by the Initial Trustees of Terra Libra Holdings
Terra Libra Holdings, 2430 E.Roosevelt #998, Phoenix, AZ 85008
Copyright 1993 Terra Libra Holdings ALL RIGHTS RESERVED
Explanation:
This page contains initial balance sheet information. We
make use of the optional "startup asset" -- described in
the Terra Libra Trust Instructions. 20,000 gAU is added
to the "Founders Sweat Equity" portion of the initial
Capital Unit Holders Equity account, along with the
corresponding entry of adding 20,000 gAU to the Startup
Asset account. The remaining value of 14,190 gAU of
founders' initial contributions is added to the Capital
Unit Holders Equity account, as well as added to various
asset accounts as listed below -- compare the amounts
for "Reference Library," "Supplies," etc. to the
corresponding accounts on the October 31 balance sheet.
Capital units are issued at the rate of 15 capital units per gAU (arbitrary -- you could select any ratio). Debt is issued as indicated. Initial debt is normally handled by adding to either bonds (for long-term debt) or notes payable (for short-term debt), as well as adding to an asset account such as cash.
Capital Units Issued:
7,500 -- From 5 Investors putting up 500 gAU
300,000 -- "Founders Sweat Equity"
(valued at 20,000 gAU)
150,000 -- Reference Library
(valued at 10,000 gAU)
300 -- Inventory (books for sale)
(valued at 20 gAU)
15,000 -- Equipment (computer + software)
(valued at 1,000 gAU)
750 -- Supplies (stationery, etc.)
(valued at 50 gAU)
7,500 -- Intangible assets (customer lists, files, etc.)
(valued at 500 gAU)
30,000 -- Intangible assets (book and report manuscripts)
(valued at 2,000 gAU)
1,800 -- Prepaid expense (6 months office rent)
(valued at 120 gAU -- 20 gAU/month)
-------
512,850
-------
Debt Issued:
Note #1 due 6 months (1%/month simple interest) -- 100 gAU
Note #2 due 1 year (1%/month simple interest) -- 100 gAU
Bond -- matures 12/31/99 (10% interest payable semi-anually)
-- 500 gAU
Page 1 of 5
BALANCE SHEET at October 31
(in grams of gold -- 1 g AU = 11 FRN)
ASSETS gAU FRN
CURRENT ASSETS
Cash 1,200 13,200
Accounts Receivable 0
Inventory (books for sale) 20 220
Inventory (widgets) 0
Prepaid Expenses 120 1,320
Supplies 50 550
Notes Receivable 0
---------------------------------------------
TOTAL CURRENT ASSETS 1,390 15,290
---------------------------------------------
LONG-TERM ASSETS
Equipment less depreciation 1,000 11,000
Reference Library 10,000 110,000
Startup Asset 20,000 220,000
Reserve for Contingencies 0
Intangible Assets 2,500 27,500
---------------------------------------------
TOTAL LONG-TERM ASSETS 33,500 368,500
-------------------------------------------------
TOTAL ASSETS 34,890 383,790
-------------------------------------------------
LIABILITIES AND CAPITAL UNIT HOLDERS EQUITY
SHORT-TERM LIABILITIES
Accounts Payable 0
Notes Payable 200 2,200
Salaries and Wages payable 0
---------------------------------------------
TOTAL SHORT-TERM LIABILITIES 200 2,200
---------------------------------------------
LONG-TERM LIABILITIES
Bond 500 5,500
---------------------------------------------
TOTAL LONG-TERM LIABILITIES 500 5,500
-------------------------------------------------
TOTAL LIABILITIES 700 7,700
-------------------------------------------------
CAPITAL UNIT HOLDERS EQUITY
Capital Units Issued (grams of gold) 34,190 376,090
= C/Us 512,580
Retained Earnings 0
---------------------------------------------
TOTAL C/U HOLDERS EQUITY 34,190 376,090
-------------------------------------------------
TOTAL LIABILITIES + C/U/H EQUITY 34,890 383,790
-------------------------------------------------
Outstanding Capital Units 512,850
Net Worth per Capital Unit 0.067 0.7333
Page 2 of 5
CHANGES TO THE BALANCE SHEET
(in grams of gold -- 1 g AU = 11 FRN)
ASSETS gAU FRN
CURRENT ASSETS
Cash REFS:1B,2B,4B,5B,6B1,7B1, -102 -1,122
9B,10B,11B,12B,15A,17B
Accounts Receivable REF 7B2 +400 +4,400
Inventory (books) REF 2A,3A +35 +385
Inventory (widgets) REF: 6A,8A +600 +6,600
Prepaid Expenses notes REF 14A -20 -220
Supplies 0
Notes Receivable 0
-------------------------------------------
CHANGES TO CURRENT ASSETS +913 +10,043
-------------------------------------------
LONG-TERM ASSETS
Equipment less depreciation 0
Reference Library 0
Startup Asset REF 18B +555 +6,111
Reserve for Contingencies 0
Intangible Assets 0
--------------------------------------------
CHANGES TO LONG-TERM ASSETS +555 +6,111
------------------------------------------------
TOTAL CHANGES TO ASSETS +1,468 +16,154*
------------------------------------------------
LIABILITIES AND CAPITAL UNIT HOLDERS EQUITY
SHORT-TERM LIABILITIES
Accounts Payable REFS: 6B2,13B +730 +8,030
Notes Payable 0
Salaries and Wages payable 0
--------------------------------------------
CHANGES TO SHORT-TERM LIAB +730 +8,030
--------------------------------------------
LONG-TERM LIABILITIES
Bond 0
--------------------------------------------
CHANGES TO LONG-TERM LIAB 0
------------------------------------------------
TOTAL CHANGES TO LIABILITIES +730 +8,030
------------------------------------------------
CAPITAL UNIT HOLDERS EQUITY
Capital Units Issued 0
Retained Earnings REF: 16B +738 +8,124
--------------------------------------------
CHANGE TO C/U HLDRS EQUITY +738 +8,124
------------------------------------------------
TOTAL CHANGES TO LIABILITIES+C/U/H EQUITY +1,468 +16,154*
------------------------------------------------
*Small rounding error causes slight variation in converting to FRN.
