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SR-11-22-1977-11FI Santa Monica, California, November 14, 1977 To: Mayor and City Council From: City Staff Subject: Moby's Dock Lease and Assignment NOV 2 2 1977 l Introduction: Qk-e? This report concerns the leasing of the restaurant on the Santa Monica Pier to Bette and Richard Westbrook, and their assignment of the lease to Clarence and Eve Hannon. This report covers the background of negotiations; the background of the new assignees; recommends the approval of City Council to both the lease and its assignment; and recommends City Council direct the City Manager to sign both the lease and its assignment on behalf of the City. Background of Negotiations: Lease negotiations between the City and the operators of the restaurant on the Pier known as Moby's Dock, Bette and Richard Westbrook, have continued without a satisfactory agreement being reached. Essentially the points of conflict revolve around the City being able to receive 8% of the gross sales of the restaurant and the operators feeling strongly that they cannot pay 8 %. Other restaurants on the pier are paying 8% of their gross sales. Attorneys for the operators of Moby's Dock had informed the City that although the City desired a rental rate of 8 %, they felt only a sliding scale from S% to 8% based on volume of sales would be possible for the present operators. On October 20, 1977, a final offer was made by the City which has been accepted by the Westbrooks, pending approval by City Council. At the same time the Westbrooks have requested approval of an assignment of the lease to Clarence and Eve Harmon, M ,NOV 2 2 1971 To: Mayor and City Council -2- November 14, 1977 operators for four years of "Ben's Rumpus Room" at 678 So. Alvarado, Los Angeles r 90057. Background of Assignees: Mr. Clarence Harmon has been intimately involved in the restaurant business since 1946 as a sales consultant and public relations advisor to restaurant operators. During the Harmon's ownership of the Rumpus Room, the income has increased 802. Recently the Los Angeles Police Department, Rampart Division Vice Unit, sent them a letter of commendation for cleanliness and responsible management. Suppliers contacted have given them strong recommendations for prompt payment and for the use of businesslike methods. The assignees, if approved by the City Council, plan to keep the facility open longer hours then at present, operating the lounge seven days a week and the restaurant six days a week, in place of the present five day a week schedule. Applicable Pier Master Lease Provisions: 13.1 Restrictions on Assignments - This article of the lease requires prior written consent of the City, and requires assignee to agree to all the previous conditions of the lease. 13.2 Termination - This article of the lease provides for the termination of the lease if an assignment is made without prior approval. 13.3 Effect of Lessor's Consent - This article of the lease provides that all the restrictions of the lease shall be equally binding upon the assignee. 13.4 written Assumption Agreement - This article of the lease provides that the original lessee is not released from liability under the lease except in the case of a valid assignment, where the assignee in writing has assumed all obli- gations of the lease. To: Mayor and City Council -3- November 14, 1977 •13.5 Transfer on Termination - This article of the lease provides for complete discretion by the City if previous to the lease term, the lease is termi- nated; the City can terminate the sublessee, or can continue them on the original lease, or transfer the sublessee's to a new lease. Analysis of Lease Term: ,5 years, similar to other pier tenants. Rental: 8 %, similar to the other restaurant, the Boathouse. 2% rental offset in effect until adjacent parking on the pier is available, which is expected to be January 15, 1978. Minimum income to City: at 8% = $ 24,870 annually at 6% = $ 18,652 annually Alternatives: 1. Disapprove assignment and lease, and direct the City Manager to put the facility. out to open public bid. It is estimated by City Staff that this procedure would take at least two months. The cities position has been that this lease should yield 8 %, as recommended by our economic advisors, Karsten and Associates. Although we could achieve a higher return, our economic advisors feel that 8% is a reasonable return to expect from a responsible bidder. As for other potential lessees, we are unaware of any specific requests by viable parties for the signing of this lease, other than the Harmon's. But it must be assumed that there would be others if it were opened up to public bid. 2. Approve the lease and assignment and direct the City Manager to accomplish pertinent documents to carry out the will of the Council. Recommendation: It is the recommendation of City staff that the City Council approve both the To:' Mayor and City Council -4- November 14, 1977 lease with Mr. and Mrs. Westbrook, and the assignment from them to Mr. and Mrs. Harmon, and direct the City Manager to sign on behalf of the City, both the lease and the assignment.. Exhibit "A" Letter of October 20, 1977 - Final offer. Exhibit "B" Signed lease from Westbrooks. Exhibit "C" Assignment and Assumption from Westbrook to Harmon.. Exhibit "D" Letter from Mr. Fraser dated 11 -9 -77. d . Exhibit "E" Letter from Harmons dated 11 -2 -77. Exhibit "F" Additional information from Harmons dated 11 -3 -77. Exhibit "G" Letter from Los Angeles Police Department. Exhibit "H" Rumpus Room Balance Sheet & Operating Agreement, 1976. Exhibit "I" Rumpus Room Balance Sheet & Operating Agreement, 1977 (11 months). s. Exhibit "J" Financial Statement of Gene Butler. Exhibit "K" Information on Mr. Art Butler. Exhibit "L" Letters of Credit Reference. Exhibit "M" Income tax statements. Prepared by: Donald T. Arnett Peter Kipp 11 CITY OF ` �, U. PC! VI CALIFORNIA DEPARTMENT OF RECREATION AND PARKS CITY HALL Mr. and Mfrs. Richard Westbrook Moby's Dock 420 Santa Monica Pier Santa Monica, California 90401 Dear Mr. and Mrs. Westbrook: 11i 111 jjq� October 20, 1977 Mr. E. L. Fraser's letter of August 26, 1977 concerning the Moby's Dock lease has been given long and careful study by the City staff to see where areas of agreement could be found, in order to finalize a lease. Believe me, we appreciate the difficulties you have been facing, as ennumerated in Mr. Fraser's letter of May 27, 1977. For instance following this letter, no action has been taken to implement the parking policy on the pier, which originally was to be launched June 1, 1977. Also, we fully understand the difficulties with the under -pier repairs that caused Moby's Dock to be closed for an extended period, and the need for a rental off -set in all fairness to you. As to the difficulty parking near Moby's Dock, we share your concern about the effect it has had upon your business. It was with these extensive difficulties in mind, and with a keen desire to see Moby's Dock regain its place of prominence among the best known restaurants of the area, that the City put forward the three plans to your manager, Mr. Art Butler, labelled plan A, plan B, and plan C. These, we felt, would give you three alternative choices of action within the parameters the City Council could approve, be fair to both parties, and treat you equally with other lessee's on the pier. We appreciate the counter -offer as set forth by Mr. E. L. Fraser in his letter of August 26, 1977. May I strongly emphasize here that any lease arrangement is not contingent upon an investment on your Page 2. October 20, 1977 Mr. and Mrs. Richard Westbrook part. The City does not require any investment; and if one is made, suitable and fair changes in the terms of the lease shall be made to reflect this investment, equal with those given other lessee's on the pier. However, after the many attempts that have been made to come to a reasonable agreement, the City of Santa Monica, as lessor,.feels that further negotiations would not be in public interest. Therefore, if no agreement can be consumkated by 5:00 P.M. November 25, 1977 with you, the City staff will recommend to the City Council to go out to public bid on the same terms as it is offering you and attempt, from the public at large, to locate a lessee for the restuarant facilities known as Moby's Dock on Santa Monica Pier. The terms of the lease the City shall offer to the public, and which it now offers to you are: 1. A five (5) year lease commencing when approved by City Council and signed by the City Manager, following the Pier Master Lease; (copy enclosed). 2. Annual rental to be 8% of the gross sales, with a 2% rental off -set deducted until public parking is available for restaurant patrons to enter and be able to procede in the parking lot to an area adjacent to Moby's Dock. 3. Annual minimum rental to be based upon the gross sales of the 1975 year's operation, similar to all other pier leases, January - December, 1975 ($ 315,016) adjusted for the increase in the Consumer Price Index (CPI) between January 1976 and the maost recent index available, August, 1977. (164.7 increased to 180.6, a difference of 15.9, or a percentage increase of 9.65). Using $ 345,415 for the annual gross sales figure, 90' /° would equal $310,874; annual minimum, rental is based on 8% or $24,870 per year, or $ 2,073. per month. With a 2% rental off -set to allow for parking difficulties, monthly minimmm, will be: $ 1,554. ($ 18,652. per year). 