Poll Question 1
Sequoia Properties distributions in 2014 in the amount of $86,346: Were included as an expense in the 2014 income statement. Had no impact on the balance sheet. Had no impact on reported 2014 net income of $166,505. Poll Question 2 After adjustments for distributions and depreciation expense, Sequoia Properties 2014 actual net income: Was approximately ($117,000). Was approximately ($203,000). Was approximately ($220,000). Poll Question 3 Expenses associated with the 2014 accounts payable balance of $2,367,035 on Sequoia Properties balance sheet likely reflect: Operating expenses incurred but not yet paid. Preliminary site cost expenses incurred but not yet paid. Amounts due to related parties. Poll Question 4 The 2014 decrease in the Due to Clovis Supply balance sheet account: Provided a $1,230,735 cash inflow to Sequoia Properties in 2014. Provided a $3,098,523 cash inflow to Sequoia Properties in 2014 Caused a $1,230,735 cash outflow from Sequoia Properties in 2014.
Poll Question 5 The fundamental purpose of a business is to: Make money. Create jobs. Solve a problem.
Poll Question 6 If Larry Crevin can identify changes in client color preferences before his competitors do so: He enjoys a competitive advantage via superior access to resources. He enjoys a competitive advantage via superior access to customers. He enjoys a competitive advantage via economies of scale.
Information:
Sequoia Properties BALANCE SHEETS December 31, 2014 and 2013 ASSETS Current Assets Cash Rent Receivables Due from Fresno Properties Prepaid Expenses $ $ 2014 320,669 99,587 470,954 231,530 2013 259,723 153,809 161,310 7,360 Total Current Assets Land Automobiles Buildings and Improvements Office Equipment less: Accumulated Depreciation 1,122,740 9,333,384 3.944 8,990.241 2.494 - 470,795 582,202 8,112,942 3,944 8,853,648 2,494 - 454,536 Total Fixed Assets, net Investiments Preliminary Site Costs 17,859,268 3,197,205 9,456,530 16,518,492 2,730,238 4,836,393 Deposits, Permits, and Organization Costs Commissions Deferred Lease Incentive Landscape Fees Loan Fees 61,251 423.057 13,794 14,037 997,163 61,251 131,980 13,794 14,037 568,779 Gross Intangible Assets less: Accumulated Amortization 1,509,302 - 259,402 789,841 - 142,078 Intangible Assets, net Total Other Assets, net 1,249,900 13,903,635 647,763 8,214,394 $32,885,643 $25,315,088 $ Total Assets LIABILITIES AND PARTNERS' CAPITAL Current Liabilities Bank Overdraft Current Maturities - Noles Payable Accounts Payable Due to Fresno Properties Rental Deposits Accrued Expenses Interest Payable 000 1,084,569 2,367,035 224,786 62,675 721,126 000 $ 905,653 70,418 396,382 000 47,902 299,420 111,691 Total Current Liabilities Note Payable Due to Clovis Supply 4,460,191 20,910,939 3,098,523 1,831,466 18,930,965 4,329,258 Total Liabilities Partners' Capital 28,469,653 4,415,990 25,091,689 223,399 Total Liabilities and Capital $32,885,643 $25,315,088 See accountants' compilation report and accompany notes Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 2 Sequoia Properties CONSOLIDATED INCOME STATEMENT Years ended December 31, 2014 and 2013 2014 2013 Gross Revenues Rents $ 1,899,801 $ 1,109,203 Expenses 117,324 165 16,258 13.746 1,149,150 32,903 12,931 10,472 84,044 4,234 773,691 Accounting Administrative Advertising Amortization Bank Charges Depreciation Insurance Interest Expense Janitorial Services lease Expense Legal and Professional License and Permits Office Expense Repairs and Maintenance Security Supplies Taxes Telephone Utilities Waste Management Miscellancous 6,004 