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Summary
Analysis Worksheet
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Mother
2003/2007 is 4 very powerful integrated analysis
systems running as one:
1. The Standard System:
The Standard System analyzes data entered on the
Master Data Entry Worksheet and broadcasts these
numbers over the analysis system and funnels one
rating number back to this worksheet.
2. The What-if System:
The What-if System is directly linked to the
Master Data Worksheet. It also broadcasts the
what-if numbers across its own separate
system and funnels one rating number back to
this worksheet.
3. Business Audit Analysis System:
This tool will provide the small business
entrepreneur with the essentials for conducting
a comprehensive search for existing or potential
problems. The audit was designed with small
businesses in mind and addresses their unique
problems and opportunities.
4. Trend Prediction:
Using regression analysis we predicted the trend
based on the two scores. Since only two entries
are used the predicted 3rd regression will
appear exaggerated, however, it immediately
indicates how proposed positive operating
controls can improve the overall performance.
The Summary Analysis Worksheet is a snapshot
of business performance and potential using
these 4 systems.
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Initial
Set Up Steps
This
Master Data Entry worksheet is where the rubber
meets the road. It drives all of the analysis
sheets with links in hundreds of locations.
Step 1
Enter all Vital Information (name, address,
etc.), then it is important to clear this
worksheet rather than overtype since some
entries can be missed that appear entered.
Step 2 - Configuration Sidebar
- Click on the "Clear Sheet" button to clear the
entire worksheet and set up for posting four
periods, or
- Click on the "Two Periods" button to clear and
set up regression analysis for periods three and
four, or
- Click on the "Three Periods" button to clear
and set up regression analysis for period four,
or
- The "Troubled Firm" button returns the demo
numbers to view a completed posting operation of
a
business that is in troubled waters and headed toward
bankruptcy, or
- The "Prosperous Firm" button returns the demo
numbers to view a completed posting operation of
a
business that is in excellent condition.
Step 3
Click on the respective Z-Score class: Public,
Private, Non-manufacturing.
Step 4
Click on a business category: Manufacturing,
Service, Retail, Wholesale, or Job Shop
Break-even status is viewed in each mini-line
chart and by dollars for the period. General
performance is viewed in each mini-bar chart. |
Master
Data Entry Worksheet
Sidebar Detail-See steps 2
through 4
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What-if Master Data Entry Worksheet
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This
worksheet is a powerful tool. You can experiment
with increases and decreases to line items to
improve the profit and B/E picture.
This is a mirror image of the Master Data Entry
worksheet and linked so that the figures can be
manipulated. The spinners are set at 100% to
equal the entries on the Master Data Entry
sheet.
You can increase and decrease line items by
increments of 1% and instantly see the changes
to Profit and Break-even.
This feature was developed to demonstrate the
impact of cumulative expense reductions on net
income combined with only marginal increases in
revenue.
Be sure to save often so as not to lose multiple
spinner values.
Spinners Reset Button : You may reset the
spinner values to 100% at any time with the
Reset buttons in the upper left hand corner of
both the Income Statement and Balance Sheet. |
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This
is the "Forecast Analysis" worksheet. This sheet
can not be overemphasized in importance. Based
on 4 periods of actual data, it forecasts the
condition of a company out to 12 financial
periods.
Combined with the other analysis sheets, it
tells a loan officer, venture capitalist, Small
Business Administration, etc. the success trend
of your business.
Its single greatest attribute is magnifying the
future trend of a business. Small variances
become much larger and apparent in the 12th
regression.
There are instances where 4 financial periods
are not enough. This worksheet allows you to
post additional periods up to 12. |
Forecast
Analysis Worksheet
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Financial Summary
Analysis Worksheet
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This
is the "Financial Summary Analysis" sheet. This
sheet is similar to an Executive Summary.
It is the summary of figures entered, analyzed
throughout Mother, and placed on one sheet.
A key function is the "Trend Assessment" column.
This column automatically alerts you, by line
item, as to problem areas. |
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The
Dashboard is a picture summary of a business
using several types of information.
A careful study of this page can direct you to
problem areas.
This sheet is linked to MS PowerPoint and MS
Word presentations. You must have them on your
system for the command button to activate.
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The
Dashboard Summary Analysis
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Financial Snapshot
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This
worksheet is a quick look at the financial
health of the firm.
