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skimmed gross receipts when he sold its assets on August 14,
1986.
Waldorf's share of the monthly payment on the note was
$2,144. The buyer initially made the monthly payment to Waldorf,
who paid each shareholder. The buyer later paid each shareholder
directly.
House of Babes and the two other adult entertainment
businesses that were operating in Seminole County in 1985 were
still operating at the time of trial.
2. Prospects for Payment of the Note
The buyer's shareholders believed that they could repay the
note if they made $13,000 per week. Waldorf or Godby told the
buyer that House of Babes had been making about $13,000 per week
before the sale. House of Babes reported gross receipts in the
following amounts on its tax returns:
Gross Receipts
Approximate
Year Total Weekly Average
1984 $236,668 $4,500
1985 310,105 6,000
1986 336,830 10,200
The year after the assets of House of Babes were sold, the
buyer reported weekly gross receipts of more than $20,000 per
week.
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