Preseason Planning and Cash Flow Management. Mike Barnidge Credit Manager

Size: px
Start display at page:

Download "Preseason Planning and Cash Flow Management. Mike Barnidge Credit Manager"

Transcription

1

2 Preseason Planning and Cash Flow Management Mike Barnidge Credit Manager

3 This seminar provides a planning and forecasting tool you can use throughout the year to fine-tune your financials, plan for anticipated growth, and make smarter decisions about preseason commitments.

4 Banking Personal History QBP AE/Outside Sales Credit Manager Passion for Small Businesses

5 OBJECTIVES FOR TODAY FORECASTING 101 INTRODUCE FORECASTING TEMPLATE LEARN THE TOOL USE THE TOOL GROUP WORK INCORPORATING PRESEASON COMMITMENTS

6 FORECASTING 101 Forecasting a planning tool that helps management in its attempts to cope with the uncertainty of the future, relying on data from the past and present, assumptions of the future, and analysis of trends. Forecasting can be as complicated and sophisticated as you want to make it Forecasting can be as simple as you want to make it Find the right spot for your business

7 Projection July 12 August 12 September 12 October 12 November 12 December 12 YTD Sales $ 110, $ 109, $ 75, $ 78, $ 51, $ 45, $ 933, Cost of Goods Sold $ 53, $ 52, $ 36, $ 37, $ 24, $ 21, $ 447, Gross Margin $ 57,580 $ 57,121 $ 39,430 $ 40,898 $ 26,926 $ 23,745 $ 485,205 Operating Expenses Payroll $ 27, $ 27, $ 18, $ 19, $ 12, $ 11, $ 233, Occupancy $ 3, $ 3, $ 2, $ 2, $ 1, $ 1, , General and Administration Expenses $ $ $ $ $ $ $ Advertising and Promotion $ 2, $ 2, $ 1, $ 1, $ 1, $ $ 20, Insurance $ $ $ $ $ $ $ 5, Other Operating Expenses $ 3, $ 3, $ 2, $ 2, $ 1, $ 1, $ 31, Licenses and Taxes $ 6, $ 6, $ 4, $ 4, $ 2, $ 2, $ 52, Telephone $ $ $ $ $ $ $ 2, Office Expenses $ $ $ $ $ $ $ 6, Travel and Entertainment $ $ $ $ $ $ $ 1, Auto Expense $ $ $ $ $ $ $ Depreciation and Amortization $ $ $ $ $ $ $ Professional Services $ 1, $ 1, $ 1, $ 1, $ $ $ 16, Total SG&A Expenses $ 16,357 $ 16,227 $ 11,201 $ 11,618 $ 7,649 $ 6,745 $ 137,836 Total Operating Expenses $ 47,162 $ 46,786 $ 32,296 $ 33,499 $ 22,054 $ 19,449 $ 397,417 Net Profit/(Loss) $ 10,418 $ 10,335 $ 7,134 $ 7,400 $ 4,872 $ 4,296 $ 87,788 Other Income (Expense) $ (688.11) $ (682.62) $ (471.20) $ (488.75) $ (321.77) $ (283.76) $ (5,798.40) Net Income (Loss) Before Tax $ 9,730 $ 9,652 $ 6,663 $ 6,911 $ 4,550 $ 4,012 $ 81,989 Forecast Example July to December

8 Myths of Forecasting My forecast is always wrong, so I don t really need to do it in the end. Forecasting is easy when my business is growing and difficult when my business isn t growing. I only need to look at my forecast once a year when I m actually sitting down to complete it. I have to be a math wizard or have an accounting degree to forecast.

9 WHY FORECAST? Forecasting is the best way to truly understand your business goals for the coming year. It is a thought provoking, idea creating, and confidence building exercise that creates your financial foundation for the year ahead. Forecasting helps you understand how integrating new product lines can impact your bottom line. It can guide you to decide when and how much to buy Feasibility Reading I m going to grow 25% next year! Finally, Forecasting can help you understand how changes in debt, business expenses, and personnel will impact your bottom line.

10 BIG HUGE INTIMIDATING EXCEL FILE INTRO Created this for an actual dealer Includes actual NBDA benchmarks Best Practices Create a Save As file for your shop. Use the original as the Alamo. You might delete a formula that you didn t want to delete. Having the original file to fall back on is ideal. Start simple - what in this spreadsheet looks familiar to you? Start there. If nothing looks familiar call me, we should talk. The more you use it, the better it gets.

