ADJUSTED TRIAL BALANCE
PROOF OF BALANCE
| Category | Debits ($000) | Credits ($000) |
|---|---|---|
| Assets (gross) | $5,745 | |
| Contra-Asset Accounts (Allowance, Accum. Depr.) | $895 | |
| Liabilities | $1,920 | |
| Members' Equity (Capital + Beginning RE) | $3,054 | |
| Revenue | $25,200 | |
| Other Income (Gain + Other Non-Operating) | $18 | |
| Cost of Revenue | $16,632 | |
| Selling, General & Administrative | $4,410 | |
| Depreciation & Amortization | $474 | |
| Interest Expense | $12 | |
| Member Distributions | $3,814 | |
| TOTALS | $31,087 | $31,087 |
Total Debits equal Total Credits. The trial balance is in balance.
DERIVATION OF NET INCOME (from Trial Balance)
| Item | Amount ($000) |
|---|---|
| Total Revenue | $25,200 |
| Less: Total Cost of Revenue | ($16,632) |
| Gross Profit | $8,568 |
| Less: Selling, General & Administrative | ($4,410) |
| Less: Depreciation & Amortization | ($474) |
| Operating Income (EBIT) | $3,684 |
| Add: Gain on Disposal of Assets | $5 |
| Add: Other Non-Operating Income | $13 |
| Less: Interest Expense | ($12) |
| Net Income (Entity Level) | $3,690 |
Cross-reference: Net income of $3,690K matches the Baseline Analysis (see Income Statement, Equity Statement, and Cash Flow Statement).
DERIVATION OF ENDING RETAINED EARNINGS (from Trial Balance)
| Item | Amount ($000) |
|---|---|
| Retained Earnings, Beginning of Year (per TB) | $2,804 |
| Add: Net Income (FY2025) | $3,690 |
| Less: Member Distributions (FY2025) | ($3,814) |
| Retained Earnings, End of Year | $2,680 |
Cross-reference: Ending retained earnings of $2,680K + Members' Capital of $250K = Total Members' Equity of $2,930K (see Balance Sheet).
BALANCE SHEET EQUATION CHECK (Post-Closing)
| Component | Amount ($000) |
|---|---|
| Total Assets | $4,850 |
| Total Liabilities | $1,920 |
| Total Members' Equity | $2,930 |
| Liabilities + Equity | $4,850 |
| Assets = Liabilities + Equity | CONFIRMED |
FOOTNOTES
[1] Retained Earnings (Beginning of Year): This adjusted trial balance is presented in pre-closing format. Retained earnings of $2,804K is the FY2024 ending / FY2025 beginning balance. Revenue, expense, and distribution accounts carry their full FY2025 activity and have not been closed. Upon closing, these temporary accounts will be netted and transferred to retained earnings, producing an ending balance of $2,680K.
[2] Miscellaneous SGA: The Baseline Analysis states Total SGA of $4,410K, but the 19 individually itemized SGA line items sum to $4,310K. The $100K difference has been assigned to Miscellaneous SGA (increasing it from $152K to $252K) to reconcile to the stated total. The $4,410K total is internally consistent with stated EBITDA of $4,158K ($25,200 - $16,632 - $4,410 = $4,158). See Structured Data Map, Section D, item D-001.
[3] Other Non-Operating Income: The Baseline Analysis states entity-level net income of $3,690K, but the derivation from stated EBIT ($3,684K) plus Gain on Disposal ($5K) less Interest Expense ($12K) yields $3,677K. The $13K difference is presented as "Other Non-Operating Income" to reconcile to the stated net income figure, which is the anchor for the equity roll-forward and cash flow statement. This amount is immaterial (0.35% of net income) and likely represents minor items such as rounding and negligible interest income described in the Baseline as "under $1K." See Structured Data Map, Section D, item D-003.
[4] Member Distributions: Total distributions of $3,814K consist of: Guaranteed Payments to Managing Member $625K, Estimated Tax Distributions $1,363K, and Discretionary Distributions $1,826K. Distributions are presented on the trial balance as a debit to the equity section, reducing retained earnings upon closing. For the Income Statement, the $625K Guaranteed Payments component is included in SGA as Owner Compensation; the distribution account captures the full $3,814K as reported in the equity and cash flow sections of the Baseline Analysis.
[5] Entity Tax Status: TRG is a single-member LLC treated as a disregarded entity for federal income tax purposes. No entity-level income tax provision is recorded. All income flows through to the owner's personal return. Pro forma tax calculations at a blended 30% rate (yielding after-tax net income of $2,580K and a tax provision of $1,104K) are provided in the Baseline Analysis for comparability purposes only and are NOT reflected in this trial balance.
[6] Work-in-Progress: Work-in-progress of $215K (costs incurred on incomplete projects) is disclosed as a cost-of-revenue timing item and is not presented as a separate balance sheet asset. This treatment is consistent with the Baseline Analysis comparative table, which excludes WIP from the asset listing and produces total assets of $4,850K that satisfy the accounting equation. See Structured Data Map, Section D, item D-002.
[7] Cash Reconciliation: The Baseline's computed net change in cash is ($65K), which would produce ending cash of $140K ($205K - $65K). However, reported ending cash is $150K. The $10K difference is attributed to "timing adjustments on accrued liability settlements that span the year-end cutoff" per the Baseline. The reported balance of $150K is used on this trial balance. See Structured Data Map, Section D, item D-005.
[8] Contra-Revenue Items: Warranty callback credits of $126K and material return credits of $63K are described in the Baseline as contra-revenue items but are netted within cost of revenue and SGA per the company's reporting practice. They are not presented as separate contra-revenue line items on this trial balance, consistent with the Baseline's treatment of revenue at $25,200K gross.