This document discusses managing cash flow and provides tips for surviving a cash crisis. It emphasizes the importance of cash flow management, outlines key reasons to closely monitor cash, and provides steps to take control of cash, create cash reserves, and forecast cash needs. The document also details 13 steps businesses can take to survive a cash crisis, such as identifying hidden sources of cash, finding expense savings, collecting from customers, and exploring financing options. Maintaining a positive bank balance and making payroll are highlighted as top priorities.
This document contains manuals for various roles in a company's accounting system. It includes manuals for the kasir (cashier) role covering creating payments, internal transfers, and register payments. It also includes manuals for the admin sales, admin, pelangi, gudang, and AR roles. Additional manuals cover importing bank statements, eFaktur, and creating vendor records, purchase receipts, and cash registers.
Cardiopulmonary resuscitation (CPR) is a lifesaving technique used for emergencies where a person's breathing or heartbeat has stopped. It involves chest compressions and rescue breathing to circulate oxygenated blood to vital organs until the heart can resume its natural rhythm. CPR is administered when a person is unconscious, not breathing, and has no pulse. Without continuous blood flow, the brain will begin to suffer damage within 4 minutes and may become irreparably damaged after 7 minutes. The procedure for CPR involves assessing the situation, calling for emergency services, clearing the airway, giving two rescue breaths, and then administering 30 chest compressions.
This document contains manuals for various roles in a company's accounting system. It includes manuals for the kasir (cashier) role covering creating payments, internal transfers, and register payments. It also includes manuals for the admin sales, admin, pelangi, gudang, and AR roles. Additional manuals cover importing bank statements, eFaktur, and creating vendor records, purchase receipts, and cash registers.
Cardiopulmonary resuscitation (CPR) is a lifesaving technique used for emergencies where a person's breathing or heartbeat has stopped. It involves chest compressions and rescue breathing to circulate oxygenated blood to vital organs until the heart can resume its natural rhythm. CPR is administered when a person is unconscious, not breathing, and has no pulse. Without continuous blood flow, the brain will begin to suffer damage within 4 minutes and may become irreparably damaged after 7 minutes. The procedure for CPR involves assessing the situation, calling for emergency services, clearing the airway, giving two rescue breaths, and then administering 30 chest compressions.
This very short document does not contain enough contextual information to generate a meaningful 3 sentence summary. The document simply states "this is test document" without providing any additional details.
This very short document does not contain enough contextual information to generate a meaningful 3 sentence summary. The document simply states "this is test document" without providing any additional details.
Veiligheidscoach de nieuwe succesfactor voor veiligheid? Nieuwe opzet voor het verder ontwikkelen van de veiligheidscultuur bij BASF
Spreker: René Poppe, Afdelingscoach Veiligheid en Preventie adviseur BASF Antwerpen
Guia de apredizaje para ciencias naturales.Pablo Araya
Este documento proporciona información sobre el sistema solar. Explica que Plutón ya no se considera un planeta, sino un planeta enano, y describe las características de las lunas, asteroides y cometas. También incluye actividades para que los estudiantes aprendan sobre los componentes del sistema solar.
Overview of basic financial statements that every business owner needs to know to include: cash flow statement, income statement (P&L) and balance sheet.
This document provides an overview of B2B CFO®, a company that offers part-time CFO services to privately-held companies with $1-70M in annual sales. It discusses Doug Smith's background and experience. It also covers key topics like the importance of cash flow, how to interpret financial reports, forecasting cash needs, and strategies for improving a company's cash position such as managing accounts receivable, inventory, and accounts payable. Examples are given to illustrate cash flow timing differences and how to actively work on improving days sales outstanding.
Financial HistorySTART HEREEnter data in the yellow cells only. Co.docxAKHIL969626
Financial HistorySTART HEREEnter data in the yellow cells only. Comments to help you are in blue or red font. Take one row at a time.CURRENCY:USD<-- This is the organization's home or functional currency. E.g., USD, INR (Indian Rupee), BRL (Brazilian Real), EUR (Euro), CNY (Chinese Yuan). Information is found on financial statements.SCALING: x1,000<-- Local currency units: Could be 1 (so 1 means 1), 1000 (so 1 = 1,000), or 1,000,000 (so 1 = 1.0 million). Usually 1000 is used. Information is found on financial statements.Starbucks Corporation<-- Any financial report should show the name of the organization in the heading.INCOME STATEMENT HIGHLIGHTS<-- Always identify the type of report.Unaudited; Amounts USD x 1000<-- The currency and scaling needs to be defined.For Fiscal Years endedOctober[Day]<-- An organization's fiscal year might end on Dec 31, or June 30, or something else. State it here.% Growth vs Prior Year20162015201420162015<-- Replace leftmost year number (Cell C9) with most recent year of data available.TOTAL REVENUE$ 21,315,900.0$ 19,162,700.0$ 16,447,800.011.2%16.5%Cost of Goods Sold$ 8,511,100.0$ 7,787,500.0$ 6,858,800.09.3%13.5%Gross Profit or (Loss)$ 12,804,800.0$ 11,375,200.0$ 9,589,000.012.6%18.6%Other Operating Expenses$ 8,632,900.0$ 7,774,200.0$ 6,507,900.011.0%19.5%OPERATING INCOME$ 4,171,900.0$ 3,601,000.0$ 3,081,100.015.9%16.9%Interest Income or (Expense), Net$ 108,000.0$ 372,500.0$ 142,700.0-71.0%161.0%<--Be sure to enter interest income as a positive number; interest expense as a negative number.Other Income or (Expense), Net$ (81,300.0)$ (70,500.0)$ (64,100.0)-15.3%-10.0%<--Be sure to enter other income as a positive number, other expense as a negative number.Income before Tax Provision$ 4,198,600.0$ 3,903,000.0$ 3,159,700.07.6%23.5%Provision for Income Taxes$ 1,511,496.0$ 1,143,700.0$ 1,092,000.032.2%4.7%Net Income or (Loss) from Continuing Operations$ 2,687,104.0$ 2,759,300.0$ 2,067,700.0-2.6%33.4%<--FYI, most analysts consider this better than total Net Income as an indicator of underlying business performance.Discontinued Operations Income (Loss), Net$ - 0$ - 0$ - 00.0%0.0%<--Typically, from shutting down or selling part of the business.NET INCOME OR (LOSS)$ 2,687,104.0$ 2,759,300.0$ 2,067,700.0-2.6%33.4%<--Confirm this matches what is listed on the financial statement you downloaded.Average Diluted Shares Outstanding$ 1,900,000.0$ 1,820,000.0$ 1,350,000.04.4%34.8%<--Make sure this value is scaled the same way as the other numbers (thousands or millions).DILUTED EARNINGS OR (LOSS) PER SHARE$ 1.41$ 1.52$ 1.53-6.7%-1.0%Net Income Margin %12.6%14.4%12.6%<--Net income or Loss / Total Revenue. Typical values are 2% to 20%, but it can be negative, too.Common Stock Share Price at each Year-End$ 55.52$ 60.03$ 41.03-7.5%46.3%<--Mergent Online instructions include how to find historical stock prices. Go back four years because you wi ...