11 NBDA DATA Information provided by shops in a survey initiated in the spring of 2010 This was a voluntary survey 102 shops responded to this survey and provided their information Shop Demographics Includes both single location retailers as well as multiple location retailers Includes retailers from across the country Primarily Urban or Very Urban locations, along with some Rural locations based on population and density

12 Actuals Projection Assumption Table YTD Comparison

13 ACTUALS PAST RACE RESULTS This is the starting point of the spreadsheet. Inputting your actual results from last year along with year-to-date numbers if applicable. A green field signifies that you need to input a number there. Why this format? Format ties directly to the NBDA format. Do the best you can. Not all of these lines will flow perfectly with your financials. Be aware that some cells include a formula. Those cells will not be highlighted in green. Change the green cells and leave the rest. Check for accuracy ex. Revenue less COGS/Revenue will equal Gross Margin. The Gross Margin on your financials should equal the Gross Margin here when entered correctly. Check all numbers that you enter.

14 ASSUMPTION TABLE - PLANNING Remember Green means input something here. Verify that your PY Results in column B are accurate. These are calculations based off your actuals from the prior year. Start with what you know will stay the same or close to the same. (Operating expenses) Sales growth add 100% to what your goal is. Ex. Goal of 7% growth = 107%. This matches last year and adds on the growth. Assumption Table flows to Projections.

15 ASSUMPTION TABLE Gross Margin Calculation = Rev-COGS/Rev. Average Inventory = (Beginning Inv + Ending Inv)/2 Inventory Turnover = COGS/Average Inventory Average Days to Sell Inventory = 365/Inventory Turnover. AP Days = (Accounts Payables/COGS)*365

16 PROJECTION COMPLETED TRAINING PLAN Two parts Actuals previous year Projection the plan for this year Projection is a calculation based on your Assumption table and last year s actual numbers Converts the % into actual hard dollars. Verify the numbers look accurate AND realistic. Can I really do $1mm in October?

17 YTD COMPARISON RACE RESULTS Think of your comparison as the Race Results Two Comparisons Compares this month, this year to last year and the projection for this year Compares this YTD to last YTD and YTD projection Includes NBDA Data average of all shops and what a high profit shop looks like. Analyze the differences between this year and last as well as between your projection and reality. What contributed to the variance? Write down your reasons for the difference each month. This will help you better understand how to improve. It will also help you remember your year as you review and prepare for next year.

18 Group Work Answer Three Questions: 1. What are 3 factors that you look at to determine your growth number for the coming year? We are going to grow 15% next year sounds great, but how did you arrive at that number? 2. You and your staff have determined that purchasing a shop vehicle is a huge opportunity to grow your business. How are you going to determine what you could/should spend on that vehicle and when you should do it? 3. What is the one barrier you have to utilizing this tool throughout the year? How are you going to overcome that barrier?

19 PRESEASON COMMITMENTS How much should I buy and when should I take it? Longer terms are ALWAYS better, right? Growth and Purchasing having enough of the right product when you need it Resisting the urge to blindly take on brands without proper planning

20 QUESTIONS?

21 FORECASTING TEMPLATE LINK

FINANCIAL INTRODUCTION

FINANCIAL INTRODUCTION FINANCIAL INTRODUCTION In earlier sections you calculated your cost of goods sold, overhead expenses and capital cost in order to help you determine the sales price of your product. In your business plan,

More information

Breakeven Analysis. Breakeven for Services.

Breakeven Analysis. Breakeven for Services. Dollars and Sense Introduction Your dream is to operate a profitable business and make a good living. Before you open, however, you want some indication that your business will be profitable, if not immediately

More information

How to Use the Cash Flow Template

How to Use the Cash Flow Template How to Use the Cash Flow Template When you fill in your cash flow you are trying to predict the timing of cash in and out of your bank account to show the affect and timing for each transaction when it

More information

Financial Statements and Ratios: Notes

Financial Statements and Ratios: Notes Financial Statements and Ratios: Notes 1. Uses of the income statement for evaluation Investors use the income statement to help judge their return on investment and creditors (lenders) use it to help

More information

PRODUCTIVITY & GROWTH

PRODUCTIVITY & GROWTH Productivity Financial Tools There are a number of financial tools that can be used to measure the financial performance and potential contribution of improvement projects to the productivity of a business.

More information

Instructions for E-PLAN Financial Planning Template

Instructions for E-PLAN Financial Planning Template Instructions for E-PLAN Financial Planning Template The EPLAN template will assist you in preparing financial projections for your existing business. The template uses Microsoft Excel to prepare your projected

More information

Financial Statements LESSON 15. What are Financial Statements?

