Laserfiche WebLink
• <br /> • <br /> T.F.R. ENTERPRISES,INC.AND SUBSIDIARIES <br /> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <br /> NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—continued <br /> Property and Equipment—continued <br /> Categories of assets and their useful lives are as follows: <br /> Land Inde finite <br /> Buildings 40 years <br /> Office equipment 5 - 10 years <br /> Leasehold improvements 27 Years <br /> Machinery and equipment 5 - 10 years <br /> Lona-lived assets held and used by the Company are reviewed for impairment whenever events or changes <br /> in circumstances indicate that the carrying amount of an asset may not be recoverable. In the event that <br /> facts and circumstances indicate that the cost of any long-lived assets may be impaired. an evaluation of <br /> recoverability would be performed. <br /> Inventory <br /> Inventory is stated at the lower of cost or net realizable value and is comprised of raw materials and finished <br /> goods, and primarily consists of mulch held for sale and tires used for heavy machinery and equipment. <br /> Cost is determined using the first-in, first-out method(FIFO). <br /> Revenue Recognition <br /> The Company recognizes revenue as it is earned and payment is reasonably assured. Expenses are <br /> recognized as they are incurred. <br /> Use of Estimates <br /> The preparation of financial statements in conformity with generally accepted accounting principles in the <br /> United States of America requires management to make estimates and assumptions that affect the reported <br /> amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial <br /> statements and the reported amounts of revenues and expenses during the reporting period. Actual results <br /> could differ from those estimates. <br /> Reclassifications <br /> Certain reclassifications were made to the 2016 balances to confirm to the 2017 presentation.These <br /> reclassifications did not have a material impact on the consolidated financial statements. <br /> NOTE B—NOTES PAYABLE <br /> Notes payable as of December 31. 2017 and 2016 consist of the following: <br /> 2017 2016 <br /> Note payable to Volvo Financial Services,clue in monthly <br /> installments of 53,130, including interest at 2.90%,maturing <br /> April 30, 2019 and secured by equipment of the company. 40,945 $ 78.500 <br /> 40 <br /> 10 <br />