Adjust financial statements to better present your company
Article Abstract:
A business entity's value determines its selling price. The adjustment of financial statements is usually the first step in valuing a company. Company income is usually not fully disclosed to avoid getting into a tangle with the IRS. Some of the ways of understating company income are setting up new businesses, investing in retirement packages, giving out bonuses and raising employees' compensation. Entries in the balance sheet are also understated and the undeclared values are loaded on to the company's net worth.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1999
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Interest rates and bond prices: how to compute the risk relationship
Article Abstract:
The movement of interest rates is inversely proportional to that of bond prices. In general, for each percentage-point increase in interest rates, bond prices will begin to decline. The decline will be greater for bonds with long maturities. Of course, the reverse is also true: when interest rates drop, bond prices will increase in proportion to the bond's maturities. Keeping all this in mind will help the investors carefully balance their portfolio mix.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1999
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Adjust financial statements to better present your company and its value
Article Abstract:
Assets on a company's understated balance sheet should be adjusted to present the company's true value. Upward adjustments would increase a company's net worth or stockholder's equity account, correspondingly raising the business' overall value. Replacement value should also be considered because its' appraisal of the plant and equipment could be considerably higher than the fair market value.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1997
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