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8/4/2019 Monthly Reports Training
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Monthly Reports
Accountants' Workshop
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Parts of Monthly Report
Balance SheetProfit and Loss Statement
Cash Flow
Benchmarks
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Balance Sheet and Profit and Loss Company Month Aug
Balance Sheet Assets Assets Balance Sheet Liabilities Liabilities Received
Current Last Mth % Current Last Mth % Resp.
01 Cash and cash equivalents #¡DIV/0! 11 A/P Trade #¡DIV/0! Inform
02 WGL 1 Fund #¡DIV/0! 12 A/P Company #¡DIV/0! To do
03 Investments #¡DIV/0! 13 Other liabilities #¡DIV/0! File
04 A/R Trade #¡DIV/0! 14 Equity #¡DIV/0!
05 A/R Company #¡DIV/0!06 Other assets #¡DIV/0!
07 Inventory #¡DIV/0!
08 Property, plant and equipment #¡DIV/0!
09 Accumulated depreciation #¡DIV/0!
10 Total assets 0 #¡DIV/0! 15 Total liabilities and equity 0 #¡DIV/0!
Profit and Loss Month Cumulative Current Current Current Current
Current Budget % Last Yr % Current Budget % Last Yr % CoS month CoS cum. GP % month GP % cum.
01 Sales Machines (SBF 1) 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
02 Sales Machines (SBF 2) 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
03 Sales Machines (SBF 3) 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
04 Sales Machines (SBF 4) 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
05 Sales Spare Parts (SBF 5.1) 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!06 Sales Rental (SBF 5.2) 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
07 Sales Miscellaneous 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
08 Sales 0 #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0! 0 0 #¡DIV/0! #¡DIV/0!
09 less cash discounts 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0!
10 Net sales without intercompan 0 #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0! 0 0 #¡DIV/0! #¡DIV/0!
11 Intercompany sales 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
12 Total net sales 0 #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0! 0 0 #¡DIV/0! #¡DIV/0!
13 Cost of sales 0 #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
14 Intercompany purchases in Co 0
15 Gross Profit 0 #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0! Company / Stamp
16 Personnel 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0!
17 Selling 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0!18 Administration 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0!
19 Plant and equipment 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0!
20 Research and development 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0!
21 CoS allocation (only production 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! Date
22 Selling and administration 0 #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
23 In % of sales #¡DIV/0! #¡DIV/0!
24 Operating profit 0 #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
25 In % of sales #¡DIV/0! #¡DIV/0!
26 Other income 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0! Signature
27 Other expenses 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0!
28 Profit before tax 0 #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
29 In % of sales #¡DIV/0! #¡DIV/0!
30 Taxes 0 #¡DIV/0! #¡DIV/0! #¡DIV/0! #¡DIV/0!
31 Profit after tax 0 #¡DIV/0! #¡DIV/0! 0 #¡DIV/0! #¡DIV/0!
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Balance Sheet
ASSETS
Cash and cash equivalents
Investments
Accounts receivable trade
Accounts receivable Intercompany
Other assets
Inventory
Property, plant and equipment
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Cash and Cash Equivalents
Definition
Readily available for the payment of
current obligations
Highly liquid
Short term – < 3 months
Free from any contractual limits
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Cash and Cash Equivalents
Examples
Petty cash
Checks not yet credited (not post-dated)Bank credit balance
Time deposits (< 3 months)
Short-term investments (< 3 months)NOT: post-dated checks, postage,
travel advances
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Cash and Cash Equivalents
Valuation
Nominal value
Amounts in foreign currency translatedat exchange rate at balance sheet date(monthly)
Bank debit balances may be offset ifalso short term
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Investments
Examples
Term deposits > 3 months
Funds.Debt securities
government or municipal bonds
corporate bonds
Equity securities stock
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Investments
ValuationPurchase cost including all fees
for debt securities discount or premium must beamortized over maturity of debt
Reduction in value recognized only ifpermanent
Current – can be liquidated at any timeto meet short-term obligations
Long-term – expected to be apermanent investment
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Accounts Receivable Trade
Definition
Amounts owed by customers for goods
sold and services rendered as part ofnormal business operations
Recognized when title passes or service
renderedFor a continuous service such as rental,
monthly billing
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Accounts Receivable Trade
Examples
Invoices for sale of machines, spare
parts, service, rental
Notes, drafts, post-dated checks
NOT: receivables for advancepayments, deposits, interest, rent, etc.
