Year book of motion pictures (1940)

CONSOLIDATED BALANCE SHEET, JANUARY 1, 1939 Assets Current and Working Assets: Cash in banks and on hand, $79,846.91; Notes and loans re ceivable from producers, $73,465.59; Accounts receivable: Monogram Pictures Corporation, $182,985.06; Other trade customers, less reserve of $17,558.48. $204,275.91; Miscellaneous, $15,567.61, $402,828.58; Inventories of prints, raw film and supplies (certified to by responsible officials as to quantities and condition) at cost or market whichever is lower, $102,307.37 $ 658,448.45 Unliquidated advances to outside producers on released productions,, $191,883.74; Less — Reserves for doubtful advances, $172,175.02 19,708.72 Investments: Investment in 3,500 shares (35%) of the capital stock of Du Pont Film Manufacturing Corporation, at amount acquired from predecessor company, pledged to secure bank loan (see contra), $2,857,143; Investment in 65,866 2-3 shares of capital stock of Monogram Pictures Corporation at cost (see note), $197,600; Miscellaneous investments, $4,300 3,059,043.00 Land ($24,788.58) buildings, machinery and equipment, furniture and fixtures and leasehold improvements, $475,501.87; Less — Reserves for depreciation and amortization, $136,159.26 339,342.61 Deposits to secure contracts 5,125.00 Notes receivable from Radio-Keith-Orpheum Corporation (debtor, in proceedings for the reorganization of a corporation)* 48,360.00 *$248,000 principal amount of past due notes at amount acquired from predecessor company. Deferred charges 49,338.75 Note — No provision has been made for the excess of the cost of investment in these shares over the quoted market value thereof at December 31, 1938 which amounted to about $65,000. $4,179,366.53 Current Liabilities: Note payable to bank, secured by investment in Du Pont Film Manufacturing Corporation (see contra), $275,000; Accounts payable, $211,177.45; Sundry accruals, $21,817.33; Owing to producers, $504.53; Reserve for Federal income tax, $6,016.43 $ 514,515.74 Reserve for contingencies 17,978.52 Proportion of capital stock of subsidiary company applicable to minority stockholders 1.00 Capital Stock: Authorized: 2,000,000 shares of common stock of par value $1 each. 30,000 shares of $7 cumulative convertible preferred stock without par value. Issued and outstanding: 581,679.42 shares of common stock after deducting 3,415.63 shares held in treasury, $581,679.42; 7,796 shares of $7 cumulative convertible preferred stock after deducting, at cost, 247 shares held in treasury which were acquired for $24,285.09, $780,014.91 1,361,694.33 Capital surplus, per exhibit B 1,718,539.33 Surplus, per exhibit B 566.637.61 Contingent Liabilities: Under pending litigation — amount indeterminable. In respect of leases assigned by predecessor company to Radio-Keith-Orpheum Corporation n 1931 (assumed) maximum amount estimated by company. $225,000 $4,179,366.53 STATEMENT OF SURPLUS AND CAPITAL SURPLUS For the Year Ending December 31, 1938 Surplus: Balance, December 31, 1937 $ 544,245.50 Add — Profit for the year ending December 31, 1938, per Exhibit C 77,158.36 $ 621,403.86 Dividends paid on $7 cumulative preferred stock to and including January 1, 1939 *54,766.25 Balance, December 31, 1938, Carried to Balance Sheet, Exhibit A $ 566,637.61 "Includes $13,643 paid to transfer agent on December 27, 1938 for payment to stockholders on January 3, 1939. Capital Surplus: Balance, December 31, 1937. $ 1,737,212.32 Deduct — Excess of cost of common stock, acquired and held in treasury, over par value thereof 18,672.99 Balance, December 31, 1938, Carried to Balance Sheet, Exhibit A $ 1.718,539.33 CONSOLIDATED STATEMENT OF PROFIT AND LOSS For the Year Ending December 31, 1938 Film developing, printing and sales (net), $989,887.75; Film rental income (net of distributors' allowances), $21,982.76 $ 1,011,870.51 Deduct — Cost of sales and services: Producers' participations, $43,553.77; Operating expenses (other than depreciation and selling, general and administrative expenses), $865,369.93; Depreciation, $32,502.66; Selling, general and administrative expenses, $217,398.76; Loss from other operations (net), $2,333.68 1,161,158.80 Loss from Operations $ 149,288.29 Add — Other income: Dividends received from Du Pont Film Manufacturing Corporation, $245,000; Other dividends received, $224; Interest and discount earned, $3,888.51; Miscellaneous, $9,430.35 258,542.86 Profit Before Other Items Shown Below $ 109,254.57 Deduct — Other charges: Interest and discount expense, $4,147.19; Development expense, $21,205.41; Miscellaneous, $5,543.61 30,896.21 Profit Before Providing for Federal Income Taxes $ 78,358.36 Deduct — Provision for Federal income taxes 1,200.00 Profit for the Year Ending December 31, 1938, Carried to Surplus, Exhibit B $ 77,158.36. 994