This transcription has been completed. Contact us with corrections.
Colonial Airline, Inc. Balance Sheet - At December 31, 1948 Liabilities, Capital Stock and Surplus Current Liabilities: Notes payable to banks, maturing quarterly (Note 2) $200,000 Accounts Payable 487,405 Accrued liabilities 100,405 Deposits on air travel plan 29,325 Reserve for aircraft and engine overhaul (Note 3) 57,259 ________ Total current liabilities $ 874,883 Unearned transportation revenue 75,997 Notes Payable to banks(Note 2) $350,000 Less: Amount due within one year carries under current liabilities 200,000 150,000 _________ Capital Stock and Surplus: Capital stock - par value $1 per share: Authorized - 1,000,000 shares Issued and outstanding - 515,600 shares (Note 4) $515,600 Capital surplus, pain-in(no change during year) 3,108,047 Earned surplus (deficit) since December 31, 1934, per statement of income and earned surplus (deficit) attached (note 1) (1,032,548) 2,591,099 ___________ __________ $3,691,979 __________ __________ Notes to financial statements Note 2: The 2 3/4 % notes payable to banks are unsecured Under the provisions of the loan agreement, however, the banks may demand collateral should the net current assets at any time be less than $500,000. Upon such demand, the Company shall issue a chattel mortgage on aircraft having a value of one and one-third times the unpaid principal amount of the notes. In the event that the net current assets at any time are less than $400,000 or the total indebtedness (exclusive of instalments of notes maturing after one year) exceeds $1,300,000 and shall so continue for thirty days after notice to the Company by the banks, the banks may declare the notes immediately due and payable. Note 3: The policy established in 1947 of providing for major overhaul of DC-4 aircraft and engines, based on the number of hours flown, has been continued in 1948, and major overhaul expenditures incurred have been charged to the reserve. The policy established in 1946 of charging all major overhauls on DC-3 equipment to operations as incurred has been continued and no reserve has been provided. Note 4: Options are outstanding for the purchase of capital stock, as follows: To official - expiring November 9, 1949 - 5,000 shared at $12.50 per share. To underwriters - expiring February 26, 1950 - 30,000 shares at $12.25 per share. To officer - expiring February 26, 1950 - 50,000 shares at $12.25 per share. 9