BALANCE SHEET
RECONCILIATION CHECKS
| Checkpoint | Computation | Result |
|---|---|---|
| Total Current Assets | $150 + $2,627 + $148 + $182 + $118 | $3,225 |
| Total Non-Current Assets | $1,560 + $65 | $1,625 |
| Total Assets | $3,225 + $1,625 | $4,850 |
| Total Current Liabilities | $1,275 + $178 + $35 + $72 + $88 + $82 + $15 + $45 + $20 | $1,810 |
| Total Non-Current Liabilities | $110 | $110 |
| Total Liabilities | $1,810 + $110 | $1,920 |
| Total Members' Equity | $250 + $2,680 | $2,930 |
| Accounting Equation | $1,920 + $2,930 = $4,850 | Confirmed |
| Ending Equity Agrees with Statement of Members' Equity | Per equity statement ending balance | $2,930 |
| Cash Agrees with Statement of Cash Flows | Per CF ending cash balance | $150 |
All checkpoints confirmed. Total assets of $4,850K equal total liabilities of $1,920K plus total members' equity of $2,930K, satisfying the accounting equation. Ending members' equity of $2,930K ties to the Statement of Members' Equity ending balance. Cash of $150K ties to the Statement of Cash Flows ending cash balance.
FOOTNOTES
[1] Trade Accounts Receivable: Trade accounts receivable are presented net of an allowance for doubtful accounts of $85K. Gross trade receivable is $2,712K. The allowance methodology is based on specific identification supplemented by an aging analysis. During FY2025, bad debt expense of $52K was recorded and write-offs of $38K were charged against the allowance. See Structured Data Map, A-046 through A-048 and B-001.
[2] Property, Plant & Equipment: Net PP&E of $1,560K comprises the following asset classes:
| Asset Class | Gross ($000) | Accumulated Depreciation ($000) | Net ($000) |
|---|---|---|---|
| Vehicles & Trailers | $1,310 | ($412) | $898 |
| Equipment (Boom Lifts, Conveyors, Power Tools) | 756 | (263) | 493 |
| Leasehold Improvements | 162 | (68) | 94 |
| Furniture, Fixtures, IT Equipment | 142 | (67) | 75 |
| Total | $2,370 | ($810) | $1,560 |
During FY2025, capital expenditures totaled $564K ($444K maintenance, $120K growth). Assets with a gross value of $45K and accumulated depreciation of $38K were disposed of, resulting in a net book value of $7K and a gain on disposal of $5K (see Income Statement). Depreciation expense for the year was $474K. See Structured Data Map, A-053 through A-067.
[3] Deferred Rent: Deferred rent of $110K represents the non-current portion of the straight-line rent adjustment related to the company's facility lease. AA internally recognizes a right-of-use asset and corresponding lease liability of approximately $1,920K under ASC 842; however, these amounts are not presented in this summary balance sheet and are disclosed separately. See Structured Data Map, A-080, A-134, and A-135.
[4] Entity Structure: AA is a single-member LLC treated as a disregarded entity for federal income tax purposes. Accordingly, the equity section presents Members' Equity rather than Shareholders' Equity. No entity-level income tax provision is recorded. All taxable income passes through to the owner's personal return. See Structured Data Map, Entity Structure Notes.
[5] Accumulated Members' Equity (Retained Earnings): Ending accumulated members' equity of $2,680K represents the cumulative residual of entity-level net income less cumulative member distributions. The FY2025 roll-forward is as follows:
| Component | Amount ($000) |
|---|---|
| Beginning Balance, January 1, 2025 | $2,804 |
| Add: Net Income (per Income Statement) | 3,690 |
| Less: Total Member Distributions | (3,814) |
| Ending Balance, December 31, 2025 | $2,680 |
Combined with Members' Capital of $250K, total members' equity is $2,930K. See Statement of Members' Equity and Structured Data Map, A-083 through A-091.
[6] Off-Balance-Sheet Items: AA maintains a $500K revolving credit facility that was undrawn as of December 31, 2025. See Structured Data Map, A-133.
[7] Work-in-Progress: Work-in-progress of $215K at December 31, 2025 ($340K at December 31, 2024) represents costs incurred on roofing projects not yet completed. Per AA's revenue recognition policy under ASC 606 (completed performance obligation basis), WIP is a cost-of-revenue timing detail and is not presented as a separate balance sheet asset. The stated total assets of $4,850K intentionally exclude WIP. See Structured Data Map, A-051 and Section D, item D-002.
SOURCE REFERENCE INDEX
| Balance Sheet Line | Data Map Ref | TB Account(s) |
|---|---|---|
| Cash and Cash Equivalents | A-045 | 1000 |
| Trade Accounts Receivable (gross) | A-046 | 1100 |
| Allowance for Doubtful Accounts | A-047 | 1100-A |
| Trade Accounts Receivable (net) | A-048 | -- |
| Retainage Receivable | A-049 | 1200 |
| Materials Inventory | A-050 | 1300 |
| Prepaid Expenses | A-052 | 1400 |
| Total Current Assets | B-002 | -- |
| Vehicles & Trailers (gross) | A-053 | 1500 |
| Accum. Depreciation -- Vehicles & Trailers | A-054 | 1500-A |
| Equipment (gross) | A-056 | 1510 |
| Accum. Depreciation -- Equipment | A-057 | 1510-A |
| Leasehold Improvements (gross) | A-059 | 1520 |
| Accum. Depreciation -- Leasehold Improvements | A-060 | 1520-A |
| Furniture, Fixtures, IT (gross) | A-062 | 1530 |
| Accum. Depreciation -- Furniture, Fixtures, IT | A-063 | 1530-A |
| Total Net PP&E | A-067 | -- |
| Security Deposits | A-068 | 1600 |
| Total Non-Current Assets | B-003 | -- |
| Total Assets | A-069 | -- |
| Accounts Payable | A-070 | 2000 |
| Accrued Wages and Payroll Liabilities | A-071 | 2100 |
| Accrued Payroll Taxes | A-072 | 2110 |
| Accrued Vacation and PTO | A-073 | 2120 |
| Customer Deposits / Deferred Revenue | A-074 | 2200 |
| Retainage Payable to Subcontractors | A-075 | 2300 |
| Sales and Use Tax Payable | A-076 | 2400 |
| Accrued Warranty and Callback Reserves | A-077 | 2500 |
| Credit Card and Other Payables | A-078 | 2600 |
| Total Current Liabilities | A-079 | -- |
| Deferred Rent | A-080 | 2700 |
| Total Non-Current Liabilities | A-081 | -- |
| Total Liabilities | A-082 | -- |
| Members' Capital | A-083 | 3000 |
| Accumulated Members' Equity (Retained Earnings) | A-090 | 3100 |
| Total Members' Equity | A-091 | -- |