Estate of Mary D. Maggos - Page 34

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          available.  As a consequence, the amount added back into the                
          cash-flows for amortization must be subtracted from the                     
               We find that an additional adjustment is warranted in the              
          determination of the value of the nonoperating assets that are              
          added to the value of the operating business to achieve the value           
          of PCAB.  The BVS report adds back, inter alia, the following               
          assets:  Cash over $100,000 having a fair market value of                   
          $366,774 and deferred charges having a fair market value of                 
          $243,031.  We find no basis for this treatment.                             
               The cash in excess of $100,000 held by PCAB and the deferred           
          charges are, in our opinion, operating assets.  The balance                 
          sheets for the 3 years preceding the valuation date all show cash           
          on hand substantially in excess of $100,000.  Mr. Robert                    
          Shircliff, a witness with considerable experience with Pepsi-Cola           
          bottlers, testified that the rule of thumb for bottling plants is           
          that they need working capital of 40 cents per case sold.  Mr.              
          Richard Lawrence, a vice president of Pepsi-Cola Co., also                  
          testified that as a general rule Pepsi-Cola bottlers required               
          working capital of 40 cents per case.  In 1986, PCAB sold                   
          1,884,051 cases.  Using this rule of thumb, PCAB would require              

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