| Income Statement($000) |
per Books
|
Change
|
Restated
|
| Sales |
$ 15,000
|
$ 15,000
|
|
| Cost of Goods Sold | |||
| Labor & Materials |
6,000
|
6,000
|
|
| Manufacturing |
1,950
|
(324)
|
1,626
|
| Depreciation |
300
|
300
|
|
| Engineering |
600
|
600
|
|
| Other direct costs |
600
|
600
|
|
| Shipping |
1,050
|
1,050
|
|
| Erection costs |
2,100
|
2,100
|
|
| Total COGS |
$ 12,600
|
$ 12,276
|
|
| Gross Margin |
$ 2,400
|
$ 324
|
$ 2,724
|
| Sales, Gen'l & Admin. |
1,950
|
(350)
|
1,600
|
| Interest Expense |
324
|
324
|
|
| Profit before taxes |
126
|
674
|
800
|
| Cash flow before taxes |
426
|
674
|
1,226
|
| Balance Sheet (000) |
<---- Assets
|
----------->
|
Liabilities &
|
Equity | |
|
per Books
|
Restated
|
|
|||
| Cash |
300
|
300
|
Current Liabilities | ||
| Accounts Rec'ble |
2,400
|
2,400
|
Trade Acc'ts Payable |
1,366
|
|
| Over 90 Rec'bles |
240
|
0
|
Accrued Expenses |
416
|
|
| Retainage |
1,050
|
525
|
Line of Credit |
720
|
|
| Total Rec'bles |
$ 3,690
|
||||
| Inventory |
416
|
208
|
Total Current Lia. |
$ 2,522
|
|
| Other current assets |
15
|
0
|
|||
| Total Current Assets |
$ 4,421
|
$ 3,443
|
Mortgage |
$ 1,980
|
|
| Gross Fixed Assets |
9,000
|
Total Liabilities |
$ 4,502
|
||
| Accumulated Deprec. |
(4,050)
|
||||
| Net Fixed Assets |
$ 4,950
|
$ 5,445
|
Deferred taxes |
1,500
|
|
| Owner's equity |
$ 3,368
|
||||
| Total Assets |
$ 9,371
|
$ 8,878
|
Total Debt & Equity |
$ 9,371
|
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| Valuation of Business($000) |
Valuation
|
Standard Earnings | |||
| Current Assets |
3,433
|
||||
| less Trade Accounts Payable |
(1,386)
|
||||
| Less Accrued Expenses |
(416)
|
||||
| Net Working Capital . . . . . . . . . . . | . . . . . . . |
$ 1,630
|
Standard earnings @ 6% |
$ 98
|
|
| .. | |||||
| Plant & Equipment Appraisal. . . | . . . . . . . . |
$ 5,445
|
Standard earnings at 10% |
$ 545
|
|
| . | |||||
| Total standard earnings |
$ 642
|
||||
| . | |||||
| Restated earnings |
$ 800
|
||||
| . | |||||
| Excess earnings |
$ 158
|
||||
| Goodwill . . . . . . . . . . . . . . . . . . . . . | . . . . . . . . |
$ 788
|
<--- | Capitalize excess earnings |
....X5
|
| Total Assets | . . . . . . . . |
$ 7,864
|
|||
| Less Line of Credit |
(720)
|
||||
| Less Mortgage |
(1,980)
|
||||
| Net Value to Owner . . . . . . . . . | . . . . . . . . |
$ 5,184
|
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