This presentation was delivered at the April 23, 2009 Smart-ups event in Eugene, OR by Dan Vishny (CFO for two start-ups companies). Dan is also known for having one of the top 10 best scores on the CPA exam - for the entire U.S.A.!
This document summarizes disbursing activity for 2015, including totals for casual pays, security deposits, first months' rent, checks processed and disbursed in various currencies, currency conversions, card loads, sales, and cash on hand. Key figures include $69,119 disbursed in casual pays, $1,193 in checks processed, $394.69 in currency conversions, $15,912.05 in total card loads, $14,068.17 in card sales, and $35,000 for paying agents with funds.
This document provides cost and revenue information for a proposed real estate development project. It includes a breakdown of acquisition costs totaling $74,155,266. It also provides projected annual gross rents totaling $7,877,537 for the first stabilized year. Estimated operating expenses are provided, resulting in a projected net operating income of -$683,066 for the first year. The document also includes calculations for tax payments, returns on investment, and a potential sale of the property in year 10 with a net cash to the seller of $247,533,050.
This document provides information for a workshop assignment on Laurentian Bakeries. It includes:
1. An overview of the company and its products.
2. Details on the capital structure and weighted average cost of capital calculation.
3. Facts about a proposed project to improve operations, including benefits, costs, and cash flow projections under different scenarios.
4. A recommendation to pursue the project due to its positive NPV and IRR, as well as potential for brand establishment in the larger US market.
CH.8 ExcelDoing calendar Q2Doing calendar Q2Doing calendar Q2Doing calendar Q2Doing calendar Q2Doing calendar Q2JanFebMarAprMayJunJulAugSepOctNovDecUnits Sales20,00050,00030,00025,00015,00032,00036,00042,00066,000Price each$ 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ 10.00Budgeted Sales200,000500,000300,000250,000150,000320,000Period ending cashCASH90,00030%uncollectedCollections75,00025%/30% of end Q1 A/R will be collected70% of current priod175,000105,000224,00025%of prior period62,50037,500SumCash collected250,000167,500261,500679,000679,000Looking at Q2Ending inventory units20%MarAprMayJunJulAugUnits Sales30,00025,00015,00032,00036,00042,000Budget Ending Inventory 4,0003,0006,4007,2008,400[20% next mo. Sales]Sales + EndingGiven28,00021,40039,20044,400Less Beginning = prior month-end(4,000)(3,000)(6,400)(7,200)= Unit Production24,00018,40032,80037,200Cost/LbCost/UnitQuantity per unit in Lbs.5.00$ 0.40$ 2.00Ending Inventory % next month10%Looking at Q2MarAprMayJunJul= Unit Production- 024,00018,40032,80037,200Required for Production/Lbs- 0120,00092,000164,000186,000$s Into FG for Production$ 48,000$ 36,800$ 65,600$ 150,400Qtr. TotalBudget Ending Inventory 13,0009,20016,40018,60010% of following MonthSales + Ending129,200108,400182,600Less Beginning = prior month-end(13,000)(9,200)(16,400)Qty. Purchase [additions] of Raw material116,20099,200166,200Material budget$s. Purchase of Raw material$ 46,480$ 39,680$ 66,480Material budget$ 0.40per lb.AprApr.CASHEnding A/P$ 12,000$ 12,000Beg$ 12,000Cr. To A/P = purchases$ 46,480$ 39,680$ 66,480$ 46,480Add$ 46,480Pay 50% current [given company policy]$ 23,240$ 19,840$ 33,2401/2 April$ (23,240)Paid$ (35,240)Pay prior$ 12,000$ 23,240$ 19,840Cash budget$ 35,240$ 23,240Total paid$ 35,240$ 43,080$ 53,080Cash budget$ 131,400PaidA/PEndingEnding A/P [Beginning + Additions - payments]$ 23,240$ 19,840$ 33,240Qtr. TotalGuaranteedHoursRatePayment for quarter1500$ 10.00Required Hrs. per unit0.053minutesDL$s. per unit$ 0.50700used for ending Q2 inventoryAprMayJunQtr sum= Unit Production24,00018,40032,80075,200HRs of Prodctn. at Required per unit of 0.05 hrs. ea.1,2009201,6403,760DL Cost of production into units at 10 per Hr$ 12,000$ 9,200$ 16,40037,600unfavorable variance of$ 8,800Hrs paid1,5001,5001,6404,640880Hours$s paid$ 15,000$ 15,000$ 16,40046,400ADDEDProductivity at budget earned HRs/paid HRs80%61%100%Spend > Used by$ 8,800into CoGS*******Variable OH $s per HR$ 20.00Given: rate is per DL hr.Required Hrs. per unit0.05Hrs. per unit3minutesVariable OH $s per unit$ 1.00Fxd. MOH per month$50,000Non cash MOH$20,000Cash Mfg. OH$30,000Actual Overhead rates NOT predetermined ratesAprMayJunQtr. SumRequired Hrs. per unit0.05= Unit Production24,00018,40032,80075,200Fxd. OH spending$50,000$50,000$50,000# Hrs.1,2009201,640HRs of Prodctn. at Required per unit of 0.05 hrs. ea.1,2009201,6403,760per Hr.41.6754.3530.49VOH Cost ...
The document provides a step-by-step guide for developing a cash flow forecast. It outlines the key steps as clarifying the forecast period, predicting cash receipts and payments, establishing an opening balance, tracking predicted cash flow, and checking for common issues. The guide includes an example cash flow forecast table to illustrate how the process works in practice.
This document outlines the goals and results of a compensation redesign process at Go Daddy for customer-facing teams. The goals were to increase starting pay rates to be competitive with the market and provide career growth opportunities. Departments reviewed included support teams for inbound calls, hosting, billing, and more. Hourly rates were increased minimums of $15-18 for agents and $20 for supervisors. Projected compensation distributions show more employees earning between $35,000-$55,000 after the changes. Next steps include reviewing compensation for additional teams.
