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“Stated” Commercial Loan Program
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Balance Sheet Enhancements |
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International Incorporation Services
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Key Information to know and consider when using balance sheet enhancement transactions. Reconized and accepted by GAPP,FASB, Account Principals Board opinion #29 plus The United States Federal Courts THE IMPORTANCE OF HAVING A HIGH NETWORTH A. Must have in order to secure funding loans & investments capital. B. Must have in order to secure supplier credit. C. Must have in order to secure an I.P.O. or secondary funding. D. Must have in order to secure a merger acquisition. E. Must have in order to secure more new business and add client. F. Must have in order to secure bonds: performance, completion, construction.
HOW WE CAN HELP YOUR COMPANY Every company, public or private has authorized & unissued stock. This is nomally carried on the balance sheet as zero. A. If a public company there is alreday restricted stock in the treasury available to be purchased B. If a private company, the company creates a special convertible preferred stock with no voting rights, no dividend rights, no rights of any type. C. Example: We purchase10,000,000 shares of this stock and pay the company $1.00 per share in cash equivalent credits. D. Results: The networth of the company increases by $10,000,000 (how about that!)
HOW CASH EQUIVALENT ARE CARRIED ON THE BALANCE SHEET A. They are normally carried as a deferred expense, which goes to the capital account as an asset. B. They can also be carried as a receivable or as deferred credits to income. |
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