This statement shows adjusted personal & one-time expenses added back into profits. A prospective acquirer may or may not accept some of these addbacks. On average in the merger & acquisition market, about 50% -70% are accepted back into profits. It is very important to keep good records of each of these expenses and the best policy is not to put any personal expenses through the company for at least two years prior to placing the company on the market.
To get the sample income statement, please download the article as a PDF: POV_34 Recasting Income Std