2014-154A. - Laserfiche WebLink

Home Browse Search

MANCIL'S TRACTOR SERVICE, INC. Notes to Financial Statements December 31, 2013 NOTE 13: SURETY BOND The Company, as a condition for entering into construction contracts, had outstanding surety bonds liabilities approximating $2,982,549 as of December 31, 2013. The amount of open liability is equal to the costs to complete on each bonded job. The bonds are collateralized by contract receivables and personally guaranteed by the Company's majority stockholder. NOTE 14: CONTROLLING INTEREST AND RELATED PARTY TRANSACTIONS Controlling Interest: All of the Company's outstanding stock is owned by one individual,Don R.Mancil, Jr. Related Party Transactions: The Company hired Mancil and Company, Inc. (a corporation owned wholly by Don R. Mancil, Sr. the father of the owner) as a subcontractor for various jobs during 2013. Total payments for subcontractor work totaled$20,540 for the year ended December 31,2013. NOTE 15: SUBSEOUENT EVENTS The Company financed the purchase of an asphalt plant in Palm City,Florida for a price of$315,500 on February 18, 2014. The promissory note calls for payments in the amount of$7,065.95 for the next 48 months and bears interest at the rate of 3.59%. The Company intends to use this plant to better control its job costs and allow for more timely job completion during off hours when obtaining materials from third-party suppliers is not possible. The Company obtained a new line of credit from SunTrust Bank on March 19, 2014 in the amount of $400,000. The monthly payments of accrued interest are due on any outstanding balance beginning on March 19, 2014 or thereafter. The interest rate is variable based on the highest Prime Rate as determined by SunTrust Bank plus a 2%margin. The Company purchased partially developed land in Palm City on January 4, 2014 for the amount of $650,000. The company paid $1,000 in cash and is still seeking financing for the remaining $649,000. The purchase contract is an "as is" contracts and also calls for the Company to pay for all expenses necessary to finish construction of the commercial condominium and it will be moving its operations during 2014.No construction contract-has been signed as of the date of this report. It.plans on selling or renting its property at Hampton Court but no contract was signed as of the date of this report. Total costs incurred as of December 31, 2013 were 7085 and are included in total land costs on the balance sheet. NOTE.15: DATE OF MANAGEMENT'S REVIEW The Company's management has evaluated events subsequent to December 31, 2013 through April 25, 2014,the date which the financial statements were available to be issued. - 18 -