Financial Statements LESSON 15. What are Financial Statements? Financial Statements LESSON 15 Main Idea Business owners must have accurate and timely information about the fi nancial status of their business to make the best decisions. Most of this fi nancial information

More information

Financial/Accounting Analysis Ratios Excel Calculator

Financial/Accounting Analysis Ratios Excel Calculator User Guide Financial/Accounting Analysis Ratios Excel Calculator Dec 2008 Version 2 copyright 2008 Business Tools Templates Financial/Accounting Analysis Ratios Excel Calculator Financial Analysis Ratios

More information

Blended Value Business Plan Pro Forma Income Statement User Guide

Blended Value Business Plan Pro Forma Income Statement User Guide Blended Value Business Plan Pro Forma Income Statement User Guide OVERVIEW A business plan goes beyond the forecasting of a Feasibility Study. It provides details on the multiple factors required to develop

More information

Chapter 27 Pricing Math. Section 27.1 Calculating Prices Section 27.2 Calculating Discounts

Chapter 27 Pricing Math. Section 27.1 Calculating Prices Section 27.2 Calculating Discounts Chapter 27 Pricing Math Section 27.1 Calculating Prices Section 27.2 Calculating Discounts Calculating Prices Key Terms gross profit maintained markup Objectives Explain how a firm s profit is related

More information

Financial. Management FOR A SMALL BUSINESS

Financial. Management FOR A SMALL BUSINESS Financial Management FOR A SMALL BUSINESS Welcome 1. Agenda 2. Ground Rules 3. Introductions FINANCIAL MANAGEMENT 2 Objectives Explain the concept of financial management and its importance to a small

More information

Writing a Business Plan

Writing a Business Plan Writing a Business Plan Small Business Development Center Georgia State University 404-651-3550 web: www.gsu.edu/sbdc Writing a Business Plan Georgia State SBDC 1 Why Write a Business Plan? A Business

More information

ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure

ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure Chapter 7. Methods of Financial Forecasting: Integrated Financial Modeling Questions and Problems 1. The cash cycle is the time between when

More information

Understanding Financial Statements. For Your Business

Understanding Financial Statements. For Your Business Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,

More information

Income Measurement and Profitability Analysis

Income Measurement and Profitability Analysis PROFITABILITY ANALYSIS The following financial statements for Spencer Company will be used to demonstrate the calculation of the various ratios in profitability analysis. Spencer Company Comparative Balance

More information

Performance Review. Sample Company

Performance Review. Sample Company Performance Review Sample Company For the period ended 12/31/2017 Provided By Page 1 / 18 This report is designed to assist you in your business' development. Below you will find your overall ranking,

More information

Section 12.1 Financial Ratios Section 12.2 Break-Even Analysis

Section 12.1 Financial Ratios Section 12.2 Break-Even Analysis Section 12.1 Financial Ratios Section 12.2 Break-Even Analysis OBJECTIVES Explain what a financial ratio is Describe how income statements are used for financial analysis Compare operating ratios and return-on-sales

More information

Carnegie Mellon University Center for Innovation & Entrepreneurship. Financial Modeling

Carnegie Mellon University Center for Innovation & Entrepreneurship. Financial Modeling Carnegie Mellon University Center for Innovation & Entrepreneurship Financial Modeling Phil Compton, CoFounder & CFO Malcovery Security www.malcovery.com pacmanwvu@gmail.com February 17, 2016 My Background

More information

Module 2: Preparing for Capital Venture Financing Building Pro-Forma Financial Statements

Module 2: Preparing for Capital Venture Financing Building Pro-Forma Financial Statements Module 2: Preparing for Capital Venture Financing Building Pro-Forma Financial Statements Module 2: Preparing for Capital Venture Financing Building Pro-Forma Financial Statements TABLE OF CONTENTS 1.0

More information

Discussion Board Articles Ratio Analysis

Discussion Board Articles Ratio Analysis Excellence in Financial Management Discussion Board Articles Ratio Analysis Written by: Matt H. Evans, CPA, CMA, CFM All articles can be viewed on the internet at www.exinfm.com/board Ratio Analysis Cash

More information

FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT 100 Arbor Drive, Suite 108 Christiansburg, VA 24073 Voice: 540-381-9333 FAX: 540-381-8319 www.becpas.com Providing Professional Business Advisory & Consulting Services Douglas L. Johnston, II djohnston@becpas.com

More information

Basic Business Plan Outline

Basic Business Plan Outline Basic Business Plan Outline A business plan needs to be a well thought out, honest, appraisal of the business and opportunity. This outline is meant to be used for your road map. It should be a living

More information

Financial Ratios and Quality Indicators

Financial Ratios and Quality Indicators Financial Ratios and Quality Indicators From U.S. Small Business Administration Online Women's Business Center If you monitor the ratios on a regular basis you'll gain insight into how effectively you

More information

A Method of Determining Inventory Levels for Retail Jewelers

A Method of Determining Inventory Levels for Retail Jewelers A Method of Determining Inventory Levels for Retail Jewelers Abe Sherman, CEO Buyers Intelligence Group JCK 2012 Booth: S11487 info@bigjewelers.com Abe Sherman Buyers Intelligence Group JCK 2012 Booth:

More information

CASH FLOW STATEMENT & BALANCE SHEET GUIDE

CASH FLOW STATEMENT & BALANCE SHEET GUIDE CASH FLOW STATEMENT & BALANCE SHEET GUIDE The Agriculture Development Council requires the submission of a cash flow statement and balance sheet that provide annual financial projections for the business

