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Old 04-26-2008, 12:32 PM
 
Location: In my view finder.....
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If a manufacturing plant is bringing in $6,500,000 in revs./annual

and cash flow is $1.9 million. How much does the owner pay him/herself?
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Old 04-26-2008, 01:25 PM
 
Location: Boise, ID
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It depends. Is it a corporation and are you talking about shareholder distributions? Or are you trying to figure out an appropriate salary for running the day-to-day operations?

You also have to balance reinvesting some of the cash flow into the business for equipment, marketing, and growth. Growth is usually expensive for a company and it is always a tough choice whether to slow the growth down and "enjoy" the profit or whether to keep growing.
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Old 10-29-2008, 01:35 PM
 
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No it isn't a corporation. It is a retail, sole ownership business. I am mainly concerned about his debt to the suppliers.
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Old 10-29-2008, 04:34 PM
 
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Quote:
Originally Posted by bulkeley View Post
No it isn't a corporation. It is a retail, sole ownership business. I am mainly concerned about his debt to the suppliers.
A retail manufacturing facility?????
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Old 10-31-2008, 08:21 AM
 
Location: Southwest Missouri
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Quote:
Originally Posted by ChicagoRon View Post
If a manufacturing plant is bringing in $6,500,000 in revs./annual

and cash flow is $1.9 million. How much does the owner pay him/herself?
No way to tell, based on what little information you've provided.
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Old 10-31-2008, 08:53 AM
 
28,906 posts, read 45,279,906 times
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What's your total net? That's completely different from cash flow.

However, in an attempt to answer your question, you should pay yourself a salary. Not a huge salary, but one where you are comfortable. Take advantage such things as a company car, IF your operation is stable and growing. Keep your overhead as small as possible.

Now, if you are the only shareholder, then pay yourself a dividend at the end of the year out of profits, keeping some out to pay your corporate taxes and holding some back as retained earnings. Have a very good accountant who understands your industry, including its unique ups and downs.
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