index is in workbook order.
What-if Rating Details
Master Data Entry
What-if Master Data Entry
What-if Forecast Analysis
What-if Financial Summary
The Business Audit Background
Business Audit Introduction
Audit Assessment Key
Mother 4 Periods
What-if Cover Sheet
What-if Executive Summary
Comp. Income Statement
What-if Comp. Income Statement
Comp. Balance Sheet
What-if Comp. Balance Sheet
What-if Logit Analysis
Market Value Explained
Market Value Analysis
What-if Proforma Balance
What-if Proforma Income
Sales vs. Expense
What-if Sales vs. Expense
What-if Stock Valuation
Breakdown of Costs
What-if Breakdown of Costs
What-if BE Adjusted
Breakeven 4 Periods
What-if Breakeven 4 Periods
What-if Breakeven Analysis
Breakeven Analysis (2)
What-if Breakeven Analysis (2)
Breakeven Analysis (3)
What-if Breakeven Analysis (3)
Breakeven Analysis (4)
What-if Breakeven Analysis (4)
Z-Score (1) Chart
What-if Z-Score (1) Chart
Z-Score (2) Chart
What-if Z-Score (2) Chart
Z-Score (3) Chart
Z-Score Analysis (1)
What-if Z-Score Analysis (1)
Z-Score Analysis (2)
What-if Z-Score Analysis (2)
Z-Score Analysis (3)
What-if Z-Score Analysis (3)
What-if Z-Score Explained
Current Summary Chart
Sales Performance Chart
Total Expenses Chart
Materials Cost Chart
G&A Expenses Chart
Sales Projection Chart
Labor Expenses Chart
Chart of Accounts
Rating by Consultant
Consultant Rating Cover Sheet
Rating By Consultant Summary
Rating By Owner
Owner Rating Cover Sheet
Rating By Owner Summary
SIC Comparative RMA Analysis
Standard Industrial Codes
Earnings Per Share
Gross Profit Margin
Net Profit Margin
Return on Assets
Return on Equity
Average Collection Period
Inventory Turnover Ratio
Times Interest Earned Ratio
What-if Expanded Ratios
Daily Profit Tracking
Weekly Profit Tracking
Accounts Receivable Aging
Accounts Payable Aging
Perpetual Inventory Control
Cash Flow Process
Cash Flow Cycle
Cash Flow 4 Years
What-if Cash Flow 4 Years
Cash Flow 8 Years
What-if Cash Flow 8 Years
Cash Flow Forecast Daily
Cash Flow Forecast Weekly
Cash Flow Forecast 12 Months
Cash Flow 4 Yrs Quarterly
Cash Flow Sensitivity Analysis
Cash Flow Sensitivity AR
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
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.
Set Up Steps
Master Data Entry worksheet is where the rubber
meets the road. It drives all of the analysis
sheets with links in hundreds of locations.
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
- Click on the "Two Periods" button to clear and
set up regression analysis for periods three and
- Click on the "Three Periods" button to clear
and set up regression analysis for period four,
- The "Troubled Firm" button returns the demo
numbers to view a completed posting operation of
business that is in troubled waters and headed toward
- The "Prosperous Firm" button returns the demo
numbers to view a completed posting operation of
business that is in excellent condition.
Click on the respective Z-Score class: Public,
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.
Data Entry Worksheet
Sidebar Detail-See steps 2
What-if Master Data Entry Worksheet
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
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
Be sure to save often so as not to lose multiple
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.
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
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
There are instances where 4 financial periods
are not enough. This worksheet allows you to
post additional periods up to 12.
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.
Dashboard is a picture summary of a business
using several types of information.
A careful study of this page can direct you to
This sheet is linked to MS PowerPoint™ and MS
Word presentations. You must have them on your
system for the command button to activate.
Dashboard Summary Analysis
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.
is the cover sheet for your convenience or can
be used as an inside cover.
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.
worksheet compares 4 periods of income and
expense performance in both dollars and
Comparative Income Statement
Comparative Balance Sheet
worksheet compares 4 periods of financial
performance in both dollars and percentages.
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,
Altman’s 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
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
- logit analysis
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
• 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.
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
He developed the Z-Score analysis almost 30
years ago, and is the author of several books,
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).
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
Comparative Trend Analysis
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.
are 2 Linked PowerPoint presentation templates.
Several totals under Maximum Potential may
appear inaccurate since maximum percentages were
used in Sales and minimum percentages were used
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