HOLZMAN & ASSOCIATES

 

HOLZMAN & ASSOCIATES

        EXAMPLE OF ADJUSTED INCOME*

                                                      ABC COMPANY

 

 

 

INCOME BEFORE TAXES:

-50,000

 

 

ADD:

 

 

 

OFFICER SALARIES, BONUSES AND COMMISSIONS

175,000

 

 

OFFICER EMPLOYMENT TAXES

12,000

 

 

DEPRECIATION

35,000

 

 

AMORTIZATION

10,000

 

 

TRAVEL AND ENTERTAINMENT

15,000

 

 

AUTO

12,000

 

 

HEALTH INSURANCE- OFFICER

12,000

 

 

LIFE INSURANCE

7,000

 

 

WIFE SALARY AND OTHER FAMILY MEMBERS

20,000

 

 

CLUBS, SUBSCRIPTIONS AND DUES

15,000

 

 

CELL PHONE, HOME PHONE

2,000

 

 

HEALTH INSURANCE PAID FOR EMPLOYEES**

125,000

 

 

INTEREST EXPENSE

40,000

`

 

PROFESSIONAL FEES NOT PERTAINING TO THE BUSINESS

25,000

 

 

BAD DEBTS EXPENSE NOT REALIZED

15,000

 

 

UNDOCUMENTED INCOME

35,000

 

 

RENT OVERPAYMENT (INCLUDING RENT RELATED EXPENSES)***

75,000

 

      ___________

     ADJUSTED INCOME****

$580,000

 

 

 

 

 

 

*        THIS IS PRESENTED AS AN EXAMPLE OF REBUILDING THE INCOME (CASH FLOW TO THE

         OWNER). THIS A PARTIAL LIST. ADDITIONAL ITEMS COULD EASILY BE ADDED TO THE 

         LIST.

 

 

 

**      EMPLOYER IS PAYING 100% OF ALL HEALTH INSURANCE.  WE HAVE RECAPTURED 50%.

 

 

***     RENT BEING PAID TO A RELATED COMPANY.

 

****  Adjusted Income will be used to determine     

        "Goodwill". Goodwill represents the value of your

       customers.

 

Holzman & Associates

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