Zero Income Statement Form Florida: Fill & Download for Free

Thinking you can run a company without the Income Statement is a bit like saying you can sail from Miami, Florida to London, UK without a compass.Good luck!If the Balance Sheet, Cashflow and Income Statement all produced the same information, then two (2) of those reports would become redundant.Obviously, all three (3) reports have their reason for being included in the annual report. I mean, if super smart financial analysts invest millions (if not billions) of dollars (usually of other people's money) rely heavily on such reports, it is a signal to me that there is some real importance on the three (3) reports combined.You obviously have a very basic knowledge of the financial statements, so there is no need to rehash the 'text book' definitions of what each statement is. But where I will put emphasis on is the term 'Profit'.Profit = Income less Expenses.The Income Statement particularizes the income and expense items that affect your trading operations.How are you going to judge the performance of a business if you don't know where your money is coming from and where it is going?Yes, the Cashflow shows (at a high level) where the cash is going, but it does not drill down on the key details like COGS (Cost of Goods Sold), gross profits or show how much of your income is contributing to your overheads (fixed costs you can't really avoid). These indicators assist management in making key decisions that 'steer a ship in the right direction'.The absence of an Income Statement is a bit like sailing with the wind and not knowing which direction you are traveling. Yes, you are moving, but it may not be in the right direction.A general rule of thumb, when it comes to valuing a business, is:If your business does not generate a profit, the value of the business is not much more than the value of the 'net tangible assets' (which are the assets of the company, less the debt owed on those assets, adjusted for depreciation and amortization).This figure, for some businesses, equals zero or some negligible amount.The ability to derive a profit is therefore vital if you want to generate real value for your business. Without profit, you are simply:"Selling 10 dollar notes for 5 dollars"How long can your business last with that type of model?You will only know if your business is "selling 10 dollar notes for 5 dollars" if you have the Income Statement.A general formula for valuing a business's worth is:EBITDA times a relevant 'Industry Multiple', where:EBITDA is Earnings (profit) before applying Interest, Tax, Depreciation and Amortization; andIndustry Multiple (usually between 1 and 10 (arguably could be higher)) is a reflection of risk and is used to compare different investment opportunities. The higher the risk, the lower the multiple.Some hypothetical examples:Low Risk Investment: [Bank].A Bank has an EBITDA of $100,000. Given the low risk that a Bank could go bust (there are exceptions to this rule), it has an industry multiple of say, 10. This means that the value of the Bank (i.e., what an investor ought to pay for that kind of risk) is: $100,000 x 10 = $1,000,000.Medium Risk Investment: [McDonalds Restaurant].Whilst McDonalds Restaurants have a 50 year trading history, well established business principles with great proven systems, lets say its industry multiple is 7, with the same $100,000 EBITDA as the Bank.The value of the McDonalds Restaurant is: $100,000 x 7 = $700,000.High Risk Investment: [Mum and Dad operated local fruit shop].This business is run by Mum and Dad, has little systems in place and all the knowledge of the business rests with (yes, you guessed it) Mum and Dad. Their industry multiple is likely to be around 2. Assume they have the same EBITDA as the Bank and the McDonalds Restaurant.The value of their business is: $100,000 x 2 = $200,000.All three businesses generate the same EBITDA but have three different values based on their risk profiles. Each business operates differently with their own unique ways of 'doing business'.Why share this with you?Because if you have no clue what your EBITDA is, or how to improve you EBITDA, or whether your company is actually making a profit, you have no idea as to what your company's value is (if any). The Income Statement is vital in showing the trading performance of the business.I would love to see you present your plan to shareholders as to how you are going to increase shareholder value, without knowing how your business generates its profits (if any).Good luck!