Powered by ClearbitApple Inc (NMS AAPL)Company Financ.docxLacieKlineeb
Powered by Clearbit
Apple Inc (NMS: AAPL)
Company Financials
Income Statement
Exchange rate used is that of the Year End
reported date
As Reported Annual Income Statement
Report Date 09/25/202
1
09/26/202
0
09/28/201
9
Currency USD USD USD
Audit Status Not
Qualified
Not
Qualified
Not
Qualified
Consolidated Yes Yes Yes
Scale Thousan
ds
Thousan
ds
Thousan
ds
Products 297392000 220747000 213883000
Services 68425000 53768000 46291000
Net sales $365,817,000 $274,515,000 $260,174,000
Cost of sales - products $192,266,000 $151,286,000 $144,996,000
Cost of sales - services $20,715,000 $18,273,000 $16,786,000
Cost of sales $212,981,000 $169,559,000 $161,782,000
Gross margin $152,836,000 $104,956,000 $98,392,000
Research & development expense $21,914,000 $18,752,000 $16,217,000
Selling, general & administrative expense $21,973,000 $19,916,000 $18,245,000
Total operating expenses $43,887,000 $38,668,000 $34,462,000
Operating income (loss) $108,949,000 $66,288,000 $63,930,000
Interest & dividend income $2,843,000 $3,763,000 $4,961,000
Interest expense $2,645,000 $2,873,000 $3,576,000
Other income (expense), net $60,000 -$87,000 $422,000
Other income/(expense), net $258,000 $803,000 $1,807,000
Income (loss) before provision for income taxes $109,207,000 $67,091,000 $65,737,000
Current federal income tax expense (benefit) $8,257,000 $6,306,000 $6,384,000
Deferred federal income tax expense (benefit) -$7,176,000 -$3,619,000 -$2,939,000
Total federal income tax expense (benefit) $1,081,000 $2,687,000 $3,445,000
Current state income tax expense (benefit) $1,620,000 $455,000 $475,000
Deferred state income tax expense (benefit) -$338,000 $21,000 -$67,000
Total state income tax expense (benefit) $1,282,000 $476,000 $408,000
Current foreign income tax expense (benefit) $9,424,000 $3,134,000 $3,962,000
Deferred foreign income tax expense (benefit) $2,740,000 $3,383,000 $2,666,000
Total foreign income tax expense (benefit) $12,164,000 $6,517,000 $6,628,000
Provision for (benefit from) income taxes $14,527,000 $9,680,000 $10,481,000
Net income (loss) $94,680,000 $57,411,000 $55,256,000
Weighted average shares outstanding - basic 16,701,272 17,352,119 18,471,336
Weighted average shares outstanding - diluted 16,864,919 17,528,214 18,595,652
Year end shares outstanding 16,426,786 16,976,763 17,772,944
Net earnings (loss) per share - basic $5.67 $3.31 $2.99
Net earnings (loss) per share - diluted $5.61 $3.28 $2.97
Cash dividends declared per share - $0.80 $0.75
Number of full time employees 154000 147000 137000
Number of common stockholders 23502 22797 23233
Foreign currency translation adjustments - 88000 -408000
Balance Sheet
Exchange rate used is that of the Year End
reported date
As Reported Annual Balance Sheet
Report Date 09/25/202
1
09/26/202
0
09/28/201
9
Currency USD USD USD
Audit Status Not
Qualified
Not
Qualified
Not
Qualified
Consolidated Yes Yes Yes
Scale Thousan
ds
Thousan
ds
Thousan
ds
Cash & cash equivalents $34,940.
The June 2014 board meeting financial presentation included:
1) A tax report showing total levy of $82.0 million and tax collections of $81.3 million which is 99.7% of the $81.6 million budgeted taxes.
2) A report on securities pledged against deposits showing a depository pledge of $9.2 million which is 139% of the $6.6 million requirement.
3) Comparisons of the 2013-2014 budget to actual for the general fund, food service fund, and debt service fund showing revenues and expenditures close to or under budget in all funds.
4) An investment report showing $64 million total invested across various accounts with rates from 0.
The document describes a profit blueprint system that helps businesses improve their net profit performance over time. It does this by taking a similar approach to how sports teams study game film and analyze their own and opponents' performances to identify areas for improvement. The system provides financial analysis reports with key metrics and targets to help businesses see if their strategies are working and make better decisions. It also offers phone coaching to provide proven ideas and best practices from top-performing companies.
1. Management of cash involves preparing cash budgets to forecast cash inflows and outflows. This helps control cash levels and ensure adequate funds are available.
2. Techniques to control cash inflows include concentration banking and lockbox systems which speed up collection of receipts. Controlling outflows aims to delay payments as much as possible.
3. Surplus cash beyond normal requirements can be invested optimally using models like Baumol and Miller-Orr that balance carrying costs of holding cash versus transaction costs of converting investments to cash.
This very short document does not contain enough contextual information to generate a meaningful 3 sentence summary. The document simply states "this is test document" without providing any additional details.
This very short document does not contain enough contextual information to generate a meaningful 3 sentence summary. The document simply states "this is test document" without providing any additional details.
Veiligheidscoach de nieuwe succesfactor voor veiligheid? Nieuwe opzet voor het verder ontwikkelen van de veiligheidscultuur bij BASF
Spreker: René Poppe, Afdelingscoach Veiligheid en Preventie adviseur BASF Antwerpen
Guia de apredizaje para ciencias naturales.Pablo Araya
Este documento proporciona información sobre el sistema solar. Explica que Plutón ya no se considera un planeta, sino un planeta enano, y describe las características de las lunas, asteroides y cometas. También incluye actividades para que los estudiantes aprendan sobre los componentes del sistema solar.
Overview of basic financial statements that every business owner needs to know to include: cash flow statement, income statement (P&L) and balance sheet.
This document provides an overview of B2B CFO®, a company that offers part-time CFO services to privately-held companies with $1-70M in annual sales. It discusses Doug Smith's background and experience. It also covers key topics like the importance of cash flow, how to interpret financial reports, forecasting cash needs, and strategies for improving a company's cash position such as managing accounts receivable, inventory, and accounts payable. Examples are given to illustrate cash flow timing differences and how to actively work on improving days sales outstanding.
Financial HistorySTART HEREEnter data in the yellow cells only. Co.docxAKHIL969626
Financial HistorySTART HEREEnter data in the yellow cells only. Comments to help you are in blue or red font. Take one row at a time.CURRENCY:USD<-- This is the organization's home or functional currency. E.g., USD, INR (Indian Rupee), BRL (Brazilian Real), EUR (Euro), CNY (Chinese Yuan). Information is found on financial statements.SCALING: x1,000<-- Local currency units: Could be 1 (so 1 means 1), 1000 (so 1 = 1,000), or 1,000,000 (so 1 = 1.0 million). Usually 1000 is used. Information is found on financial statements.Starbucks Corporation<-- Any financial report should show the name of the organization in the heading.INCOME STATEMENT HIGHLIGHTS<-- Always identify the type of report.Unaudited; Amounts USD x 1000<-- The currency and scaling needs to be defined.For Fiscal Years endedOctober[Day]<-- An organization's fiscal year might end on Dec 31, or June 30, or something else. State it here.% Growth vs Prior Year20162015201420162015<-- Replace leftmost year number (Cell C9) with most recent year of data available.TOTAL REVENUE$ 21,315,900.0$ 19,162,700.0$ 16,447,800.011.2%16.5%Cost of Goods Sold$ 8,511,100.0$ 7,787,500.0$ 6,858,800.09.3%13.5%Gross Profit or (Loss)$ 12,804,800.0$ 11,375,200.0$ 9,589,000.012.6%18.6%Other Operating Expenses$ 8,632,900.0$ 7,774,200.0$ 6,507,900.011.0%19.5%OPERATING INCOME$ 4,171,900.0$ 3,601,000.0$ 3,081,100.015.9%16.9%Interest Income or (Expense), Net$ 108,000.0$ 372,500.0$ 142,700.0-71.0%161.0%<--Be sure to enter interest income as a positive number; interest expense as a negative number.Other Income or (Expense), Net$ (81,300.0)$ (70,500.0)$ (64,100.0)-15.3%-10.0%<--Be sure to enter other income as a positive number, other expense as a negative number.Income before Tax Provision$ 4,198,600.0$ 3,903,000.0$ 3,159,700.07.6%23.5%Provision for Income Taxes$ 1,511,496.0$ 1,143,700.0$ 1,092,000.032.2%4.7%Net Income or (Loss) from Continuing Operations$ 2,687,104.0$ 2,759,300.0$ 2,067,700.0-2.6%33.4%<--FYI, most analysts consider this better than total Net Income as an indicator of underlying business performance.Discontinued Operations Income (Loss), Net$ - 0$ - 0$ - 00.0%0.0%<--Typically, from shutting down or selling part of the business.NET INCOME OR (LOSS)$ 2,687,104.0$ 2,759,300.0$ 2,067,700.0-2.6%33.4%<--Confirm this matches what is listed on the financial statement you downloaded.Average Diluted Shares Outstanding$ 1,900,000.0$ 1,820,000.0$ 1,350,000.04.4%34.8%<--Make sure this value is scaled the same way as the other numbers (thousands or millions).DILUTED EARNINGS OR (LOSS) PER SHARE$ 1.41$ 1.52$ 1.53-6.7%-1.0%Net Income Margin %12.6%14.4%12.6%<--Net income or Loss / Total Revenue. Typical values are 2% to 20%, but it can be negative, too.Common Stock Share Price at each Year-End$ 55.52$ 60.03$ 41.03-7.5%46.3%<--Mergent Online instructions include how to find historical stock prices. Go back four years because you wi ...
