Document xjxR2pLXvyQKE7mnb3vq3eK9g

RILEY STOKER CORPORATION CONSOLIDATED BALANCE SHEET AND SURPLUS STATEIEHTS December 31, 1940 GEORGE A. SMITH AND COMPANY Certified Public Accountants 390 MAIN STREET Worcester, Mass. RS-001668 1/17/02 NUECES GEORGE A. SMITH AND COMPANY Certified Public Accountants 390 MAIN STREET WORCESTER, MASS. Walter J, O'Donnell, C.P.A. Richard P. Smith, C.P.A. March 24, 1941. To The Board of Directors Riley Stoker Corporation Worcester, Massachusetts We have examined the Consolidated Balance Sheet of the Riley Stoker Corporation and Subsidiary Companies as of December 31, 1940 and the Statements of Income and Surplus for the year ended on that date; have reviewed the system of internal control and the accounting procedures of the Riley Stoker Corporation and the Badenhausen Corporation; and, without making a detailed audit of the transactions, have examined or tested accounting records of both companies and other supporting evidence, by methods and to the extent we deemed appropriate. With respect to the A. VI. Cash Company, whose accounts were not audited by us, we were furnished with a report of independent accountants* In our opinion, the accompanying Consolidated Balance Sheet and related Statements of Income and Surplus present fairly the Consolidated position of the Riley Stoker Corporation and its Subsidiaries at December 31, 1940 and the Consolidated results from operations for the year .ended on that date, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preoeding year. (Signed) George A. Smith a Co. RS-001669 1/17/02 NUECES RILEY STOKER CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET December 31, 1940 ASSETS CURRENT ASSETS Cash Receivables Customer#1 Notes (See Note l) Customers1 Accounts Others Less: Reserve for Doubtful Accounts 0 33,661.93 1,425,558.22 3,178.10 0 1,462,398.25 53,325.88 0 263,763.16 1,409,072.37 Inventories (Quantities and. Condition determined by Company; Prioed at Cost) Advances to Salesmen and Erectors Deposits with Bids Royalties Accrued 1,001,745.08 31,501.53 3,587.50 2,111.49 Total Current Assets $ 2,711,781.13 FIXED ASSETS Land Buildings Machinery and Equipment Equipment under Construction $ 186,114.11 863,485.27 1,104,605.56 7,819.98 Less: Reserve for Depreciation 0 2,162,024.92 921,387,68 1,240,637.24 PATENTS - DEPRECIATED VALUE 35,033.95 OTHER ASSETS Note - Secured by First Mortgage on Real Estate Securities Acquired - Cost Employees* Stock Purchase Notes (See Note 2) 0 2,323.53 8,172.85 48,838.87 59,335.25 DEFERRED CHARGES Prepaid Insurance, Interest, and Taxes Deferred Commissions Supplies, Repairs and Maintenance parts 0 22,739.85 39,034.66 6,563,79 68,338.30 04,115,125.87 R8-001680 1/17/02 NUECES RILEY STOKER CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET December 51, 1940 LIABILITIES CURRENT LIABILITIES Notes Payable to Banks Notes Payable to Officers and Stockholders Accounts Payable - Trade Advance Billing on Contracts Provision for Federal and State Taxes Sinking Fund Instalment Due in 1941 for Retirement of Preferred Stock Customers* Deposits Accrued Liabilities Wages Commissions Insurance Other (See Note 3) Total Current Liabilities ACCOUNTS PAYABLE - TRADE - DEFERRED Total Liabilities 0 520,000*00 84,105.00 295,737.45 252,351.94 348.481.70 48,299.10 28,600.00 26,511.79 91,294.26 10,811.86 4,333.09 01,710,526.19 3,555.12 01,714,081*31 CAFITAL STOCK AND SURPLUS CAPITAL STOCK Preferred, 6^ Cumulative, Par Value $100.00 per share Redemption Value, 0156,00 per share Issued and Outstanding, 3,600 shares 360,000.00 Common, Par Value 03*00 per share Authorized, 350,000 shares Issued 349,954 shares Less: In Treasury 6,063 shares 0 1,049,862.00 18,189*00 Outstanding 343,891 shares 1,031,673.00 SURPLUS (Per Statement Attached) Earned Surplus Capital Surplus 906,218.67 105,152.89 1,009,571.56 $4,115,125.87 See Notes on Next Page. 88-001691 02 NUECES RILEY STOKER CORPORATION A2TO SUBSIDIARY COMPANIES NOTES TO BALANCE SHEET December 51, 1940 Note 1 There is a contingent liability of 031,804.36 on Notes Receivable discounted whioh are secured by Conditional Sales Contracts. Note 2 There is a contingent liability of Ql4,065.00 in oonnection with an employees' stock purchase agreement. If the Company reacquires stock before payment is made in full, it agrees to pay 97 cents per share in excess of amount paid in. Note 3 Collections on Debentures of A. IT. Cash Company, a sub sidiary, are assigned to secure payment of notes to officers and stockholders. These debentures, in the amount of 0100,000.00, are owned by the Riley Stoker Corporation, but are eliminated as an asset of the Riley Stoker Corporation and a liability of the A. W, Cash Company in this Balance Sheet. RS-001662 1/17/02 NUECE8 RIIEY STOKER CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENT OF EARNED SURPLUS For the Year Ended December 51, 1940 Balance, December 31, 1939 Additions Consolidated Net Income for Year after Federal Taxes Patent Cost of Prior Years disallowed by Revenue Agent Buildings over-depreoiated in Prior Years Sundry Other Adjustments 0476,277.18 8,234.67 12,874.44 733.99 Deductions Dividends Paid by Riley Stoker Corporation on Preferred Stock 025,200.00 Common Stock 34,389.10 Dividends Paid by Subsidiaries on Preferred Stock while held by Individual Stockholders * Badenhausen Corporation 1,236.00 A. W. Cash Company 1,250,00 Tools and Patterns Written Off 5,618.10 Royalties due in Prior Years in Foreign Exchange Written Off 12,810,17 Provision for Sinking Fund Instalment Due in 1941 for Retirement of Preferred Stock 48,99,10 Balance, December 31, 1940 0 536,900.86 498,120.28 $1,035,021.14 128,802.47 0 906,218.67 RS-001663 1/17/02 NUECES RILEY STOKER CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATELENT OF CAPITAL SURPLUS For The Year Ended December 31, 1940 Balance, December 31, 1939 Addition Excess of par Value over Cost of Subsidiary Stock Purchased from Individual Stockholders 0344,855,68 11,315,31 $356,170.99 Deductions Transfer to Common Stock account to change value from no par to a par value of $3*00 per share Excess of Cost of Acquisition over par value of 751 shares of Preferred Stook Balance, December 31, 1940 0248,015.67 5,002.43 255,018.10 0105,152.89 R8-001664 1/17/02 NUECES RIIEY STOKER CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENT OF PROFIT AND LOSS For The Year Ended December 31, 1940 Profit on Operations after Selling and Administrative Expenses, and Provision for Doubtful Accounts, but before Depreciation and Amortization Depreciation and Amortization Operating Profit Other Income Cross Income Other Deductions Net Income before Federal Income Tax Provision for Federal Income Tax Net Income, Carried to Surplus 0857,444.64 69,973.67 0787,470.97 8,308.47 0795,779,44 21,048.45 $774,730,99 298,453,81 0476,277.18 RS-001668 1/17/02 NUECES