California continues to have an exodus of companies and people. The state has long had a strong tax base from non manufacturing businesses like entertainment (although that’s gone out of state too), and now from tech to support a very expensive state government and social programs. But other tech hubs are growing out of state.California has 25% of all the illegal immigrants in the United States. Cities like Los Angeles and San Francisco benefit in their hotels and restaurants and farmers in the Central Valley benefit from the influx of low wage low skilled labor. But public health hospitals and clinics and public schools services are burdened with the extra influx. Almost no parent if given the choice will send their child to an L.A. City public school aside from one of the limited magnet schools. LA Unveils Nations Costliest School On Site Of RFK AssassinationCalifornia also has the highest percentage of people living in poverty. This is despite record spending on social programs.Guess which state has the highest poverty rate in the country? Not Mississippi, New Mexico, or West Virginia, but California, where nearly one out of five residents is poor. That's according to the Census Bureau's Supplemental Poverty Measure, which factors in the cost of housing, food, utilities and clothing, and which includes noncash government assistance as a form of income.Given robust job growth and the prosperity generated by several industries, it's worth asking why California has fallen behind, especially when the state's per-capita GDP increased approximately twice as much as the U.S. average over the five years ending in 2016 (12.5%, compared with 6.27%).It's not as though California policymakers have neglected to wage war on poverty. Sacramento and local governments have spent massive amounts in the cause. Several state and municipal benefit programs overlap with one another; in some cases, individuals with incomes 200% above the poverty line receive benefits. California state and local governments spent nearly $958 billion from 1992 through 2015 on public welfare programs, including cash-assistance payments, vendor payments and "other public welfare," according to the Census Bureau. California, with 12% of the American population, is home today to about one in three of the nation's welfare recipients.California Democrats have long been free to indulge blue-state ideology while paying little or no political price.The generous spending, then, has not only failed to decrease poverty; it actually seems to have made it worse.Why is liberal California the poverty capital of America?So working people, many who tend to vote Republican having been leaving the state.Since Gov. Brown was sworn in, becoming the oldest governor in state history, 243,099 people have fled California on net for other states, taking $7.794 billion with them to states that don’t have such high taxes and onerous regulations that make housing unaffordable for middle class households. The top recipients of Golden State refugees last year were Texas and Nevada, two states that have zero income tax. California, meanwhile, levies the highest top marginal income tax rate in the nation. Policy, like elections, has consequences.The personal and corporate income tax hikes championed by Gov. Brown in 2012 have likely helped exacerbate the exodus of Californians. In a move that will further drive up the cost of living in one of the hardest states in which to get by, Gov. Brown approved an extension of the state cap & trade program earlier this year. This will hurt low and middle income households the hardest, who will face what is effectively a regressive tax hike in the form of higher gas prices and utility bills.Cap & trade makes Gov. Brown, Democratic lawmakers who run the state legislature with such large majorities they don’t even feel the need to discipline sexual offenders in their caucus, and their supporters feel good about themselves. But the program doesn’t improve the environment. In fact, California, even with its cap & trade program and renewable energy mandate, is home to 8 of the 10 cities with the nation’s worst air pollution.Mass Exodus From States Run By Top Democratic Governors ContinuesIt’s pretty tough due to regulation upon regulation to manufacture anything in California. Even Tesla is building their car batteries in Nevada. Nissan and Toyota have exited and Honda’s building manufacturing in Ohio and is likely to leave in the near future.Not that long ago, California politicians were touting their attempt to lure a substantial Boeing manufacturing job to their closing plant in Long Beach. But among other things, the plane parts after manufacturing would have had to be shipped to Arizona for materials treatment and painting and then shipped back again for final assembly. Not too cost efficient and of course they didn’t get the bid.A long list of companies have left the state.Using publicly available records, mostly media and government reports, Vranich searched for what he calls “California divestment events” — business decisions to shun the state.These come in three types: companies that left the state entirely; companies that expanded in other states rather than in California; and a few companies that had planned to grow in the Golden State but changed their minds.Vranich found records of 1,510 divestment events occurring in California between 2008 and 2014.Yet, according to a report in the National Review, that number is an incomplete accounting of the situation.