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THIS MONTH I will begin presenting the
2003 audit report statement by statement.
Below are the Statements of Financial
Position, formerly known as the balance
sheet. As you can see, the Current Assets
increased with the Receivables and
Inventory decreasing. The Receivables are
similar to those reported in 2002, but any
decrease means more money in the bank.
You will note that the Investments
increased reflecting an increase in the fair
market value. Property and Equipment
decreased because of deprecation write off
and no new acquisitions. Other Assets
consist primarily of Goodwill involved with
the IMS purchase.
Liabilities and Net Assets indicate a
favorable change. Current Liabilities
decreased from last year. The decrease in
Accounts Payable and Accrued Expenses is
substantial and produces a favorable result.
The Deferred Membership Revenue
increased. The Deferred Membership
Revenue line represents monies paid in
advance of one year by members desiring
two years or more membership.
Under Long-Term Liabilities, the
Revenue Bonds have a current maturity of
$3,800,000; principal curtailment is
$200,000 per year. Interest is paid on a
regular basis. Net assets increased for the
year. This is book value, which is arrived at
primarily by costing out the assets and
deducting the liabilities.
The complete audit report is presented
on the AMA Web site for your
convenience. Should you have any
questions, I will be happy to discuss them
with you.
Thought for the day: Two old men were
standing on the corner talking. One said to
the other, “You know, I have to hurry up
and die.” The second one said, “What in the
world are you talking about?” The first one
said, “All my friends have already died and
gone to Heaven and I am sure they are
wondering where I am.”
A-B-C Always Be Courteous. Until later...
Executive VP’s Report
Doug Holland
AMA Executive VP
3517 Fernwood Dr.
Raleigh NC 27612
(Home) (919) 787-5163
(Office) (919) 787-7454
THE ACADEMY OF MODEL AERONAUTICS, INC.
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2003 AND 2002
2003 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 6,293,032 $ 5,735,594
Receivables 99,312 107,201
Inventory - at cost 173,250 232,633
Prepaid expenses 634,871 472,608
7,200,465 6,548,036
INVESTMENTS 3,535,651 3,175,621
PROPERTY AND EQUIPMENT, NET 8,325,429 8,614,849
OTHER ASSETS 92,413 107,379
$ 19,153,958 $ 18,445,885
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 61,661 $ 227,299
Current maturities of revenue bonds 200,000 200,000
Competition funds escrow 91,177 91,985
Deferred membership revenue 5,010,492 4,868,292
Prepaid royalties and deferred IMS revenue 213,115 204,223
5,576,445 5,591,799
DEFERRED MEMBERSHIP REVENUE 446,447 371,117
LONG-TERM LIABILITIES
Revenue bonds - net of current maturities 3,800,000 4,000,000
Deferred compensation 29,357 27,101
9,852,249 9,990,017
NET ASSETS
Unrestricted net assets 8,885,658 8,122,192
Temporarily restricted net assets 416,051 333,676
9,301,709 8,455,868
$ 19,153,958 $ 18,445,885
04sept.qxd 6/23/04 10:34 am Page 148
Edition: Model Aviation - 2004/09
Page Numbers: 148