This presentation was delivered at the April 23, 2009 Smart-ups event in Eugene, OR by Dan Vishny (CFO for two start-ups companies). Dan is also known for having one of the top 10 best scores on the CPA exam - for the entire U.S.A.!
This document summarizes disbursing activity for 2015, including totals for casual pays, security deposits, first months' rent, checks processed and disbursed in various currencies, currency conversions, card loads, sales, and cash on hand. Key figures include $69,119 disbursed in casual pays, $1,193 in checks processed, $394.69 in currency conversions, $15,912.05 in total card loads, $14,068.17 in card sales, and $35,000 for paying agents with funds.
This document provides cost and revenue information for a proposed real estate development project. It includes a breakdown of acquisition costs totaling $74,155,266. It also provides projected annual gross rents totaling $7,877,537 for the first stabilized year. Estimated operating expenses are provided, resulting in a projected net operating income of -$683,066 for the first year. The document also includes calculations for tax payments, returns on investment, and a potential sale of the property in year 10 with a net cash to the seller of $247,533,050.
This document provides information for a workshop assignment on Laurentian Bakeries. It includes:
1. An overview of the company and its products.
2. Details on the capital structure and weighted average cost of capital calculation.
3. Facts about a proposed project to improve operations, including benefits, costs, and cash flow projections under different scenarios.
4. A recommendation to pursue the project due to its positive NPV and IRR, as well as potential for brand establishment in the larger US market.
CH.8 ExcelDoing calendar Q2Doing calendar Q2Doing calendar Q2Doing calendar Q2Doing calendar Q2Doing calendar Q2JanFebMarAprMayJunJulAugSepOctNovDecUnits Sales20,00050,00030,00025,00015,00032,00036,00042,00066,000Price each$ 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ 10.00Budgeted Sales200,000500,000300,000250,000150,000320,000Period ending cashCASH90,00030%uncollectedCollections75,00025%/30% of end Q1 A/R will be collected70% of current priod175,000105,000224,00025%of prior period62,50037,500SumCash collected250,000167,500261,500679,000679,000Looking at Q2Ending inventory units20%MarAprMayJunJulAugUnits Sales30,00025,00015,00032,00036,00042,000Budget Ending Inventory 4,0003,0006,4007,2008,400[20% next mo. Sales]Sales + EndingGiven28,00021,40039,20044,400Less Beginning = prior month-end(4,000)(3,000)(6,400)(7,200)= Unit Production24,00018,40032,80037,200Cost/LbCost/UnitQuantity per unit in Lbs.5.00$ 0.40$ 2.00Ending Inventory % next month10%Looking at Q2MarAprMayJunJul= Unit Production- 024,00018,40032,80037,200Required for Production/Lbs- 0120,00092,000164,000186,000$s Into FG for Production$ 48,000$ 36,800$ 65,600$ 150,400Qtr. TotalBudget Ending Inventory 13,0009,20016,40018,60010% of following MonthSales + Ending129,200108,400182,600Less Beginning = prior month-end(13,000)(9,200)(16,400)Qty. Purchase [additions] of Raw material116,20099,200166,200Material budget$s. Purchase of Raw material$ 46,480$ 39,680$ 66,480Material budget$ 0.40per lb.AprApr.CASHEnding A/P$ 12,000$ 12,000Beg$ 12,000Cr. To A/P = purchases$ 46,480$ 39,680$ 66,480$ 46,480Add$ 46,480Pay 50% current [given company policy]$ 23,240$ 19,840$ 33,2401/2 April$ (23,240)Paid$ (35,240)Pay prior$ 12,000$ 23,240$ 19,840Cash budget$ 35,240$ 23,240Total paid$ 35,240$ 43,080$ 53,080Cash budget$ 131,400PaidA/PEndingEnding A/P [Beginning + Additions - payments]$ 23,240$ 19,840$ 33,240Qtr. TotalGuaranteedHoursRatePayment for quarter1500$ 10.00Required Hrs. per unit0.053minutesDL$s. per unit$ 0.50700used for ending Q2 inventoryAprMayJunQtr sum= Unit Production24,00018,40032,80075,200HRs of Prodctn. at Required per unit of 0.05 hrs. ea.1,2009201,6403,760DL Cost of production into units at 10 per Hr$ 12,000$ 9,200$ 16,40037,600unfavorable variance of$ 8,800Hrs paid1,5001,5001,6404,640880Hours$s paid$ 15,000$ 15,000$ 16,40046,400ADDEDProductivity at budget earned HRs/paid HRs80%61%100%Spend > Used by$ 8,800into CoGS*******Variable OH $s per HR$ 20.00Given: rate is per DL hr.Required Hrs. per unit0.05Hrs. per unit3minutesVariable OH $s per unit$ 1.00Fxd. MOH per month$50,000Non cash MOH$20,000Cash Mfg. OH$30,000Actual Overhead rates NOT predetermined ratesAprMayJunQtr. SumRequired Hrs. per unit0.05= Unit Production24,00018,40032,80075,200Fxd. OH spending$50,000$50,000$50,000# Hrs.1,2009201,640HRs of Prodctn. at Required per unit of 0.05 hrs. ea.1,2009201,6403,760per Hr.41.6754.3530.49VOH Cost ...
The document provides a step-by-step guide for developing a cash flow forecast. It outlines the key steps as clarifying the forecast period, predicting cash receipts and payments, establishing an opening balance, tracking predicted cash flow, and checking for common issues. The guide includes an example cash flow forecast table to illustrate how the process works in practice.
