WAREN SPORTS SUPPLY

YEAR-END WORKSHEET
December 31, 2013
(all numbers are in U.S. Dollars)
ACCT
NO.

ACCOUNT
TITLE

10100
10200
10300
10400
10600
10800
10900

ASSETS
Cash
Accounts receivable
Allowance for doubtful accounts
Inventory
Marketable securities
Fixed assets
Accumulated depreciation

20100
20300
20400
20500
20600
20700
20900
21000

LIABILITIES
Accounts payable
Federal income taxes withheld
State unemployment taxes payable
Federal unemployment taxes payable
F.I.C.A. taxes payable
Federal incomes taxes payable
Interest payable
Notes payable

26000
29000

STOCKHOLDERS' EQUITY
Common stock
Retained earnings

30100
30200
30300
30400
30500
30600
30700
30800
31200

REVENUE AND GROSS PROFIT

Sales
Sales returns and allowances
Sales discounts taken
Cost of goods sold
Purchases
Purchases returns and allowances
Purchases discounts taken
Freight-in
Miscellaneous revenue

40100
40200
40300
40400
40500
40600
40700
40800
40900
41000

EXPENSES
Rent expense
Advertising expense
Office supplies expense
Depreciation expense
Wages and salaries expense
Payroll tax expense
Federal income tax expense
Interest expense
Bad debt expense
Other operating expense
Sub-totals
Net Income (Loss)
TOTALS

12/31/2012
POST CLOSING
TRIAL BALANCE
DEBIT
CREDIT

11,025.19
11,065.00
3,250.81
101,681.00
320,665.00

12/31/2013
UNADJUSTED
TRIAL BALANCE
DEBIT
CREDIT

110,703.24
42,807.00
1,149.19
101,681.00
24,000.00
332,590.00

ADJUSTMENTS
DEBIT

CREDIT

ADJUSTED
TRIAL BALANCE
DEBIT
CREDIT

110,703.24
42,807.00
3,018.68
96,070.00

81,559.50

81,559.50

11,279.35
1,326.76
281.17
83.31
1,593.30
29,797.00

8,767.15
1,731.28
89.05
26.39
2,254.26

1,869.49

35,109.50

116,669.00

80,000.00

8,767.15
1,731.28
89.05
26.39
2,254.26
51,903.65
197.26
80,000.00

8,767.15
1,731.28
89.05
26.39
2,254.26
51,903.65
197.26
80,000.00

225,000.00
90,264.99

225,000.00
90,264.99

225,000.00
90,264.99

1,585,856.00

1,585,856.00
61,111.00
15,405.82
1,023,589.89

1,023,589.89
1,131,075.00
19,445.00
16,612.80

24,642.69

24,642.69
825.00

825.00

57,600.00
21,905.00
5,621.45
35,109.50
141,313.22
11,539.06
51,903.65
197.26
3,018.68
29,287.75

2,112,431.42

1,585,856.00
61,111.00
15,405.82
1,023,589.89

1,131,075.00
19,445.00
16,612.80

444,436.19

1,869.49
197,751.00
24,000.00
332,590.00

116,669.00

61,111.00
15,405.82

444,436.19

BALANCE
SHEET
DEBIT
CREDIT

110,703.24
42,807.00

197,751.00
24,000.00
332,590.00

51,903.65
197.26

225,000.00
90,264.99

INCOME
STATEMENT
DEBIT
CREDIT

2,112,431.42

1,245,946.78

1,245,946.78

825.00

57,600.00
21,905.00
5,621.45
35,109.50
141,313.22
11,539.06
51,903.65
197.26
3,018.68
29,287.75

57,600.00
21,905.00
5,621.45
35,109.50
141,313.22
11,539.06
51,903.65
197.26
3,018.68
29,287.75

2,165,453.52

1,457,602.28
129,078.72
1,586,681.00

2,165,453.52

1,586,681.00

707,851.24

1,586,681.00

707,851.24

578,772.52
129,078.72
707,851.24

WAREN SPORTS SUPPLY

BALANCE SHEET
AT DECEMBER 31, 2013 AND 2012

(all numbers are in U.S. Dollars)

ASSETS
2013

2012

CURRENT ASSETS
Cash
Accounts receivable - net
Inventory
Marketable securities
Total current assets

110,703.24
40,937.51
197,751.00
24,000.00
373,391.75

11,025.19
7,814.19
101,681.00
0.00
120,520.38

FIXED ASSETS - Net of

accumulated depreciation

215,921.00

239,105.50

$589,312.75

$359,625.88

Total assets

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable
Payroll taxes withheld
and payable
Federal income taxes payable
Interest payable
Total current liabilities

8,767.15

11,279.35

4,100.98
51,903.65
197.26
64,969.04

3,284.54
29,797.00
0.00
44,360.89

NOTE PAYABLE
Total liabilities

80,000.00
144,969.04

0.00
44,360.89

STOCKHOLDERS' EQUITY
Common stock
Retained earnings
Total stockholders' equity

225,000.00
219,343.71
444,343.71

225,000.00
90,264.99
315,264.99

$589,312.75

$359,625.88

Total liabilities and

stockholders' equity

WAREN SPORTS SUPPLY

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2013

(all numbers are in U.S. Dollars)

