APPENDIX H THE SOUTHERN COMPANY Statement of Income for the 10 months ended June 30, 1948, Actual (period covering operations since acquisition of control of subsidiary companies) and proforma statement of income for the 12 months ended June 30, 1948 reflecting the effect of the proposed restatement of investments NOTE: The proforma statement of income reflects the inclusion of dividends on common stocks and interest on income note of subsidiary companies received by The Southern Company during the 10 months ended June 30, 1948 and dividends on common stocks of such subsidiary companies received by The Commonwealth & Southern Corporation during the 2 months ended August 31, 1947, estimated expenses (including general taxes less miscellaneous income) in the amount of $250,000 and provisions for Federal income tax on the estimated taxable income based on the income less expenses included therein. No provision for general reserve for investments is included in the proforma statement of income as no such provisions will be required to be made after the restatement of investments at the underlying book value as at January 1, 1948. (a) Reflects the inclusion of dividends on common stocks and interest on income note of subsidiary companies received by Southern during the 10 months ended June 30, 1948 and dividends on common stocks of such subsidiary companies received by Commonwealth during the 2 months ended August 31, 1947, estimated expenses in the amount of $250,000 and provision for Federal Income tax on the estimated taxable income based on the income less expenses included therein. The provision for general reserve for investments is included in the proforma statement of income of Southern at the annual rate of $500,000.00 and for the consolidated companies at the annual rate of $2,000,000.00 although provisions have been recorded only since September 1, 1947. Utility plant: APPENDIX K SOUTHERN INDIANA GAS AND ELECTRIC COMPANY Assets At original cost including organization expense of $12,401 (a) Reflects the transfer of $1,164,356 from earned surplus to common stock on August 11, 1948 and the sale of $1,000,000 of bonds on August 13, 1948 but does not reflect the sale on July 23, 1948 of the transportation properties. (b) The number of shares of common stock to be issued to Commonwealth for the $1,750,000 has not yet been determined. APPENDIX L SOUTHERN INDIANA GAS AND ELECTRIC COMPANY Condensed Statement of Income for the Twelve Months Ended June 30, 1948 Per Books Adjusted to Reflect the Sale of $1,000,000 Principal Amount of Bonds on August 13, 1948 (a) Does not reflect the sale on July 23, 1948 of the transportation properties. |