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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 4, 1996
MATZEL & MUMFORD MORTGAGE FUNDING, INC.
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(Exact name of registrant as specified in its charter)
New Jersey 33-98178 22-3382016
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
100 Village Court, Hazlet, New Jersey 07730
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(Address of principal executive offices) (Zip Code)
908-888-4801
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(Registrant's telephone number, including area code)
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<PAGE>
Item 7(a). Financial Statements.
MATZEL & MUMFORD AT
PISCATAWAY, L.L.C.
FINANCIAL STATEMENTS
PERIOD MAY 1, 1996
(DATE OF INCEPTION) TO JUNE 4, 1996
Contents
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Independent auditors' report
Financial statements:
Balance sheet
Statement of cash flows
Notes to financial statements
<PAGE>
MATZEL & MUMFORD AT PISCATAWAY, L.L.C.
Contents
Independent Auditors' Report
To the Members
Matzel & Mumford at Piscataway, L.L.C.
Hazlet, New Jersey
We have audited the accompanying balance sheet of Matzel & Mumford at
Piscataway, L.L.C. as of June 4, 1996 and the related statement of cash flows
for the period May 1, 1996 (date of inception) to June 4, 1996. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statements presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Matzel & Mumford at Piscataway,
L.L.C. as of June 4, 1996 and its cash flows for the period May 1, 1996 (date of
inception) through June 4, 1996 in conformity with generally accepted accounting
principles.
July 19, 1996
<PAGE>
MATZEL & MUMFORD AT PISCATAWAY, L.L.C.
Balance Sheet
June 4, 1996
- -----------------------------------------------------------------------------
Assets
Cash $46,527
Inventory 978,605
- -----------------------------------------------------------------------------
Total assets $1,025,132
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Liabilities and Members' Equity
Accounts payable $2,132
Due to affiliates 120,000
Mortgage payable - M&M Mortgage Funding 903,000
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Total liabilities 1,025,132
- -----------------------------------------------------------------------------
Members' equity 1,000
Receivable from members (1,000)
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Total members' equity -
=============================================================================
Total liabilities and members' equity $1,025,132
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See accompanying notes to financial statements.
<PAGE>
MATZEL & MUMFORD AT PISCATAWAY, L.L.C.
Statement of Cash Flows
For the period May 1, 1996 (date of inception) to June 4, 1996
- -----------------------------------------------------------------------------
Cash flows from operating activities:
Net income $-
Adjustments to reconcile net loss to net cash used in operating
activities:
Increase in inventories 978,605
Increase in accounts payable 2,132
- -----------------------------------------------------------------------------
Net cash used in operating activities 976,473
- -----------------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from notes payable 903,000
Advances from affiliates 120,000
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Net cash provided by financing activities 1,023,000
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Increase in cash 46,527
Cash, beginning of period -
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Cash, end of period $46,527
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See accompanying notes to financial statements.
<PAGE>
MATZEL & MUMFORD AT PISCATAWAY, L.L.C.
Notes to Financial Statements
1. Summary of Accounting Nature of Business and Organization
Policies
Matzel & Mumford at Piscataway,
L.L.C.("M&M at Piscataway") is a New
Jersey limited liability company formed
on May 1, 1996, for the purpose of
purchasing land in Piscataway, New
Jersey and developing and constructing
126 single-family homes on the land. On
June 4, 1996, M&M at Piscataway closed
title to 21 lots and has an option to
purchase the remaining 125 lots. Through
June 4, 1996, there has been no
operating activities.
Revenue Recognition
Revenues arising from home sales will be
recognized under the accrual method.
Under this method, income will be
recognized when all terms relating to
the sale of a unit are complete,
consideration is exchanged and title is
conveyed to the buyer.
Inventories
Inventories are stated at the lower of
cost or estimated net realizable value,
which is determined by reducing the
anticipated net sales proceeds by the
estimated costs necessary to complete or
improve the property to the condition
used in arriving at the anticipated
selling price.
Inventory costs are currently comprised
of land and project overhead. Inventory
costs will be comprised of direct unit
and allocated costs. Development costs
will be capitalized until the property
is complete and title has been conveyed
to the buyer. Development costs
generally include land and improvements,
house construction, project overhead,
interest and a portion of construction
management fees. Interest capitalized is
based upon the interest rate on
specifically related debt. A portion of
the management fees to a related party
are paid and capitalized by the Company.
Members' Capital
The two managing members have pledged a
total of $1,000 in capital
contributions.
Income Taxes
The Company is organized and operates as
a limited liability corporation which is
not subject to Federal or state income
taxes. Accordingly, no provision for
income taxes has been made. The earnings
or losses of the Company are included on
each member's tax return, according to
the terms of the operating agreement.
<PAGE>
Estimates
The preparation of financial statements
in conformity with generally accepted
accounting principles requires
management to make estimates and
assumptions that affect the reported
amounts of assets and liabilities and
disclosure of contingent assets and
liabilities at the date of the financial
statements and the reported amounts of
revenues and expenses during the
reporting period. Actual results could
differ from those estimates.
2. Inventories Inventories relating to the development
of single-family homes consist of the
following at June 4, 1996:
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Land $903,000
Project overhead 75,605
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$978,605
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All expenses incurred for the
development of the project will be
capitalized. Selling expenses which do
not benefit future periods, and general
and administrative expenses, will be
treated as period costs and will be
expensed as incurred.
3. Mortgage Payable The Company has a mortgage payable to
Matzel & Mumford Mortgage Funding, Inc.,
an entity controlled by the members of
M&M at Piscataway, which is payable
interest only at 16%. Interest payments
are payable quarterly until June 4, 1997
when the outstanding principal balance
is due. The note is collateralized by a
mortgage on the property.
4. Related Party Transactions The Company has an agreement with The
Matzel & Mumford Organization, Inc.
("MMO"), whereby MMO provides
construction management services at a
fee of 4% of the gross selling price of
each house. MMO is entitled to draws of
$35,000 per month. During the period May
1 through June 4, 1996, the Company
incurred $70,000 in management fees
which have been capitalized in
inventories at June 4, 1996.
Also included in due to/from affiliates
are net cash advances from affiliated
companies of the managing member of the
Company. The advances are short term in
nature and bear no interest. The amounts
are to be repaid as cash flow allows.
<PAGE>
Item 7(c). Exhibits.
27 Financial Data Schedule.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this Amendment to Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.
MATZEL & MUMFORD MORTGAGE
FUNDING, INC.
Dated: August 23, 1996 By: /S/ ROGER MUMFORD
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Roger Mumford
President
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Document Page
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27 Financial Data Schedule.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-04-1996
<CASH> 46,527
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 978,605
<CURRENT-ASSETS> 1,025,132
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,025,132
<CURRENT-LIABILITIES> 1,025,132
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,025,132
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