More information

Quiz - Chapter 9 - Solutions

Quiz - Chapter 9 - Solutions Quiz - Chapter 9 - Solutions 1. Royco, Inc. contracted, for the current year, to purchase $425,000 worth of light fixtures from a retailer for $5 per unit. Royco keeps 12 1/2 percent of its annual purchases

More information

Certain statements in this presentation constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of

Certain statements in this presentation constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of November 2015 1 Forward Looking Statements Certain statements in this presentation constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words

More information

Business Plan Template

Business Plan Template Business Plan Template Why have a Business Plan? The real value of your business plan is to empower you in a systematic way to comprehend the dynamics of your business. It enables you to review your business

More information

Financial. Management FOR A SMALL BUSINESS

Financial. Management FOR A SMALL BUSINESS Financial Management FOR A SMALL BUSINESS 1 Agenda Welcome, Pre-Test, Agenda, and Learning Objectives Benefits of Financial Management Budgeting Bookkeeping Financial Statements Business Financing Key

More information

An Inside Look at Open to Buy for Direct Marketers

An Inside Look at Open to Buy for Direct Marketers ONE OF A CATALOGER'S LARGEST ASSETS is its inventory but if not controlled, inventory can quickly become one of its largest liabilities in terms of cash flow and overstock. Although catalogers try to control

More information

BI360 Template Examples for Budgeting and Reporting. C o p y r i g h t - S o l v e r, I n c. 2 0 1 0 1 P a g e w w w. s o l v e r u s a.

BI360 Template Examples for Budgeting and Reporting. C o p y r i g h t - S o l v e r, I n c. 2 0 1 0 1 P a g e w w w. s o l v e r u s a. BI360 Template Examples for Budgeting and Reporting C o p y r i g h t - S o l v e r, I n c. 2 0 1 0 1 P a g e w w w. s o l v e r u s a. c o m Table of Contents Solver Templates... 4 Budget and Forecast

More information

Merchandise Accounts. Chapter 7 - Unit 14

Merchandise Accounts. Chapter 7 - Unit 14 Merchandise Accounts Chapter 7 - Unit 14 Merchandising... Merchandising... There are many types of companies out there Merchandising... There are many types of companies out there Service company - sells

More information

INCOME APPROACH Gross Income Estimate - $198,000 Vacancy and Rent Loss - $9,900

INCOME APPROACH Gross Income Estimate - $198,000 Vacancy and Rent Loss - $9,900 INCOME APPROACH The Income Approach considers the return on Investment and is similar to the method that investors typically use to make their investment decisions. It is most directly applicable to income

More information

Developing Business Plans and Funding Proposals

Developing Business Plans and Funding Proposals The best source of information and training on Aboriginal finance and management The Aboriginal Finance and Management Capacity Development Series Developing Business Plans and Funding Proposals A Practical

More information

Financial Forecasting (Pro Forma Financial Statements)

Financial Forecasting (Pro Forma Financial Statements) Financial Modeling Templates Financial Forecasting (Pro Forma Financial Statements) http://spreadsheetml.com/finance/financialplanningforecasting_proformafinancialstatements.shtml Copyright (c) 2009, ConnectCode

More information

START YOUR OWN BUSINESS WORK BOOK 4 BUSINESS VIABILITY

START YOUR OWN BUSINESS WORK BOOK 4 BUSINESS VIABILITY START YOUR OWN BUSINESS WORK BOOK 4 BUSINESS VIABILITY BUSINESS VIABILITY What costs do I need to consider and what s the difference between startup, fixed and variable costs? How much do I need to sell

More information

SECTION FOUR DEBT SERVICE COVERAGE RATIO

SECTION FOUR DEBT SERVICE COVERAGE RATIO SECTION FOUR DEBT SERVICE COVERAGE RATIO The previous Section thoroughly covered Income and Expense on commercial real estate. Once the Net Operating Income (No1) is accurately calculated it is then used

More information

12 tips for taking control of inventory control.

12 tips for taking control of inventory control. White paper 12 tips for taking control of inventory control. Keeping track of inventory in a growing retail business is tricky. These 12 tips can make it easier. www.brightpearl.com Introduction When your

More information

RISK ASSESSMENT FOR SMALL BUSINESS. Terry S. Campbell, Community Development Officer Department of Development & Technology

RISK ASSESSMENT FOR SMALL BUSINESS. Terry S. Campbell, Community Development Officer Department of Development & Technology RISK ASSESSMENT FOR SMALL BUSINESS Terry S. Campbell, Community Development Officer Department of Development & Technology Date: March 25, 2004 1 Counseling Tool Outline - Cover Page - Outline - Introduction

More information

Cash Flow Forecasting & Break-Even Analysis

Cash Flow Forecasting & Break-Even Analysis Cash Flow Forecasting & Break-Even Analysis 1. Cash Flow Cash Flow Projections What is cash flow? Cash flow is an estimate of the timing of when the cash associated with sales will be received and when

More information

Financial Projections Guide. Simple Steps for Starting Your Business

Financial Projections Guide. Simple Steps for Starting Your Business Financial Projections Guide Simple Steps for Starting Your Business This guide was created to accompany the SCORE Financial Projections Template, which is part of the Simple Steps for Starting Your Business

More information

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information.

