HomeMy WebLinkAbout800440.tiff FINANCIAL STATEMENTS AND AUDITORS ' REPORT
COLORADO LANDFILL, INC.
November 30 , 1980
Kosmicki -Premer- Kurtz
Certified Public Accountants
800440
CONTENTS
Page
AUDITORS' REPORT 3
FINANCIAL STATEMENTS
BALANCE SHEET 4
STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT 5
STATEMENT OF CHANGES IN FINANCIAL POSITION 6
NOTES TO FINANCIAL STATEMENTS 7
SUPPLEMENTAL INFORMATION
AUDITORS' REPORT ON SUPPLEMENTAL INFORMATION 11
OPERATING EXPENSES 12
Kosmicki-Premer- Kurtz
Certified Public Accountants
Board of Directors
Colorado Landfill, Inc.
We have examined the balance sheet of Colorado
Landfill, Inc. (a Colorado Corporation) as of November 30, 1980,
and the related statements of operations and accumulated deficit
and changes in financial position for the year then ended. Our
examination was made in accordance with generally accepted
auditing standards and, accordingly, included such tests of the
accounting records and such other auditing procedures as we
considered necessary in the circumstances.
In our opinion, the financial statements referred to
above present fairly the financial position of Colorado Landfill ,
Inc. at November 30, 1980, and the results of its operations and
changes in its financial position for the year then ended, in
conformity with generally accepted accounting principles applied
on a basis consistent with that of the preceding period.
December 12, 1980
505 Greeley National Plaza Greeley,Colorado 80631 303-356-3300
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Colorado Landfill , Inc.
STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
Year ended November 30, 1980
$565,945
Landfill fees
Costs and expenses (note A)Operating expenses $564, 935
534 ,935
expenses 34 ,679 ) 681 ,084
Interest and financing P
Other (income) (115, 139)
NET LOSS (note E) ( 23 748)
Deficit at beginning of year $ (( 23 887
131 )
Deficit at end of year
•
The accompanying notes are an integral part of this statement.
5
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_olorado Landfill, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
November 30, 1980
NOTE A - SUMMARY OF OPERATIONS AND ACCOUNTING POLICIES
1. Operations
The company was incorporated in June 1979, and is engaged in
the disposal of solid waste through landfill operations.
A summary of the significant accounting policies inconsistently
applied in the preparation of the accompanying
ccomp y 9
l
statements follows.
2. Depletion , depreciation and amortization
Property and equipment
The company provides for depreciation and depletion of property
and equipment utilizing straight-line and accelerated methods
to apportion costs over the following estimated useful lives:
Y2-10
Land and improvements 10
Buildings 3-7
Machinery and equipment
Landfill sites , consisting of land and related airspace are
stated at cost. The cost of airspace is amortized as consumed
during the landfill ' s useful life. Landfill site improvement
costs are amortized over the useful life of the landfill site.
Intangible assets
bonds
Costs relating to the issuance of industrial development being
of $152, 876 and organization costs
of respectively , utilizing
amortized over 20 years and 5 years ,
the straight-line method.
Depletion, depreciation and amortization of $24 ,016 ,
$11 6,507
and $6, 083, respectively , were charged to oper
period.
7
Colorado Landfill, Inc.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
November 30, 1980
NOTE B - INVENTORY - SUPPLIES Supples ch is lowerlof consisty f fuel oil
out method) or stated at the
or market.
NOTE C - LONG-TERM OBLIGATIONS
Long-term debt consists of:
$1, 300, 000
Industrial Development Bonds 00 ,000
Installment notes payable 34, 633
Note payable to a related party 140, 000
Notes payable to stockholders 1, 484, 633
39 , 488
Less current maturities
S1 445 , 145_
development bonds with interest at rates of
7The industrial ear will be serially retired through
2000. and h7 Pe y equipment, water rights and deeds of
r . Machineinery dnd equip The bonds are also
trusts are pledged as collateral.
guaranteed by the Small Business Administration and the
majority stockholders .
sa trustee ofnd tlrement is approximatelyunded$10, 800 ough
plus
monthly payments
investment earnings.
The installment notes are payable in monthly installments of
$207 and $988 withinterest at rates
equip
% per
year, ipment
respectively. notes are secured by certain
and are co-signed by a stockholder.
The note payable to a related party is due November 1981, with
interest payable monthly at the rate of 15%.
The notes payable to stockholders are due December 1980 through
January 1981 with interest at rates of 9% to 15. 5% per year.
The notes are unsecured.
8
Colorado Landfill, Inc.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
November 30, 1980
NOTE D - CONTINGENCIES
The company and a county governmental agency were named as
County, in a The
lainti in the iffs are seeking a istrict ourt of Weld
declaratory
County, Colorado. The P
judgment asking that the exclusive landfill contract granted by
the agency to the company be declared null and void. Further ,
plaintiffs have requested that the court enter a judgment
finding the designation of the landfill site as an illegal
designation that constituted an inverse condemnationto by
just
the
county agency which would entitle the plaintiffs
compensation from the company and the county. Both defendents
have filed answers denying the substance of the plaintiffs
complaint and asserting numerous affirmative defenses . Company
management and counsel are not in a position to predict the
extent of the company' s liability and related effect on the
company 's financial position, if any, in this matter.
NOTE E - INCOME TAXES
Income taxes on net earnings are payable personally by the
Internald Revenues
Code , not toe have nthe ncorporati cder orporation taxed er S of the
o an as a
corporation.
9
SUPPLEMENTAL INFORMATION
Kosmicki-Premer- Kurtz
Certified Public Accountants
Board of Directors
Colorado Landfill, Inc.
Our examination was made primarily to enable us to
express an overall opinion on the basic financial statements of
Colorado Landfill, Inc. for the year ended November 30, 1980,
which are presented in the preceding section of this report. The
supplemental information presented hereinafter, -although not
considered essential for a fair presentation of financial
position, results of operations , and changes in financial
position, has been subjected to the audit procedures applied in
the examination of the basic financial statements. In our
opinion, the supplemental information is fairly presented in all
material respects in relation to the basic financial statements
taken as a whole.
at": 16-4-"--3
December 12, 1980
505 Greeley National Plaza Greeley, Colorado 80631 303-356-3300
Colorado Landfill, Inc.
OPERATING EXPENSES
Year ended November 30, 1980
Salaries and wages $160,369
Advertising 3, 366
Amortization 6,083
Auto expense 3,078
Contract labor 1, 766
Depletion 24, 016
Depreciation 116, 507
Fuel and oil 56, 995
Insurance 18 ,369
Legal and accounting 12, 604
Office expense 3 ,020
Operating supplies 18,064
Payroll taxes 16 ,254
Repairs and maintenance 36, 069
Rent 14,797
Surcharge 30, 461
Taxes and licenses 13,178
Telephone 4, 437
Tire expense 12,658
Travel and entertainment 3, 584
Unclassified 4 , 682
Utilities 4 , 578
$564, 935
The accompanying notes are an integral part of this statement .
12
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