“Experts in site selection generally agree that at least five events fail to become public knowledge for every one that does,” Vranich wrote in his study, concluding that the real total is probably more than 9,000 divestment events for this period.Even that estimate may not tell the full story, according to the National Review.Small businesses are less likely to get media coverage when they relocate, but they are the biggest category of divestment events.The cost and compliance burdens of California’s taxes and regulations fall disproportionately on smaller companies, which are less able to afford the teams of attorneys and accountants that mega-corporations can employ.As Carly Fiorina ably pointed out during the GOP debates, big government tends to benefit big business.To no one’s surprise, Texas was the main beneficiary of California divestment events during each year of the study.Following Texas, the top destinations for “escaping” California businesses were Nevada, Arizona, Colorado, Washington, Oregon, North Carolina, Florida, Georgia, and Virginia.California’s elected officials do not appear to care too much about businesses leaving the state. Yet the problem is real.Vranich has been conducting similar studies and publicly sharing his findings about thousands of ex-California companies since 2010. Yet despite all the evidence, Governor Jerry Brown has made several public statements denying a “mass exodus” of California businesses.Brown reportedly has a long history of making excuses when businesses reject his state.When Toyota announced it was uprooting three California plants and consolidating its headquarters in Plano, Texas, the Wall Street Journal quoted Brown as saying, “We’ve got a few problems. We have lots of little burdens and regulations and taxes.“But smart people figure out how to make it.”The Journal’s reply: “California’s problem is that smart people have figured out they can make it better elsewhere.” WHY $15B CORP FLEES CALIFORNIA …

I didn't quite break even, but I got real close.Back in my younger and even more foolish days, I had heard that real estate investing in the swamp land that is the state of Florida was a fool's errand.However, since I had done well with my stock investments (really just got extraordinarily lucky timing), I thought I was smart enough avoid the same pitfalls of those who had gotten burned.I was such a cocky dumb fool that I really thought I could do all the analysis remotely based on public reports and records. Well, all that analysis told me was that the rental yields in Florida would be, in theory, better than in the Bay Area. So, I figured as long as I bought in the right location (away from common hurricane paths or flood zones) and got in early on a development project, that I would be able to make enough rent to cover while I rode up the market.Yeah, what works in the Bay Area does NOT apply to Florida.Then, I proceeded to commit the worst sin as an investor—I failed to listen to my gut when fate flashed warning signs.First, my partner in the purchase decided he wanted all the upside from the early phase home I'd gotten. After I accepted his buyout offer for my 50% share, his wife decides to snake their way out of the deal and not pay my buyout. Well, things got ugly quick. Since it was still my name on the contract, I figured I'd just lost a partner and friend. But, later, when it came close to the completion of the home, I didn't hear from the builder. So, I called and that's when I found out my partner's wife had forged my signature and transferred the home to themselves. Too bad I had no clue how to handle legal matters back then.So, angry and not thinking straight, I went and bought a home at a much later phase at a 20% higher price. Obviously, that was a colossal miscalculation from an investment perspective. But as the market was still climbing in late 2005, I figured I'd still make some money as a rental.Second, as the remaining home sold out, many to investors like myself, the builder, KB Home, decided to implement a new owner occupancy policy, prohibiting rentals for the first year. At that point, I should have seen the investment rationale turn upside down and walked away from my measly $2K deposit. But, in early 2006, the market still held firm, and I just talked myself into staying in.Third, in the summer of 2006, after KB Home had been delayed for months, it suddenly rushed homes to closing. By then, the very earliest whiffs of the impending housing market correction was in the air. The sales team at KB Home very aggressively and energetically sold me on the completion of the home. It just seemed like they were trying too hard for a bad reason, but I was years deep into the housing frenzy and had made some good money on prior investments. So, again, I turned a blind eye.Finally, in the fall of 2006, mortgage interest rates were ticking up, reflecting the series of interest rate hikes by the Federal Reserve that was about