4. Parking will continue under the present policy: (a) free validation (b) the pier to be closed to auto traffic only when the pier parking lot is full; until such time as the pier parking lot allows patrons to park adjacent to Moby's Dock (see attached map) Page 3. October 20, 1977 Mr. and Mrs. Richard Westbrook and until such time as an automatic parking ticket dispenser system is installed, and all lessees shall be required to purchase validations for patrons at 25p per hour (should lessee's wish to validate for patrons). Reserved parking shall be available for any lessee requiring it at $1.50 per space per day, provided however the lessee shall supervise and enforce such reserved spaces. 5. Should an investment be made in the building itself and not only in trade fixtures, a suitable extension of the lease shall be negotiated, the length to be dependent upon the amount invested. It is the sincere desire of the City to see you continue in business on the pier. However, should you feel unable to agree to these terms, it will be necessary to go to public bid to fulfill these specifications. Should there be any questions I can answer, please do not hesitate to call me. Yours very truly, Donald T. Arnett Director Enclosure cc: Mr. Philip Whiting Mr. E. L. Fraser Mr. Art Butler {3 f 0 Name CAnP and T)aanna Bratle Social Security No. 565-24 -4411 Date of Birth Address 2002 Oakdale, Pasadena California 91107 4 -25 -27 PresentEmployer Builders Findincr Service Position VScP- prPs;danf Corp. Address 3701 Cahuenga Boulevard North Hollywood California 91604 Marital Status (answer only if this financial statement is provided in connection with a request for secured credit or if you live in a community property state, such as California): U Married ❑ Separated ❑ Unmarried (unmarried includes single, divorced, widowed) YOU MAY APPLY FOR CREDIT EXTENSION OR FINANCIAL ACCOMMODATION SEPARATELY OR JOINTLY WITH YOUR SPOUSE. Are you requesting this financial accommodation: ❑ Separately? ® Jointly with your spouse? Reflect in this statement the financial condition of your spouse as well as your own financial condition if: 1. You are seeking this financial accommodation jointly with your spouse, or 2. You are relying on your spouse's assets or income in requesting this financial accommodation, or 3. You are relying on community property in requesting this financial accommodation. (If you five in a community property state like California, community property usually includes your employment income as well as your spouse's employment income and any property or savings from Us income. We will assume that all assets, income and obligations of such a married person are com- munity property and community obligations unless otherwise indicated.) DATE OF VALUATIONS ASSETS AMOUNT ANNUAL INCOME Alimony, child support or maintenance (you need not show this unless you wish us to TOTAL INCOME 47 iCIBDULE 1 Notes Receivable Name of Debtor TOTAL 40717 15 ANNUAL EXPENDITURES 0-0 Property Taxes/ASsessmenlS Other • Lis, amounts in dollars. Omit cents. • Please attach a separate sheet if you need more space to complete a detail schedule. LIABILITIES AMOUNT TOTAL LIABILITIES '195 1 NET WORTH ! 212 6 I TOTAL X407 17 CONTINGENT LIABILITIES As Endorser I As Guarantor I I i - if "None" TOTAL I I TOTAL EXPENDITURES CONTINGENT 35,232 LIABILITIES Collateral Payable Maturity Date Total Amount Due [—Not $ per Demand 8 500 I $ per $ per CHEDULE 2 Mortgages and Deeds of Trust Owned Name of Debtor. Type of Property I TOTAL 8 5 0 7st or Value of Pro ert 2nd Lien p y How Payable Unpaid Balance S per per P SCHEDULE 3 Securities Owned No. Shares or Bond Amount Description Title in Name of How Held Code` Amount at Which Carried on this Statement Present Market,'�.' Value ro —Amer _ —i-can Expr-ess BankAmer card r 3731 317437 1],9 4024 683857 847 Coast Federal Savings 5206 pormontl 1 1136 500 j 84 169 Yea`' I Diner s 3818 259207 0009 $ 1 1 Pasadena 2006 TOTAL 73720 ironwood _-I—Magnin _ 7.75% 214 81368 03 $ 65 !000 I I 35 1380 Palm Desert Year _7967 Chantr -Bank i od Ma 4 -C1 sed 7T77-Cash Fontana Year TOTAL _ 11811;857 1 I TOTAL SCHEDULE 4 Life Insurance Insured Insurance Company Beneficiary Cash Value Loans - -- Gene Bntle Total Balance Owed (Detail in Schedule e) Deanna Butler 2 -002- Oakdale -Pasadena 60;19 Coast Federal Savings 5206 pormontl $ 1136 500 j 84 169 Yea`' I 9% 2006 $ I I Pasadena 2006 TOTAL 73720 ironwood $224 Prmonth 7.75% 1995 $ SCHEDULE 5 Real Estate Address and Type of Property Title in Name of How Held Code MonH Income Cost Present Market Value Total Balance Owed (Detail in Schedule e) Year Acquired 4 2 -002- Oakdale -Pasadena 60;19 Coast Federal Savings 5206 pormontl $ 1136 500 j 84 169 Yea`' 3050 Onieda 9% 2006 $ 70 1000 41 X358 Pasadena 2006 Year 73720 ironwood $224 Prmonth 7.75% 1995 $ 65 !000 I 35 1380 Palm Desert Year _7967 Chantr $ 46 500 201950 Fontana Year TOTAL '318 '0001 11811;857 U1 L�'j4jjGJ Vl L1GlIJ V133 \Gtl1 liJlUlG To Whom Payable How Payable Interest Rate Maturity Dale Balance Owing Pasadena Federal Savings &Loan $510 permont 9% 2006 60;19 Coast Federal Savings 5206 pormontl 6.5% 1987 1 231977 Pasadena Federal Savings $338 permont 9% 2006 1 41;358 Coachella Valley Savings 5299 Permontl 9.75% 2006 i 351380 Republic Federal $224 Prmonth 7.75% 1995 20.950 ; CHEDULE 7 Notes Payable To Whom Address Collateral Interest Rate I Unpaid Balance `HOW HELD Community Property Separate Property CODES Always = "CP" I Single Ownership = "SO" Joint Tenants —"IT" Tenants in Common = "TIC" Have you ever gone through bankruptcy or had a judgment against you? ❑ Yes ® No Are any assets pledged or debts secured except as shown? ❑ Yes ® No Have you made a will? ❑ Yes ® No YOUR REPRESENTAnONS AND WARRANTIES I understand that Crocker National Bank is relying on the information in this financial statement (includ- ing the designation of my property as separate or community property) in deciding to give or continue the financial accommodation or extension of credit I have requested or received. I promise that this is a true statement of my financial condition as of the date of valuations. You may rely on it as being true and correct until I otherwise notify you in writing. If this statement is not true in any material respect, or if I should die, file for bankruptcy, if any other creditor tries to seize my property, or if any adverse change occurs in my financial condition, at your election any or all of my indebtedness and obligations to you, direct or contingent, shall become immediately due and payable without demand or notice. You may retain and verify this statement. I understand that from time to time you may receive information about me from others and may answer questions and requests from others seeking credit and experience in- formation about me and my relationships with you, but that you will try to protect our confidential rela- tionship in handling other requests, like those from government agencies. If this is a joint financial statement, these representations and warranties are from each of us. I HAVE READ, UNDERSTAND AND AGREE TO MAKE THESE REPRESENTATIONS AND WARRANTIES. Date our nature Date Yo Spouse's Signature (if you are requesting the financial accommodation jointly) 51 -039 (REV. 6 -76( WADSWORTH, FRASER & DAHL Mr. Donald T. Arnett, Director Department of Recreation and Parks City of Santa Monica 1685 Main Street Santa Monica, California 90401 Re: Moby's Dock - Santa Monica Pier Dear Mr. Arnett: I thank you for your letter of October 20, outlining the City of Santa Monica's lease proposal, and also a copy of the lease personally delivered to me by Mr. Peter Kipp. After more than twenty years of restaurant operation on the pier, Dick and Betty Westbrook have finally decided to sell their interest,because of health reasons, to Mr. and Mrs. Clarence Harmon. I have carefully reviewed the lease with Mr. and Mrs. Harmon and they deisre to take and assume Dick and Betty Westbrook's position as lessees. I am therefore pleased to submit for consideration by the City Council the lease executed by Sinbad's, accompanied by assignment and assumption of the lease, executed by Sinbad's and the Harmons individually. I must add that if the City Council cannot accept the assignment, then Sinbad's must withdraw from the lease or, in other words, the delivery of the lease is conditioned upon the City Council's accepting the lease and assignment and relieving Sinbad's from any and all liability thereunder. I thank and cooperation i n final conclusion. ELF /cn Encls. you most sincerely for your patience hopefully bringing this matter to a Very truly yours, E. L. FRASER of Wadsworth, Fraser & Dahl cc: Mr. and Mrs. Richard Mr. Philip E. Whiting Mr. and Mrs. Clarence Westbrook ii.armon ATTORNEYS AT LAW W. H. WADSWORTH 3700 WILSHIRE BOULEVARD, SUITE 860 I687-1960 L05 ANGELES, CALIFORNIA 90010 E. L. FRASER TELEPHONE 385 -0011 ROBERT H. DAHL MICHAEL N. STAFFORD November 9, 1977 Mr. Donald T. Arnett, Director Department of Recreation and Parks City of Santa Monica 1685 Main Street Santa Monica, California 90401 Re: Moby's Dock - Santa Monica Pier Dear Mr. Arnett: I thank you for your letter of October 20, outlining the City of Santa Monica's lease proposal, and also a copy of the lease personally delivered to me by Mr. Peter Kipp. After more than twenty years of restaurant operation on the pier, Dick and Betty Westbrook have finally decided to sell their interest,because of health reasons, to Mr. and Mrs. Clarence Harmon. I have carefully reviewed the lease with Mr. and Mrs. Harmon and they deisre to take and assume Dick and Betty Westbrook's position as lessees. I am therefore pleased to submit for consideration by the City Council the lease executed by Sinbad's, accompanied by assignment and assumption of the lease, executed by Sinbad's and the Harmons individually. I must add that if the City Council cannot accept the assignment, then Sinbad's must withdraw from the lease or, in other words, the delivery of the lease is conditioned upon the City Council's accepting the lease and assignment and relieving Sinbad's from any and all liability thereunder. I thank and cooperation i