This document outlines the goals and results of a compensation redesign process at Go Daddy for customer-facing teams. The goals were to increase starting pay rates to be competitive with the market and provide career growth opportunities. Departments reviewed included support teams for inbound calls, hosting, billing, and more. Hourly rates were increased minimums of $15-18 for agents and $20 for supervisors. Projected compensation distributions show more employees earning between $35,000-$55,000 after the changes. Next steps include reviewing compensation for additional teams.
Powered by ClearbitApple Inc (NMS AAPL)Company Financ.docxLacieKlineeb
Powered by Clearbit
Apple Inc (NMS: AAPL)
Company Financials
Income Statement
Exchange rate used is that of the Year End
reported date
As Reported Annual Income Statement
Report Date 09/25/202
1
09/26/202
0
09/28/201
9
Currency USD USD USD
Audit Status Not
Qualified
Not
Qualified
Not
Qualified
Consolidated Yes Yes Yes
Scale Thousan
ds
Thousan
ds
Thousan
ds
Products 297392000 220747000 213883000
Services 68425000 53768000 46291000
Net sales $365,817,000 $274,515,000 $260,174,000
Cost of sales - products $192,266,000 $151,286,000 $144,996,000
Cost of sales - services $20,715,000 $18,273,000 $16,786,000
Cost of sales $212,981,000 $169,559,000 $161,782,000
Gross margin $152,836,000 $104,956,000 $98,392,000
Research & development expense $21,914,000 $18,752,000 $16,217,000
Selling, general & administrative expense $21,973,000 $19,916,000 $18,245,000
Total operating expenses $43,887,000 $38,668,000 $34,462,000
Operating income (loss) $108,949,000 $66,288,000 $63,930,000
Interest & dividend income $2,843,000 $3,763,000 $4,961,000
Interest expense $2,645,000 $2,873,000 $3,576,000
Other income (expense), net $60,000 -$87,000 $422,000
Other income/(expense), net $258,000 $803,000 $1,807,000
Income (loss) before provision for income taxes $109,207,000 $67,091,000 $65,737,000
Current federal income tax expense (benefit) $8,257,000 $6,306,000 $6,384,000
Deferred federal income tax expense (benefit) -$7,176,000 -$3,619,000 -$2,939,000
Total federal income tax expense (benefit) $1,081,000 $2,687,000 $3,445,000
Current state income tax expense (benefit) $1,620,000 $455,000 $475,000
Deferred state income tax expense (benefit) -$338,000 $21,000 -$67,000
Total state income tax expense (benefit) $1,282,000 $476,000 $408,000
Current foreign income tax expense (benefit) $9,424,000 $3,134,000 $3,962,000
Deferred foreign income tax expense (benefit) $2,740,000 $3,383,000 $2,666,000
Total foreign income tax expense (benefit) $12,164,000 $6,517,000 $6,628,000
Provision for (benefit from) income taxes $14,527,000 $9,680,000 $10,481,000
Net income (loss) $94,680,000 $57,411,000 $55,256,000
Weighted average shares outstanding - basic 16,701,272 17,352,119 18,471,336
Weighted average shares outstanding - diluted 16,864,919 17,528,214 18,595,652
Year end shares outstanding 16,426,786 16,976,763 17,772,944
Net earnings (loss) per share - basic $5.67 $3.31 $2.99
Net earnings (loss) per share - diluted $5.61 $3.28 $2.97
Cash dividends declared per share - $0.80 $0.75
Number of full time employees 154000 147000 137000
Number of common stockholders 23502 22797 23233
Foreign currency translation adjustments - 88000 -408000
Balance Sheet
Exchange rate used is that of the Year End
reported date
As Reported Annual Balance Sheet
Report Date 09/25/202
1
09/26/202
0
09/28/201
9
Currency USD USD USD
Audit Status Not
Qualified
Not
Qualified
Not
Qualified
Consolidated Yes Yes Yes
Scale Thousan
ds
Thousan
ds
Thousan
ds
Cash & cash equivalents $34,940.
The June 2014 board meeting financial presentation included:
1) A tax report showing total levy of $82.0 million and tax collections of $81.3 million which is 99.7% of the $81.6 million budgeted taxes.
2) A report on securities pledged against deposits showing a depository pledge of $9.2 million which is 139% of the $6.6 million requirement.
3) Comparisons of the 2013-2014 budget to actual for the general fund, food service fund, and debt service fund showing revenues and expenditures close to or under budget in all funds.
4) An investment report showing $64 million total invested across various accounts with rates from 0.
The document describes a profit blueprint system that helps businesses improve their net profit performance over time. It does this by taking a similar approach to how sports teams study game film and analyze their own and opponents' performances to identify areas for improvement. The system provides financial analysis reports with key metrics and targets to help businesses see if their strategies are working and make better decisions. It also offers phone coaching to provide proven ideas and best practices from top-performing companies.
1. Management of cash involves preparing cash budgets to forecast cash inflows and outflows. This helps control cash levels and ensure adequate funds are available.
2. Techniques to control cash inflows include concentration banking and lockbox systems which speed up collection of receipts. Controlling outflows aims to delay payments as much as possible.
3. Surplus cash beyond normal requirements can be invested optimally using models like Baumol and Miller-Orr that balance carrying costs of holding cash versus transaction costs of converting investments to cash.
Understanding your Key Performance Indicators (KPIs) is the first step in making improvements to your practice performance. Learn how to calculate KPIs and the impact they have on your financial performance
Extra Credit Assignment, Econ 140 (3)Choose any topic discussed.docxnealwaters20034
Extra Credit Assignment, Econ 140 (3%)
Choose any topic discussed in the managerial economics class and write a 3 – 5 page essay with the following specifications.
1. Typed – Double spaced
2. Font Size - 12
3. Margins – 1 inch (top, bottom, right and left)
The paper should consist of the following:
(a) A discussion on your selected topic covering the main points.
(b) At least one news article related to the chosen topic, showing the application of the concept in the real world. You can easily find such news articles on google.
(c) Write in your own words what you’ve understood from the article(s) and how this relates to what you have learned in the Econ 140 class.
(d) Download (or scan) the articles and upload them along with your paper. The articles will not be included in the page count.
Other Requirements:
· Title of the paper and Your Name (Top corner of the first page)
· References (These should be on the last page of the assignment)
You can earn a maximum of 3% on this assignment. The grading TA’s decision regarding your assignment grade will be final; the assignment is not subject to grade-disputes. The assignments will be randomly distributed among the TAs for grading purpose.
(Keep in mind that late submissions or submissions via email will not be graded.)
