Page 44 - 2019 Pancake Supply Chain Co-op, Inc. Annual Report
P. 44

PANCAKE SUPPLY CHAIN CO-OP, INC.
                                             NOTES TO FINANCIAL STATEMENTS
                                                 December 31, 2019 and 2018



               NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued)

               Subsequent Events:  Management has performed an analysis of the activities and transactions subsequent
               to December 31, 2019 to determine the need for any adjustments to and disclosures within the financial
               statements for the period ended December 31, 2019. Management has performed their analysis through
               __________, 2020, the date the financial statements were available to be issued.


               NOTE 2 - INVESTMENT AT EQUITY

               The Co-op has a 50% investment in Centralized Supply Chain Services, LLC, which is carried at cost,
               adjusted for the Co-op’s proportionate share of its earnings and losses, which are allocated to the Co-op
               based upon the Co-op’s proportionate share of activity conducted by Centralized Supply Chain Services,
               LLC.

               Following is a summary of financial position and results of operations of Centralized Supply Chain Services,
               LLC for the years ended December 31, 2019 and 2018:

                                                                                 2019            2018

                   Current assets                                            $   7,108,133   $   5,263,125
                   Computers, equipment and leasehold improvements, net            17,135          30,352

                                                                             $   7,125,268   $   5,293,477

                   Current liabilities                                       $   4,203,562   $   3,076,585
                   Long-term liabilities                                          674,907         404,859
                   Members’ equity                                              2,246,799        1,812,033

                                                                             $   7,125,268   $   5,293,477

                   Net revenues                                              $  14,575,942   $  13,828,738

                   Net earnings                                              $   3,057,504   $   2,632,352

               Centralized Supply Chain Services, LLC has a $1,000,000 line of credit with its primary bank. Pancake
               Supply Chain Co-op and Apple Supply Chain Co-op are Guarantors of this line of credit. For the years
               ended December 31, 2019 and 2018, there were no borrowings on the line of credit.


               NOTE 3 - INCOME TAXES

               The provision for income taxes for the year ended December 31, 2019 and 2018 consists of the following:

                                                                                 2019            2018
                   Current
                       Federal                                               $        115    $      1,843
                       State                                                          979           1,367

                                                                             $      1,094    $      3,210

               Effective rates vary from expected marginal rates due to the deductibility of patronage dividends.




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