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information. 0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting

More information

Financing Entrepreneurial Ventures Part 1 Financial Plan & Statements

Financing Entrepreneurial Ventures Part 1 Financial Plan & Statements Financing Entrepreneurial Ventures Part 1 Financial Plan & Statements Barbara Peitsch Program Director, Univ. of Michigan Peter Scott Professor of Entrepreneurship/Consultant August 2015 Economic Empowerment

More information

Mohave Community College Small Business Development Center Financial Statement Spreadsheet Program

Mohave Community College Small Business Development Center Financial Statement Spreadsheet Program Mohave Community College Small Business Development Center Financial Statement Spreadsheet Program Copyright (c) 1998 NPC SBDC Table of Contents 1.0 Overview 2.0 Basic Structure of the program 3.0 Why

More information

Advanced Placement (AP) Accounting

Advanced Placement (AP) Accounting Advanced Placement (AP) Accounting The Advanced Placement (AP) Accounting Course is a full academic year course. The course is based on high school teachers having 120 contact hours with students from

More information

Forecasting Financial Requirements

Forecasting Financial Requirements CHAPTER OUTLINE Spotlight: Planning for Growth (http://www.builtny.com) 1 The Purpose and Need for Financial Forecasting Describe the purpose and need for financial forecasting. Purpose of pro forma financial

More information

Merger Model Overview

Merger Model Overview Merger Model Overview We can divide the merger model into an 8-step process: The merger model tells you what happens when one company acquires another company. Usually, the buyer makes an offer to acquire

More information

Company Financial Plan

Company Financial Plan Financial Modeling Templates http://spreadsheetml.com/finance/companyfinancialplan.shtml Copyright (c) 2009-2014, ConnectCode All Rights Reserved. ConnectCode accepts no responsibility for any adverse

More information

Financial Plan. A) Estimated One-Time Financial Requirements. Part One

Financial Plan. A) Estimated One-Time Financial Requirements. Part One Financial Plan The Financial Plan is perhaps one of the most important components of your Business Plan (see Business Plan Handout). Not only is it essential if you are seeking external financing it is

More information

Core Financial Concepts: Budgeting Mechanics & Projections

Core Financial Concepts: Budgeting Mechanics & Projections Core Financial Concepts: Budgeting Mechanics & Projections You have to look into the future before you open your checkbook. Tuds Baird Budgeting is about using knowledge of the past to shape the future.

More information

New Venture Competition. Financial Forecasting Workshop. Scott Wiscomb and Amelia Taylor. March 10, 2015

New Venture Competition. Financial Forecasting Workshop. Scott Wiscomb and Amelia Taylor. March 10, 2015 New Venture Competition Financial Forecasting Workshop Scott Wiscomb and Amelia Taylor March 10, 2015 Financial Forecasting Workshops Goal # 1 Solid Revenue Forecast Tied to key assumptions from your Team

More information

BUDGETING. Part 1 of 3. How to use an Excel-based budget to analyze company performance. By Jason Porter and Teresa Stephenson, CMA

BUDGETING. Part 1 of 3. How to use an Excel-based budget to analyze company performance. By Jason Porter and Teresa Stephenson, CMA Part 1 of 3 Turning Budgets How to use an Excel-based budget to analyze company performance By Jason Porter and Teresa Stephenson, CMA 34 STRATEGIC FINANCE I July 2011 into Business ILLUSTRATION: ROBERT

More information

6.3 PROFIT AND LOSS AND BALANCE SHEETS. Simple Financial Calculations. Analysing Performance - The Balance Sheet. Analysing Performance

6.3 PROFIT AND LOSS AND BALANCE SHEETS. Simple Financial Calculations. Analysing Performance - The Balance Sheet. Analysing Performance 63 COSTS AND COSTING 6 PROFIT AND LOSS AND BALANCE SHEETS Simple Financial Calculations Analysing Performance - The Balance Sheet Analysing Performance Analysing Financial Performance Profit And Loss Forecast

More information

Features: NEW!! EIM Version 3 Spreadsheets!

