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<br /> <br /> <br />NORTH POUDRE IRRIGATION COMPANY <br />Wellinlrton. Colorado <br />Notes to Financial Statements <br />October 31. 2001 <br /> <br />NORTH POUDRE IRRIGATION COMPANY <br />WeUinlrton. Colorado <br />Notes to Financial Statements <br />October 31. 2001 <br /> <br />Note I - Summary of Sil!llificant AccountiDl! Policies <br /> <br />Note I - Summary of Sil!llificant Accounlinll: Policies {Continued} <br /> <br />Ooerations <br /> <br />Stock of Other ComDanies <br /> <br />The Company provides irrigation water for agriculture uses to approximately 600 shareholders in <br />the Northem Colorado Front Range. The Company business office and maintenance shop <br />facilities are located in Wellington, Colorado. <br /> <br />Invesbnents in the stock of other inigation companies is stated at cost. <br /> <br />Note 2 - Notes Pavable <br /> <br />ProDertY Assets <br /> <br />Current <br /> <br />Long- Tenn <br /> <br />Total <br /> <br />Item <br />Ditches and Reservoirs <br />Buildings and Improvements <br />Radio and Office Equipment <br />Machinery and Equipment <br />Transportation Equipment <br /> <br />Life <br />50-100 years <br />10-40 years <br />10 years <br />10 years <br />5-10 years <br /> <br />Source <br />First National Bank, 8.0% <br />interest, due Janwuy 30, 2002, <br />amount due represents advances <br />on $500,000 line of credit. <br />The loan is unsecured. <br /> <br />Property assets are recorded at cost for assets purchased and fair market value for donated assets. <br />Depreciation is being taken by the straight-liqe method over the following useful lives. <br /> <br />Cash and Cash Eauivalents <br /> <br />Colorado Department of Natural <br />Resources (Colorado Water <br />Conservation Board), 4.03% interest, <br />payable in 20 annual installments <br />ofS36,889 beginning August 31, 2000. <br />Collateralized by the No.6 <br />Reservoir outlet. <br /> <br />18,155 <br /> <br />447,693 <br /> <br />465,848 <br /> <br />All highly liquid invesbnents purchased with a maturity of three months or less are considered to <br />be cash equivalents. The Company places its temporary cash investments with high credit quality <br />financial institutions. At times, such cash balances and temporary investments may be in excess of <br />the FDIC insurance limits. <br /> <br />Colorado Department of Natural <br />Resources (Colorado Water <br />Conservation Board), 5% interest, <br />payable in 40 annual installments ' <br />ofS I 9,847 beginning June 15, 1992. <br />Collateralized by an undivided one <br />half interest in the No. 2 dam structure. <br /> <br />4,592 <br /> <br />300,500 <br /> <br />305,092 <br /> <br />Estimates <br /> <br />The preparation of financialslatements in confonnity with generally accepted accounting <br />principles requires management to make estimates and assumptions that affect certain reported <br />amounts and disclosures. Accordingly, actual results could differ from those estimates. <br /> <br />Colorado Department of Natural <br />Resources (Colorado Water <br />Conservation Board), 5% interest, <br />payable in 40 annual installments of <br />$77,612 beginning May I, 1985. <br />Collateralized by an individed one <br />half interest in the Fossil Creek <br />Dam Structure. <br /> <br />25,273 <br /> <br />1,021,575 <br /> <br />1,046,848 <br /> <br />Income Taxes <br /> <br />The Company is exempt from income taxes under IRe Section 501 (c)(12). The company retains <br />this exemption during years that 85% of the companies gross income is received from <br />shareholders. During the year ended October 31, 2001 the 85% test was not met and the company <br />had a net profit ofS41,212resuIting in an income tax liability of $4,442. <br /> <br />6 <br /> <br />7 <br /> <br />16 <br /> <br />17 <br />