n final conclusion. ELF /cn Encls. you most sincerely for your patience hopefully bringing this matter to a Very truly yours, E. L. FRASER of Wadsworth, Fraser & Dahl cc: Mr. and Mrs. Richard Mr. Philip E. Whiting Mr. and Mrs. Clarence Westbrook ii.armon RUMPUS ROOM 678 SOUTH ALVARADO LOS ANGELES, CALIFORNIA 90057 483 -4746 November 2, 1977 Mr. Peter Kipp Parks and Recreation Department City of Santa Monica Santa Monica, California Dear Mr. Kipp; The intent of this letter is to furnish a brief biographical summary and importantly the intent of Clarence and Eve Harmon in the purchase of Moby's Dock. It is important that we emphasize our concern and devotion of the pier. Both of us are native Californians. In the case of Clarence Harmon, his devotion to the pier goes back 60 years when at the age of four he was permitted to fish through the knotholes and plank cutouts on the pier. Since that time both of us have been frequent visitors to the pier and have been acquainted with Betty and Dick Westbrook for about 15 years and are familiar with many of the present business people there. Eve Harmon was born in Riverside, California in 1925. Her business career has been in personnel work and insurance affording her full experience and capabilities of dealing with the public. Clarence Harmon was born in Los Angeles, California in 1913 and is a graduate of Los Angeles High School and Dartmouth College. His entire business career has been in the area of advertising and public relations. Following service in World War II from 1941 to 1946, he was sales manager for two radio stations in the San Francisco Bay Area. He was then a principal partner in his own advertising agency in San Francisco. The agency handled several important restaurant accounts enabling him, through research and development, to attain an intimate knowledge of every facet of the operation. He returned to Los Angeles where he operated his own advertising agency from 1954 to 1962 when the agency was absorbed by a large Eastern organization. He then remained active in the field for several years as an advertising consultant to several industrial and retail accounts. RUMPUS ROOM 678 SOUTH ALVARADO LOS ANGELES, CALIFORNIA 90057 483 -4746 -2® November 2, 1977 Mr. Peter Kipp This affords both principals adequate experience in the area of business relations and knowledge of the public with an ability to cope with the operation of Moby's Dock. We have talked with the staff presently employed at Moby's Dock and they have agreed to stay on as our employees. In addition, we have arranged for the services of a restaurant consultant, Mr. S. D. Hill, who has operated six or seven restaurants in the Beverly Hills and Los Angeles area for the past 20 years. Our plan is to operate the restaurant six days a week for the maximum lunch and dinner hours and the cocktail lounge seven days a week from at _least 9000 A. M. until midnight and on weekends until 2000 A. M. We have discussed plans for a patio area in the rear which will afford a light dining and drinking area for people attired in swimsuits, bicyclers, casual tourists and so forth. One of our principal concerns is to create an excellence in dining that will enhance any reputation Moby's Dock has thus far attained. We purchased the Rumpus Room in December of 1973 and in the intervening four years have increased the gross volume by 80 percent. We have been recognized as the finest cocktail lounge in this area and are proud to have received a commenda- tion from the Los Angeles Police Department (which is rare), a copy of which is enclosed. Again, let us emphasize that we have long familiarity with both the owners and the environment of Moby's Dock and it is our sincere intent to make it a showplace of the Pacific. All of the elements in that prospect are existent now. Also enclosed are copies of our financial statement and current physical assets. RUMPUS ROOM 678 SOUTH ALVARADO LOS ANGELES, CALIFORNIA 90057 483 -4746 m3_ November 2, 1977 Mr. Peter Kipp The Board of Directors of our corporation consists of Eve Harmon; Jack Monroe, Captain of the Los Angeles Fire Department; Sharon Allen, accountant; Gene O. Butler, Vice -- President, Builders Finding Service Corporation. If there is any further information necessary, please do not hesitate to call on us. Thank you indeed for your consideration in this matter. Sincerely, v Harmon Clarence Harmon RUMPUS ROOM 678 SOUTH ALVARADO LOS ANGELES, CALIFORNIA 90057 483 -4746 LOA e o LOS ANGELES POLICE DEPARTMENT yf dRq\ EDWARD M. DAVIS Mailing Address: Box 30158 Los Angeles, Calif. 90030 Chief of Police Ref. No. 4 . 5 TOM BRADLEY Mayor October 14, 1977 Licensee /Owner Ren's Rumpus Room 678 S. Alvarado Los Angeles, California Dear Sir: It has- come to my attention that members of the Rampart Vice Unit have conducted a number of routine inspections of your A.B.C. licensed premise in the recent past. As you know, the privilege of'conducting a business licensed by the Department of Alcoholic Beveraoe Control is dependent upon the positive and responsible management of the premise. I want to take this opportunity to commend you and your employees for demonstrating the responsible management necessary to protect your investment and ensure the safety of your patrons. It may interest you to know that Rampart Area has in excess of 1,000 A.B.C. licensed premises which require routine inspections by our officers. admittedly, most of these inspections are conducted in response to complaints the officers receive about a particular location. Regardless of the source of the complaint, an inspection is required. It is therefore a monumental task to.properly. conduct a business.such as yours. It is my pleasure to inform you that recent inspections of your A.B.C. licensed premise by Rampart Vice officers have revealed no violations of the law and a responsible attitude toward proper management of the location. Please note, I have forwarded a copy of this letter to the Department of Alcoholic Beverage Control for placement in their records. Very truly yours, EDWARD M. DAVIS Chief of Police l.. /L `'�,1 i� ! /mac -L.,•Z tl- - - - - -- R. H. GUIND011, Cantain Commanding Officer Rampart Area Exhibit A Rumpus Room, Inc. Balance Sheet (Unaudited) October 31, 1976 Assets Current Assets Cash in Bank 55120.55 Accounts Receivable 51469.75 Inventory 12974.60 Total Current Assets 12,564.90 Plant and Equipment 231927.66 Less: Accumulated Depreciation 21,282.57 Total Plant and Equipment 2,6/15.09 Other Assets License 17,000.00 Deposits 600.00 Goodwill 7,357.88 Total Other Assets 241957.88 Total Assets 40,167.87 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable 95826.19 Taxes Payable 11843.18 Loans Payable 21049.61 Income Taxes Payable 4,369.73 —�— Total Liabilities 18,088.71. Shareholders' Equity Capital Stock 11000.00 Retained Earnings (Exhibit B) 21,079.16 Total Shareholders' Equip 22,079.16 Total Liabilities and Shareholders' Equity 40,167.87 Exhibit B Rumpus Room, Inc. Statement of Income and Profit or Loss (Unaudited) For the Fiscal Year Ended October 31. 1976 Income: Sales 149,972.63 Cost of Sales Inventory: November 1, 1975 21098.31. Purchases 491237.37 Goods Available for Sales 511335.68 Inventory: October 31, 1976 �l 974:60 Cost of Goods Sold 491361.08 Gross Margin 100,61.1.55 Expenses Salaries 491278.17 Rent 61710.00 Utilities 2,604.67 'Telephone 546.03 Sanitary and Maintenance 67084.28 Union Benefits 31819.04 Legal. and Accounting 11100.00 Security 173.30 'faxes 5,004.27 Insurance 27137.37 Music 770.00 Snack Supplies 17076.10 Automotive 21067.09 Bank Charges •108.62 Store Expenses 160.42 Repairs and Maintenance 397.52 Miscellaneous 932.23 Bad Debts 719.40 Promotion and Advertising 955.53 Bonus 100.00 Entertainment 421.60 Depreciation 37_7.87 Total Expenses _ i 85,543.51 Net Income from 0_ perations 151068.09 Provision for Taxes Based on .Income 4,369.73 Net Income 101698.31 Retained Qrni.ngs: November 1, 1975 101380.85 Retained Earnings: October 31, 1976 21,079.16 Rumpus Roorn Inc. Balance Sheet (Unnjujite(j) September 30. 1977 Agsr-. t.q Current Assets Cash in Bank 2,560.27 Loans Receivable 21600.00 Inventory 91232.63 Total Current Assets 141392.90 Fixed Assets Furniture & Fixtures 24,`234.71 Office Equipment 22751.60 26,986.31 Less: Accumulated Depreciation 21,589.40 Total Fixed. Assets 5539(1.91 Other Assets License 17,000.00 Deposit 600.00 Goodwill 7,357.88 Total Other Assets 24,957.88 'Dotal Assets Liabilities and Shareholders' Enuit Current Liabilities Accounts 59435.50 Loans Payable 15738.76 Taxes Payable 2,497.27 Total Current Liabilities 9,671.53 Shareholders' Equity Capital Stock 11000.00 Retained Earnings 34,076.16 Total Shareholders' Equity 35,076.1.6 Total Liabilities and Shareholders' Equity 44,747.69 - See Accompanying Notes - Rumlms Room _[tic. Statement of Income and Profit or Loss (Unaudited) For the Eleven Months Ended September 30, 1977 Income Sales 14218G2.27 Cost of Goods Sold 42,858.68 Gross Mari 100100359 Lenses Sa1.ar].es 46,778.22 Rent 1.01314.15 Utilities 21418.33 111 el.ephone 363.88 Sanitary-& Mai _ntenauce 51592.57 Union Benefits 31954.08 Legal & Accounting 550.00 SecurLty 170.25 Taxes & Licenses 31139.56 Insurance 31:L78.11 Music 840.00 Snack Supp:l.ies 21222.55 Automotive 41229.44 Bank Charges 39.26 Store Expenses 137..62 Payroll Tax Expenses 31523.94 Repairs & Maintenance 164.30 Miscellaneous 187.84 Bad Debts 963.32 Advertising & PromotAon 11638.46 Bonus :1.1500.00 Entertainipent 21080.47 Depreciation 306.83 Donations 1.00.00 Outside Services 105.00 Total Expenses 94,498.18 Net Profit 54505.4.1_ - See Accompanying Notes - Rumpus Room_Ine. S_ta(enie;nt of Changes it) Financial l'osition (Unaudited) For the L;Ieven Nlont.Ls F "Ided September 30, :1.977�� Source of Funds Current Operations Net Incoule 129997.00 Charges to Operations Not Lrvolvi.ng Funds Depreciation and Amorti_zat:ion _ 306.83 Total Source of Funds 139303.83 Aphli.catiorr of Ptiods Purchase of Furniture & F.ixtnres 307.05 Purchase of Oft:i_ce Equipment 2,751.60 fota�l. AIIpli_caUon of Funds 3,058.65 Increase in World nh• Capita_ 10,245.18 hanges in Components o[' Wopkpng (a�al ncreaseZl>ecrease inn Cui °rcni Asse ts� Cash (2,560.28) Accounts Rece:Lvable (29 869.75) Inventory 71258.03 . 