Profit-and-loss statement of Capital Company, year ended December 31, 1947— Amount payable to Transamerica Corporation in lieu of federal taxes on income for the year 1947, less adjustment ($575.23) for preceding year—A Net profit 414, 424. 77 1, 143, 586.60 Provision for 1947 depreciation of real estate and equipment charged to expenses amounted to $289,501.67. A-Charge in lieu of income tax has been computed as though a separate return would be filed; however, taxable income will be consolidated with that of Transamerican Corporation and certain subsidiaries and this charge does not purport to represent a proportionate share of consolidated tax. EARNED SURPLUS ACCOUNT Balance at January 1, 1947. Add: Net profit for the year ended December 31, 1947. Deduct: Cash dividends paid---- Balance at December 31, 1947. $3, 137, 172. 63 1, 143, 586, 60 4, 280, 759. 23 900, 000, 00 3, 380, 759, 23 Balance Sheet of Allied Building Credits, Inc., December 31, 1947 ASSETS Cash.. Accounts receivable. Amounts held by banks under note sale agreements-A___ Mortgages and advances: Mortgages owned (including loan balances of $252,000.00 having one or more installments delinquent)‒‒‒‒ $3,063, 624. 49 2, 004, 217. 45 4,933, 841. 54 $11, 580, 034. 22 Advances made on construction projects— secured 16, 366, 895. 40 27, 946, 929, 62 Installment notes receivable-including notes in- Total current and working assets. 234, 650.98 38, 183, 264.08 Balance Sheet of Allied Building Credits, Inc., December 31, 1947—Continued Furniture, equipment, and automobiles-at cost, less reserves_. $2,051, 141, 80 892, 858.48 332, 148. 56 41, 827. 81 41, 501, 240. 73 LIABILITIES Current liabilities: Notes payable, unsecured, short-term-including $6,242,840.91 payable to Transamerica Corporation----. Due to banks for unremitted collections on notes sold___. Accounts payable_. Accrued liabilities_. Provision for federal income taxes-C_ Total current liabilities___ Trust funds (cash deposited in special account-per contra) – Unearned discounts: On insured notes receivable___ On uninsured notes receivable_. Reserve for losses on uninsured notes, including $410,012.92 appropriated from unearned discounts_ Capital stock and surplus-B : Preferred stock-4 per cent, cumulative ($25.00 par value); Authorized and outstanding— Common stock ($10.00 par value): Author- Earned surplus: Balance at November 30, 1946-. Add-Net income for: Month of December 1946_ Year ended December 31, 1947--. Less-Dividend paid in cash_-_. 22, 242, 840. 91 524, 435. 41 116, 463. 84 335, 728. 84 405, 354. 32 23, 624, 823. 32 892, 858. 48 $2,023, 570. 83 612, 043. 94 5, 440, 141. 88 4, 000, 000. 00 6, 600, 000. 00 872, 892. 28 60, 326. 43 610, 198. 34 1, 543, 417. 05 943, 417. 05 11, 543, 417.05 41, 501, 240. 73 The notes on the following page are an integral part of this balance sheet. Statements of income and expense of Allied Building Credits, Inc. A. The company has agreements to sell to two banks, without recourse except as stated herein, installment notes receivable and to act as the banks' agent for collection of such notes. Under the terms of thes agreements, the company has received from the banks a portion of the principal amounts of these notes sold, and has paid interest to the banks on these receipts. The company is entitled to receive from the banks as the notes are collected, the remaining portions of the principal amounts of the notes except that the banks retain an amount equivalent to the total amount of all notes which are delinquent. Recourse by the barks is thus available with respect to delinquent notes to the extent of these reserves withheld. A summary of the status of these bank transactions at Dec. 31, 1947, follows: B. Undeclared dividends accrued on the 4-percent cumulative preferred stock as of Dec. 31, 1947, amounted to $1 per share, or an aggregate amount of $160,000. C. The company has agreed to the inclusion of its income for the year ended Dec. 31, 1947, in a consoldated Federal income tax return of its parent, Transamerica Corp., and to reimburse the parent for the amount of taxes on its income computed as though a separate return had been filed. D. At Dec. 31, 1947, the company had outstanding commitments (1) to purchase mortgages of $5,700,30), (2) to sell mortgages of $14,100,000 and (3) to purchase installment notes of $2,900,000. AUDITOR'S CERTIFICATE To the Board of Directors, Allied Building Credits, Inc.: We have examined the balance sheet of ALLIED BUILDING CREDITS, INC. (a Delaware corporation) as of December 31, 1947, and the statements of income and expense for the month of December 1946 and the year ended December 31, 1947, have reviewed the system of internal control and the accounting procedures of the company and, without making a detailed audit of the transactions, have examined or tested accounting records of the company and other supporting evidence, by methods and to the extent we deemed appropriate. Our examination was made in accordance with generally accepted auditing standards applicable in the circumstances and included all procedures which we considered necessary. In our opinion, the accompanying balance sheet and related statements of income and expense present fairly the position of Allied Building Credits, Inc., at December 31, 1947, and the results of its operations for the month of December 1946 and the year ended December 31, 1947, and are in conformity with generally accepted accounting principles which have been applied on a basis consistent with that of the preceding year. ARTHUR ANDERSEN & CO. LOS ANGELES, CALIFORNIA, January 30, 1948. Balance sheet of Columbia River Packers Association, Inc., December 31, 1947 A-At December 31, 1947, the company was contingently liable (1) in the amount of $967.604.58 for drafts discounted, (2) in the amount of $119,520.15 for proposed Federal taxes on income of liquidated subsidiary. B-In December 1947, the 80,000 authorized no-par-value shares were reclasified into 400,000 shares and in consequence the 66,855 shares outstanding were reclassified into 334,275 shares, in the ratio of 5 for 1. Consolidated Profit and Loss Statement of Columbia River Packers Association, Inc., and subsidiary, year ended December 31, 1947 1,935, 093. 62 811, 665. 25 1, 123, 428. 37 Profit before Federal and State taxes on income_. Net profit. Provision for 1947 depreciation of property, plant and equipment charged to costs and expenses amounted to $185,205.83. EARNED SURPLUS ACCOUNT Balance at January 1, 1947_--. $1,378, 858, 92 Add: Net profit for the year ended December 31, 1947. Less: Dividend declared-$5.00 per share on the 66,855 shares outstanding prior to reclassification___. Balance at December 31, 1947------ AUDITOR'S CERTIFICATE 1, 123, 428. 37 2,502, 287. 29 334, 275.00 2, 168, 012. 29 To the Board of Directors and Shareholders, Columbia River Packers Association, Inc.: We have examined the balance sheet of Columbia River Packers Association, Inc., as at December 31, 1947, after the taking over of the assets and liabilities of its subsidiary, Thompson Salmon Company, which was dissolved on that date, the statement of surplus of the company and the consolidated profit and loss statement of the company and its subsidiary for the year then ended, have reviewed the systems of internal control and the accounting procedures of the companies, and without making a detailed audit of the transactions, have examined or tested the accounting records of the companies and other supporting evidence by methods and to the extent we deemed appropriate. Our examination was made in accordance with generally accepted auditing standards applicable in the circumstances and it included all procedures which we deemed necessary. In our opinion, the accompanying balance sheet, the statement of surplus and the consolidated profit and loss statement present fairly the position of Columbia River Packers Association, Inc., at December 31, 1947, and the consolidated results of operations of the company and its subsidiary for the year ended that date, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. WAYNE MAYHEW & COMPANY, SAN FRANCISCO, CALIFORNIA, February 24, 1948. |