Microsoft Word peachtree case study
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| Normalization Adjustment Summary of Balance Sheet Adjustments by Year Note 6/30/2006 6/30/2005 6/30/2004 6/30/2003 6/30/2002 1 Inventory 4,650 $ 3,019 $ 3,587 $ 754 $ 1,115 $ 2 Short‐term Investments (1,220,000) $ (514,000) $ (65,000) $ (50,000) $ Land (900,000) $ (900,000) $ (900,000) $ (900,000) $ Deposits (150,000) $ (150,000) $ (150,000) $ (150,000) $ (150,000) $ Total Equity (2,266,981) $ (1,560,413) $ (1,114,246) $ (1,098,885) $ Page 67 of 141 Peachtree Plumbing, Inc. in particular, the company’s cash position is extremely high compared to industry averages. This is normally an item that would be reduced down to a level sufficient to run the business. However, the Company’s bonding company looks favorably upon their abnormally high cash position when it comes to bidding large scale new construction projects. The valuator chose to not make an adjustment to cash for this reason. The valuator chose not to adjust the Fixed Asset line item due to the fact that industry and guideline company benchmark data do not usually have this adjustment, thus making comparisons to the subject company more difficult. It is also common to see adjustments foraged accounts receivable in the business to reflect a truer economic picture of the subject company’s operation. There was no evidence of anything out of the ordinary with respect to Accounts Receivable. The results of the above analysis are reflected on the balance sheets from Table 7 Historical Balance Sheets, as shown on the following pages. Download 0.84 Mb. Share with your friends:
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