1,828.00 Increase _Decrease) in Current'._Li.abil:i.ties Accounts Payable �v (41390.69) Taxes Payable. 654.09 Loans Payable ( 310.85) Income Taxes Payable 4 369.73) 8417.18 Increase in Worki.ng Capital 10, 245.18 - Sce Accompanying Notes - Rumpus Room Tue. Notes to Financial Statement (Unaud.tecl Note 1 - Inventories Inventories are priced at lower of cost or market and the inventory Level maintained by the corporation is well within :industry averages. Note 3 - License Although purchased for $47,000.00 its present market value is $249000.00. Note 3 - Accounts Payable A.LL are due within 30 days and are always paid when due. Note 4 - Taxes Payable Represent the balances due on third quarter payroll and sales taxes and as of October 31, 1977 all were paid. Note-5 •- SSalaries I Incl.u'des 4141000.00 of salaries to officers. Mr. Art Butler Manager, Moby's Dock, three years Manager, Sinbad's, four years General Manager of Stores (Field Manager for the factory), General Tires, 12 stores in 3 states, 38 years 539 SOUTH MISSION RD. . Los ANGELES. CALIFORNIA 90033 November 7, 1977 Mr. Donald T. Arnett., Director Recreation & Parks Department City IIall9 1685 Main Street Santa Monica, California 901LOl Dear Sir: Bents Rumpus Room., Inc. (Clarence Harmon), 678 South Alvarado Street., Los Angeles., Calif. 90057 has been a customer of Metro Distributing Company since 1973. Their credit has been excellent. Should you require any further information, please call. SLH /JB CC Bents Rumpus Room., Inc. /%¢ 97 �O r VOINoi Yl fJVy -4 p�t1l0 OFFICE OF BYRON JUTOVSXY PRESIDENT AND GENERAL SALES MANAGER Bohemian Distributing Company 11428 Sherman Way • North Hollywood, California 91606 Telephone 875-1734 (Area Code 213) November 12, 1977 Mr. Donald T. Arnett Director of Recreation F, Park Department Santa Monica City Hall 1685 Main Street Santa Monica, California 90401 Dear Mr. Arnett: Mr. Clarence Harmon, dba Ben's Rumpus Room, Inc., 678 South Alvarado, Los Angeles 90057, has been a customer of ours for the past seven years. He has maintained an excellent credit rating with our firm and is shipped on an open account - net thirty days. o Mvd 9'U iJ U'1530 VJlNOw v.pd�s J0 Ai!0 i DISTRIBUTORS, INC. November 7,1977 Mr. Donald T. Arnett Director of Recreation and Parks City Hall 1685 Main Santa Monica, Ca. 90401 Re: Ben's Rumpus Room (Mr. Clarence Harmon) 678 So. Alvarado Dear Mr. Arnett: Per Mr. Harmon's request, this is to advise you the above referenced account has been a long and valued account of ours. Invoices have been paid when due and we have never had any difficulties. Please feel free to contact us if you have further questions. I B. Adams Credit Manager ,I 4V 94 (?I r A0All VOINUrd 'J t24'�S .10 AJ tJ SOUTHERN CALIFORNIA WHOLESALE LIQUOR DISTRIBUTORS (i � 7 c t r c' i2vVei'6 a (,OX1Y 2ze�y '�2t'e 12544 SATICOY STREET SOUTH . NORTH HOLLYWOOD, CA 91605 a 983 -0602 a 875 -2691 November 8. 1977 Recreation & Parks Depta City Hall 1685 Main Street Santa- Monica, California 9001 Attention: Mr�I), P. Arnett Gentlemen: BE; PENIS RUMPUS BOA INC. 678 S. Alv ^r ?do Street Los Angeles, California The above named account has been doing business with us for several years and the account has been handled in a most satisfactory manner, with terms as ,set forth by the A. K C., namely 30 days. Very truly yours, SOUTHF,PN MINE & SI'IR.ITS OF CALIFORNIA, INC. \ j John L, Leslie General Credit. Mana.gpr JLL/am #00725/03 NII cc: Dan's Rurrus Room, Inc, i,(:4 q# sq �I r A,'' S�bVd 0 :W IJIQ VOINOE'I V1PdVS .:i0 Ii10 NORTH HOLLYWOOD - CERRITOS • SAN DIEGO 1646',11. 561h SUN Los Angeles, California 116062 Plmne, 295.6566 November 8, 1977 Mr. Donald T. Arnett Director Department of Recreation and Parks 1685 Main Street Santa Monica, California 90401 Dear Mr. Arnett, In reference to your letter of November 70 concerning Eve and Clarence Harmon, please be advised that their credit with us is excellent. At their place of business, the Rumpus Room, 678 So. Alvarado, Los Angeles, they have with us a 30 day account. They always pay before their due date. The oldest invoice as of this date is October 17. If you have any further questions in this matter, please call. Yours truly, Ida Mae Miller V & M Distributing Co. U4 Wd OT ?, G) A0 + ""d'� "3:1 JO'1dH VOIN011 VINVS d0 A110 1'1 1' M -111 PURF ROCKY fl ONI III SPRIG WATER© I Mn / 11 P.- r DAY OR NIGHT SERVICE 2416 RESERVOIR STREET LOS ANGELES, CALIF. 90026 TEL. 662 -1226 November 9, 1977 Donald Arnett Director of Recreation & Parks Dept. City Hall 1685 Main St. Santa Monica, Ca., 90401 Dear Sirs In response to a request for credit reference for Clarence and Eve Harmon, owners of Rumpus Room, 678 So. Alvarado St. Los Angeles, Ca. We are pleased to say we have served them for four years. They have always paid for the service within thirty days, usually much less than thirty days, of the date the work was done. They have always paid on the Work Order (invoice). We have never had to send statements. It is, indeed, a pleasure to serve them. 1rr � .13. L. .u. LUUi 1101, Owners Sunset Refrigeration caerVice swd -'d 0� f .J0'l.d�o VOIN0111 +llNM d0 x.110 Fat m 112 0 Department of the Treasury Internal Revenue Service U.S. go;urporation Income Tax Re-tarn For calendar year 1975 or other taxa,, year beginning %1__...., 1975, ending .10/..31_.. . ._., iq 76 ,) (PLEASE l "YPE OR PRINT) Check If a— Name 7 A Consolidated return Rumpus Room, Inc. �n �� �� %�Gr � ✓ a Personal Holding Co, E] Number and street C Buslnee Code No. (sea 678 S. Alvarado page 7 of instructions) City or town, State, and ZIP code Los Angeles, CA 90057 IMPORTANT —FIII In all applicable lines and schedules. If the lines on the schedules are not sufficient, see instruction N. w O fJ Z N to O a C7 1 Gross receipts or gross sales.._ ...... ..........................Less: Returns and allowances.....__ 2 Less: Cost of goods sold (Schedule A) and /or operations (attach schedule) 3 Gross profit . . . . . . . . . . . . . . . . . . . . . 4 Dividends (Schedule C) . . . . . . . . . . . . . . . . . . 5 Interest on obligations of the United States and U.S. instrumentalities . . . 6 Other interest . . . . . . . . . . . . . . . . . . . . . 7 Gross rents . . . . . . . . . . . . . . . . . . . . . 8 Gross royalties . . . . . . . . . . . . . . . . . . . . 9 (a) Net capital gains (attach separate Schedule D) . . . . . . . . . (b) Ordinary gain or (loss) from Part 11, Form 4797 (attach Form 4797) . . . 10 Other income (see instructions -I attach schedule) . . . . . . . . . 11 TOTAL income —Add lines 3 through 10 . . . . . . . . . . H D Employer Identification number - X540524 E Date incorporated 11 -1 -70 F Enter total assets from lino 14, column (D), Schedule L (sea instruction m 1 1149972.63 2 58742.58 3 ( 91230.05 5 6 8 9(a) 10 11 12 lYJVV. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to ilia best of my knowledge and belief it is Imo, correct, and complete. Declaration of prepmer (other than taxpayer) is based on all information ofwhich the popawr has any knowledge. 12 Compensation of officers (Schedule E) . . . . . . . . . . . . . . . . . . — 13 ------ - - - - -- -- - - - - - - -- 34978.17 13 Salaries and wages (not deducted elsewhere) . __ _14 ydo. a seal 14 Repairs (see instructions) . . . . . . . . . . . . . . . . . . . . ------- 397. 5`c-1.--------- form, but it 15 Bad debts (Schedule F if reserve method is used) . . . . . . . . . . . 15 ___ 719. -40 -- -- 16 16 Rents . . . . . . . . . . . . . . . . . . . . . . . . . . _ 6710.00 _ -- 17 17 Taxes (attach schedule) . . . . . . . . . . . . . . ------ 004.27._,--_,- 18 18 Interest . . . . . . . . . . . . . . . . . ..---- -- --- --- _ 19 19 Contributions (not over 5% of line 30 adjusted per instructions —attach schedule) _ _ _ Z 20 Amortization (attach schedule) . . . . . . . . . . . . . . . . . . . 20 --------------------- - - - - - -- 41 On h 21 Depreciation (Schedule G) . . ----------- 377.87 - - ----- - - - -_. U O 22 Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . ., 22 ------9-5-5-.-53 --- - 23 w23 Advertising . . . . . . . . . . .. . . . . . . . . . . . . . . -- ---- -- ---- C3 24 Pension, profit- sharing, etc. plans (see instructions) (enter number of plans b .._._ - 24 25 25 Employee benefit programs (see instructions) . . . . . - - - - -' -' — 26 26 Other deductions (attach schedule) . . . . . . . . . . . . . . . . . . 22100.75 27 85543. 51.� 27 TOTAL deductions —Add lines 12 through 26 . . . . . . . . . . . . 28 5-686--.- 51 28 Taxable Income before net operating loss deduction and special deductions (line 11 less line 27) 29 Less: (a) Net operating loss deduction (see instructions— attach schedule) . 29(a) I ....................... (b) Special deductions (Schedule 1) . . . . . . . 29(b) - 30 5686.54 30 Taxable income (line 28* less line 29) :, 31 TOTAL TAX (Schedule J) . . . . . . . 31 ----------- 843.42 32 Credits: (a) Overpayment from 1974 allowed as a credit (b) 1975 estimated tax payments . . . . . . . . -------------------- (c) Less refund of 1975 estimated lax applied for on Form -(d) Tax deposited with Form 7004 (attach copy) . . . . . . . . . ____________________ (e) Tax deposited with Farm 7005 (attach copy) . . . . . . . . . _ __________ ________ (f) Credit from regulated investment companies (attach Form 2439) ----------- (g) U.S. tax on special fuels, nonhighway gas and lubricating oil (attach Form 4136) . — 843.42 33 TAX DUE (line 31 less line 32). See instruction G for depositary method of payment 34 34 34 OVERPAYMENT (line 32 less line 31) . . . . . . . . . . . . . . . 