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situation, the Sta-Home entities paid their employees 6 weeks in
arrears. Thus, an employee was required to wait 6 weeks before
getting his or her first paycheck, for 2 weeks’ work. In the
meantime, however, Medicare reimbursed the companies for the
amount of accrued wages every 2 weeks. The entities thus
received 6 weeks’ worth of wages per employee before being
required to pay out 2 weeks’ worth. The deferral of actual
payment meant, in effect, that each employee made a loan of 4
weeks’ wages to the company, and the “loan” would not be repaid
until the employee left his or her employment. When one employee
left, another was presumably hired, and the new employee would be
required to forgo 4 weeks’ salary, thus keeping the total amount
of deferrals relatively stable. By 1995, this practice had
generated a “float” of approximately $4.1 million that the
entities possessed and were not required to repay until some
unspecified time in the future. It appears that 2 weeks’ worth
of payroll and payroll taxes is properly characterized as short-
term liabilities. We conclude that the amounts of payroll that
were withheld for longer than 2 weeks were not, in this case,
properly characterized as current liabilities. For purposes of
this valuation, they should be considered part of the invested
capital. Accordingly, of the $6,150,000 withheld, two-thirds (or
4 weeks’ worth) should be excluded from the current liabilities
that Wilhoite added to the MVIC. Wilhoite based his calculation
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