”

Chester, Inc.

Trial Balances for
years ending December 31, 2013, 2014, and 2015

Account Description
2013
2014
2015

Cash on Hand
$ 2,484
$ 2,548
$ 2,599

Regular Checking Account

247,646

253,960

243,802

Savings Account

3,806,198

4,083,071

4,205,563

Accounts Receivable

20,513,628

57,697,091

49,042,528

Other Receivables

–

1,400,000

1,200,000

Allowance for Doubtful
Accounts

(1,578,525)

(1,387,691)

(2,942,552)

Inventory

23,531,507

75,851,471

65,990,780

Reserve for Inventory
Obsolescence

(3,765,000)

(12,136,103)

(10,558,525)

Prepaid Insurance

929,143

2,830,474

2,667,722

Prepaid Rent

250,000

–

–

Office Supplies

9,259

9,565

9,182

Land

146,250

131,040

131,040

Buildings and Land
Improvements

779,882

698,775

833,775

Machinery, Equipment, Office
Furniture

541,521

3,280,589

3,280,589

Accum. Depreciation

(205,000)

(764,692)

(1,381,847)

Investments

715,864

2,238,634

2,070,736

Other Noncurrent Assets

67,301

–

–

Taxes Receivable/payable

–

(3,205,440)

(6,011,540)

Accounts Payable

(5,791,398)

(22,488,866)

(13,850,648)

Wages Payable

(36,838)

(264,513)

(198,384)

FICA Employee Withholding

(1,648)

(9,452)

(7,089)

Medicare Withholding

(730)

(12,785)

(9,589)

Federal Payroll Taxes Payable

(7,541)

(132,256)

(99,192)

State Payroll Taxes Payable

(3,519)

(61,720)

(46,290)

FICA Employer Withholding

(1,648)

(9,452)

(7,089)

Medicare Employer Withholding

(730)

(12,785)

(9,589)

Line of Credit

(12,500,000)

(49,731,360)

(44,177,211)

Current Portion Long-Term Debt

–

(13,440,000)

(12,084,720)

Interest payable

–

(470,311)

(568,429)

Bonuses payable

–

(504,000)

(459,000)

Dividend payable

(6,000,000)

(15,250,000)

(15,000,000)

Common Stock

(10,131,250)

(10,131,250)

(10,131,250)

Paid-in Capital

(9,278,750)

(9,278,750)

(9,278,750)

Retained Earnings

(2,773,901)

(2,238,105)

(9,185,791)

Dividends

6,000,000

15,250,000

15,000,000

Sales

(307,716,148)

(271,839,067)

(288,876,206)

Sales Returns

5,621,979

12,432,247

23,110,096

Warranty Expense

1,375,352

1,297,104

1,444,381

Income from Investments

–

(1,227,199)

(1,138,905)

Interest Income

(255,379)

(147,707)

(142,168)

Cost of Goods Sold

176,961,527

161,029,981

179,103,248

Freight

5,378,689

4,749,095

4,325,068

Advertising Expense

1,121,425

1,161,276

1,057,591

Auto Expenses

261,218

235,763

214,713

Research and Development

39,015,418

592,335

3,080,313

Depreciation Expense

166,250

581,012

617,155

Warehouse Salaries

5,791,730

5,348,208

4,870,689

Property Tax Expense

100,619

111,252

101,319

Legal and Professional Expense

4,506,417

10,435,113

9,503,406

Bad Debt Expense

2,028,032

5,875,403

13,963,800

Insurance Expense

1,067,428

1,045,085

951,774

Maintenance Expense

76,420

96,220

87,629

Utilities

169,554

170,855

155,600

Phone

95,467

58,911

53,651

Postal

160,042

87,140

79,360

Miscellaneous Office Expense

21,279

27,879

25,390

Payroll Tax Exp

1,938,736

1,767,149

1,609,368

Pension/Profit-Sharing Plan Ex

3,750,000

3,696,000

3,366,000

Rent or Lease Expense

3,254,357

1,351,363

2,230,705

Administrative Wages Expense

21,094,132

18,344,399

19,706,506

Bonus expense

–

504,000

459,000

Interest Expense

1,093,750

3,373,056

2,842,147

Income Tax Expense – Federal

2,956,250

14,142,240

7,269,540

Income Tax Expense – State

536,250

2,503,200

1,258,000

Loss on Legal Settlement

23,965,000

–

–

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