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of MVIC upon an informed estimate of the value of invested
capital (i.e., long-term debt plus owner’s equity) that would
produce the known revenues. For 1995, his calculations showed
that invested capital of $11.3 million would produce the reported
$45,209,000 in revenue that the Sta-Home tax-exempt entities
generated. Some part of this MVIC is readily discernible; it
includes $500,000 of long-term debt. Additionally, as we have
explained, it also includes the $4.1 million of deferred wages
that functioned as long-term debt for the companies. As earlier
observed, however, a buyer would have to include as part of the
purchase price not only the value of the invested capital, the
MVIC, but also the current liabilities that the purchased company
would have to pay. Wilhoite accordingly added current
liabilities of $11,475,000 from the Sta-Home tax-exempt entities’
balance sheets to his calculated MVIC of $11.3 million. That
amount of current liabilities, however, includes $4.1 million of
withheld wages that operate as long-term debt and thus form part
of the MVIC. To avoid duplicating this $4.1 million figure in
arriving at a fair market value for the companies, we believe
that it should be excluded from current liabilities. (Removing
$4.1 million from current liabilities, however, also restores the
$2,020,000 working capital shortfall resulting from the failure
of current assets to match current liabilities. Accordingly,
there is no longer a need to reduce the asset value by the amount
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