STATEMENT OF MEMBERS' EQUITY
ROLL-FORWARD RECONCILIATION
| Component | Amount ($000) |
|---|---|
| Total Members' Equity -- Beginning of Period | $3,054 |
| Add: Net Income (per Income Statement) | 3,690 |
| Less: Total Member Distributions | (3,814) |
| Total Members' Equity -- End of Period | $2,930 |
Verification: $3,054 + $3,690 - $3,814 = $2,930
RECONCILIATION CHECKS
| Checkpoint | Computation | Result |
|---|---|---|
| Retained Earnings Roll-Forward | $2,804 + $3,690 - $3,814 | $2,680 |
| Total Members' Equity | $250 + $2,680 | $2,930 |
| Net Income Agrees with Income Statement | Per IS bottom line | $3,690 |
| Total Distributions Agree with Cash Flow Statement | Per CF financing activities | $3,814 |
| Ending Equity Agrees with Balance Sheet | Per BS equity section | $2,930 |
| Accounting Equation | $4,850 = $1,920 + $2,930 | Confirmed |
All checkpoints confirmed. Ending total members' equity of $2,930K ties to the Balance Sheet equity section and satisfies the accounting equation (Total Assets $4,850K = Total Liabilities $1,920K + Total Members' Equity $2,930K).
FOOTNOTES
[1] Member Distributions: TRG is a single-member LLC treated as a disregarded entity for federal income tax purposes. Total distributions of $3,814K during FY2025 comprise three components:
Guaranteed Payments to Managing Member ($625K): The owner's compensation, classified as Guaranteed Payments under the LLC operating agreement. This amount is also recorded as an operating expense (Owner Compensation) on the Income Statement, reducing entity-level net income. For equity purposes, it is part of total distributions reducing accumulated members' equity. See Structured Data Map, A-087.
Estimated Tax Distributions ($1,363K): Distributions to cover the member's estimated income tax obligations on pass-through income. Because TRG is a disregarded entity, no entity-level income tax provision is recorded; instead, the member receives distributions to fund personal tax payments. See Structured Data Map, A-088.
Discretionary Distributions ($1,826K): Additional distributions to the managing member beyond compensation and tax obligations. See Structured Data Map, A-089.
The distribution detail subtotals ($625 + $1,363 + $1,826 = $3,814) are presented for informational purposes. The total of $3,814K is the figure that reduces accumulated members' equity and appears on the Statement of Cash Flows as Net Cash from Financing Activities. See Structured Data Map, A-086 and A-116.
[2] Entity Structure: TRG is a single-member LLC. Accordingly, this statement presents Members' Equity rather than Shareholders' Equity. The equity section comprises Members' Capital (original contributions of $250K, unchanged during the period) and Accumulated Members' Equity (the retained earnings equivalent, reflecting cumulative net income less cumulative distributions). There were no additional capital contributions or equity transactions during FY2025. See Structured Data Map, Entity Structure Notes.
[3] No Entity-Level Income Tax: Because TRG is a pass-through entity, no income tax provision appears on the Income Statement or affects the equity roll-forward. Net income of $3,690K is the pre-tax, entity-level figure. Pro forma after-tax net income of $2,580K (at a blended 30% rate) is disclosed in supplementary materials for comparability purposes only and is NOT reflected in this statement. See Structured Data Map, A-043 and A-044.
SOURCE REFERENCE INDEX
| Equity Statement Line | Data Map Ref | TB Account(s) |
|---|---|---|
| Members' Capital -- Beginning & Ending | A-083 | 3000 |
| Retained Earnings -- Beginning | A-084 | 3100 |
| Net Income | A-042, A-085 | -- (per IS) |
| Guaranteed Payments (distribution component) | A-087 | 3200 |
| Estimated Tax Distributions | A-088 | 3200 |
| Discretionary Distributions | A-089 | 3200 |
| Total Member Distributions | A-086 | 3200 |
| Retained Earnings -- Ending | A-090 | 3100 |
| Total Members' Equity -- Ending | A-091 | -- |