1
Front Page
2
Memo
TO:
FROM:
DATE:
SUBJECT:
<text follows>
3
Table of contents
Appendix 1: Pro Forma FCF Page 4
Appendix 2 : Weighted Average Cost of Capital Page 5
Appendix 3 : Balance Sheets Page 6
Appendix 4 : Income Statements Page 8
Appendix 5 : Statements of Cash Flows Page 10
Appendix 6 : 10K Data Collection Page 11
Appendix 7: Market Return and Beta Page 12
4
Pro Format FCF
Value Drivers
Sales Growth 4.07%
Directly related to sales
Operating Expens es (excluding depreciation) 89.86%
Operating Current Assets 17.16%
Operating Current Liabilities 14.31%
Capital Expenditures 4.22%
Not directly related to sales
Depreciation Rate 6.09%
Interest Rate on Debt 5.53%
Interest Rate on ST Inves tments 1.73% <-- 1-year treasury yield (https://www.federalreserve.gov/releases/h15/)
Tax Rate 36.34%
Long term growth rate 0.00%
Unlevered Free Cash Flows Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Jan-27 Jan-28 Jan-29
Sales $17,255,546 $17,958,617 $18,690,334 $19,451,865 $20,244,425 $21,069,276 $21,927,736 $22,821,174 $23,751,014 $24,718,741
Operating Expenses $15,506,519 $16,138,326 $16,795,877 $17,480,219 $18,192,444 $18,933,688 $19,705,135 $20,508,013 $21,343,605 $22,213,242
Depreciation $620,940 $665,274 $711,414 $759,435 $809,412 $861,425 $915,557 $971,895 $1,030,529 $1,091,552
Earnings Before Interest And Taxes $1,128,087 $1,155,017 $1,183,043 $1,212,212 $1,242,569 $1,274,163 $1,307,044 $1,341,265 $1,376,881 $1,413,947
Taxes $409,958 $419,745 $429,930 $440,530 $451,562 $463,044 $474,993 $487,429 $500,372 $513,842
Net Income $718,129 $735,272 $753,114 $771,682 $791,.
Name: Date:
Target Corporation Case
Answers and Analysis
Target Corporation (Target) operates large general merchandise and food discount stores in all of the
United States, with the exception of Alaska Hawaii, and Vermont. The company also has its own credit
card operations and operates a fully integrated online business, target.com. Although the online portion of
target’s business is small relative to the overall size of target, sales are growing at a more rapid pace in the
online business compared to the in-store sales. The company’s philosophy is to offer their customers a
delightful shopping experience and their team members a preferred place to work, and to invest in the
communities in which target conducts business to improve quality of life. Selected information from the
2007 form 10-k of Target Corporation is on pages 228-237.
Required:
1. Analyze the firm’s financial statements and supplementary information. Your analysis should include
the preparation of common-size financial statements, key financial ratios, and an evaluation of
short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, and
market measures.
2. Identify the strengths and weaknesses of the company.
3. What is your opinion of the investment potential and the creditworthiness of Target Corporation?
Company Overview:
Target Corporation (Target or ‘the company’) operates large format general merchandise and food
discount stores in the US, which include Target and Super Target stores. The company offers both
everyday essentials and fashionable merchandise. Target is headquartered in Minneapolis, Minnesota
and employs 366,000 people. The company recorded revenues of $63,367 million in the fiscal year
ended January 2008, an increase of 6.5% over 2007. The operating profit of the company was $5,272
million in the fiscal year 2008, an increase of 4% over 2007. The net profit was $2,849 million in the
fiscal year 2008, an increase of 2.2% over 2007.
Target Corporation
Consolidated Balance Sheets and common-size Balance Sheets
(In millions, except share and per share date)
Period End Date
2008
02/02/2008
2007
02/03/2007
Assets
Cash and Short Term Investments 2,450.00 12.96% 813 5.53%
Cash & Equivalents 599 3.17% 813 5.53%
Short Term Investments 1,851.00 9.79% 0 0.00%
Total Receivables, Net 8,651.00 45.76% 6,757.00 45.95%
Accounts Receivable - Trade, Net 8,054.00 42.60% 6,194.00 42.12%
Accounts Receivable - Trade, Gross 8,624.00 45.62% 6,711.00 45.63%
Provision for Doubtful Accounts -570 -3.01% -517 -3.52%
Receivables - Other 597 3.16% 563 3.83%
Total Inventory 6,780.00 35.86% 6,254.00 42.53%
Prepaid Expenses 0 0.00% 0 0.00%
Other Current Assets, Total 1,025.00 5.42% 882 6.00%
Total Current Assets 18,906.00 100.00% 14,706.00 100.00%
Property/Plant/Equipment, Total - Net 24,095.00 127.45% 21.
Name: Date:
Target Corporation Case
Answers and Analysis
Target Corporation (Target) operates large general merchandise and food discount stores in all of the
United States, with the exception of Alaska Hawaii, and Vermont. The company also has its own credit
card operations and operates a fully integrated online business, target.com. Although the online portion of
target’s business is small relative to the overall size of target, sales are growing at a more rapid pace in the
online business compared to the in-store sales. The company’s philosophy is to offer their customers a
delightful shopping experience and their team members a preferred place to work, and to invest in the
communities in which target conducts business to improve quality of life. Selected information from the
2007 form 10-k of Target Corporation is on pages 228-237.
Required:
1. Analyze the firm’s financial statements and supplementary information. Your analysis should include
the preparation of common-size financial statements, key financial ratios, and an evaluation of
short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, and
market measures.
2. Identify the strengths and weaknesses of the company.
3. What is your opinion of the investment potential and the creditworthiness of Target Corporation?
Company Overview:
Target Corporation (Target or ‘the company’) operates large format general merchandise and food
discount stores in the US, which include Target and Super Target stores. The company offers both
everyday essentials and fashionable merchandise. Target is headquartered in Minneapolis, Minnesota
and employs 366,000 people. The company recorded revenues of $63,367 million in the fiscal year
ended January 2008, an increase of 6.5% over 2007. The operating profit of the company was $5,272
million in the fiscal year 2008, an increase of 4% over 2007. The net profit was $2,849 million in the
fiscal year 2008, an increase of 2.2% over 2007.
Target Corporation
Consolidated Balance Sheets and common-size Balance Sheets
(In millions, except share and per share date)
Period End Date
2008
02/02/2008
2007
02/03/2007
Assets
Cash and Short Term Investments 2,450.00 12.96% 813 5.53%
Cash & Equivalents 599 3.17% 813 5.53%
Short Term Investments 1,851.00 9.79% 0 0.00%
Total Receivables, Net 8,651.00 45.76% 6,757.00 45.95%
Accounts Receivable - Trade, Net 8,054.00 42.60% 6,194.00 42.12%
Accounts Receivable - Trade, Gross 8,624.00 45.62% 6,711.00 45.63%
Provision for Doubtful Accounts -570 -3.01% -517 -3.52%
Receivables - Other 597 3.16% 563 3.83%
Total Inventory 6,780.00 35.86% 6,254.00 42.53%
Prepaid Expenses 0 0.00% 0 0.00%
Other Current Assets, Total 1,025.00 5.42% 882 6.00%
Total Current Assets 18,906.00 100.00% 14,706.00 100.00%
Property/Plant/Equipment, Total - Net 24,095.00 127.45% 21 ...
