Estate of George C. Blount, Deceased, Fred B. Aftergut, Executor - Page 65

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          equivalents for its business needs, in particular to meet bonding           
          requirements without drawing on personal guaranties of its                  
          owners.  The record does not disclose whether the paving                    
          contractors covered by SIC code 1611 provided personal guaranties           
          to meet bonding requirements, but we are satisfied from the                 
          record herein that personal guaranties would affect cash needs.             
          Given the unreliability of the industry average as applied to               
          BCC, we are persuaded that the $1.5 million actual cash                     
          requirement of BCC, demonstrated in the record, is a better                 
          benchmark for determining excess cash than Mr. Hitchner’s                   
          approximately $1,125,000 derived from an industry average.  Thus,           
          we conclude that the proper measure of BCC’s excess cash is the             
          amount by which its cash and cash equivalents on hand on the                
          valuation date ($2,994,970 exclusive of life insurance proceeds)            
          exceeded $1.5 million.  Accordingly, we find that BCC had excess            
          cash of approximately $1.5 million, not the approximately $1.9              
          million calculated by Mr. Hitchner.  Consequently, Mr. Hitchner’s           
          computation of nonoperating assets, and his income-based value,             
          should be reduced by $400,000.                                              
               4.  Conclusion                                                         
               Since Mr. Fodor’s $750,000 downward adjustment to account              
          for the ESOP repurchase obligation was made to both his income-             
          and asset-based values, elimination of that adjustment would                

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