Hot Shoppes, Inc. and Subsidiaries
STATEMENT OF CONSOLIDATED INCOME
AND EARNED SURPLUS
for the periods ended July SO, 1961 and July 31, 1960
From Operations $58,869,1 88
Cost of Sales and Operating Expenses
Administrative and General Expenses
Depreciation and Amortization (Note 2)
Interest and Finance Expenses
NET INCOME BEFORE TAXES ON INCOME . . .
PROVISION FOR FEDERAL AND STATE INCOME TAXES
(Including $356,086 and $204,691 Deferred Taxes)
NET INCOME (Note 2)
Balance Beginning of Period (Note 2)
Cash paid in lieu of fractional stock dividends
4% Stock Dividends—transferred to Capital Stock and
Balance End of Period (Note 4)
The accompanying notes are an integral part of this statement.
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 30, 1961, and the related statement of consolidated
income and earned surplus for the fifty-two week period 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
statement of consolidated income and earned surplus present fairly the financial position of
Hot Shoppes, Inc. and subsidiaries as of July 30, 1961, and the results of their operations for the
fifty-two week period then ended, and were prepared in conformity with generally accepted
accounting principles applied on a basis consistent with that of the preceding period.
Washington, D. C,
Arthur Andersen & Co.