7,841 4,805 12,718 41,270 2,409 5.294 173,722 6,726 106,058 7,999 5,533 9,047 116,499 542 1,482 128,858 2,862 30,818 7,652 1,703,921 1,189,156 Total Expenses Administrative Income and Expense Interest Income Other Income Other Expense 7,081 6,694 3,036 - 39,105 Total Administrative Income and Expenses - 29,375 7,081 Discontinued Operations 000 - 43,066 Net Income $ 166,505 $ - 115,938 See accountants' compilation report and accompany notes Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training Sequoia Properties STATEMENTS OF CASH FLOWS Years Ended December 31, 2014 and 2013 CASH FLOWS FROM OPERATING ACTIVITIES: 2014 2013 Net Income $ 166,505 - 115,938 96,975 - 76,217 Adjustments to reconcile: Depreciation and Amortization (Increase Decrease in Accounts Receivable (Increase) Decrease in Prepaid Expenses (Increase) Decrease in Due to Related Parties (Current) Increasc (Decrcase) in Accounts Payable Increase (Decrease) in Accrued Expenses Increase (Decrease) in Due from Related Parties (Current) Increase:'(Decrease) in Other Current Liabilities 133,583 54,222 - 224,170 - 309,644 1.970.653 310,015 224,786 14,773 - 156,329 120,730 30,704 Total adjustments 2,174,218 - 225,597 Net Cash Provided by (Used in) Operating Activities 2.340,723 - 341,535 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Spending/Long Term Investments - 7,163,600 -8,919,346 Net Cash Provided by (Used in) Investing Activities - 7,163,600 -8.919,346 CASH FLOWS FROM FINANCING ACTIVITIES: Short Term Financing Long Term Financing Equity Financing Distributions and Withdrawals 358,114 9,090,626 - 905,653 1,763,390 4,112,432 - 86,346 - 77,502 Net Cash Provided by (Used in) Financing Activities 4,883.823 9.371,238 Increase in Cash 60.946 110,357 Cash at Beginning of Year 259,723 149,366 Cash at End of Year $ 320,669 S 259,723 See accountants' compilation report and accompany notes Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training Sequoia Properties STATEMENT OF CHANGES IN PARTNERS' CAPITAL Years Ended December 31, 2014 and 2013 Fritz Schumacher Luis Castillo Total Year Ended December 31, 2013 Beginning Capital $ 208,420 $ 208,419 S 416.839 Share of Net Income - 57,969 - 57,969 - 115.938 Capital Contributed 000 000 000 Distributions and Withdrawals - 77,502 000 - 77,502 Ending Capital 12/31/2013 72,949 150,450 223,399 Year Ended December 31, 2014 Beginning Capital 72,949 150,450 223,399 Share of Net Income 83,253 83,252 166,505 Capital Contributed 4,112.432 000 4.112,432 Distributions and Withdrawals - 86,346 000 - 86,346 Ending Capital 12/31/2014 S 4,182,288 $ 233,702 $ 4,415,990 See accountants' compilation report and accompany notes Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 2. RELATED PARTY TRANSACTIONS Sequoia Properties has related party transactions in the form of land and building lease agreements by and between Clovis Supply, Ltd. The general partner of Sequoia Properties has a 100% interest in Clovis Supply, Ltd. See Note 5 for inter-company debts. Cumulative rents paid to Sequoia Properties by Clovis Supply, Ltd. In 2014 are as follows: Cumulative Rent Property 17 Jarvis Street West Moorland Park North Point Shopping Center La Casa Via 23 South Park Corners Encina Grande Plaza 2121 Los Lomas $ 117,024 118,956 103,956 122,784 119,700 51,277 125,400 Totals $ 759,097 Rents Receivable at December 31, 2014 57,675 3. LEASE AGREEMENTS Sequoia Properties has in place seven separate lease agreements with Clovis Supply, Ltd. Clovis Supply, Ltd. operates Taco Bell franchises. It also owns and leases three office buildings. 