Print Page  Close Window

SEC Filings

S-4/A
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 05/28/1999
Entire Document
 
<PAGE>

                    AMRAC CLEAR VIEW, A LIMITED PARTNERSHIP

                   NOTES TO FINANCIAL STATEMENTS--(Continued)


 Income taxes:

   The Partnership does not incur a liability for federal or state income
taxes. The current income or loss of the Partnership is included in the taxable
income of the partners, and therefore, no provision for income taxes is
reflected in the financial statements.

 Revenues:

   The principal sources of revenues are the monthly charges for basic and
premium cable television services and installation charges in connection
therewith.

 Allocation of profits and losses and distributions of cash flow:

   Partnership profits and losses, (other than those arising from capital
transactions, described below), and distributions of cash flow are allocated
94% to the Investor Limited Partners, 2.5% to the Class A Limited Partner, 1%
to the Class B Limited Partner and 2.5% to the General Partner until Payout (as
defined in the Partnership Agreement) and after Payout, 65% to the Investor
Limited Partners, 15% to the Class A Limited Partner, 5% to the Class B Limited
Partner and 15% to the General Partner.

   Partnership profits from capital transactions are allocated first, in
proportion to the partners' respective capital accounts until their respective
account balances are zero and second, in proportion to any distributed cash
proceeds resulting from the capital transaction and third, any remaining
profit, if any, is allocated 65% to the Investor Limited Partners, 15% to the
Class A Limited Partner, 5% to the Class B Limited Partner, and 15% to the
General Partner.

   Partnership losses from capital transactions are allocated first, in
proportion to the partners' respective capital accounts until their respective
account balances are zero and, second, any remaining loss, if any, is allocated
65% to the Investor Limited Partners, 15% to the Class A Limited Partner, 5% to
the Class B Limited Partner, and 15% to the General Partner.

2. Property and Equipment:

   Property and equipment consists of the following at December 31:


<TABLE>
<CAPTION>
                                                               1996      1997
                                                             --------- ---------
      <S>                                                    <C>       <C>
      Cable plant and equipment............................. 3,274,684 3,391,750
      Office furniture and equipment........................    63,373    64,350
      Vehicles..............................................    27,825    27,825
                                                             --------- ---------
                                                             3,365,882 3,483,925
                                                             ========= =========
</TABLE>


   Depreciation is provided over the estimated useful lives of the above items
as follows:


<TABLE>
             <S>                            <C>
             Cable plant and equipment.....   10 years
             Office furniture and
              equipment.................... 5-10 years
             Vehicles......................    6 years
</TABLE>


3. Long-Term Debt:

   The Partnership's term loan, due to a bank, is payable in increasing
quarterly installments through June 30, 1999. Interest on the loan is paid
monthly and accrues at the bank's prime rate plus 2% (10.5% at December 31,
1997). The loan is collateralized by substantially all of the assets of the
Partnership and a pledge of all partnership interests. The total principal
outstanding at December 31, 1997 was $560,500.

                                      F-88