Features: NEW!! EIM Version 3 Spreadsheets! NEW!! EIM Version 3 Spreadsheets! An exciting new tool has just been released by EIM, Inc. that implements the principles of effective inventory management! The Version 3 Spreadsheets feature our newly

More information

Business Plan Workbook

Business Plan Workbook Business Plan Workbook Developed by the staff of the Niagara County Community College Small Business Development Center 3111 Saunders Settlement Rd Sanborn, NY 14132 7162102515 www.niagarasbdc.org Call

More information

Forecasting: The Importance of a Financial Model

Forecasting: The Importance of a Financial Model Forecasting: The Importance of a Financial Model Many companies develop an annual budget based on their Profit and Loss Statement for the coming year. While this provides a good picture of expected revenue

More information

Carnegie Mellon University Center for Innovation & Entrepreneurship. Financial Modeling

Carnegie Mellon University Center for Innovation & Entrepreneurship. Financial Modeling Carnegie Mellon University Center for Innovation & Entrepreneurship Financial Modeling Phil Compton, CoFounder & CFO Malcovery Security www.malcovery.com October 7, 2015 My Background BS in Accounting

More information

Learn by doing! Use this workbook in combination with FaBLinker on www.fabeducation.com to learn and reinforce financial skills

Learn by doing! Use this workbook in combination with FaBLinker on www.fabeducation.com to learn and reinforce financial skills Learn by doing! Use this workbook in combination with FaBLinker on to learn and reinforce financial skills 1 Table of Contents Part 1 Financials Practice... 3 Practice 1 - An introduction to FaBLinker...

More information

PROFITCENTS ANALYTICAL PROCEDURES EXPECTED VALUE METHODOLOGY

PROFITCENTS ANALYTICAL PROCEDURES EXPECTED VALUE METHODOLOGY PROFITCENTS ANALYTICAL PROCEDURES EXPECTED VALUE METHODOLOGY INTRODUCTION This document includes an analysis of the projection methodology used in ProfitCents Analytical Procedures in calculating expectations

More information

Plan and Track Your Finances

Plan and Track Your Finances Plan and Track Your Finances 9.1 Financing Your Business 9.2 Pro Forma Financial Statements 9.3 Recordkeeping for Businesses Lesson 9.1 Financing Your Business Goals Estimate your startup costs and personal

More information

4 th Quarter 2010 Earnings Supplemental Information. March 31, 2010

4 th Quarter 2010 Earnings Supplemental Information. March 31, 2010 4 th Quarter 2010 Earnings Supplemental Information March 31, 2010 Safe Harbor Statement Investors are urged to review Rite Aid s SEC filings. Statements, estimates, targets, projections and other information

More information

Part 7. Capital Budgeting

Part 7. Capital Budgeting Part 7. Capital Budgeting What is Capital Budgeting? Nancy Garcia and Digital Solutions Digital Solutions, a software development house, is considering a number of new projects, including a joint venture

More information

National Business Association Operating Plan Forecast Handbook. Page 1 of 12

National Business Association Operating Plan Forecast Handbook. Page 1 of 12 National Business Association Operating Plan Forecast Handbook Page 1 of 12 Page 2 of 12 The National Business Association (NBA) is a not for profit association, specifically designed and actively managed

More information

PART 3 CASH FLOW FORMULA:

PART 3 CASH FLOW FORMULA: PART 3 CASH FLOW FORMULA: And, now, back to the question that started this series: What is the secret to SUCCESSFULLY FORECASTING CASH? BY STEVEN D. LORDS FORECASTING CASH In Cash Flow Formula Part 1,

More information

INTERNATIONAL STANDARD ON AUDITING 520 ANALYTICAL PROCEDURES CONTENTS

INTERNATIONAL STANDARD ON AUDITING 520 ANALYTICAL PROCEDURES CONTENTS INTERNATIONAL STANDARD ON AUDITING 520 ANALYTICAL PROCEDURES (Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS Paragraph Introduction Scope of

More information

Understanding Financial Statements: What do they say about your business?

Understanding Financial Statements: What do they say about your business? Understanding Financial Statements: What do they say about your business? This workbook is not designed to be your only guide to understanding financial statements. A much wider range of resources is available

More information

2. More important - provide a profile of firm s economic characteristics and competitive strategies.

2. More important - provide a profile of firm s economic characteristics and competitive strategies. RATIO ANALYSIS-OVERVIEW Ratios: 1. Provide a method of standardization 2. More important - provide a profile of firm s economic characteristics and competitive strategies. Although extremely valuable as

More information

Guide to Financial Statements Study Guide

Guide to Financial Statements Study Guide Guide to Financial Statements Study Guide Overview (Topic 1) Three major financial statements: The Income Statement The Balance Sheet The Cash Flow Statement Objectives: Explain the underlying equation

More information

Cashflow, Free Cashflow, and Proforma Forecasting

Cashflow, Free Cashflow, and Proforma Forecasting Cashflow, Free Cashflow, and Proforma Forecasting Proforma Forecasting Models Proforma forecasting models are designed to use the balance sheet and income statement from a corporation from a number of

More information

Financial Statements. Chapter 19 Study Guide

Financial Statements. Chapter 19 Study Guide Financial Statements Chapter 19 Study Guide Financial Statements Discuss the nature of a consolidated financial statement? Understand the relationship between the work sheet and the financial statements.