1. The monthly lease terms for Taco Bell #1 are as follows: Property location: 17 Jarvis Street - Fresno, California Date 10/2011 - 09/2017 % Monthly Net Sales 8.25% Monthly Minimum Dollar $7,500 2. The monthly lease terms for Taco Bell #2 are as follows: Property location: West Moorland Park - Clovis, California Date 10/2012 - 09:2015 10/2015 - 09/2017 10/2017 - 09:2020 % Monthly Net Sales Monthly Minimum Dollar 9.25% $7,500 9.25% $9,374 9.25% $9,677 3. The monthly lease terins for Taco Bell #3 are as follows: Property location: North Point Shopping Center - Clovis, California Date 10/2009 - 09/2019 % Monthly Net Sales 8.75% Monthly Minimum Dollar $8,663 Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 4. The monthly lease terms for Taco Bell 14 are as follows: Property location: La Casa Via 23 - Fresno, California % Monthly Net Sales 9.00% Date 06/2012 - 05/2015 06/2015 - 05/2020 06/2020 - 05/2025 06/2025 - 05/2030 9.00% 9.00% 9.00% Monthly Minimum Dollar $9,975 $10,475 $10,975 S11,475 5. The monthly lease terms for Taco Bell #5 are as follows: Property location: South Park Corners Tresno, California Date 06/2013 - 05/2018 06/2018 - 05/2023 06/2023 - 05/2028 06/2028 - 05/2033 % Monthly Net Sales 9.25% 9.25% 9.25% 9.25% Monthly Minimum Dollar $7,975 $8,475 $8,975 $9,475 6. The monthly lease terms for Taco Bell #6 are as follows: Property location: Encina Grande Plaza - Fresno, California Date 12/2012 - 11/2017 % Monthly Net Sales 9.25% Monthly Minimum Dollar $10,450 7. The monthly lease terms for Taco Bell #7 are as follows: Property location: 2121 Los Lomas - Fresno, California Date 06/2012 - 05/2015 06/2015 - 05/2019 06/2019-05:2023 06/2023 - 05/2027 06/2027 - 05/2029 % Monthly Net Sales 9.50% 9.50% 9.50% 9.50% Monthly Minimum Dollar $10,450 S10,475 S10,975 $11,475 $11,975 9.50% Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 8. The monthly lease terms for the office building located at 1001 Charles Harris Parkway in Modesto, California are as follows: Term Lessee Structural Design and Implementation Rent per Month $9,594 $10,995 $4,320 $4,968 $2,530 $2,783 $2,037 $2,261 05/2012 - 04/2015 05/2015 - 04/2016 07/2014 - 06/2016 07/2016 - 06/2019 Western Title Insurance San Joaquin Laboratories 01/2014 - 12/2015 Lewis & Abernathy 01/2016 - 12/2017 08/2014 - 07/2015 08/2015 - 07/2016 9. The monthly lease terms for the office building located at 2514 Clayton Valley Road in Clovis, California are as follows: Lessee Modesto Fitness Center Rent per Month $5.556 Term 05/2013 - 04/2015 05/2015 - 04/2016 05/2016 - 04/2017 05/2017 - 04/2018 11/2013 - 12/2015 01/2016 - 12/2016 Sequoia Surgery Associates 01/2017 - 12/2017 Processing Systems $5,723 $5,894 $6,071 $5,537 $5,703 $5,875 $6,050 $6,232 $4,613 $4,751 $4,894 $5,041 $5,192 $10,211 $10,722 $11,365 $11.933 $12,768 10:2018 - 12/2018 01/2019 - 12/2019 04/2012 - 03/2015 04/2015 - 03/2016 04/2016 - 03/2017 04/2017 - 03/2018 04/2018 - 03/2019 12/2012 - 11/2015 12/2015 - 11/2016 12/2016 - 11/2017 12/2017 - 11/2018 12/2019 - 11/2020 Merrill Lynch Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 10. The monthly lease terms for the office building located at 112 Rancho Santa Fe in Fresno, California are as follows: Lessee Multi Media Design Rent per Month S11,607 S12,498 $32,123 Union Bank Operations Center S32,583 Term 12/2011 - 11/2015 12/2015 - 11/2017 04/2011 - 03/2015 04/2015 - 03/2016 04/2016 - 03/2017 04/2017 - 03/2018 04/2018 - 03/2019 06/2012 - 05/2015 06/2015 - 05/2016 06/2016 - 05/2017 06/2017 - 05/2018 06/2018 - 05/2019 S33,085 S34,084 