Principles of Private Firm Valuation

53

9

Other deductions

$175,000.00

$38,268.38

($136,731.62)

$38,268.38

Travel expenses

$75,000

$22,045.10

($52,954.90)

$22,045.10

■

Family vacation

$25,000

—

—

—

■

Trip to Super Bowl

$10,000

—

—

—

■

Family automobile

$35,000

—

—

—

■

Fuel for family vehicles

$5,000

—

—

—

Entertainment expenses

$45,000

$2,622.04

($42,377.96)

$2,622.04

■

Company parties

$20,000

—

—

—

■

Televisions

$15,000

—

—

—

■

Season tickets to sports teams

$10,000

—

—

—

Meals expenses

$50,000

$10,652.04

($39,347.96)

$10,652.04

■

Family dinners

$35,000

—

—

—

■

Sales dinners

$15,000

—

—

—

Club expenses

$5,000

$2,949.20

($2,050.80)

$2,949.20

10

Taxable income

$0.00

—

—

$640,867.62

11

Tax burden

12

■

Taxes @ 40% (Row 10

0.4)

$256,347.05

13

■

Tax shield on interest (row 8

0.4)

$22,320.00

14

NOPAT

$362,200.57

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