35 35 Enter amount of line 34 you want: Credited to 1976 estimated tax la- Refunded ® Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to ilia best of my knowledge and belief it is Imo, correct, and complete. Declaration of prepmer (other than taxpayer) is based on all information ofwhich the popawr has any knowledge. -- -- ---- -- -- - - - - -- Signature of otlicer Title Signatuw of individud or lion prepa+ing the ie[mn RaVsrar's addrasa The Infernal Revenue Sand". does are w_ __ _____________ _ ___ ydo. a seal on This Dele form, but it one is used, pie as. place it he -------- -------- Data DOW -- -- ---- -- -- - - - - -- Signature of otlicer Title Signatuw of individud or lion prepa+ing the ie[mn RaVsrar's addrasa November 9 , 1977 Mr, Donald T. Arnett Director, Dept, of Recreation & Parks City of Santa Monica City Halls, 1685 Main Street Santa Monzca,, Cap, 90.401 Dear Mr, Arnett$ IMPORTERS LICENSE NO 5F1-273 Eve & Clarence Harmon of the RUMPUS RQOM at 678 So. Alvarado in Los Angeles have been a good customer of Youngs Market Company since 1973. They have been sold to a high of $1000. although their line of credit is much higher, and have never failed to pay on time. Tn fact, in most instances, the payments are received ahead of time, in checking with the industry as a whole, they are definitely considered reliable and hard working business people. Our records indicate that there has never been any violation of the State Law by the HarmonIIs in so far as their license is concerned. Very tr/,Uly yours, GUS COSTALASJ Vice President and Credit Manager GC,ag J�Ls HV R II 0 A01h SmIj �2'oaa _a 0 '1JJa VOINOW Vl NVS JO "10 MAILING ADDRESS. POST OFFICE BOX 3188 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 PHONE (213) 029.5571 CABLE ADDRESS YOUNGMARK WHOLESALERS °JOBBERS °IMPORTERS 500 SOUTH CENTRAL AVENUE LOS ANGELES, CALIFORNIA 90013 November 9 , 1977 Mr, Donald T. Arnett Director, Dept, of Recreation & Parks City of Santa Monica City Halls, 1685 Main Street Santa Monzca,, Cap, 90.401 Dear Mr, Arnett$ IMPORTERS LICENSE NO 5F1-273 Eve & Clarence Harmon of the RUMPUS RQOM at 678 So. Alvarado in Los Angeles have been a good customer of Youngs Market Company since 1973. They have been sold to a high of $1000. although their line of credit is much higher, and have never failed to pay on time. Tn fact, in most instances, the payments are received ahead of time, in checking with the industry as a whole, they are definitely considered reliable and hard working business people. Our records indicate that there has never been any violation of the State Law by the HarmonIIs in so far as their license is concerned. Very tr/,Uly yours, GUS COSTALASJ Vice President and Credit Manager GC,ag J�Ls HV R II 0 A01h SmIj �2'oaa _a 0 '1JJa VOINOW Vl NVS JO "10 MAILING ADDRESS. POST OFFICE BOX 3188 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 Form 1120 (1975) Paget Cost of Goods Sold (See instruction 2) 1 Dividends (See instruction 4) 1 Inventory at beginning of year . . . . . . 2098._31___ 1 Domestic corporations subject to 85% deduction . _______.__... --- - - - - -- 58618.87 2 Certain preferred stock of public utilities . 2 Merchandise bought for manufacture or sale __- 3 Foreign corporations subject to 85% deduction 3 Salaries and wages -------------------- 1 4 Dividends from wholly-owned foreign subsidiaries 1 4 Other costs (attach schedule) . . . . , subject to 100% deduction (section 245(b)) . . ------- 60717.18 -------- 5 Total 5 Other dividends from foreign corporations . . 6 Includable income from controlled foreign corpora. __ -_. 6 Less: Inventory at end of year . . . . . 1974.60 Lions under subpart F (attach Forms 3646) . . __ you made an election this taxable year to use ❑ Class Life (AOR) System and /or Guideline Class Life System. See Publication 534. t. Group and guideline class or descriptlun or property 7 Foreign dividend gross up (section 78) ___ 7 Cost of goods sold —Enter on line 2, page 1 . 58742.58 8 Qualifying dividends received from affiliated groups and subject to the 100% deduction (section 243 (a)(3)) . . 7. Depreciation for this Method of inventory valuation �,COS_f;_ OY`.- --- market --- - _- _ -.,._- 9 Qualifying dividends received from affiliated groups in prior roars ------- ----------- ------- ------ ---- --...- ----- ---- -- --------- ---- -- -__ -. _ -- and subject to the provisions of section 1564(b) _ -.-... Was there any substantial change in determin. 10 Taxable dividends train a DISC or former DISC not - _ - ing quantities, cost, or valuations between open. included in line 1 (section 246(d)) . ing and closing inventory? . . . . . . . Yes No 11 Other dividends . . . . . . . If "Yes," attach explanation. 1 12 Total —Enter here and on line 4, page I . Compensation of Officers (See instruction 12) _.------------------ .���i 1. Name of officer 2. Social security number 3. Title devoted to Popcorn stock owned alian 7 Amount of 8. Expensu account business 5. Cummoo 6. PrPmferreA compensation allowanaos E. Harment. 51 54 9886 Pres,___Al 100 14,300.0 - ----------- ----- ------ --- - -- -- - - -- - - -- -... Total compensation of officers —Enter here and on line 12. oar:e 1 14.300_00 %//%//%%////111111 , 1. year) 2. Trade notes and accounts re I 3. Sales on account ceivable outstanding at end of year 1970 1971 1972 1973 5. Recoveries 6. Amount charged I7. Rme.io for bad debts against re serve of end of year --- ---- *- --- ---- -- -------- -- ...... - --- ---------------- --- -- - -- ---- - -- - --- _-------- - - - _--------- -- -- - - - - -- --- -- - ---- -- -- --- ---- ------ -- --- - - -------------------- 1 ----- - 1 1975 a Depreciation (See instructions for Schedule G) Note: If depreciation is computed by using the Class Life (ACRD System or the Guideline Class Life System, you must file Form 4832 (Class Life (ADR) System) or Form 5006 (Guideline Class Life System) with your return. Check box(es) if you made an election this taxable year to use ❑ Class Life (AOR) System and /or Guideline Class Life System. See Publication 534. t. Group and guideline class or descriptlun or property I 2. Dale acquired I 3. Cost or other basis I 4. Oepreci axiom allowed or allowable I 5 Method of computing 16. Lila ar 7. Depreciation for this in prior roars depreciation rate year 1 Total additional first-year depreciation (do not include in items below) - _ - 2 Depreciation from Form 4832 . . . . . 3 Depreciation from Form 5006 . . . . . _.------------------ .���i ... % /�jj %/ % m .. -------- ,--------- 4 Other depreciation: _. Buildings . . . . . . . Furniture and fixtures. . . . . .- _}far ----- --- 23.08,7._65---. 20- 904_.70_- - --$L--- ---- - --- --- ---- 8. ---- -.- --- 57.7.8.7_. Transportation equipment . . - ----- -- -- -- - ---- ----- --- --- ------- -- --- --------- Machinery and other equipment . Other(specify) ------ '--- =-------------- -- -------- ---- - -- ------ -- --- ----- --- -- --- ---- -- -- ----- - ---- .'--- ---- ._----- -- - -'- -- 5 Totals . . . . . . . . . . . . . . I _.... - t . . . . . . . . . . . . . 6 Less: Amount of depreciation claimed in Schedule A . . . . . . . . . . . . . . . . . . 7- Balance —Enter here and on line 21, page I . . . . . . . . . . . . . . . . . . . . Form 1120. (1975) Page 3 1 (a) 85% of line 1, Schedule C . . . . . . . . . . . . . . . . . . . . . c (b) 60.208% of line 2, Schedule C . . . . . . . . . . . . . . . . . . . ..._....__....__._,___.__.. o (c) 85% of line 3, Schedule C .. • (d) 100% of line 4, Schedule C . . . . . . . . . . . . . . . . . .._._________..__.__....__. 2 Total —See instructions for limitation . . ... . . . . . . . . . . . . . . . . ' 3 100% of line 8, Schedule C . . . . . . . . . . . . . . . . . 4 Enter dividends received deduction allowed for dividends reported on line 9, Sch. C. See section 1564(b) for computation - ------------------------- _- CL 5 Dividends paid on certain preferred stock of public utilities (see instructions) . . . ----------------------------- (n 6 Western Hemisphere trade corporations (see instructions) . . . . . . . . . . . 7 Total special deductions —Add lines 2 through 6. Enter here and on line 29(b), page 1 c 0 1 Taxable income (line 30, page 1) . . . . . . . . . . . . . . . . . . . . ___5686,54 2 Enter line 1 or $25,000, whichever is lesser. (Members of a controlled group, see instructions) M 3 Line 1 less line 2 o 0 4 Enter line 3 or $25,000, whichever is lesser. (Members of a controlled group, see instructions) 5686.54 m H 5 Line 3 less line 4 . . . . . . . . . . . . . . . . . . . . . . n. 6 20% of line 2 . . . . . . . . . _._1137,31_ E r7 7 22% of line 4 — -- V 8 48% of line 5 113 7 . 31 ,___.____ ._... -- e Sum of lines 6, 7 and 8 or alternative tax Irom soperalo Schedule D, whichever IsN 9 Income tax lesser; Fiscal year corps., enter amount from line 5, Part III, form 1120 -FY 1975 -76 ~ + 10 (a) Foreign tax credit (attach Form 1118) . . . . o v ,_ (b) Investment credit (attach Form 3468) . . . . . 5 --- '--- '- 9 2- 9 . -- ., c - (c) Work incentive (WIN) credit (attach Form 4874) . . . . . . . o E 11 Total of lines 10(a), (b), and (c) . . . . . . . . . . . . . . . . . . 293.89 $, c 12 Line 9 less line 11 n ...... 43,_!#x,_______., $ E 13 Personal holding company tax (attach Schedule PH (Form 1120)) . . . . . . . ------------------- --------- w 14 Tax from recomputing a prior year investment credit (attach Form 4255) . . . . . . ________._.__ ------- 15 Tax from recomputing a prior year WIN credit (see instructions — attach computation) --'------------------- ioOI �_ as 16 Minimum tax on tax preference items (see instructions — attach Form 4626) 843.42 17 Total tax —Add lines 12 through 16, Enter here and on line 31, page 1 Record of Form 503 Federal Tax Deposits (List deposits in order of date made —See instruction G) Serial Tr I Dale of Amoun[ I Sarial number Date -off I Amount Serial number I Date of Amount G Did you claim a deduction for expenses connected with: (1) Entertainment facility (boat, resort, ranch, etc.)