S35,701 $6,471 $6,730 $6,990 $7,279 $7,570 Western Sierras Biotech 4. NOTES PAYABLE 1.ong-term debt outstanding from 17 different financial institutions and lenders at December 31, 2014 and 2013 was $21.995,508 and $19,001,383, respectively. Current maturities of long-term debt outstanding at December 31, 2014 and 2013 were $2.284,569 and $70,418, respectively. During the year, Mr. Schumacher converted $4,112,432 of personal loans from long-terin debt to equity All debt facilities are secured by real estate assets and/or the personal guarantee of Fritz Schumacher and Luis Castillo Various financial institutions require performance covenants, which are generally monitored on an annual basis. Although the company has temporarily breached selected covenants on occasion, it has been the practice of the financial institutions to waive the breach. 5. OTIIER PAYABLES Sequoia Properties owes S3,098,523 to Clovis Supply, Ltd., which it pays down as funds become available. Clovis Supply, Ltd. charged development fees for site selection, construction and completion of Taco Bell locations. 6. DEPRECIATION AND AMORTIZATION Buildings are depreciated over 30 years, using the straight-line method. Loan fees are amortized over 60 months, using the straight-line method. Organization Costs are amortized over 60 months, using the straight-line method. Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 10 7. DISCONTINUED OPERATIONS The development site costs for two abandoned company properties on Botello Avenue and Citrus Circle represent discontinued operations. If the company decides to retain and further develop these sites, any accrued loss will be reversed through a credit to continuing operations and the results of operations will be included with the results of other continuing operations. Discontinued operations include the interest carrying costs for the two sites. If activities resume to prepare the sites for Taco Bell restaurants, all interest carrying costs will be capitalized. 8. INTERCOMPANY TRANSACTIONS The managing partner of Sequoia Properties is a 50% owner of Fresno Properties and a 100% owner of Clovis Supply, Ltd. Expenses paid by Clovis Supply, Ltd. for Sequoia Properties and expenses paid by Sequoia Properties for Fresno Properties are considered inter-company transactions between Clovis Supply, Ltd. and Sequoia Properties and between Sequoia Properties and Fresno Properties. Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training Sequoia Properties BALANCE SHEETS December 31, 2014 and 2013 ASSETS Current Assets Cash Rent Receivables Due from Fresno Properties Prepaid Expenses $ $ 2014 320,669 99,587 470,954 231,530 2013 259,723 153,809 161,310 7,360 Total Current Assets Land Automobiles Buildings and Improvements Office Equipment less: Accumulated Depreciation 1,122,740 9,333,384 3.944 8,990.241 2.494 - 470,795 582,202 8,112,942 3,944 8,853,648 2,494 - 454,536 Total Fixed Assets, net Investiments Preliminary Site Costs 17,859,268 3,197,205 9,456,530 16,518,492 2,730,238 4,836,393 Deposits, Permits, and Organization Costs Commissions Deferred Lease Incentive Landscape Fees Loan Fees 61,251 423.057 13,794 14,037 997,163 61,251 131,980 13,794 14,037 568,779 Gross Intangible Assets less: Accumulated Amortization 1,509,302 - 259,402 789,841 - 142,078 Intangible Assets, net Total Other Assets, net 1,249,900 13,903,635 647,763 8,214,394 $32,885,643 $25,315,088 $ Total Assets LIABILITIES AND PARTNERS' CAPITAL Current Liabilities Bank Overdraft Current Maturities - Noles Payable Accounts Payable Due to