I was reviewing the P&L of a park that showed roughly $125,000 gross revenue, $120,000 in expenses and then shows an “add back” of Seller Discretionary Earnings of $55,000. From the internet, SDE’s are basically write offs that perhaps should not have been written off. Is anybody familiar with this? Included in the SDE’s are $13,000 in donations, $8,000 in non essential utilities, and $2,500 in non essential phone.
It all seems a little suspicious.