ff3^mjnt of consolidated financial condition
i July 31, 1955
Liabilities and Stockholders' Investment
Income taxes withheld
Notes payable — current portion (see below)...
Accrued salaries, wages, and bonuses
Accrued payroll taxes, permits, and other taxes.
Provision for income taxes (Note B)
Total Current Liabilities
3 % % construction notes payable less current
portion of $30,940—see current liabilities (Note C)
^k ^^6% debenture notes payable (payable $12,500
HI HJV annually—subordinated) less current portion of
$12,500 — see current liabilities
4/2% note payable (payable $42,000 semi-annually/
balance due June 1, 1967) less current portion of
$84,000 — see current liabilities (Note D)
4 Vi % mortgage payable—less current portion of
$27,852 (Note E)
Total Fixed Liabilities
Common stock — $1 par value; 1,000,000 shares
Class B common stock—$1 par value; 750,000 shares
Capital contributed in excess of par value of
common stock (Note A)
Restricted as to dividends (Note D)
Total Stockholders Investment
Total Liabilities and Stockholders' Investment „
The accompanying notes are an integral part of ibis statement.
Principles of Consolidation
The consolidated financial statements
include the accounts of Hot Shoppes, Inc.
and thirty-three wholly owned subsidiaries.
In consolidation, intercompany accounts
and transactions have been eliminated.
In 1956 the investment in this subsidiary
was increased to $249,000 and included in
the land account in conformance with a
ruling by the Securities and Exchange
Commission. The increase of $230,000 is
also reflected in capital contributed in excess of par value of common stock (see
Stockholders' Investment section).
The Internal Revenue Service has audited our records thru July 31, 1949, and
all additional taxes resulting therefrom
have been paid. The Internal Revenue
Service audit for the fiscal years 1950,
1951, 1952, and 1953 is in progress, but
has not yet been completed.
The 3%% construction notes payable
represent temporary financing on the Marriott Motor Hotel. A commitment for a
20 year mortgage loan to replace these
notes has already been obtained from the
Equitable Life Assurance Society of the
A provision in the 4'/2% note payable to
the Penn Mutual Life Insurance Company
is that dividends, distributions, and payments on the Common Stock shall be
paid only from consolidated surplus accumulated subseguent to July 31, 1951,
and then only if the consolidated net
current assets equal at least $1,000,000
after giving effect to such proposed dividend or distribution.
Principal and interest on the 4'/2%
mortgage payable are being amortized
by equal annual payments of $64,530.24
over the 20 year period ending August
31, 1975. This mortgage loan is secured
with the land and buildings at 5161 River
Road, Washington 16, D. C.