1969 CAFR LQ - Laserfiche WebLink

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, NOTES ON QUARTERLY REPORT FIRST QUARTER ENDED MARCH 31, 1969 BALANCE SHEET NET CASH INCREASE OF $8,662.17 DUE TO REDUCTION IN INVENTORY $39,863.24 OFFSET BY ACCOUNTS PAYABLE DECREASE OF $23,991.35 AND OTHER PAYABLES BY $5,060.57. INVESTMENT CONTINUES TO CON- SIST OF $979233.00 IN A TREASURY BILL WITH 5.47% YIELD DUE 5-1-69. NET WORTH DECREASED $10,595.79 DUE TO TRANSFER TO GENERAL FUND OF $66,250.00 AND NET INCOME OF $55,654.21. INCOME STATEMENT SALES INCREASE $27,234.98 (7.3%) ABOVE FIRST QUARTER PREVIOUS YEAR. COST OF SALES UP 2.480. PROMOTIONAL DISCOUNTS DOWN $4,217.05 (1.36%) AND OPERATION EXPENSE UP $12,335.96. NET INCOME DECREASED $17,351.23 OR 5.71% OF SALES. (SEE COMMENTS) STORE ONE SALES FOR FIRST THREE MONTHS UP $120884.30 (5.7�{�). COST OF SALES UP 4.44%. OPERATING EXPENSE UP $9,384.87 (UP 2.99% OF SALES). NET INCOME DOWN $14,780.27. STORE TWO SALES UP $14,350.68 (9.69%). COST OF SALES UP 2.95%. OPERATING EXPENSES UP $2,951.09 (DOWN .05% OF SALES. NET INCOME DOWN $2,570.96. COMMENTS COMPARISONS ABOVE ARE MADE WITH SAME PERIOD IN 1968. AS IN- DICATED BY THE REPORT FOR THAT PERIOD, SEVERAL FACTORS TENDED TO OVERSTATE INCOME. ONE WAS ADVANCE PURCHASING TO AVOID SHORTAGES DURING ANTICIPATED GLASS STRIKE. SECONDLY, LABOR NEGOTIATIONS WERE NOT COMPLETED TO REFLECT INCREASED COST OF LABOR FOR 1968 RATE. THUS THIS REPORT MUST BE VIEWED WITH THE UNDERSTANDING THAT A NEARLY $10,000 DOWNWARD ADJUSTMENT IN 1ST QUARTER 1968 INCOME MUST BE CONSIDERED REASONABLE TO MAKE A VALID COMPARISON. ANOTHER FACTOR MUST BE THE STOCK REDUCTION WHICH TOOK PLACE IN 1ST QUARTER 1969. OPENING AMOUNT WAS $243,326. - CLOSING $203,463. - A DECREASE OF $40,000 OR NEARLY 16.5%, TENDS TO INHIBIT PROFIT ON PURCHASING BY CONCENTRATING PURCHASES TO STOCK REPLACEMENT ONLY. THIS IS A DIFFERENCE IN PAPER PROFIT ONLY OF COURSE, BUT DOES AFFECT PERCENTAGES. A CLOSER STUDY OF THE FIRST SIX MONTHS 1969 WILL BE MORE MEANING- FUL FOR ACCURATE STUDY OF LONG TERM TRENDS.