? . . . (2) Living accommodations (except for employees on business)? . (3) Employees' families at conventions or meetings? . . . . . (4) Employee or family vacations not reported on Form W -2? . . H (1) Did you at the and of the taxable year own, directly or indirectly, 50% or more of the voting stock of a domestic corporation? (for rules of attribution, see section 261(c).)....___._.__. _.._._. If "Yes," attach a schedule showing: (a) name, address, and Identifying number; (b) percentage owned; and (c) taxable income or (loss) (e.g., if a Form 1120: from than 30, page 1, Form 1120) of such corporation for the taxable year ending with or within your taxable year. (2) Did any individual, partnership, corporation, estate or trust at the and of the taxable year own, directly or indirectly, 50% or more of your voting stock? (For rules of attribution, see section 267(c).) . . . . . . . . . . . . . . . . . . If "Yes:" (a) Attach a chedale s owing name, address, and identifying number SCh. (b) Enter percentage owned ®.......1 ... 100 _..... ... ..... _._. _ ............... (c) Was the owner of such voting stock a person other than a U.S. person? . . . . . . . . . . . . . . . . If "Yes," enter owner's country ®..._..__ __._...__.....___....... (See instruction T.) 1 Did you ever declare a stock dividend? . . . . . . . . . . J Did you exclude income under section 931? . . K Taxable income or (loss) from line 30, page 1, Form 1120 for your taxable, vear. begimting in: , L Were you a member of a controlled group subject to lire provisions X of Section 1561? . . . . . . . . . . . . . . . . X If "Yes," check the type of relationship: X (1) U parent subsidiary (2) brother sister X (3) U combination of (1) and (2) (See section 1563.) jj M [later to page 7 of instructions and state the principal: jBusiness activity .................1`ave ...... _....._' ...........- Product or service ................... .... 1,j qc f. r... ....I.....�.................... N Did you file all required Forms 1087, 1096 and 1099? . . . . 0 Were you a U.S. shareholder of any controlled foreign corporation? (See sections 951 and 957.) . . . . . . . . . . . . If "Yes," attach Form 3646 for each such corporation. P If you are a farmers' cooperative, check type: purchasing U marketing X �] service jU other (explain) % Q Daring this taxable year, did you pay dividends (other than stock X dividends and distributions in exchange for stock) in excess of your current and accumulated earnings and profits? (See sections 301 and 316.) j If "Yes," file Schedule A, Form 1096. If this is a consolidated return, answer here for parent corporation and on Form 851, 1 Affiliations Schedule. for each subsidiary. iyes No ►:1 X Form 1120.0976) Page 4 . , Reconciliation Of Income Per I3o0KS Wtin Income rer Return 1 Net income per books _ 5686.54 7 Income recorded on books this year not in- Balance Sheets Beginning of taxable year End of taxable year ASSETS 1 Cash . . . . . . . .�����������/ (A) Amount (B) Total (C) Amount (D) Total -- _. 258- d6Q..����0����� -� /. ��_ _5120.55 2 Trade notes and accounts receivable . . . . 3696.03 - - -- /jjj /� /j�� O _• -_ ����������j 5469 ° 15 (a) Less allowance for bad debts . . . . 3 Inventories 4 Gov't obligations: (a) s t and instrumentalities (b) State, subdivisions thereof, etc. j / ___ -_- - - __ ._ ... - -- 2098 -- 3-- -- j 974.ii0 5 Other current assets (attach schedule) this return (itemize) (a) Depreciation. $ ------------ -- 6 Loans to stockholders. . . . . . . ----------- - - -- --- - - - - -- -- -- - - - - -- 7 Mortgage and real estate loans / ----------------------------- - - - - -- 8 Other investments (attach schedule) 9 Buildings and other fixed depreciable assets -, _ -_ _ _ °_ __ __ 20904.70 /- ---------------- - - - --- ��������j /��i ti Ll �.i' bb . - - - - -� ry ° - -- `7.28`. �J% % ------ - -._.- ._.,_. �040M�� ` (a) Less accumulated depreciation 10 Deplelable assets . • ---------------- __------ Retained Earnings Per Books (line 24 above) 1 Balance at beginning of year 2 Net Income per books . . . . . . . . -------------- ------------ (a) Less accumulated depletion . . I1 Land (net of any amortization) . _____ ------------- --- ---- - ---. ______ _._____... __.. /�������������j - ������������� 12 Intangible assets (amortizable only) . . . . . ----------------- _ ------ 6 Other decreases (itemize) --------------------------- sullied (a) Less accumulated amortization . 13 other assets (attach schedule) . . . . . 14 Total assets . . . . . . . . . LIABILITIES AND STOCKHOLDERS' EQUITY �----- - -- Total of lines 5 and 6 8 Balance at end of year (line 4 less 7) . . . 24957.88 �9���1�9� j ------------------------ .- j 41167.27 �� /��� /��/ '] 15 Accounts payable . . . . . . . . . 16 Mtges., notes, bonds payable in less than I yr, 17 Other current liabilities (attach schedule) . . . _____._-_.__.. 19 .- .__.__!549.61 -__- 182.1.03 jf) • Q c 204.3° 61 1843.18 18 Loans from stockholders . / .- -. .. - - / - -- - -- - - -- 19 Mlges„ notes, bonds payable in I yr. or more __ -------- -- - - -- - -- 20 Other liabilities (attach schedule) . . . . . 21 Capital stock: (a) Preferred stock . , . . . —.----------- --- -- ... _111__ .��������� /� / //. e ---------- -- ----- __ ---------- (b) Common stock 22 Paid -in or capital surplus 23 Retained earnings — Appropriated (attach sell.) . 24 Retained earnings— Unappropriated . 1000.00 j 100 ___. - - - -- - - -___._ .._.- ._ -.._.. 10380.85 1000.00 j ______.__. _- .- ..___.----- _ ----- 16067.39 25 Less cost of treasury stock —4 26 Total liabilities and stockholders' equity 30577.68 116 7 . sT- . , Reconciliation Of Income Per I3o0KS Wtin Income rer Return 1 Net income per books _ 5686.54 7 Income recorded on books this year not in- 2 Federal Income tax . . . . . . . . ..... .-------- _------ �_ eluded in this retprn (itemize) 3 Excess of capital losses over capital gains . . . ------------------- _ (a) Tax - exempt interest $ . 4 Taxable Income not recorded on books this year -------------------------- .._.-------------------- ( itemize)..---- -- ---------- __ -------- — '--- -'- --- ----------------------------------------°---- 8 Deductions in this tax return not charged 5 Expenses recorded on books this year not deducted in against book income this year (itemize) this return (itemize) (a) Depreciation. $ (a) Depreciation . . . . ;._.____- __.____.._ (b) Depletion . . ; (b) Depletion . . . . . $ ------ ----------------------------- - - - - -- 9 Total of lines 7 and 8 . . 6® 686.54 >. J _. ..____- .- ._.__-_- __._._g...__ -_ 6 Total of lines 1 throw h 5 30 Income (line 28, page I) —line 6 less 9 Analysis of Unappropriated Retained Earnings Per Books (line 24 above) 1 Balance at beginning of year 2 Net Income per books . . . . . . . . -- _10380.85 _ - -- 5686.54. -- 5 Distributions: (a) Cash . . . . . (b) Stock . . . . . _____ ------------- 3 Other Increases ( itemize ).__.__. ----------- .------------ (e) Property . . . . . ___._._.- _- _ ----------- 6 Other decreases (itemize) —._...--------- -------------- --- ------ -------- 4 Total -------- of lines -------- 1, 2, and 3 . �----- - -- Total of lines 5 and 6 8 Balance at end of year (line 4 less 7) . . . 16067.39 16067.39 * U.S. GOVERNMENT PRINTING OFFICE : 1975 — 575-100 Al 430814328 1200 U.S. L,.. p ®rat' ®n Income Tax ee.trarn hrn�1'1 DoParfinent of the Treasury For cat dar year 1974 or other taxable year beginning 1, [,(/ 1974, x®/31 19 %5 ( �� Intoreel Revanue Service -. _. ending — - (PLEASE TYPE OR PRINT) Cheok It p— A ConsoRelated return E] Name,,//. W 001,405 lefvb d D Employer Identification number —2`7 B Personal Holding Co. [] - Numb er and street 67S 45, Ay,44eiyo E County in which located C - .,y , C I Dust rare Cade No. (Sea page 7 of Instnm,Npna) City Or town, State, and ZIP code a®s :,o F Enter total assets from line column Schedule L ,06 Cc s ('0C pOO� (_ �/ F / % {Sea Instruction m (Se on $ .IMPORTANT —Fill In all applicable lines and schedules. If the lines on the schedules are not sufficient, see instruction N. 1 Gross receipts or gross sales.... ........................... Less: Returns and allowances ..... - -.. ...... .... 1 13 A2_ ' q 2 Less: Cost of goods. sold (Schedule A) and /or operations (attach schedule) . . . . 2 d(� 2- w 31 Gross profit . . . . , . . . . . . . . . . . . . . . . . . 3 t�p�hS 4 .Dividends (Schedule C) . . . . . . . . . . . . . . . 4 - U 5< Interest on obligations of the United States and U.S, instrumentalities . . . . . . . 5 _ 6 .Other Interest . . . . . . . . . . . . . . . . . . . . . . . 6 _ -- ----- - - - 7 CA . . . -.7 Gross rents . . . . . . -- 8 Gross royalties . . . . . . . . . . . . . . . . (,0. 9. (a) Net capital gains (attach separate Schedule D) . . . . . . . . . . . . . . 9(a) (b) Ordinary gain or (loss) from Part 11, Form 4797 (attach Form 4797) . . . . . . . . 9(b) , .30 Other income (see instructions —attach schedule) . . . . . . . . . . . . 10 11 t9,JS 4, 70 11 TOTAL income —Add lines 3 through 10 . . 12 Compensation of officers (Schedule E) 12 .___/ -7, Tip -- -. 13 Salaries and wagos (not deducted elsewhere) . . . . . . . . . . . . . . . . 13 44 Repairs (see instructions) . . . . . . . . . . . . . . . , . 14 ..... jpyS( (e 15 Bad debts (Schedule F If reserve method is used) . . . . . . . . . . . 15 ----- Z f 16 16..Rents !,r,. . . . . . . . . . . . . . . .. /,.•a�- 17 Taxes (attach schedule) . . . . . . . . . . . . . . . . . . . . . . 17 --- W `Interest . . , '; . . . . . 18 to 19 Contritmtions (not over 5% of line 30 adjusted per instructions —attach schedule) . .. . 