There are key ratios here that are driven from
the "Master Data Entry" worksheet. The only item
that is not linked is the Investment made to
start and sustained the firm.
By habit, loan institutions look for one key
ratio, the "Current Ratio". Unfortunately, this
ratio will vary above and below the magic 2.0
depending on the industry.
The net profit ratios/percentages are also very
important indicators (Upper Left Hand Corner).
In reality all of the numbers on this sheet are
important and should be in sound health. |
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This
is the cover sheet for your convenience or can
be used as an inside cover. |
Front
Report Cover
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The
Executive Summary
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The
Executive Summary of a business yields an
overall picture of its financial health.
We have extracted, compiled, and entered into
our analysis system all of the vital information
that pertains to this specific business and
yielded this summary. The primary objective is
to zero in on all of the areas that might be
detracting from the bottom line.
Knowledge is power, and knowledge of a company's
value is the ultimate power tool.
Item 9 is the summary results of your Market
Value Analysis. The Market Value Analysis uses
the 6 standard methods endorsed by The American
Society of Appraisers.
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This
worksheet compares 4 periods of income and
expense performance in both dollars and
percentages. |
Comparative Income Statement
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Comparative Balance Sheet
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This
worksheet compares 4 periods of financial
performance in both dollars and percentages. |
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Bankruptcy prediction models are more generally
known as measures of financial distress. The
best-known, and most-widely used, multiple
discriminate analysis method is the one proposed
by Edward Altman, Professor of Finance at the
Stern School of Business, New York University,
The Z-Score Analysis or Zeta Model.
Despite the positive results of his study,
Altmans model had a key weakness: it assumed
variables in the sample data to be normally
distributed. "If all variables are not normally
distributed, the methods employed may result in
selection of an inappropriate set of
predictors".
Chistine Zavgren developed a model that
corrected for this problem. Her model used logit
analysis to predict bankruptcy. Due to its use
of logit analysis, her model is considered "more
robust". Further, logit analysis actually
provides a probability (in terms of a
percentage) of bankruptcy. Also, the probability
calculated might be considered a measure of the
effectiveness of management, i.e. effective
management will not lead a company to the verge
of bankruptcy.
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Bankruptcy Prediction
- logit analysis
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Z-Score Analysis
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Routinely used today by Stockbrokers trying to
determine if a company is a good investment,
Bankers todetermine loan risk, and internally,
by anyone who wants to take close look at their
own company's
financial health.
Data Needed:
Earnings before taxes
Total assets
Net Sales
Market Value of Equity
Total Liabilities
Working Capital
Retained Earnings
The worksheet will indicate:
The short-term potential for financial problems
at your company.
The Expert
Edward I. Altman, Professor and Vice-Director of
New York University's Salomon Center,
Leonard N. Stern School of Business.
Dr. Altman is known as the founding father of
using statistical techniques to predict company
failure.
He developed the Z-Score analysis almost 30
years ago, and is the author of several books,
including
The Z-Score Bankruptcy Model: Past, Present, and
Future (New York: John Wiley & Sons, 1977),
and Corporate Financial Distress and Bankruptcy,
2nd edition (New York: John Wiley & Sons, 1993).
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Every
business has buried costs. Revealing them is the
trick and the skill of productivity analysis
comes into play.
This sheet determines what it cost per year for
minutes in unproductive use of time.
There are 5 productivity sheets in Mother. |
Buried Costs Analysis
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Comparative Trend Analysis
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There
are 81 industry standards in this data base.
They were updated in September 2006.
By scrolling and clicking in a category you can
compare your business to your industry. |
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There
are 2 Linked PowerPoint presentation templates.
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PowerPoint Presentation
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Several totals under Maximum Potential may
appear inaccurate since maximum percentages were
used in Sales and minimum percentages were used
in Expenses.
The best percentages for 4 periods were used to
demonstrate the Potential Maximum Performance
over the total time span.
This sheet demonstrates the best operating
scenario taken from all financial periods.
Use the What-if spinners to assess what changes
will best improve the bottom line. Look at
variable expenses first.
Spinners Reset Button: You may reset the spinner
values to 100% at any time with the Reset button
in the upper right hand corner. |
Optimal Operating Analysis
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