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The balance sheet — a critical management tool
May / June 2012
Newsletter: Dealer Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 1174
Abstract: An income statement is important, but it isn’t the best indicator of a dealership’s financial health. For that knowledge, a balance sheet is necessary. It tells the dealership how well or poorly it’s doing in increasing its equity — and a lot more. This article shows how to use the balance sheet to determine return on equity and calculate debt-service and current ratios. This information can help the dealer determine where its money is going now, while also providing big-picture insights. A sidebar offers a warning about round numbers on the balance sheet — they may signal unsubstantiated estimates, underreported expense or fraud.
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Nonqualified deferred compensation – Independent appraisals offer protection against 409A challenge
July / August 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1174
Abstract: Businesses that provide employees with stock options, stock appreciation rights (SARs) and other types of nonqualified deferred compensation have been subject to Internal Revenue Code Section 409A for years. As you can imagine, compliance is particularly challenging in the current economic environment. To avoid Sec. 409A problems, options and SARs must be issued at or above fair market value, so accurate valuations are critical. It’s important to know what Sec. 409A requires and how to establish fair market value. Three “presumptive” valuation methods are discussed.