Fresno Properties Rental Deposits Accrued Expenses Interest Payable 000 1,084,569 2,367,035 224,786 62,675 721,126 000 $ 905,653 70,418 396,382 000 47,902 299,420 111,691 Total Current Liabilities Note Payable Due to Clovis Supply 4,460,191 20,910,939 3,098,523 1,831,466 18,930,965 4,329,258 Total Liabilities Partners' Capital 28,469,653 4,415,990 25,091,689 223,399 Total Liabilities and Capital $32,885,643 $25,315,088 See accountants' compilation report and accompany notes Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 2 Sequoia Properties CONSOLIDATED INCOME STATEMENT Years ended December 31, 2014 and 2013 2014 2013 Gross Revenues Rents $ 1,899,801 $ 1,109,203 Expenses 117,324 165 16,258 13.746 1,149,150 32,903 12,931 10,472 84,044 4,234 773,691 Accounting Administrative Advertising Amortization Bank Charges Depreciation Insurance Interest Expense Janitorial Services lease Expense Legal and Professional License and Permits Office Expense Repairs and Maintenance Security Supplies Taxes Telephone Utilities Waste Management Miscellancous 6,004 7,841 4,805 12,718 41,270 2,409 5.294 173,722 6,726 106,058 7,999 5,533 9,047 116,499 542 1,482 128,858 2,862 30,818 7,652 1,703,921 1,189,156 Total Expenses Administrative Income and Expense Interest Income Other Income Other Expense 7,081 6,694 3,036 - 39,105 Total Administrative Income and Expenses - 29,375 7,081 Discontinued Operations 000 - 43,066 Net Income $ 166,505 $ - 115,938 See accountants' compilation report and accompany notes Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training Sequoia Properties STATEMENTS OF CASH FLOWS Years Ended December 31, 2014 and 2013 CASH FLOWS FROM OPERATING ACTIVITIES: 2014 2013 Net Income $ 166,505 - 115,938 96,975 - 76,217 Adjustments to reconcile: Depreciation and Amortization (Increase Decrease in Accounts Receivable (Increase) Decrease in Prepaid Expenses (Increase) Decrease in Due to Related Parties (Current) Increasc (Decrcase) in Accounts Payable Increase (Decrease) in Accrued Expenses Increase (Decrease) in Due from Related Parties (Current) Increase:'(Decrease) in Other Current Liabilities 133,583 54,222 - 224,170 - 309,644 1.970.653 310,015 224,786 14,773 - 156,329 120,730 30,704 Total adjustments 2,174,218 - 225,597 Net Cash Provided by (Used in) Operating Activities 2.340,723 - 341,535 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Spending/Long Term Investments - 7,163,600 -8,919,346 Net Cash Provided by (Used in) Investing Activities - 7,163,600 -8.919,346 CASH FLOWS FROM FINANCING ACTIVITIES: Short Term Financing Long Term Financing Equity Financing Distributions and Withdrawals 358,114 9,090,626 - 905,653 1,763,390 4,112,432 - 86,346 - 77,502 Net Cash Provided by (Used in) Financing Activities 4,883.823 9.371,238 Increase in Cash 60.946 110,357 Cash at Beginning of Year 259,723 149,366 Cash at End of Year $ 320,669 S 259,723 See accountants' compilation report and accompany notes Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training Sequoia Properties STATEMENT OF CHANGES IN PARTNERS' CAPITAL Years Ended December 31, 2014 and 2013 Fritz Schumacher Luis Castillo Total Year Ended December 31, 2013 Beginning Capital $ 208,420 $ 208,419 S 416.839 Share of Net Income - 57,969 - 57,969 - 115.938 Capital Contributed 000 000 000 Distributions and Withdrawals - 77,502 000 - 77,502 Ending Capital 12/31/2013 72,949 150,450 223,399 Year Ended December 31, 2014 Beginning Capital 72,949 150,450 223,399 Share of Net Income 83,253 83,252 166,505 Capital Contributed 4,112.432 000 4.112,432 Distributions