More information

Preparing your Business Plan

Preparing your Business Plan Preparing your Business Plan Planning is: Taking prudent, calculated risks rather than blindly reacting to events Making the best use of available resources Setting a path to achieve the lifestyle you

More information

Basic Performance Review

Basic Performance Review Basic Performance Review For the period ending 12/31/2009 Provided By GreenPage Accounting LLP Richard Dailey 866.603.7029 x570 1 of 8 1/13/11 10:57 PM 2 of 8 1/13/11 10:57 PM This report is designed to

More information

Business Start Up Basics III

Business Start Up Basics III Business Start Up Basics III Intro to Accounting Presented by: Suzie Dills SBDC Business Consultant Agenda Key Objectives of the Course Brief History & Definition of Accounting General Ledger Double Entry

More information

BREAK-EVEN ANALYSIS. In your business planning, have you asked questions like these?

BREAK-EVEN ANALYSIS. In your business planning, have you asked questions like these? BREAK-EVEN ANALYSIS In your business planning, have you asked questions like these? How much do I have to sell to reach my profit goal? How will a change in my fixed costs affect net income? How much do

More information

Marketing Variance Analysis

Marketing Variance Analysis Marketing Variance Analysis This module introduces the tool of marketing variance analysis to aid a manager s understanding of the underlying reason(s) why a marketing plan s objectives were or were not

More information

Associated Files: Ratios worksheet

Associated Files: Ratios worksheet Unit 4 Business accounting Ratios Instructions and answers for Teachers These instructions should accompany the OCR resource Ratios which supports the OCR Level 3 Cambridge Technicals in Business Unit

More information

Blended Value Feasibility Study Cash Flow Forecast User Guide

Blended Value Feasibility Study Cash Flow Forecast User Guide Blended Value Feasibility Study Cash Flow Forecast User Guide OVERVIEW The Cash Flow Forecast is the listing of the sources and expenditures of cash plus the timing of when the cash is moving in and out

More information

Corporate Credit Analysis. Arnold Ziegel Mountain Mentors Associates

Corporate Credit Analysis. Arnold Ziegel Mountain Mentors Associates Corporate Credit Analysis Arnold Ziegel Mountain Mentors Associates I. Introduction The Goals and Nature of Credit Analysis II. Capital Structure and the Suppliers of Capital January, 2008 2008 Arnold

More information

PLANNING FOR SUCCESS P a g e 0

PLANNING FOR SUCCESS P a g e 0 PLANNING FOR SUCCESS P a g e 0 PLANNING FOR SUCCESS P a g e 1 Planning for Success: Your Guide to Preparing a Business and Marketing Plan This guide is designed to help you put together a comprehensive,

More information

Key Performance Indicators

Key Performance Indicators Key Performance Indicators A guide to help you understand the key financial drivers in your business Running any business effectively requires good decision making which is based on good and timely management

More information

Revisited. Working Capital Lines of Credit,

Revisited. Working Capital Lines of Credit, CR Credit Risk Working Capital Lines of Credit, Revisited Avoid the risks of oversized lines of credit by understanding the factors that may create a need for bank financing. 34 October 2012 The RMA Journal

More information

* * * Chapter 15 Accounting & Financial Statements. Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

* * * Chapter 15 Accounting & Financial Statements. Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 15 Accounting & Financial Statements Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall Bookkeeping vs. Accounting Bookkeeping Accounting The recording of business transactions.

More information

Five steps to valuing a business

Five steps to valuing a business 1. Collect the relevant information Five steps to valuing a business The starting point for Valuecruncher valuing a business is the latest financial statements. The business accountant should be able to

More information

Chapter 3. Learning Objectives Principles Used in This Chapter 1. An Overview of the Firm s Financial Statements

Chapter 3. Learning Objectives Principles Used in This Chapter 1. An Overview of the Firm s Financial Statements Chapter 3 Understanding Financial Statements, Taxes, and Cash Flows Agenda Learning Objectives Principles Used in This Chapter 1. An Overview of the Firm s Financial Statements 2. The Income Statement

More information

BSM Connection elearning Course

BSM Connection elearning Course BSM Connection elearning Course Basics of Medical Practice Finance: Part 2 2009, BSM Consulting All rights reserved. Table of Contents OVERVIEW... 1 PRACTICE PERFORMANCE RATIOS... 1 UNDERSTANDING THE CONCEPT

More information

BACKGROUND KNOWLEDGE for Teachers and Students

BACKGROUND KNOWLEDGE for Teachers and Students Pathway: Business, Marketing, and Computer Education Lesson: BMM C6 4: Financial Statements and Reports Common Core State Standards for Mathematics: N.Q.2 Domain: Quantities Cluster: Reason quantitatively