REVENUE
Sales
Less: Sales returns and allowances
Sales discounts taken
Net sales
COST OF GOODS SOLD
Beginning inventory
Net purchases
Freight-in
Goods available for sale
Less: Ending inventory
Cost of goods sold

1,585,856.00
61,111.00
15,405.82
1,509,339.18
101,681.00
1,095,017.20
24,642.69
1,221,340.89
197,751.00
1,023,589.89

GROSS MARGIN
OPERATING EXPENSES
Rent expense
Advertising expense
Office supplies expense
Depreciation expense
Wages and salaries
Payroll taxes
Bad debt expense
Other operating expense
Total operating expenses
Operating income

485,749.29

57,600.00
21,905.00
5,621.45
35,109.50
141,313.22
11,539.06
3,018.68
29,287.75
305,394.66
180,354.63

OTHER INCOME - Miscellaneous income

825.00

OTHER EXPENSE - Interest expense

197.26

INCOME BEFORE TAXES

180,982.37

FEDERAL INCOME TAXES

51,903.65

NET INCOME
RETAINED EARNINGS - Beginning of year
RETAINED EARNINGS - End of year

129,078.72
90,264.99
$219,343.71

WAREN SPORTS SUPPLY

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2013

(all numbers are in U.S. Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income
Adjustments to reconcile net income to net cash
from operating activities
Depreciation
(Increase) decrease in assets:
Accounts receivable
Inventory
Increase (decrease) in liabilities:
Accounts payable
Payroll taxes withheld and payable
Income taxes payable
Interest payable
Net cash provided by operating activities

$129,078.72

35,109.50
(33,123.32)
(96,070.00)
(2,512.20)
816.44
22,106.65
197.26
55,603.05

CASH FLOWS FROM INVESTING ACTIVITIES

Cash payments for fixed assets
Purchase of marketable securities
Net cash used in investing activities

(11,925.00)
(24,000.00)
(35,925.00)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash proceeds from loans

80,000.00

NET INCREASE IN CASH

99,678.05

CASH - Beginning of year

11,025.19

CASH - End of year

$110,703.24

WAREN SPORTS SUPPLY

POST-CLOSING TRIAL BALANCE
December 31, 2013

(all numbers are in U.S. Dollars)

ACCT. NO.

ACCOUNT TITLE

DEBIT

CREDIT

ASSETS
10100
10200
10300
10400
10600
10800
10900

Cash
Accounts receivable
Allowance for doubtful accounts
Inventory
Marketable securities
Fixed assets
Accumulated depreciation

110,703.24
42,807.00
1,869.49
197,751.00
24,000.00
332,590.00
116,669.00

LIABILITIES
20100
20300
20400
20500
20600
20700
20900
21000

Accounts payable
Federal income taxes withheld
State unemployment taxes payable
Federal unemployment taxes payable
F.I.C.A. taxes payable
Federal income taxes payable
Interest payable
Notes payable

8,767.15
1,731.28
89.05
26.39
2,254.26
51,903.65
197.26
80,000.00

STOCKHOLDERS' EQUITY
26000
29000

Common stock
Retained earnings
TOTALS

225,000.00
219,343.71
$707,851.24

$707,851.24

WAREN SPORTS SUPPLY

Accounts Receivable Aged Trail Balance
December 31, 2013

(all numbers are in U.S. Dollars)

Customer
Number
406
407
408
409
410
411

Customer
Rosemont University
Clayborn University
Branch College
University of Southern Iowa
Eastern Wisconsin University
Stevenson College
Totals

Age in days
Amount
Due
Current
31-60
61-90
Over 90
0.00
0.00
12,310.00 12,310.00
1,200.00
1,200.00
0.00
0.00
29,297.00 9,392.00 19,905.00
0.00
42,807.00 21,702.00 19,905.00
0.00 1,200.00

WAREN SPORTS SUPPLY

Fixed Assets Aged Trail Balance
December 31, 2013

(all numbers are in U.S. Dollars)

ASSET
Office Furniture
Delivery Trucks
Inventory Handling System
High-Speed Copier
Laptop Computers
TOTALS

COST
50,750.00
69,255.00
200,660.00
7,367.00
4,558.00
332,590.00

ACCUM. DEPREC.
50,750.00
34,627.50
30,099.00
736.70
455.80
116,669.00

Net Book Value

0.00
34,627.50
170,561.00
6,630.30
4,102.20
215,921.00

WAREN SPORTS SUPPLY

ACCOUNTS PAYABLE TRIAL BALANCE
FOR THE YEAR ENDED DECEMBER 31, 2013
(Amount in U.S. Dollars)
VENDOR NO.
252
253
261

VENDOR NAME
Velocity Sporting Goods
Chicago Office Supply
Gillett Consulting
TOTAL

AMOUNT PAYABLE
5,117.15
3,650.00
8,767.15