Business Valuation of Branson Trucking Company Essay

1355 Words May 21st, 2015 6 Pages
Case 21
Business Valuation of Branson Trucking Company

Prepared by
Maria Fernanda Chirinos

for Professor C.E. Reese
in partial fulfillment of the requirements for
ACC 541- FORENSIC ACCOUNTING

School of Business/ Graduate Studies
St. Thomas University
Miami Gardens, Fla.
Term A1/Spring, 2015
May 22, 2015

Table of Contents
Issues…………………………………………………………..............................................……. 1
Facts…………………………………………………………..............................................…….. 1
Analysis/ Authority………………………………………………................................................. 3
Conclusions/
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Below is an appraisal of the Branson Trucking Company’s assets as of December 31, 2011. At that time the firm’s total liabilities were $5,100,000. You are hired as a forensic accounting expert.

As a forensic accountant, I requested the appraisal of the non-financial assets of the Branson Trucking Company as of December 31,2011. To arrive to these assets' valuation, industry data, experts valuation and other sources of valuation were used. Below is the summary of the results
Current Assets | | |
Cash | $218,000 | |
A/R (net) | 610,000 | |
Inventory and Supplies | 165,000 | |
Prepaid Expenses | 141,000 | $1,134,000 |
Fixed asset: | | |
Land | 650,000 | |
Building & Fixtures | 2,920,000 | |
Rolling Stock | 4,230,000 | 7,800,000 |
Investments: | | |
Bond Sinking Fund | 340,000 | |
Common Stock of other firms | 650,000 | 990,000 |
Total Asset Value | | $9,924,000 |


Analysis/ Authority

1. There are three ways to measure how much a business is worth. These three ways are:
Asset Approach, Market Approach and Income Approach. Based on the information provided, the approach one will use is the Asset approach for this case. When analyzing any firm, one would like to know the types of assets that the…

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