Hot Shoppes, Inc. and Subsidiaries
ANO EARNED SURPLUS
for the 52 weeks ended July 28,1963 and July 29,1962
INCOME 1963 1962
SALES I $74,596,857 $71,517,367
Cost of Sales and Operating Expenses $61,242,736 $58,843,072
Administrative and General Expenses 4,751,156 4,626,427
Payroll and Other Taxes j 2,331,411 2,109,221
Depreciation and Amortization 2,162,459 1,973,634
Interest and Finance Expenses 89,503 106,482
NET INCOME BEFORE TAXES ON INCOME |$ 4,019,592 $ 3,858,531
FEDERAL AND STATE INCOME TAXES (Note 4)
(Including $711,151 and $679,009 Deferred Taxes) 1,639,620 1,643,598
NET INCOME 1$ 2,379,972 $ 2,214,933
Beginning of Period $ 7,066,695 $ 6,916,505
Net Income 2,379,972 2,214,933
4% Stock Dividends — amount transferred
to Capital Stock and Capital Surplus (Note 3) 1,860,024 2,064,600
Cash paid in lieu of fractional stock dividends — 143
End of Period ,. I $ 7,586,643 $ 7,066,695
The accompanying notes are an integral part of these statements.
TO THE STOCKHOLDERS AND BOARD OF DIRECTORS, HOT SHOPPES, INC.:
We have examined the statement of consolidated financial condition of HOT SHOPPES, INC. (a Delaware corporation) and subsidiaries
as of July 28, 1963, and the related statements of consolidated income and earned surplus for the fifty-two weeks 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 accompanying statement of consolidated financial condition and statements of consolidated income and earned surplus
present fairly the financial position of Hot Shoppes, Inc. and subsidiaries as of July 28, 1963, and the results of their operations for the fifty-two
weeks then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding period.
Washington, D. C, September 11, 1963.
ARTHUR ANDERSEN & CO.