19 20 Amortization ( attach schedule) 20 21 21 ,Depreciation (Schedule G) . . . . . . . . . . . . . . . , 22 - Depletion } 22 23 Advertising, . . . . . . . . . . . . . . . . . . . . . . . • 23 '---. -- .....----- -- A .. 24.Penslontprofibsha,ring, etc. plans (see instructions) 24 _ 25. Employee benefit programs (see Instructions) . . . . . , . . . 25 ___ ____ - -- 26 26.Other deductions (attach schedule) . . . . . . . . . . . . . . . . 27 27 ;' TOTAL deductions —Add lines 12 through 26 . . . . . . . . . . . . 28 _ 28 Taxable Income before not operating loss deduction and special deductions (line 11 less line 27) 5 / D_ O 29 Lass: (a) Net operating• lass deduction (see Instructions— attach schedule) 29(a) 41-me-9-6 _ _ _ (q) Special deductions (Schedule I) . . . . . . . 29(b) I _ 3q' Taxable inoome (line 28 less line 29) �, 30 y 81 = TOTAL TAX (Schedule J) '. . , . . . . . . . 31 j2 'Credits. (a) Overpayman: from 1973 allowed as a credit _ ... - - _. (b) 1974 estimated tax payments . . . . , _- _ -------- - - -- (e) Less refund of 1974 estimated tax applied far on Form 4466. ( ) (d) Tax deposited with Form 7004 (attach copy) . . . . . . . . . . . --------------- (e) Tax deposited with Form 7005 (attach copy) . . . . . . . . . ------- , .(t) Credit front regulated Investment companies (attach Form 2439) . . . .................. (g) I.I.S. tax on special fuels, rumli ghway gas and lubricating oil (attach Form 4136) 33 ,2LtL2 33 TAX DUE (line 31 less line 32). See Instruction G for depositary rnethod of payment . 34 34 OVERPAYMENT (line 32 less line 31) . . . . . . . . . . . . . 35 Eater amount of line 34 you want: Credited to 1975 estimated tax ►. Refunded ® 35 under penalties of'pedoT, I declare that f have examined this return, Including accompanying schedules and statements, and to the best of my knowledge and Is iron, correct, and comple a, Declaration of preremer (other than taxpayer) is base) on all information of which he has any knoWledg.. The Internet Rovmme - .. Survive 4oe9 not re. -- ,,. . . ... ......... .... ...... ------------------ _ -... aai /? Install s on this Date aignaluro of orflcar- -- - -- Title - - - - -- - ferm, ono is used;. pleas. elate 4 x.,. belief It r Oete � $Igneturo of individual or firm preparing the return Praparar's addresa -- - Emp. (dent. or Soc. Soc. No. Fo;m 1120 (1974) . Page 2 Sad Debts — Reserve Method (See instruction 15) Amount added to reserve J. year 2. Trade notes and accounts re. 3. Sales on account 4. Current year's 6. Amount charged 7. Reserve for bad debts solvable outstanding at and of year provision 5. Recovorles against reserve at and of year 1969 ............. ......... ..... ..... .. -.__ `� - - --- 1970 ..-' ..:. °.,-. '--- °_ .........._ ... .... ... ...... .._ ..... ... .. --- --._.... -------------- 1971L.. �. ----------- -- ---_ .__. -- -- - - -- --------------- 1972; . -. --------- _ -.... __..._._.... ... . .... . ...._...... . _. 1973, - - - - -- -- -- -----.--------------------------- ..._ ....... - - - --- - - - - - -- - --- - -- -.. -------------------------- >1974 , 'Depreciation (See instructions for Schedule G) Note: If depreciation is computed by using the Class Life (ADR) System of the Guideline Class Life System, you must file Form 4832 (Class Life (ADR) System) or Form 5006 (Guideline Class Life System) with your return. Check box(es) If. you made an election this taxable year to use Q Class Life (ADR) System and /or ❑ Guideline Class Life System. See Publication 534. 4, Vepreclafion 5. Method of G. Llle or 7. po LOroup and guideline class 2. Date 3. Cpa1 or predation for 'ar descr)pllon o! prapedy I acquired I other balls I allowed er allowable I compuline ( rate I this year In prior years depreclelion 1 Total additional first,year depreciation (do not include in items below) ° 2 Depreciation from Form 4832 , V111111111f�10Q 0�������00A, .... 3 Depreclation from Form 5006 _ - -- M������� ����� /. ... _..... _ -- 4 Other depreciation: Buildings. . ... -- -- °--- ---" -------- ...— - - ---------- . Fufpnurs and fixtures , - . . ------------------ -- -- --- ...._. _ .... Transportation egWpment - - - - ------------ - - - - -- Machinery and other equipment . , -. _ -_ __ ._. --------------------- . .. Other(specify) -- _ .............. ...... ..— -- -- '-- ------ --- -- ----- °- °. .--------..-... — - -- 5 Totals . . . hl . —. -------- . — . ----------- . ...- -- -- — 6 less: Amount of depreciation claimed in Schedule A . . . . . . . . . . . . . . . . 7 Balance —Enter here and online 21, page 1 Cost of Goods Sold (See instruction 2) , - Dividends (See instruction 4) 1 inventory at beginning of year - -- `$ ® - - -_ 1 Domestic corporations subject to 85% deduction . ----------------------- _ 2 Merchandise bought for manufacture or V5_y0_ 34/ 2 Certain preferred stock of public utilities . ----------------------- sale .. ' . . .. . . . . . . . . . 3 Foreign corporations subject to 85% deduction 3 Salaries and wages _ 4 Dividends from wholly -owned foreign subsidiaries 4 Other costs (attach schedule) subject to 100% deduction (section 245(6)) . _ 5 Other dividends from foreign corporations . ----------------------- . 5 Total. - !{�d�.�i3. -?� -.. 6 Includable income from controlled foreign corpora - 6 Less: Inventory at end of year ®��• 3J bons under subpart F (attach Forms 3646) ----------------- `�� S� °a-� 7 .Cost of goods sold —Enter on line 2, 7 Foreign dividend gross -up (section 78) 8 Qualifying dividends received from affiliated groups .__.-__....--___ - page 1 and subject to the 100% deduction (section 243 Method of inventory valuation. --- --- ---- -- --- -- .-- .__---- (a) (3)) . . . . . . . . . . . . ......._.___......... La fi;?�/._®(4 -- egA o i �±tQr(e f -- --------- 9 Qualifying dividends received from affiliated groups „ _ -_-- ­-------------- --- -- -_ - - -, -__ _ , ---- _ - - --- and subject to the provisions_of section 1564(b) . ----------------------- Was there any substantial change in the man- 10 Taxable dividends from a DISC or former DISC not ner of, determining quantities, costs, or valua- included in line 1 (section 246(d)) . dons between opening and closing inventory? []Yes k No 11 Other dividends . - -' If "Yes," attach an explanation..,.., X12 Total —Enter here and bn line 4, page 1 . . . Compensation of Officers (SOB instruction 12) 1. Name of officer 2. Social security number 3. Title 4. Time devoted to Par coal c tdrporation stock owned 1. Amount of 1. Amount of 8. Expense account allowances business S. Common 6. Preferred ®a,........ SrlsatF�9.d�c. .lftc.- f�° ---- - - - - -- -- --- - -. ... - Total compengotten of officers - - -- - - ----- —Enter here and on - - -- -- line 12, page -- 1 - -- - - - - -- Sad Debts — Reserve Method (See instruction 15) Amount added to reserve J. year 2. Trade notes and accounts re. 3. Sales on account 4. Current year's 6. Amount charged 7. Reserve for bad debts solvable outstanding at and of year provision 5. Recovorles against reserve at and of year 1969 ............. ......... ..... ..... .. -.__ `� - - --- 1970 ..-' ..:. °.,-. '--- °_ .........._ ... .... ... ...... .._ ..... ... .. --- --._.... -------------- 1971L.. �. ----------- -- ---_ .__. -- -- - - -- --------------- 1972; . -. --------- _ -.... __..._._.... ... . .... . ...._...... . _. 1973, - - - - -- -- -- -----.--------------------------- ..._ ....... - - - --- - - - - - -- - --- - -- -.. -------------------------- >1974 , 'Depreciation (See instructions for Schedule G) Note: If depreciation is computed by using the Class Life (ADR) System of the Guideline Class Life System, you must file Form 4832 (Class Life (ADR) System) or Form 5006 (Guideline Class Life System) with your return. Check box(es) If. you made an election this taxable year to use Q Class Life (ADR) System and /or ❑ Guideline Class Life System. See Publication 534. 4, Vepreclafion 5. Method of G. Llle or 7. po LOroup and guideline class 2. Date 3. Cpa1 or predation for 'ar descr)pllon o! prapedy I acquired I other balls I allowed er allowable I compuline ( rate I this year In prior years depreclelion 1 Total additional first,year depreciation (do not include in items below) ° 2 Depreciation from Form 4832 , V111111111f�10Q 0�������00A, .... 3 Depreclation from Form 5006 _ - -- M������� ����� /. ... _..... _ -- 4 Other depreciation: Buildings. . ... -- -- °--- ---" -------- ...— - - ---------- . Fufpnurs and fixtures , - . . ------------------ -- -- --- ...._. _ .... Transportation egWpment - - - - ------------ - - - - -- Machinery and other equipment . , -. _ -_ __ ._. --------------------- . .. Other(specify) -- _ .............. ...... ..— -- -- '-- ------ --- -- ----- °- °. .--------..-... — - -- 5 Totals . . . hl . —. -------- . — . ----------- . ...- -- -- — 6 less: Amount of depreciation claimed in Schedule A . . . . . . . . . . . . . . . . 7 Balance —Enter here and online 21, page 1 Form 1120 (1974) a Sr jal Deductions (a) 85% of line 1, Schedule C . . . . . . . . . . . . . . . . . . . . . . (b) 60.2080/p of line 2, Schedule C . . . . . . . . . . . . . . . . . . . . . (c) 85% of line 3, Schedule C . . . . . . . . . . . . . . . . . . . . . . . (d) 100% of line 4, Schedule C . . . . . . . . . . . . . . . . . . . . . . 2 Total—See instructions for limitation . . . . . . . . . . . . . . . . . . . . 3 1000/p of line 8, Schedule C . . . . . . . . . . . . . . . . . . . . . . . 4 Enter dividends-received deduction allowed for dividends reported on line 9, Schedule C. See section 1564(b) for computation 5 Dividends paid on certain preferred stock of public utilities (see instructions) . . . . . . . . 6 Western Hemisphere trade corporations (see instructions) . . . . . . . . . . . . . . 7 Total special deductions—Add lines 2 through 6. Enter here and on line 29(b), page 1 . . . . . Tax Computation (Fiscal year members of a controlled group electing Section 1562, omit lines I I Taxable income (line 30, page 1) . . . . . . . . . . . . . . . . . . . . . . 