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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 C O O co in er N cc '-I c O C I N 10 V'VD N N '--I I O 0,f'7 N to to O, o rh'i a rn d' C' rn '1 .44 4.0• • H '•I N 0> O H H 0- 0'1 HI a C U1 to CO O C a0 CC In 01 CC 01 'i'i'i U) 3 a) C S •'I rare .CC H CO fa 4 F En 1 H O O J-1 .4 CO N iJ -0 E m C o a) ,Q N c'o C H C yJ . a) .'I y0.i "I C '1 ro rcl 13 .O 0 C al U) N C ro 0 JHI N •'1 N a HI HI a) Sa U) w r_) u '1 O•'1 u- O C _ X 0 (V U) a) Q 1 C 0 U) 1 U)i-1 a) F, Z C U U >+ rd ro o C 0 •O Cr. a) 0 •'i Si C a, F 1J '1 U) 0 U I. •)j a W JJ 0 Fi a) H•'1 I > a) U •'1 H +J...'1.ti O F iJ 0 D a > Si X w F'•"I L,H < 0 a 0a).4C Oa) a) a C C r-.C al H G-', U 0 Si.C 'o O0 U7 C H1) oro ro +.J a v: re CC CO-,-1 a.'1 _ 'o a) R .'i a 0 4.) 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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 to k C en en Q1 s N Mk in OC o H M en V' N C Q.N V) C lfl N MNON N y,H 01C CC C N v N H N C' Lc c,4 11101 tC N en lC C MH NC N H H V.... en <I. N N E, a .H J., HI C CO U a a O U N •-, as a, a --I al H a, a m E, m H H 4-,a, a, •r1 lz .r1 a a -Q 0 C a) . rda m E, U -,- U m rd H SE, I. E a 0 a 4-J 4-, 4-, a C C T C I U •.+ a) c a a .X s, a, al s, c C: s, s+ a, s, 0 Z 3 U C.. 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QCHCC a a, m'o -° 00-4 4-, U 0 E 0 s, a a, 7 a a a - 11 C N a m I Oa a ,TI 0 4- C 01 0 a e a•C ma o O 0--4 s•-I 7 , C C U U 0 Z U CHZ 0 HI'a'a'a S.1 •r1 -.I b 3.4 34 3 a C'<)U U s'4, 7 Cu 0 a o o a En Kt 3 E. _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 Hello