Salary Normalization Adjustment
Details
6/30/2006
6/30/2005
6/30/2004
6/30/2003
6/30/2002
Consumer Price Index 1.138 1.159 1.162 Officer Compensation (Market
158,000
$
160,916
$
161,332
$
164,803
$ Officer Compensation (Book
192,000
$
168,000
$
144,000
$
120,000
$ Adjustment
(34,000)
$
(7,084)
$
17,332
$
44,803
$ Adjustment Rounded
(34,000)
$
(7,000)
$
17,000
$
45,000
$
2006‐2002_Rent_Normalization_Adjustment_Details_6/30/2006_6/30/2005_6/30/2004_6/30/2003_6/30/2002'>2006‐2002
Rent Normalization Adjustment
Details
6/30/2006
6/30/2005
6/30/2004
6/30/2003
6/30/2002
Consumer Price Index 1.138 1.159 1.162 Rent (FMV)
72,000
$
72,000
$
73,329
$
73,518
$
75,100
$ Rent (Book
54,000
$
48,000
$
42,000
$
36,000
$ Adjustment
18,000
$
25,329
$
31,518
$
39,100
$ Adjustment Rounded
18,000
$
25,000
$
32,000
$
39,000
$
2006‐2002
Page 73 of 141 his/her tax liability. Based on the Income before tax profile of Peachtree Plumbing, Inc, an average corporate Federal tax rate of 34% and a Georgia state tax rate of 6% were used to approximate the historical and future tax liability of the Company. The composite rate used for normalization purposes was 40%. As a result of the financial analysis and adjustments discussed above, the following table was developed to provide a more accurate indication of the Company’s historical earnings Share with your friends: |
