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INCOME STATEMENT
BALANCE SHEET
COMPANY VALUATION
VALUATION OF PUBLIC
COMPANY'S STOCK
FRANCHISE
income statement
FRANCHISE
profitability
 
Personnel expenses including mangement's must be analyzed in every company transaction, because their effect in company's competitveness and net income can not be underestimated. Personnel expenses is an expense group, where by organizing company operations, that can affect the profitability of the company.

Management's salaries. Here you input only the portion of management salaries that can be reasonably identified as too high (as a positive figure) or as a negative figure if the work effort is higher than the salaries paid. This is important to clarify in companies where the owners work and get paid salary or lift dividends regardless of the type of the company.




1) Adjustments that decrease the net income include:
- Underpayment of salaries
- Owner does the work of 2 people

2) Adjustments that increase the net income include:
- Managements extensive salaries and options.
- Combining of operations and reduction of unnecessary staff
- outsourcing of production for example to India

I N C O M E    S T A T E M E N T
  Fiscal period 1 Fiscal period 2 Fiscal period 3 Fiscal period 4
Revenue
Materials and services *
Increase in inventory
Decrease in inventory
Operating margin 1
 
Personnel expenses
Management salaries
1) Adjustments that decrease the net income
2) The result of adjustments to improve
Depreciation on buikdings
Depreciation machinery and equipment
Depreciation
Operating margin 2
 
Other operating expenses
Operating profit
 
Capital gains
Capital expenses
Increase in reserves
Decrease in reserves
Other nonoperating income
Other nonoperating expenses
3) Other adjustments
Taxes
Profit (Loss) of the period
*) For the purpose of selling
 
 
3) Other adjustments
Estimates can be made that affect the net income of the acquired company: - what sort of synergy benefits can be had?
- by purchasing the company will a major competitor be withdrawn from market?
  - can the purchase price be written off in taxation?
- Un essential expenses that affect the net income.
- Savings that can be easily made.
     
 
 
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