Page 3 of 5
BALANCE SHEET at November 30
(in grams of gold -- 1 g AU = 11 FRN)
ASSETS gAU FRN
CURRENT ASSETS
Cash 1,098 12,078
Accounts Receivable 400 4,400
Inventory (books for sale) 55 605
Inventory (widgets) 600 6,600
Prepaid Expenses 100 1,100
Supplies 50 550
Notes Receivable 0
----------------------------------------------
TOTAL CURRENT ASSETS 2,303 25,333
----------------------------------------------
LONG-TERM ASSETS
Equipment less depreciation 1,000 11,000
Reference Library 10,000 110,000
Startup Asset 20,555 226,105
Reserve for Contingencies 0
Intangible Assets 2,500 27,500
----------------------------------------------
TOTAL LONG-TERM ASSETS 34,055 374,605
--------------------------------------------------
TOTAL ASSETS 36,358 399,938
--------------------------------------------------
LIABILITIES AND CAPITAL UNIT HOLDERS EQUITY
SHORT-TERM LIABILITIES
Accounts Payable 730 8,030
Notes Payable 200 2,200
Salaries and Wages payable 0
----------------------------------------------
TOTAL SHORT-TERM LIABILITIES 930 10,230
----------------------------------------------
LONG-TERM LIABILITIES
Bond 500 5,500
----------------------------------------------
TOTAL LONG-TERM LIABILITIES 500 5,500
--------------------------------------------------
TOTAL LIABILITIES 1,430 15,730
--------------------------------------------------
CAPITAL UNIT HOLDERS EQUITY
Capital Units Issued (grams of gold) 34,190 376,090
= C/Us 512,580
Retained Earnings 738 8,118*
----------------------------------------------
TOTAL C/U HOLDERS EQUITY 34,928 384,208
--------------------------------------------------
TOTAL LIABILITIES + C/U/H EQUITY 36,358 399,938
--------------------------------------------------
Outstanding Capital Units 512,850
Net Worth per Capital Unit 0.068 0.7492
* New Ret Earnings Total in $ does not exactly = net inc.
on inc. stmt. due to rounding error.
Page 4 of 5
MONTHLY INCOME STATEMENT -- November, 1993
(in grams of gold -- I g Au = 11 FRN)
Revenues
Book Sales 60 [=$660] REF 1A
Manuscript Sales 300 [=$3,300] REF 4A1
Report Sales 200 [=$2.200] REF 4A2
Service Fees for Processing
Distributor Orders 0
Consultation Fees Paid to Company 0
Widget Sales 800 [=$8,800] REF 7A
------------------------------------------------------------------
Total Revenues 1,360 [=$14,960]
------------------------------------------------------------------
Expenses
Cost of Goods Sold Expense
Widgets 400 [=$4400] REF 8B
Books 15 [=$ 165] REF 3B
Manuscript 30 [=$ 330] REF 5A1
Reports 20 [=$ 220] REF 5A2
Total Cost of Goods Sold 465 [=$5,115]
Rent 20 [=S 220] REF 14B
Telephone 10 [=$ 110] REF 9A
Transportation & Travel 30 [=$ 330] REF 10A
Advertising Expense
Magazine Ads 200 [=$2,200] REF 13A1
Classified 30 [=$ 330] REF 13A2
Direct Mail 100 [=$1,100] REF 12A
Total Advertising Expense 330 [=$3,630]
Bad Debt Write-off 0
Office Supplies and non-direct-mail postage 20 [=$ 220] REF 11A
Salaries and Wages 300 [=$3,300] REF 17A
Total Expenses 1,175 [=$12,925]
Gross Income 185 [=$2,035]
Less: Depreciation 0
Net Income Before Interest 185 [=$2,035]
Less: Interest Expense 2 [=$22] REF 15B
Net Income before Adjustment 183 [=$2.013]
Monthly Startup Asset Adjustment 555 [=$6.111] REF 18A
Net Income after Adjustment 738 [=$8.124] REF 16A
Page 5 of 5
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