1969 CAFR LQ - Laserfiche WebLink

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NOTES ON QUARTERLY REPORT SECOND QUARTER ENDED JUNE 309 1969 BALANCE SHEET CASH DECREASE APPROXIMATELY $701000.00 DUE TO INCREASE IN INVENTORY (+$147,000.00), CHANGE FUND (+$5,000.00), PREPAID EXPENSES (+7,500.00)9 DECREASE IN ACCOUNTS RECEIVABLE (-$10,000.00), INCREASE IN ACCOUNTS PAYABLE (-$719000.00) AND INCREASES IN ACCRUED ACCOUNTS (-$6,000.00). NET WORTH NO CHANGE DUE TO NEARLY EQUAL AMOUNTS IN INCOME AND TRANSFERS TO GENERAL FUND. INCOME STATEMENT SALES INCREASE $35,016. ABOVE 2ND QUARTER 1968 AND AN ACCUMULATED IN- CREASE FOR FIRST SIX MONTHS OF $62,251. COST OF GOODS SOLD INCREASE 3.00 INCLUDING 1.28q RISE IN PROMOTIONAL DISCOUNTS. OPERATING EXPENSE UP $180084. $12,336 -FIRST QUARTER, $5,748. -SECOND QUARTER.) NET IN- COME FOR FIRST SIX MONTHS $121,492. - OFF $19,344• FROM SIX MONTHS 1968. (MINUS $17,351. IN FIRST QUARTER, $1,993. IN SECOND QUARTER). STORE ONE SALES FOR FIRST SIX MONTHS UP $30,435. (6.460. COST OF GOODS SOLD UP 3.08Ja OPERATING EXPENSE UP $13,780. (4.61%). NET INCOME DOWN $19,577. STORE TWO SALES FOR FIRST SIX MONTHS UP $31,816. (10.560. COST OF GOODS SOLO UP 2.15%. OPERATING EXPENSE UP $4,309. (-.8%). NET INCOME UP $233. COMMENTS THE SECOND QUARTER RESULTS INDICATE THAT THE SQUEEZE ON PROFITS FROM HIGHER COSTS FOR MERCHANDISE AND FOR WAGES AND OTHER OPERATING EXPENSES HAS BEEN STOPPED. DURING THE FIRST QUARTER NET INCOME WAS OFF $17051.23. THE SECOND QUARTER OFF $1,993.05 COMPARED TO SAME PERIODS DURING 1968. THE PROSPECTS FOR WIPING OUT THE ACCUMULATED "DEFICIT" APPEAR ENCOURAGING FOR THE FOLLOWING REASONS: FIRST - PRICES IN BOTH BAR AND OFF SALE HAVE BEEN RESTRUCTURED AND A SIGNIFICANT PROFIT STANDS TO BE MADE ON INVENTORY BOUGHT BEFORE THE TAX INCREASE. SECOND - OPERATING EXPENSES GENERALLY REMAIN STABLE AFTER BEING ESTABLISHED EARLY IN THE YEAR - 54% OF SALES THEN OCCUR IN LAST HALF OF YEAR TO PRODUCE BETTER OPERATING PERCENTAGES. ALSO, SALES FOR JULY AND AUGUST HAVE BEEN ACCELERATING AFTER ONLY A FAIR MONTH OF JUNE.