6_The Goal - Measuring How to Make Money Spring 2003

6_The Goal - Measuring How to Make Money Spring 2003 -...

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11/09/2011 16:55:50 f82cca079f6ae375219e2d8fc5c57db473c97c5a.xls The Goal - Measuring "How to Make Money" (All $ in 000s) Pre-Jonah Monthly Financial Statements Income Statement Balance Sheet Cash Flow % Rev. Beginning Ending Revenue (p. 195) 100% $2,000 Cash $1,000 $500 Net Income $(200) Var. Cost - Mat'l 30% $600 Accts. Rec. $6,200 $6,000 (Incr)/Decr. A/R $200 - DL 15% $300 Inventory $5,000 $5,400 (Incr)/Decr. Inv. $(400) - OH 10% $200 $6,000 $6,000 Incr/(Decr). Liab. $(100) Contrib'n Mgn 45% $900 Total Assets $18,200 $17,900 Cash from Ops $(500) Fixed OH - Mfg $700 Liabilities $4,500 $4,400 Capital Spending $- $400 Equity $13,700 $13,500 Cash from Ops Net Income $(200) Total Liab. + Eq. $18,200
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Unformatted text preview: $17,900 & Investments $(500) Breakeven $2,444 Return on Equity-17.78% Beginning Cash $1,000 Ending Cash $500 Operational Inputs/Variables Days Sales O/S 90 Financial Measures Inventory Turns 4 Operational Measures Operational Measures " WHAT IF ???" Revenue goes to $3,000,000? (p. 60) Throughput $ through Sales $2,000 And Inventory turns improve to 6? (p. 60) Inventory Inventory $5,400 And DSO improves to 75? (p. 75) Plant/Equip (net) $6,000 And you spend $100,000 for new capital? Total Inventory $11,400 (p. 158) Oper. Exp. DL +OH +SG&A $1,600 ROE Return on Sales x Asset Turns x Leverage-17.78%-10.0% 1.34 1.33- SG&A...
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