SAMPLE COOPERATIVE CORP. FINANCIAL STATEMENTS FOR THE ...

[Pages:14]SAMPLE COOPERATIVE CORP. FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

SAMPLE COOPERATIVE CORP.

INDEX

Page INDEPENDENT AUDITORS' REPORT .......................................................................... 1 BALANCE SHEETS ............................................................................................................ 2?3 STATEMENTS OF OPERATIONS AND CHANGES IN ACCUMULATED DEFICIT....... 4

Operating Expenses (Schedule 1) .............................................................................. 5 Repairs and Maintenance (Schedule 2)...................................................................... 5 Administrative Expenses (Schedule 3) ...................................................................... 6 Taxes (Schedule 4).................................................................................................... 6 STATEMENTS OF CASH FLOWS...................................................................................... 7 NOTES TO FINANCIAL STATEMENTS............................................................................ 8-12

Greenberg & Brennan, CPA's, P.C.

Certified Public Accountants

111 JOHN STREET SUITE 1810 NEW YORK, NY 10038

TELEPHONE (212) 370-1488 FAX (212) 370-1513

WILLIAM J. GREENBERG, CPA JOHN J. BRENNAN, CPA ALBERT M. KUSHNIROV, CPA

A PRACTICE LIMITED TO COOPERATIVES AND CONDOMINIUMS

INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Shareholders of Sample Cooperative Corp.

We have audited the accompanying balance sheets of Sample Cooperative Corp. (the "Corporation") as of December 31, 2010 and 2009 and the related statements of operations, changes in accumulated deficit and cash flows for the years then ended. These financial statements are the responsibility of the Corporation's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America as established by the Auditing Standards Board of the American Institute of Certified Public Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sample Cooperative Corp. as of December 31, 2010 and 2009 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 5 to the financial statements, the Corporation's governing documents do not require that funds be accumulated for future major repairs and replacements. As such, the Corporation has not estimated the remaining useful lives and replacement costs of the common property and, therefore, has not presented the estimates of future costs of major repairs and replacements that the American Institute of Certified Public Accountants has determined is required to supplement, although not required to be part of, the basic financial statements.

GREENBERG & BRENNAN, CPA's, P.C. March 28, 2011

SAMPLE COOPERATIVE CORP. BALANCE SHEETS

ASSETS

Current Assets Cash and Equivalents: (Note 2B) Operating Account Operating Account ? Rental Apartments Capital Assessment Account Money Market Account

Total Cash and Equivalents

Accounts Receivable: Shareholders (Note 2F) Rental Tenants Other Receivables

Total Accounts Receivable

Prepaid Expenses: Insurance Corporation Taxes Other

Total Prepaid Expenses

Total Current Assets

Real Estate (Note 2D) Land Building Building Improvements Machinery and Equipment

Less: Accumulated Depreciation

Real Estate ? Net of Accumulated Depreciation

Other Assets Deferred Mortgage Costs ? Net of Accumulated Amortization (Note 2E) Investment in NCB Stock (Note 3) Security Deposits

Total Other Assets

TOTAL ASSETS

December 31,

2010

2009

$ 137,600 59,435 79,363 48,532 324,930

4,389 1,850 2,493 8,732

1,796 364 ?

2,160 335,822

723,276 4,098,567

537,366 13,252 5,372,461 2,557,493 2,814,968

$ 87,355 31,581 71,126 48,604 238,666

2,900 ? 2,622 5,522

1,897 513 125

2,535 246,723

723,276 4,098,567

537,366 13,252 5,372,461 2,445,821 2,926,640

39,658 ?

7,421 47,079

$ 3,197,869

44,830 19,872 14,573 79,275

$ 3,252,638

See Independent Auditors' Report and Notes to Financial Statements. ? 2 ?

SAMPLE COOPERATIVE CORP. BALANCE SHEETS

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities Accounts Payable and Accrued Expenses NYC Real Estate Tax Abatements/Exemptions Liability (Note 8) Security Deposits Payable Prepaid Maintenance

December 31,

2010

2009

$ 33,140

$ 28,400

20,308 7,421 3,552

18,535 14,573

?

Total Current Liabilities

64,421

61,508

Long-Term Liabilities Mortgage Payable (Note 3)

1,951,338

1,974,655

Total Long-Term Liabilities

1,951,338

1,974,655

Total Liabilities

2,015,759

2,036,163

Shareholders' Equity Capital Stock ? Par Value $1 Per Share Authorized 15,500 Shares 13,608 Shares Issued and 12,756 Shares Outstanding

12,756

12,756

Paid-In Capital (Note 2G) Less: Treasury Stock, at Coast (Note 9)

Less: Accumulated Deficit

3,786,390 75,537

3,710,853 2,541,499

3,763,073 75,537

3,687,536 2,483,817

Total Shareholders' Equity

1,182,110

1,216,475

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 3,197,869

$ 3,252,638

See Independent Auditors' Report and Notes to Financial Statements. ? 3 ?