More information

The Dynamic Small Business Manager Copyright, 2006, Frank Vickers, All rights reserved. ISBN 978-1-4116-5284-2

The Dynamic Small Business Manager Copyright, 2006, Frank Vickers, All rights reserved. ISBN 978-1-4116-5284-2 The Copyright, 2006, Frank Vickers, All rights reserved. ISBN 978-1-4116-5284-2 Page i Table of Contents Table of Contents... ii About this book... ix Why this book?... x Benefits of this book... xi IMPORTANT

More information

Model is used to calculate Financial Statements on a Quarterly Basis for a One Year period. Model provides the ability to:

Model is used to calculate Financial Statements on a Quarterly Basis for a One Year period. Model provides the ability to: ADDITIONAL REFERENCES AND FINANCIAL MODELS: For more information about financial statements and terms refer to e book, How to Read Financial Statements. Advanced financial models providing 5 year projections

More information

GETTING READY FOR THE MBA. A common question we get asked is Is there anything I can do to get myself ready for what lies ahead?

GETTING READY FOR THE MBA. A common question we get asked is Is there anything I can do to get myself ready for what lies ahead? GETTING READY FOR THE MBA A common question we get asked is Is there anything I can do to get myself ready for what lies ahead? Your professors for Finance and Modelling Business Decisions, Mary Kelly

More information

Chapter 9 E-Commerce: Digital Markets, Digital Goods

Chapter 9 E-Commerce: Digital Markets, Digital Goods 1 Chapter 9 E-Commerce: Digital Markets, Digital Goods LEARNING TRACK #: 2: BUILD BUSINESS PLAN There are lots of different ways to lay out a business plan. The sample

More information

Autobytel 2014 Q4 Results NASDAQ: ABTL February 26, 2015

Autobytel 2014 Q4 Results NASDAQ: ABTL February 26, 2015 Autobytel 2014 Q4 Results NASDAQ: ABTL February 26, 2015 Copyright 2015 Autobytel Inc. Safe Harbor Statement and Non-GAAP Disclosures The statements made in the accompanying conference call or contained

More information

Financial Planning. Presented by Emma's Garden

Financial Planning. Presented by Emma's Garden + Financial Planning Presented by Emma's Garden Financial Planning A comprehensive financial plan helps you to forecast and set your financial goals and milestones. Your financial forecasts are an essential

More information

BUSINESS BUILDER 7 HOW TO ANALYZE PROFITABILITY

BUSINESS BUILDER 7 HOW TO ANALYZE PROFITABILITY BUSINESS BUILDER 7 HOW TO ANALYZE PROFITABILITY zions business resource center 2 how to analyze profitability Although pride of ownership and career satisfaction are healthy goals, generating profit is

More information

Double Entry Accounting Workbook. Erin Lawlor

Double Entry Accounting Workbook. Erin Lawlor Double Entry Accounting Workbook Erin Lawlor Double Entry Accounting Workbook Table of Contents Introduction... 2 Financial Statement Introduction... 3 Financial Transactions... 4 Debits and Credits...

More information

Performance Review for Electricity Now

Performance Review for Electricity Now Performance Review for Electricity Now For the period ending 03/31/2008 Provided By Mark Dashkewytch 780-963-5783 Report prepared for: Electricity Now Industry: 23821 - Electrical Contractors Revenue:

More information

Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology serwatt@sunyit.edu 315-792-7557

Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology serwatt@sunyit.edu 315-792-7557 Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology serwatt@sunyit.edu 315-792-7557 1 Objectives of Presentation To walk you through the steps needed to create

More information

The Nature of Accounting Systems

The Nature of Accounting Systems Basic Accounting & Budgeting February 4, 2009 The Nature of Accounting Systems Accounting is the process of recording, classifying, summarizing, reporting and interpreting information about the economic

More information

Q2 2015 Earnings Conference Call. July 30, 2015

Q2 2015 Earnings Conference Call. July 30, 2015 Q2 2015 Earnings Conference Call July 30, 2015 Industry Data and Forward-Looking Statements Disclaimer Broadwind obtained the industry and market data used throughout this presentation from our own research,

More information

Frequently Used Formulas for Managing Operations

Frequently Used Formulas for Managing Operations Frequently Used Formulas for Managing Operations Chapter 1 - Hospitality Industry Accounting Revenue Expenses = Profit Assets = Liabilities + Owners Equity Chapter 2 - Accounting Fundamentals Review Assets

More information

REC 3033 Commercial Recreation and Tourism. Class Week 12. The Dollars and Sense of Your Business. Preparation of Proforma Statements

REC 3033 Commercial Recreation and Tourism. Class Week 12. The Dollars and Sense of Your Business. Preparation of Proforma Statements REC 3033 Commercial Recreation and Tourism Class Week 12 The Dollars and Sense of Your Business Tourism operators not making large sums of money Tourism Canada Study (1995) average adventure travel operator

More information