Precast Consulting Service
Finance, Marketing & Operations

Typical Producer
with Restated Accounts for Valuation Purposes
($000)
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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
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  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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Typical Producer
with Restated Accounts for Valuation Purposes
($000)
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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