2 Surtax exemption—Enter line I or $25,000, whichever is lesser. (Component members of a controlled group—see instructions and enter your surtax exemption or line 1, whichever is lesser.) . . . . 3 Line I less line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 4 (a) 22% of lined . . . . . . . . . . . . . . . . . . . -------- (b) 26% of line 3 . . . . . . . . . . . . . . I . . I - .....---'--'------------ (c) If multiple surtax exemption Is elected under section 1562, enter 6% of line 2 . . . . 5 income tax (sum of line 4, or alternative tax from separate Schedule D, whichever is lesser) . . . 6 (a) (attach Foreign tax credit (aach Form 1118) . . . . . . . . . . . . - - - ------------------------ (b) Investment credit (attach Form 3468) . . . . . . . . . . . . --------- ------------ (c) Work incentive (WIN) credit (attach Form 4874) . . . . . . . . . 7 Total of lines 6(a), (b), and (c) . . . . . . . . . . . . . . . . . . . . . . 8 Line 5 less line 7 . . . . . . . . . . . . . . . . . . . . . . . . . 9 Personal holding company tax (attach Schedule PH (Form 1120)) . . . . . . . . . . AQ Tax from recomputing a prior year investment credit (attach Form 4255) . . . . . . . . . 11 Tax from recomputing a prior year WIN credit (see instructions—attach computation) . . . . . 12 Minimum tax on tax preference items (see instructions—attach Form 4626) . . . . . . . . 13 Total tax—Add lines 8 through 12, Enter here and on line 31, page 1 . . . . . . . . . . . Record, 503 Federal Tax Deposits (List deposits in order of date made San I number I b Oats Amount Far. s ""' am SOFIF891,M"Tnor Date of Amount f";mm 603r deposit' of 503 of - --- ------- --- -------- ---------------- ---------------- -------- ----------- -- - ------ -- ---------- ------ page 3 -------------------- ----------- ------------- -------------- --------------- - see Form 1120-FY.) ----------------- -------- --------------------- a instruction G) Data Of Amount deposit ------------- ---- ------ G bate Incorporated ® -:. ., ff•77 f f X!. . __ .... .... , .. —Yes No M Refer to page 7 of instructions and state the principal', H 0) Did you at the end of the taxable year own, directly of in- Business activity 7-41(cr# Ar) directly, 50% or more of the voting stock of a domestic corporation? (For rules of attribution, see section 267(c),) If "Yes," attach a schedule showing: All Product or service .. .... N Were controlled subject to the provi (a) ;area, address, and Identifying number; (b) percentage owned; and you a member of a group slons of: (1) Section ISM . . . . . . . . . . . . (o) taxable Income of (loss) from line 30, page 1, Form 1120 of such corporation for the taxable year ending with of (2) Section 1562? . . ... . . . • • • • • • . . "Yes," within your taxable Year. If answer to (1) or (2) Is check the type of relationship: (2) Did any individual, partnership, corporation, estate or trust the end of the taxable year own, directly or indirectly, j (a) parent-subsidiary ❑ (b) brother-sister ❑ at 60% or more of your voting stock? (For rules of attribution, (c) combination of (a) and (b) ❑ (See section 1563.) I , ': " . "Yes," from the see section 267(c)•) . . . . . • • If "Yes:" it answer to y excluded paying (2) Is are,yo I I 6% tax because section 1562 (b)(1)(A) applies ?. (a), Attach a schedule, showing name, address, and identifying j additional . during taxable have number. Enter owned 0 Did the corporation, at any time the year, any interest in or signature or other authority over a bank, b) percentage ...... .. ..... . . �c) Was the owner of such voting stock a person other than a se unties, or other financial account in a foreign country? - - C if "Yes," attach form 4683. (For definitions, see Form 4683.) U.S, person? . .. . . . . . . . . . . . . . If "Yes," outer owner's country � . ..... P Were you a U.S. shareholder of any controlled foreign corporation? .. (Spa Instruction T.) (See sections 951 and 957.) . . . . . . . . . . . I Did you exclude Income under section 931? . . . . . . . It "Yes," attach Form 3646 for each such corporation. J Did you have any contracts at subcontracts subject to the Re- negotiation Act of 1951? . . . . . . . . • . . . Q During this taxable year, did you pay dividends (other than stock dividends and distributions in exchange for stock) in excess of It "Yes," enter the aggregate gross dollar amount billed during your current and accumulated earnings and profits? (See sections the year ll-� ... .... .. .... . 301 and 316.) . . . . . . . . . . . . . . . . . It "Yes," file Schedule A Form 1096. If this is a consolidated K Did yout ever declare a stock dividend? . . . . . . . . . return, answer here for i3ment corporation and on Form $51, L Did you claim a deduction for expenses connected with: Affiliations Schedule, for each subsidiary, (1) Entertainment facility (boat, resort, ranch, etc.)? R Taxable income or (loss) from line 30, page 1, Form 1120 for (2) Living accommodations (except for employees on business)? (3) Employees' families at conventions or meetings? . . . your xable year bkgmmngJw. " 3. /3!� 197(.,; V10 , 1974"),v 1� (41 Emolovee or fandiv vacations not rellorled on Form W-2? S Did vou file all reoulred Forms 1087. 1096 and 1099? . . . . No HIM ®R M Form 1120 0974) A 1"l U.S. GOVERNMENT PRINTING OFFICE : 1974-0548 -099 ND. 36 2234445 I Balance Sheets Beginning of taxable year End of taxable year ASSEM (A) Amount (8) Total (C) Amount (D) Total 1 Cash ��NEMMNN/E /� '---- (oG 2 Trade notes and accounts receivable . . . , 78® oo —. /W110 E�00 __ 3674,_ ®, -- ---- j��� % %������j (a), Less allowance for bad debts : e00. a C> 5 EPSON j j / /�'/ 3 Inventories 4 Gov't obhgatlgns a) U S. and Insfmmentalilles .�l (,. _?- i (b) State, subdivisions thereof, etc. 5 Other current assets attach schedule ( ) 6 Loans to stockholders . . . / i / /�� /� /� /�jii / /�/ - �� J�fi / / %�% // _ 7 Mortgage and real estate loans . . . %��'i %�� �/ HE- jj _ _ 8 Other Investments (attach schedule) j% /P j 9 Buildings and other fixed depreciable assets aOjd 4�124 (a) Less accumulated depreciation . . . . 274 90Y.70 -- 10 RePletable assets .. V���7�������i�j (a). Less accumulated depletion . . , . _ ____ -- -- 11 Land (not of any amortization) . . . . . . NEVOENOWN/ _ 12 Intangible assets (amortizable only) % " %OO rL (a) Less accumulated amortization . . . 13 Other assets (attach schedule) . . . . _ ___ Lq 7. Sx %�i%S .2b8 14 Total assets , j/ / , / // j / �j'"44�,�/ 0 /,3.S�t< Y• �/ LIABILITIES AND AND STOCKHOLDERS EQUITY 15 Accounts able a nv , 16 Mtges., notes bonds payable in less than 1 yr. 17 Other current IIaGlGges (attach schedule) / -- , 18 Loans from stockholders . . . . . . _ ________. 19 MlgeS., notes, bonds payable In 1 yr. or more -__ --- -- - - -- -- -- - ----- 20 Other liabilities (attach schedule) . , . . . 21 Capital stock: (a) Preferred stock . . . , - ----- - -._._. �10NOW�/000, --- --- --- -- - ��/�/mG,����� (b) Common stock . . . /Gt7C>. ra t) z7bOD. ®b_ - . /OOB.ld Ci. 14P _ 22 Paid-hr or capital surplus . . 23 Retained earnings—Appropriated (attach schJ 2$ Retained ea«dngsry(fnapproprlated % _ _ stock . . 266 Less cost ofiesa n 26 Total liabilities and stockholders' equity Reconciliation of Income Per Books With income Per Return 1 Net Income per books , . . . o __ 45�_Xf?y -. - -- - - -- 7 Income recorded on books this year not in. 2 Federal Income to _ . ._ .............. cluded in this return (itemize) 3 Excess of capital losses over capital gains . ._ __-- ___- __. -.. (a) Tax-exempt Interest $. -------- - -_. -- 4 TaxableIncome not recorded on books this year _ .. , (Ilamlze). ......... . ......_....... ------ ... - ........, ....... _. -._ -- __,._. -. ___ - -- ------ 8 Deductions In this tax return not charged 5 Expenses recorded on books this year pot de. against book Income this year (itemize) dueled In this return (Itemize) (a) Depreciation $ ,- ._.... (a) Depreciation , $ ------------ ....... (b) Depletion $ -. -. (b) Depletion , $--------- __ 6 Total of Ilrtes i through 5 . __ 9 Total of lines 7 and 8 . 10 Income (Ihne 28 page t) —line 6 less 9 , Sj7d,d 6f / p e" Analysis of Unappropriated Retained Earnings Per Books tune 24 above) 1 Balance: at beginning of year .S~Z $ / 5 Distributions: (a) Cash 2 Net Income per books . . . . . . ___ .. .. Y . -_ (b) Stock , --- --- -- - --- 3 Other Increases (Itemize)..,... _______ ......... (c) Property . , , , , -------------------- ------------------ 7 ...... -.- -------- .------------- 6 Other decreases (itemize) ----------------------- . ------------ 4 Total of lines 1 2 and 3 -- -------- ------------------- . ------------------ 7 Total of lines 5 and 6. 8 Balance at end of year (llne 4 less 7) /03 0, /C> &YY 1"l U.S. GOVERNMENT PRINTING OFFICE : 1974-0548 -099 ND. 36 2234445 I I' p , 5 it fi, i, o I'; I 3 j /Ci /.iOiQ/�C ��PJ ✓dC°!@'�"Ysbe'A! 41� 611 i �y'/Crf /Gy..3 r I 1 1 1411,1 - b IGIi I III qu T ®�5._. I I7 ii v lal IOI� J%lSec�-c c iP.�C-oe.>,� I' 20 11 0711( 7!i� Cca�t_C 11 I 2211 _ I,LrNG 1 % 4 A%L 7 0f/�•t 231 24 251 114Y 26 _ � i aClCij A1LC I y Av ®L /C2 /o % /hx 2tl� � 31 32 33 34 3 II 9 n © WILSON IOtILS C01.11.1 G"/5O4 GREET! 7504 GUFF a V II i l �I 8;? IV/ ; I I oLS3. it ' �I'Y�IQp Ili �I 17 I G;S 3b' 1 ocr ll i,,71 iuu_i '�50 2n I' Y 27 7 I 11 I ttl li 2'3 30 I 31 13 Ili I 35 I 36 1 31 38 I 313 41 I i G7504C COVERLESS I.IADC IIY U E. \/ Rumpus Room, Inc. 952540524 FY /E 10/31/76 Line #26 Other Deductions Insurance 21137.37 Utilities 29604.67 Telephone 546.03 Sanitary & Maintenance 61084.28 Union Benefits 31819.04 Legal & Audit 15100.00 Security 173.30 Music 770.00 Snack Supplies 11076.10 Automotive 21067.09 Bank Charges 108.62 Store Expense 160.42 Entertainment 421.60 Bonus 100.00 Miscellaneous 932.23 Total 225100.75