Kaps Warehouse, Inc. - Page 7

                                                - 7 -                                                 
                 At the end of fiscal year 1991, Kapsco had the following                             
            assets:                                                                                   
                        Inventory            $943,252                                                 
                        Accounts receivable   239,072                                                 
                        Cash in bank           83,709                                                 
                        Total            1,266,033                                                    
            At the end of fiscal year 1991, Kapsco's current liabilities                              
            totaled $804,108, of which $794,252 represented accounts payable to                       
            petitioner. (Had there been no rebates in fiscal year 1991,                               
            Kapsco's current liabilities would have totaled $924,108.)                                
                 Kapsco's shareholders reported the following amounts of                              
            taxable income for 1991 on their respective Forms 1040:                                   
                        M. Kirkham              $24,709                                               
                        J. Kirkham              44,285                                                
                        L. Sponenburgh          33,750                                                
                        O.R. and R. Kirkham  28,567                                                   
            The record does not indicate the bases of these shareholders in                           
            their Kapsco stock during the years at issue.                                             
                 b.  KAW                                                                              
                 KAW's fiscal year 1992 financial statement reported total                            
            shareholders' equity of $940,062 and retained earnings of $668,632.                       
            In that year, KAW received $40,000 in rebates.  (Had there been no                        
            rebates in fiscal year 1992, KAW's retained earnings would have                           
            been $628,632, and KAW would have had a $13,544 profit.)                                  
                 At the end of fiscal year 1992, KAW had the following assets:                        
                        Inventory             $746,421                                                
                        Accounts receivable    213,299                                                
                        Cash in bank            34,417                                                
                        Total               994,137                                                   





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011