Calculation Bugs in ValuSource PRO
The following are documented ValuSource PRO bugs that can affect various calculations in the program. Each bug described below is followed by a reference to a fax that will correct the problem. The faxes may be obtained by calling our fax-back service at 732-302-2236:
Problem: In the market approaches, the program adds the minority discount, instead of subtracting it.
Solution: See fax # 87010307
Problem: When subaccounts are added under Retained Earnings and adjustments are subsequently made to those subaccounts, the Retained Earnings total will display # signs.
Solution: See fax # 87010306
Problem: Several of the formulas in the Fundamental Discount are wrong and will generate incorrect figures.
Solution: See fax # 87010304
Problem: If no weights are assigned in the Indication 2 section of the earnings/cash flow base calculation, the program will cut the income in half.
Solution: See fax # 87010303
Problem: When years are dropped in a valuation (through the FINANCIAL STATEMENT SETUP option on the FILE menu), the program continues to count those years when it computes a weighted average in the earnings/cash flow base calculation.
Solution: See fax # 87010316
Problem: The ending balance on the cash flow statement will not equal the following year’s beginning balance if assets were disposed of during the year.
Solution: See fax # 87010305
Problem: COGS depreciation does not flow through to the projections.
Solution: See fax # 87010315
Problem: Bizcomps and Mid-Market Comps disregard zero-value records when calculating multiples. ValuSource PRO does not.
Problem: In the first column of the Projected Post-Sale Cash Flow Statement, the program pulls in the Pro Forma figures, instead of the first year of the projections.
Solution: See fax # 87010318
Problem: The earnings/cash flow base computation will not agree with the earnings/cash flow base in the Indicated Value if “Base Capitalization Rate for Next Year” is selected in the Capitalization Rate Build-Up.
Solution: See fax # 87010317
Problem: SBBI downloads a zero into the risk-free rate of return in the Fundamental Discount.