Name: Date:
Target Corporation Case
Answers and Analysis
Target Corporation (Target) operates large general merchandise and food discount stores in all of the
United States, with the exception of Alaska Hawaii, and Vermont. The company also has its own credit
card operations and operates a fully integrated online business, target.com. Although the online portion of
target’s business is small relative to the overall size of target, sales are growing at a more rapid pace in the
online business compared to the in-store sales. The company’s philosophy is to offer their customers a
delightful shopping experience and their team members a preferred place to work, and to invest in the
communities in which target conducts business to improve quality of life. Selected information from the
2007 form 10-k of Target Corporation is on pages 228-237.
Required:
1. Analyze the firm’s financial statements and supplementary information. Your analysis should include
the preparation of common-size financial statements, key financial ratios, and an evaluation of
short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, and
market measures.
2. Identify the strengths and weaknesses of the company.
3. What is your opinion of the investment potential and the creditworthiness of Target Corporation?
Company Overview:
Target Corporation (Target or ‘the company’) operates large format general merchandise and food
discount stores in the US, which include Target and Super Target stores. The company offers both
everyday essentials and fashionable merchandise. Target is headquartered in Minneapolis, Minnesota
and employs 366,000 people. The company recorded revenues of $63,367 million in the fiscal year
ended January 2008, an increase of 6.5% over 2007. The operating profit of the company was $5,272
million in the fiscal year 2008, an increase of 4% over 2007. The net profit was $2,849 million in the
fiscal year 2008, an increase of 2.2% over 2007.
Target Corporation
Consolidated Balance Sheets and common-size Balance Sheets
(In millions, except share and per share date)
Period End Date
2008
02/02/2008
2007
02/03/2007
Assets
Cash and Short Term Investments 2,450.00 12.96% 813 5.53%
Cash & Equivalents 599 3.17% 813 5.53%
Short Term Investments 1,851.00 9.79% 0 0.00%
Total Receivables, Net 8,651.00 45.76% 6,757.00 45.95%
Accounts Receivable - Trade, Net 8,054.00 42.60% 6,194.00 42.12%
Accounts Receivable - Trade, Gross 8,624.00 45.62% 6,711.00 45.63%
Provision for Doubtful Accounts -570 -3.01% -517 -3.52%
Receivables - Other 597 3.16% 563 3.83%
Total Inventory 6,780.00 35.86% 6,254.00 42.53%
Prepaid Expenses 0 0.00% 0 0.00%
Other Current Assets, Total 1,025.00 5.42% 882 6.00%
Total Current Assets 18,906.00 100.00% 14,706.00 100.00%
Property/Plant/Equipment, Total - Net 24,095.00 127.45% 21.
Similar to Advanced CFO - How to see and survive a cash crisis (20)
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
4. 3
Reasons to Manage
Cash
1. Early warning system
2. Identify problems with customers
3. Ensure payment of suppliers and employees
4. Comply with lender requirements
5. Control the way cash is expended
5. 4
How to Manage Cash
1.Take control of cash
2.Create a cash reserve
3.Forecast cash
11. Two How to Survive a Cash
Crisis
1. Take control of cash
2. Identify hidden cash
3. Find expense savings
4. Restructure trade payables
5. Rid organization of deadwood
6. Collect money from customers
12. Two How to Survive a Cash
Crisis
7. Factor receivables
8. Sell unproductive assets
9. Restructure long-term agreements
10. Restructure bank debt
11. Consider sale leasebacks
12. Explore other sources of financing
13. Hire professional help
14. Thank you for attending today
For a copy of the presentation, send an email to
info@advancedcfo.com with “Webinar – Cash Management” in the subject line
Presenter:
Matt McKinlay
Partner, Advanced CFO
Editor's Notes
Thank you and welcome.
Move Quickly, Respect time
Fundamentals and time for Q&A
Today we’ll discuss:
1. Why cash and cash management are so important?
2. How to control and better manage cash.
3. Uh oh! I’m in a cash crunch now! How do I survive?
Cash is the lifeblood of any business. Your business might be large or small, growing or declining, a for profit or not-for profit, regardless, you need cash to survive.
Poor cash management practices are the number one reason businesses fail.
Unfortunately most business owners tend to focus on revenue, profits, expenses, customers, employees, and various other operating metrics, and leave cash to chance. To them, the customer is king. Or net profit is king. Or revenue, and so forth. While these are all important, they do little to protect the lifeblood of the business.
For any company to survive, cash flow is the single most important financial factor. A company can have fantastic revenue, reasonable expenses, and significant income, but if its cash management practices are not effective, it could still have negative cash flow. And without positive cash flow, any company, no matter how promising the business model, will go bankrupt. In fact, I was once engaged by a business with a balance sheet that showed a net worth of several million dollars, but it ran out of cash and was forced into a chapter 11 by its creditors.
Here's another particularly dangerous scenario that is far too common: ABC Enterprises has been up and running for a few years and starts allowing longer terms of repayment to its customers. It decides (and rightfully so) that it can generate more sales with more flexible repayment terms. Sure enough, sales surge and most customers are using flexible repayment terms. At the same time ABC Enterprises is also purchasing more inventory, diversifying the type and increasing the quantity to sustain sales.
How does the income statement look? Sales look good, net profit looks good, the numbers are increasing period over period so initiatives appear successful. The balance sheet also appears to be doing great, lots of current assets (in the form of AR's and inventory) minus whatever debts are being incurred to sustain the operation.
But here's the problem, if AR's and inventory are expanding period over period, this all comes at the expense of cash. Add to inventory becoming obsolete and trouble collecting (likely to have more bad debt in this scenario) and you have a recipe for disaster that could fly under the radar if looking at the balance sheet, income statement, and key metrics alone.
In another instance, consider a business that’s been declining for several periods, and the owner hasn’t been able to trim expenses. Over time, sales can’t keep pace with the company’s expense structure, and the company falls behind with it’s trade vendors, landlord or worse, employees. A sure way to close the doors on the business is to miss a payroll, or bounce payroll checks!
In all these instances, better cash management practices would help these businesses survive and succeed.
So why should a business owner manage cash?
There are at least five reasons:
To create an early warning system. A business owner that can predict that a cash shortfall is coming has many more options to address it than a business owner that gets surprised by a cash crunch. I’ve had this call before: “Payroll is due Friday and I don’t have the cash to cover it. Can you help!?”
To identify problems with customers. Managing cash can help a business owner learn which customers are paying their debts timely and which are not.
To ensure the business can pay suppliers and employees. Suppliers who don’t get paid will soon stop supplying the business. Worse, employees that don’t get paid will stop showing up for work!
To comply with requirements by lenders. Many lenders require borrowers to provide cash flow reports, to ensure the business is liquid.
To control the way cash is expended. Many business owners that begin managing cash better are surprised by the number of ways cash can leave the business. For instance, some business owners are surprised by the amount of travel and entertainment expenses made by employees through company-issued credit cards. Cash forecasts alert the business owner to the number of ways cash is expended and can help him or her better manage them.
We’ve discussed why cash is king, and why it’s important to manage cash. Now let’s talk about how.
