc. (a California corporation), which comprise the balance sheet as of December 31, 20XX, and the related statements of income and retained earnings, and cash flows for the year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

? GALLINA LLP

-2-

(9/14)

Board of Directors and Stockholders Sample Construction Company, Inc. Independent Auditor's Report

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sample Construction Company, Inc. as of December 31, 20XX, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

(This statement represents a non-existent company and is for illustrative purposes only.) City, State February 11, 20X1

? GALLINA LLP

-3-

(9/14)

Sample Construction Company, Inc.

Balance Sheet December 31, 20XX

Current assets: Cash and cash equivalents Receivables: Contracts - current Contracts - retention Other

Total receivables

Costs and estimated gross profit in excess of billings on contracts in progress

Prepaid expenses

Total current assets

Property and equipment, net

Total assets

Assets

$ 5,432,000

$ 13,036,000 5,333,000 42,000 18,411,000

106,000 15,000

23,964,000 43,000

$ 24,007,000

See accompanying notes.

? GALLINA LLP

-4-

(9/14)

Sample Construction Company, Inc.

Balance Sheet December 31, 20XX

Liabilities and Stockholder's Equity

Current liabilities: Trade accounts payable: Current Subcontractor retentions

$ 8,765,000 5,543,000

Total trade accounts payable

14,308,000

Accrued expenses Billings in excess of costs and estimated

gross profit on contracts in progress Current maturity of long-term debt

981,000

2,432,000 9,000

Total current liabilities

17,730,000

Long-term debt, net of current maturity

12,000

Total liabilities

17,742,000

Stockholder's equity: Common stock, no par value, 10,000 shares authorized, 1,500 shares issued and outstanding Retained earnings

$ 150,000 6,115,000

Total stockholder's equity

6,265,000

Total liabilities and stockholder's equity

$ 24,007,000

See accompanying notes.

? GALLINA LLP

-5-

(9/14)

Sample Construction Company, Inc.

Statement of Income and Retained Earnings for the year ended December 31, 20XX

Contract revenue

Contract costs: Labor and labor costs Subcontractors Materials Equipment Other

Total contract costs

Gross profit from contracting

General and administrative expenses

Income from operations

Other income (expense): Interest income Miscellaneous income Interest expense

Total other income, net

Income before income taxes

Income tax expense

Net income

Retained earnings, January 1, 20XX

Stockholder distributions

Retained earnings, December 31, 20XX

$ 85,264,000

$ 2,450,000 73,504,000 4,955,000 80,000 400,000

81,389,000 3,875,000 2,080,000 1,795,000

146,000 45,000 (2,000)

$

189,000 1,984,000

31,000 1,953,000 5,062,000 (900,000) 6,115,000

See accompanying notes.

? GALLINA LLP

-6-

(9/14)

Sample Construction Company, Inc.

Statement of Cash Flows for the year ended December 31, 20XX

Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Bad debt expense Changes in operating assets and liabilities: Contract receivables Costs and estimated gross profit in excess of billings on contracts in progress Prepaid expenses Trade accounts payable Accrued expenses Billings in excess of costs and estimated gross profit on contracts in progress

Net cash provided by operating activities

Cash flows from investing activities: Collections of employee advances Cash paid for equipment

Net cash used by investing activities

Cash flows from financing activities: Principal payments on long-term debt Stockholder distributions

Net cash used by financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents, January 1, 20XX

Cash and cash equivalents, December 31, 20XX

$ 1,953,000

10,000 4,000

(5,519,000)

(39,000) (8,000) 4,657,000 169,000

(47,000)

1,180,000

$

9,000

(20,000)

(11,000)

(13,000) (900,000)

$

(913,000) 256,000 5,176,000 5,432,000

See accompanying notes.

? GALLINA LLP

-7-

(9/14)

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download