and Withdrawals - 86,346 000 - 86,346 Ending Capital 12/31/2014 S 4,182,288 $ 233,702 $ 4,415,990 See accountants' compilation report and accompany notes Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 2. RELATED PARTY TRANSACTIONS Sequoia Properties has related party transactions in the form of land and building lease agreements by and between Clovis Supply, Ltd. The general partner of Sequoia Properties has a 100% interest in Clovis Supply, Ltd. See Note 5 for inter-company debts. Cumulative rents paid to Sequoia Properties by Clovis Supply, Ltd. In 2014 are as follows: Cumulative Rent Property 17 Jarvis Street West Moorland Park North Point Shopping Center La Casa Via 23 South Park Corners Encina Grande Plaza 2121 Los Lomas $ 117,024 118,956 103,956 122,784 119,700 51,277 125,400 Totals $ 759,097 Rents Receivable at December 31, 2014 57,675 3. LEASE AGREEMENTS Sequoia Properties has in place seven separate lease agreements with Clovis Supply, Ltd. Clovis Supply, Ltd. operates Taco Bell franchises. It also owns and leases three office buildings. 1. The monthly lease terms for Taco Bell #1 are as follows: Property location: 17 Jarvis Street - Fresno, California Date 10/2011 - 09/2017 % Monthly Net Sales 8.25% Monthly Minimum Dollar $7,500 2. The monthly lease terms for Taco Bell #2 are as follows: Property location: West Moorland Park - Clovis, California Date 10/2012 - 09:2015 10/2015 - 09/2017 10/2017 - 09:2020 % Monthly Net Sales Monthly Minimum Dollar 9.25% $7,500 9.25% $9,374 9.25% $9,677 3. The monthly lease terins for Taco Bell #3 are as follows: Property location: North Point Shopping Center - Clovis, California Date 10/2009 - 09/2019 % Monthly Net Sales 8.75% Monthly Minimum Dollar $8,663 Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 4. The monthly lease terms for Taco Bell 14 are as follows: Property location: La Casa Via 23 - Fresno, California % Monthly Net Sales 9.00% Date 06/2012 - 05/2015 06/2015 - 05/2020 06/2020 - 05/2025 06/2025 - 05/2030 9.00% 9.00% 9.00% Monthly Minimum Dollar $9,975 $10,475 $10,975 S11,475 5. The monthly lease terms for Taco Bell #5 are as follows: Property location: South Park Corners Tresno, California Date 06/2013 - 05/2018 06/2018 - 05/2023 06/2023 - 05/2028 06/2028 - 05/2033 % Monthly Net Sales 9.25% 9.25% 9.25% 9.25% Monthly Minimum Dollar $7,975 $8,475 $8,975 $9,475 6. The monthly lease terms for Taco Bell #6 are as follows: Property location: Encina Grande Plaza - Fresno, California Date 12/2012 - 11/2017 % Monthly Net Sales 9.25% Monthly Minimum Dollar $10,450 7. The monthly lease terms for Taco Bell #7 are as follows: Property location: 2121 Los Lomas - Fresno, California Date 06/2012 - 05/2015 06/2015 - 05/2019 06/2019-05:2023 06/2023 - 05/2027 06/2027 - 05/2029 % Monthly Net Sales 9.50% 9.50% 9.50% 9.50% Monthly Minimum Dollar $10,450 S10,475 S10,975 $11,475 $11,975 9.50% Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 8. The monthly lease terms for the office building located at 1001 Charles Harris Parkway in Modesto, California are as follows: Term Lessee Structural Design and Implementation Rent per Month $9,594 $10,995 $4,320 $4,968 $2,530 $2,783 $2,037 $2,261 05/2012 - 04/2015 05/2015 - 04/2016 07/2014 - 06/2016 07/2016 - 06/2019 Western Title Insurance San Joaquin Laboratories 01/2014 - 12/2015 Lewis & Abernathy 01/2016 - 12/2017 08/2014 - 07/2015 08/2015 - 07/2016 9. The monthly lease terms for the office building located at 2514 Clayton Valley Road in Clovis, California are as follows: Lessee Modesto Fitness Center Rent per