SAMPLE COOPERATIVE CORP. STATEMENTS OF OPERATIONS AND CHANGES IN ACCUMULATED DEFICIT

INCOME Maintenance Charges (Note 2F) Assessment ? NYC Real Estate Tax Abatements (Note 8) Less: NYC Real Estate Tax Abatements/Exemptions (Note 8) Contributed Capital ? Mortgage Amortization (Note 2G)

Rental Income ? Professional Units (Note 10) Rental Income ? Treasury Stock Apartments (Note 9) Sublet Fees Laundry Income Storage Fees Late Fees Apartment Transfer Fees (Note 4) Interest and Dividends Miscellaneous Income

TOTAL INCOME

COST OF OPERATIONS Operating Expenses Repairs and Maintenance Administrative Expenses Taxes Mortgage Interest (Note 3)

? Schedule 1 ? Schedule 2 ? Schedule 3 ? Schedule 4

TOTAL COST OF OPERATIONS

Operating Surplus Before Depreciation, Amortization and Other Non-Operating Items

Less: Depreciation (Note 2D) Amortization of Deferred Mortgage Costs (Note 2E)

Add: Real Estate Taxes ? Refund (Note 11) ? Legal Fee (Note 11)

Security Deposits Retained Prior Year Adjustment

NET (DEFICIT) FOR THE YEAR

Accumulated Deficit ? January 1

Accumulated Deficit ? December 31

For the Years Ended

December 31,

2010

2009

$ 527,692 $ 527,692

46,051 38,100 23,317 512,326

35,859 64,750 11,381 6,134 3,484 1,450 14,063 1,162 5,118

655,727

41,239 34,793 21,889 512,249

35,859 60,272 9,441 6,000 3,224 1,250

? 1,406 1,186

630,887

140,787 40,154 54,546

243,120 124,329

602,936

113,804 48,941 59,593 221,678 125,765

569,781

52,791

111,672 5,172 1,309 (2,092) 7,154 ?

(57,682)

(2,483,817)

$ (2,541,499)

61,106

109,483 5,172 ? ? ? 6,788

(46,761)

(2,437,056)

$ (2,483,817)

See Independent Auditors' Report and Notes to Financial Statements. ? 4 ?

SAMPLE COOPERATIVE CORP.

SCHEDULE 1 SCHEDULE 2

STATEMENTS OF OPERATIONS AND CHANGES IN ACCUMULATED DEFICIT

SCHEDULE 1

OPERATING EXPENSES

Payroll and Related Payroll Payroll Taxes Workers' Compensation and Disability Insurance Other Payroll Costs

Total Payroll and Related

Utilities Heating Electric and Gas Water and Sewer

Total Utilities

TOTAL OPERATING EXPENSES

SCHEDULE 2

REPAIRS AND MAINTENANCE

Building Supplies Elevator Plumbing Heating Water Treatment Painting and Plastering Intercom Building Cleaning Sprinkler System Landscaping Exterminating Permits and Inspections Other Interior Repairs Other Exterior Repairs

Less: Repairs Billed Back to Shareholders and Insurance Claims

TOTAL REPAIRS AND MAINTENANCE

For the Years Ended

December 31,

2010

2009

$ 7,800 770 254 987

9,811

30,750 68,574 31,652 130,976

$ 140,787

$ 7,800 801

1,220 980

10,801

19,303 62,400 21,300 103,003

$ 113,804

$ 2,930 6,918 2,765 267 4,328 4,521 683 935 ? 4,319 831 8,666 110 3,511

630

$ 40,154

$ 2,623 4,516 5,454 4,115 4,192 6,001 1,524 8,051 414 4,547 829 2,648 4,667 135

775

$ 48,941

See Independent Auditors' Report and Notes to Financial Statements. ? 5 ?

SAMPLE COOPERATIVE CORP.

SCHEDULE 3 SCHEDULE 4

STATEMENTS OF OPERATIONS AND CHANGES IN ACCUMULATED DEFICIT

SCHEDULE 3

ADMINISTRATIVE EXPENSES

Building Insurance Management Fees Legal Fees Auditing Other Professional Fees Leasing Commission Telephone Other Administrative Expenses

TOTAL ADMINISTRATIVE EXPENSES

For the Years Ended

December 31,

2010

2009

$ 21,814 22,000 425 6,500 ? ? 1,430 2,377

$ 54,546

$ 24,503 22,000 150 6,500 1,700 1,700 960 2,080

$ 59,593

SCHEDULE 4

TAXES New York State and New York City Corporation Taxes (Note 7) NYC Real Estate Taxes ? Net of NYC Real Estate Tax Abatements/Exemptions

TOTAL TAXES

$ 2,312 240,808

$ 243,120

$ 2,207 219,471

$ 221,678

See Independent Auditors' Report and Notes to Financial Statements. ? 6 ?

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