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The AMA Handbook of Due Diligence by Andrew J. Sherman, William M. Crilly

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PRODUCTION FACILITIES (Continued)
ENTITY Form 13-05
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
330
SURPLUS PRODUCTION FACILITIES
FACILITY
Why did this facility become
surplus?
When did it become surplus?
What efforts have been made to
sell this facility?
What is its book value?
$ $
What is the most recent appraised
fair market value?
$ $
Who performed the appraisal and
when?
POTENTIAL RETIREMENT OF CURRENTLY ACTIVE PRODUCTION FACILITIES
FACILITY
Why is it anticipated that this facility
will become surplus?
When is it expected to become
surplus?
What will be the book value at that
time?
$ $
What is the most recent fair
market appraised value?
$ $
Who performed the appraisal and
when?
What is the anticipated fair
market value at the time this facility
becomes surplus?
$ $
PRODUCTION EQUIPMENT
ENTITY Form 13-06
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
331
DESCRIPTION OF EQUIPMENT
Type Of Equipment
Specification
Manufacturer/Model No.
State-Of-The-Art
ITEM UNIT
Property Or Serial Number
Location
Owned Equipment
Acquired (Month/Year)
Purchase Price (N) = New, (U) = Used $()$()$()
Cumulative Depreciation $ $ $
Book Value $ $ $
Condition (Good/Fair/Poor)
Remaining Useful Life (Years)
Estimated Fair Market Value $ $ $
Replacement Cost $ $ $
Leased Equipment
Lessor
Type Of Lease (Operating/Capital)
Acquired (Month/Year)
Monthly Lease Rate $ $ $
Expiration Date (Month/Year)
Initial Payment $ $ $
Refundable Deposit $ $ $
Renewal Options (Number)
Monthly Renewal Rate $ $ $
Purchase Option (Amount) $ $ $
Assignable/Transferable (Yes/No)
Estimated Utilization Hrs./Yr. Hrs./Yr. Hrs./Yr.
Estimated Maintenance Expense $ /Yr. $ /Yr. $ /Yr.
ENTITY Form 13-07
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
332
FUTURE PRODUCTION EQUIPMENT REQUIREMENTS
DESCRIPTION OF EQUIPMENT
Type Of Equipment
Specification
Manufacturer(s)/Model Number(s)
Vendor(s)
Order Lead Time
ITEM UNIT
Location
Number Required
Required By (Month/Year)
If Purchased:
Purchase Price (N) = New (U) = Used $()$()$()
Potential Payment Terms
_____ % With Order
_____ % On Delivery
_____ % In ______ Days
_____ % In ______ Days
If Leased:
Potential Lessor(s)
Type Of Lease (Operating/Capital)
Monthly Lease Rate $ $ $
Length Of Lease Desired
Initial Payment $ $ $
Refundable Deposit $ $ $
Renewal Options (Number)
Monthly Renewal Rate $ $ $
Purchase Option (Amount) $ $ $
Assignable/Transferable (Yes/No)
SURPLUS PRODUCTION EQUIPMENT
ENTITY Form 13-08
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
333
DESCRIPTION OF EQUIPMENT
Type Of Equipment
Specification
Manufacturer
Model Number
Serial Number
Property Number
Age (Years)
Condition
Fair Market Value $ $ $
Book Value $ $ $
Type Of Equipment
Specification
Manufacturer
Model Number
Serial Number
Property Number
Age (Years)
Condition
Fair Market Value $ $ $
Book Value $ $ $
TOTAL VALUES
Total Fair Market Value: $ _____________
Total Book Value: $ _____________
TREND IN PRODUCTION EQUIPMENT ACQUISITIONS
ENTITY Form 13-09
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
334
FORM OF ACQUISITION 20 20 20 20 20 20 YTD
(Thousands Of Dollars)
Purchase $ $ $ $ $ $
Lease (1)
Total Value $ $ $ $ $ $
(Percent Of Total Value)
Purchase % % % % % %
Leases % % % % % %
Note: (1) Valued at purchase price.
DEPRECIATION POLICIES FOR MAJOR EQUIPMENT ITEMS
TYPE OF EQUIPMENT DEPRECIATION METHOD USEFUL LIFE RESIDUAL VALUE
New Equipment Years %
Used Equipment Years %
ACCOUNTING POLICIES WITH RESPECT TO MAJOR EQUIPMENT ITEMS
ACCOUNTING FOR MAINTENANCE AND REPAIRS TO MAJOR EQUIPMENT ITEMS
TYPE OF MAINTENANCE EXPENSED CAPITALIZED
Routine Preventative Maintenance
Scheduled Overhauls
Minor Nonroutine Repairs (1)
Major Nonroutine Repairs (2)
Notes: (1) Cost of repair less than $ _____________ .
(2) Cost of repair equal to or more than $ _____________ .

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