to put the final nails into the housing market. Where I had been underwriting for 5% interest, market mortgage rates went up to 6.75% and climbing higher. So, again ignoring the warning signs, I believed it was better to lock in the rates.Well, after it was all done, the first year was an absolute unmitigated disaster. Since I couldn't rent out the home due to the owner occupancy restriction, I had zero income to offset the high interest mortgage payment. Since it was a vacant home, my home insurance policy shot up to nearly $3K, up from $1K. That year alone, I probably hosed almost $30K down the drain.I followed up that year with more money flushing. Even after I got a tenant, I found that property managers in Florida charged outrageous market rate property management fees of 12–16%, way above the 6–8% that I was used to. And, despite those high fees, the property managers didn't seek to get top dollar on my rental, taking advantage of another dumb out of state owner. Both those issues led me to receive $500–600 less than my underwriting per month. So I continued to hose $10K a year down the drain.To top it all off, the housing market correction of 2008–2009 crushed Florida flat like it did everywhere else. My new rental was now down 35–40%. Many of my neighbors jumped ship and let their homes get foreclosed and sold for a fraction of their purchase price.Still, I held on. I was one stupid, stubborn fool when it came to this property. I just had to turn it around. So years went by and I managed to reduce my annual cash flow losses to only $4–5K. And, the housing market did recover a bit in Florida. Holding on to hope against hope, I thought I might be bailed out yet.But, that was not to be. Even after nearly 8 years in recovery, home prices in my part of northern Florida was still down 15–20% on a nominal basis from 2006 when I bought, a 25–30% real loss. So, I decided to finally cut my losses and get the heck out of Florida. That's when the next phase of the ordeal started.A major hurricane struck in late 2017 to bring tons of rain that undermined the shoddy stucco work on my KB Home (another bitter story in itself). Of course, that's right after the 10 year home warranty expired, so I was stuck dropping another $15K to fix water damage all around the house. The repairman helpfully pointed out that I had picked a good location that did not see roofs flying off.Then, during initial inspections to go to market, we found an undiscovered tiny leak in the wall that caused major water and moisture damage to the ground floor. Another $20K in repairs and months lost. And, just as I got that fixed, another hurricane swept through to show that I really had to restucco the home. Another $7K in repairs and $15K in updates.Finally, after months of repairs and tours, my beleaguered agent brought in an offer 5% short of what I'd paid 12 years earlier. It had been almost a year on the market and I could barely hold back my joy to even see that deal. It wasn't rock solid as the buyers had no money, but I wasn't choosy at that point. They were pulling money from their 401K just to put the 3.5% down for an FHA loan. That was such a pitifully small amount of money, about 1/3 of just the initial deposits for starter homes in the Bay Area, I near prayed for them to close every night of their long 45 day escrow. It was a horrible financial decision for them, but I wasn't representing the buyers.When I finally saw the closing statement showed that my loan had been paid off and I got back whatever puny equity I had built over those painful years, I felt an enormous sense of relief. A huge burden had been lifted off and I didn't have to suffer the financial bleeding any further. It was one of the best days I'd had felt in years as an investor. I imagined it's the same joy as when a boat owner finally sells his boat.In total, out of that long miserable adventure, I probably hosed down $150–170K for my stupidity. I had so many chances to walk away from my $2K deposit, but I didn't.But, there is a silver lining. The experience absolutely drilled into me the importance of sizing up an investment property correctly. I learned so many ways to make and avoid mistakes, many that I had not seen with my more successful investments. Florida was a cruel teacher indeed.In turn, I've taken what I've learned and applied the lessons for my clients. I never let them to go in blind like I did. I made sure we properly underwrote every deal, leaving margin for underestimation of expenses. Above all, I made sure they didn't get emotional and over pay like I did. I kept them to the investor discipline. I also made sure that my clients got what we underwrote, bringing in the projected tenants and charging a 4% management fee, which I believe is fair enough.Building investments slowly on solid foundations has led many of my clients to grow their net worth and become far closer to financial independence than they had thought possible. Some even retired in their 30s. My satisfaction in helping my clients make money just about makes up for the pain of my personal financial losses.I'll end with the old adage. A smart man learns from his own mistakes, but a wise man learns from the mistakes others make. Be wise.