Month $5.556 Term 05/2013 - 04/2015 05/2015 - 04/2016 05/2016 - 04/2017 05/2017 - 04/2018 11/2013 - 12/2015 01/2016 - 12/2016 Sequoia Surgery Associates 01/2017 - 12/2017 Processing Systems $5,723 $5,894 $6,071 $5,537 $5,703 $5,875 $6,050 $6,232 $4,613 $4,751 $4,894 $5,041 $5,192 $10,211 $10,722 $11,365 $11.933 $12,768 10:2018 - 12/2018 01/2019 - 12/2019 04/2012 - 03/2015 04/2015 - 03/2016 04/2016 - 03/2017 04/2017 - 03/2018 04/2018 - 03/2019 12/2012 - 11/2015 12/2015 - 11/2016 12/2016 - 11/2017 12/2017 - 11/2018 12/2019 - 11/2020 Merrill Lynch Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 10. The monthly lease terms for the office building located at 112 Rancho Santa Fe in Fresno, California are as follows: Lessee Multi Media Design Rent per Month S11,607 S12,498 $32,123 Union Bank Operations Center S32,583 Term 12/2011 - 11/2015 12/2015 - 11/2017 04/2011 - 03/2015 04/2015 - 03/2016 04/2016 - 03/2017 04/2017 - 03/2018 04/2018 - 03/2019 06/2012 - 05/2015 06/2015 - 05/2016 06/2016 - 05/2017 06/2017 - 05/2018 06/2018 - 05/2019 S33,085 S34,084 S35,701 $6,471 $6,730 $6,990 $7,279 $7,570 Western Sierras Biotech 4. NOTES PAYABLE 1.ong-term debt outstanding from 17 different financial institutions and lenders at December 31, 2014 and 2013 was $21.995,508 and $19,001,383, respectively. Current maturities of long-term debt outstanding at December 31, 2014 and 2013 were $2.284,569 and $70,418, respectively. During the year, Mr. Schumacher converted $4,112,432 of personal loans from long-terin debt to equity All debt facilities are secured by real estate assets and/or the personal guarantee of Fritz Schumacher and Luis Castillo Various financial institutions require performance covenants, which are generally monitored on an annual basis. Although the company has temporarily breached selected covenants on occasion, it has been the practice of the financial institutions to waive the breach. 5. OTIIER PAYABLES Sequoia Properties owes S3,098,523 to Clovis Supply, Ltd., which it pays down as funds become available. Clovis Supply, Ltd. charged development fees for site selection, construction and completion of Taco Bell locations. 6. DEPRECIATION AND AMORTIZATION Buildings are depreciated over 30 years, using the straight-line method. Loan fees are amortized over 60 months, using the straight-line method. Organization Costs are amortized over 60 months, using the straight-line method. Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training 10 7. DISCONTINUED OPERATIONS The development site costs for two abandoned company properties on Botello Avenue and Citrus Circle represent discontinued operations. If the company decides to retain and further develop these sites, any accrued loss will be reversed through a credit to continuing operations and the results of operations will be included with the results of other continuing operations. Discontinued operations include the interest carrying costs for the two sites. If activities resume to prepare the sites for Taco Bell restaurants, all interest carrying costs will be capitalized. 8. INTERCOMPANY TRANSACTIONS The managing partner of Sequoia Properties is a 50% owner of Fresno Properties and a 100% owner of Clovis Supply, Ltd. Expenses paid by Clovis Supply, Ltd. for Sequoia Properties and expenses paid by Sequoia Properties for Fresno Properties are considered inter-company transactions between Clovis Supply, Ltd. and Sequoia Properties and between Sequoia Properties and Fresno Properties. Copyright 2002 - 2016 by Rex Beach & Associates and Shockproof? Training