With an understanding of why forecasting cash is so important, let’s consider how to do it
To better manage cash, business owners need to take three steps:
Take control of cash
Evaluate the ways cash can leave the business (ie DBSI 400 employees with 150 credit cards). Who are the check signatories, who is authorized to cut purchase orders, etc., who has wiring capabilities.
CEO or CFO approves all spending and hiring decisions
Approve spending that adds value to the business
Create a reserve
Just like you’d set aside a rainy day fund for your household, your business should also have a cash reserve. The amount and type of reserves depend on a number of factors including expense run-rates, sensitivity of the business to seasonal changes or economic changes, the stage of your business, growth opportunities, other sources of liquidity that will be readily available and so forth. An expert can help you determine the right amount, but generally, it’s recommended healthy businesses keep three to six months of operating expenses in reserve. Ie - I have a friend that’s a car dealer. Escalades trading in for $60k and purchasing a $20k note.
Implement and manage a cash forecast
The one we’re going to spend the most time on – forecasting cash. We’ll even get pretty tactical.
Not extensive or overly complex. In fact, Kitchen table budgeting
Cash Forecast
I suggest companies forecast cash weekly, at least initially. Stable and non-seasonal companies can get by with a monthly forecast after they get in the rhythm.
For measuring short-term liquidity, which answers the question, do I have enough cash to pay bills that are currently due, the standard practice is to forecast cash 13 weeks - 90 days or one quarter. While we will focus here on a cash forecast over 13 weeks to measure the company’s liquidity, your business should also include a longer term cash forecast in it’s long-term budgeting cycle, to anticipate longer-term cash needs.
The main sections of the cash forecast includes a section for anticipated cash receipts by week (shown in green), a section for disbursements (shown in yellow), and a section for liquidity in blue.
The process for creating the forecast is as follows. First, plug in the current bank account balances (or line availability if you use a line of credit). Then, work with your Accounts Receivables Collections team to forecast what collections will be received each week. Work with your payables team to determine what invoices will be paid, and when. Your payroll clerk (which might be the same person) should project payroll and payroll tax expense. Add any additional receipts or disbursements you’re aware of like one-time items, special purchases and so forth.
The difference between your receipts ($X) and disbursements ($Y) is operating cash flow ($Z). This will be computed on a weekly basis.
Add or subtract the weekly operating cash flow from the beginning cash balance (or, if operating under a line of credit, line availability) to compute the ending cash balance (or ending line availability). The previous week’s ending balance becomes the next week’s beginning balance and rolls forward.
This is the framework, and with the right information can be completed in 30 minutes each week.
Key Principle: Never spend more in a week than you have cash available at the end of the previous week. Simply stated, find out your bank balance on Monday, and don’t make disbursements that exceed that balance, even if you think you can rely on the collections to come in. Obvious, I know. But you’d be surprised by the number of business owners that write checks based on the collections that are promised to come. Following this principle will help you avoid a serious crisis when a customer doesn’t pay when they say they will.
Sometimes with my clients, I list disbursements at the top of the cash forecast, and receipts at the bottom to help keep this principle front and center.
The most important part of the cash forecast is to compare actual performance with budgeted performance.
MUST DO ITEM! Almost always forget
Fcst loses its power unless weekly learning built in.
Looks the same as your weekly fcst, just compares:
What did I say would happen last week
What actually happened last week
Let’s assume this is a business that sells building materials to contractors on credit and to retail customers for cash.
In this instance, this company’s operating cash flow was $44.3k poorer than projected. At a glance, this is due to paying rent a week early, which is partially offset by an unexpected sale of consigned goods. Digging deeper there’s more to the story.
Comparing actuals against forecast provides valuable insights, and prompts the business owner for specific actions needing to be taken?
More overtime than expected, despite slower foot traffic due to the rain (why?) Valuable learnings…
Perhaps the unexpected ceiling repair made employees less efficient.
Didn’t collect from customers the way I expected – chase harder
Cash Forecast
Continuing the example with the building supply company.
So what if your cash forecast looks like this?
In the example, the business looks to be heading toward trouble. Over the 13 weeks, it consumes nearly $60k in operating cash, and has only $41k left in the bank. This is only about 1/3 of the monthly expense burn rate. Further, it had a one-time cash receipt of $28k in week 3 that probably won’t continue.
In this example, the business owner knows it has at least four weeks before the crisis grows, and he/she has time to create a plan.
So, what should the business owner do?
First, before discussing specific actions, it’s important to caution that as liquidity becomes scarce, there are two mistakes that, if made, can and will shut your business down: bouncing checks and missing payroll. For that reason, we’re always going to maintain a positive bank account balance (we’re not going to write checks for funds that aren’t available); and make payroll. These items are almost always our first priority.
With that note of caution, here are some steps the business owner can take to avert a crisis.
Unfortunately, there’s no magic bullet to survive a cash crisis – takes focus and very tough decision-making. Some people might see actions that need to be taken, but aren’t able to take them because it affects friends or family members.
There are 13 action items I coach business owners to take that are listed on this and the next page. While this is not an exhaustive list, and any company might not take all actions, these actions will provide both short term cash to survive an immediate crisis, and long-term cash to sustain the business until operational changes can be made.
When I’m consulting a client with cash constraints, I make the first three points mandatory, so we’ll discuss them in greater detail.
Take control of cash. In fact, apply a tight tourniquet on the business. CEO / CFO becomes sole signatory, all hiring freezes, all PO’s approved by owner. I want to make it very hard for the organization to spend money.
Identify hidden cash. Every company I’ve worked with has some – ie, United Pipe with $25k legal retainer; Franson $5,000 utility deposit, RAR security deposit held by a state labor board to secure a workers comp policy.
Find expense savings. Look for discretionary expenses, like advertising, overtime, trade shows, subscriptions, etc.
Work with key suppliers to restructure trade payables. Farm client willing to restructure $4.3M in trade debt to long-term.
Rid organization of deadwood – poor performing employees, or employees with poor attitudes
Collect money from customers. You want to get real aggressive. Offer better terms to entice immediate payment. CEO can help.
7. Factor receivables - Somewhat expensive, but can be underwritten within a couple weeks and provides immediate cash
8. Sell unproductive assets - Weekend car, manufacturer with stale inventory, farm equipment (7500 acres reduced to 3200)..
9 – 11 – Hire a professional – attorney, restructuring advisor
12 – Explore other sources of financing - Customers, suppliers, strategic partners, friends and family
13 – Hire a good professional – various traps when a company cannot pay its obligations when they become due. The right professional can save you from these traps.
While this is a high-level overview
So that’s it.
You’ve learned:
Why cash and cash management is so important
How to control and better manage cash, and you’ve seen a cash forecast template that can help
What help and actions can be taken to survive a cash crisis
Thank you again for your participation today, and I hope you’ve found today’s webinar useful. For more information, please visit our website, or send an email to info@advancedcfo.com with “Webinar – Cash Management” in the subject line. Feel free to also contact me directly at mmckinlay@advancedcfo.com.
Dave, back to you.