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Accounts Receivable Trade
Valuation
Amounts in foreign currency translatedat exchange rate at balance sheet date
(monthly)
Net of discounts normally taken
Net of allowance for doubtful accounts –
to state accounts at amount expected tobe collected
Notes without interest are discounted
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Accounts Receivables
Includes trade accounts as well asother receivables (charges, interest,
dividends)Includes all A/R affiliates
Valuation same as other A/R
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Other Assets
Definition
All assets not included in othercategories
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Other Assets
Examples
Other A/R Taxes
Interest Rent
Advances
Deposits
Prepaid expensesIntangible assets
Patents
NOT Standard Software
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Other Assets
Valuation
Nominal valueHistorical cost net of
amortization
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Inventory
Definition
Goods which are held for sale in the normal course of business
in the process of production for sale or
consumed in the production of goods orservices for sale
Goods in transit where title has passedto receiver
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Inventory
Examples
Machines, spare parts
in warehouse in transit
on consignment at customer's
demo machines with sales reps
used machines for resale
NOT machines for rent
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Inventory
ValuationCost including freight in, duty, handling,
less purchase discounts taken
Cost flow assumptions: specific identification
FIFO (first in, first out)
LIFO (last in, first out)
average cost
Net of allowance for slow-moving andobsolete stock
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Property, Plant and Equipment
Definition
Assets which are used to producegoods or provide services
Useful life longer than one year
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Property, Plant and Equipment
ExamplesLand and buildings including
improvements thereto
Machinery and equipment forproduction
Machines for rent
Office and other equipment
Vehicles
Building under construction
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Property, Plant and Equipment
Valuation
Historical cost – all costs necessary tobring the asset to its location in working
condition, i.e. freight, installation costsNet of depreciation to allocate the cost
over the useful life of the asset useful life and method of depreciation must be
reasonable
tax lives and depreciation methods may also beused
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Balance Sheet
LIABILITIES AND EQUITY
Accounts payable trade
Accounts payableIntercompany
Other liabilities
Equity
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Accounts Payable Trade
Definition
Amounts owed to suppliers for goods,supplies and services purchased as partof normal business operations
Recognized when title passes or servicerendered
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Accounts Payable Trade
Examples
Invoices for purchase of machines,
spare parts, supplies, services (freight,utilities, legal fees, etc.)
NOT: payables for taxes, payroll,
accrued expenses, etc.
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Accounts Payable Trade
Valuation
Amounts in foreign currency translatedat exchange rate at balance sheet date
(monthly)Net of discounts normally taken
Notes without interest are not
discounted
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Accounts Payable
IntercompanyIncludes trade accounts as well as
other payables (charges, interest,
dividends)Includes all A/P affiliates
Valuation same as other A/P
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Other Liabilities
Definition
All liabilities not included inother categories
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Other LiabilitiesExamplesOther A/P
Taxes Payroll expenses
Salaries and wages
Payroll deductions Vacation pay
Bonus agreements
Postretirement benefits
Bank loans
Accruals Taxes Payroll expenses Year-end audit Guarantee and warranty
costs
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Other Liabilities
Valuation
Nominal valueBest estimate of liability
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Equity
Capital stock – legal capital provided byshareholders at par value
Additional paid-in capital –
capitalprovided by shareholders above parvalue, capitalized retained earnings
Retained earnings –
accumulatedundistributed earnings
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Profit & Loss Statement
Sales by Product LineSales miscellaneous
Cost of sales
Selling and administration costs Personnel
Selling
Administration
Plant and equipment
Research and development
Other income
Other expenses
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Sales by SBF
Sale is recognized when title haspassed or service rendered
Sale of new machines, spare parts,services, rental
Only Company products
Net of rebates and returns
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Sales MiscellaneousSale of non-Company productsSale of used machines
Sale of scrap or recycled material
NOT items which are not part of the normalbusiness – "Other income" such as interest,rent of property, etc.
NOT freight charged out – to be deducted
from freight costsNOT warranty credit from Company – to be
deducted from warranty cost
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Cost of SalesPurchase cost of the goods sold in the periodSame costs as included in inventory –
purchase costs plus freight and duty
Includes all inventory adjustments – changes
to allowance for slow-moving or obsoletegoods
Depreciation for rental machines
Workshop and tools
NOT warranty credit from Intercompany –
tobe deducted from warranty cost
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Cash Discounts
Only cash discounts which cannot beallocated to Product Line
Rebates and other credits should beallocated to Product Line
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Intercompany Sales and CoS
Intercompany sales are all sales orcharges to any affiliate
Intercompany cost of sales is all goodspurchased from any affiliate
All transactions with affiliates must be
included in either of these categories
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Personnel Costs
Salaries and wagesEmployer costs for social security
Commissions
Bonus, profit sharingVacation pay
Temporary employees
Pension costs –
accrual or actual costOther payments to or for employees –
meal coupons, life insurance, training
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Selling CostsAdvertising
–ads, brochures, gifts tocustomers
Exhibition costs
Commissions to third parties
Customer training –
less amount charged tocustomer
Travel and entertainment
Vehicle costs – incl. insurance and taxes
Freight and packing –
less amount charged tocustomer
Guarantee costs – cost of parts and material,less warranty credit from Intercompany
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Administration Costs
Communication –
telephone, fax, postageOffice material, printed forms and stationery
Trade literature
Leasing and repair of office machines
Bank and collection chargesA/R write-offs, incl. change in allowance
Consulting – legal, audit
EDP
Insurance except vehicle insuranceCost of hiring personnel
Other expenses, i.e. dues, patents
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Plant and Equipment Costs
Rent of premises
Repair of building and equipment
Cleaning
Depreciation on building and equipment
Utilities – electricity, heating, water, sewer
Building security
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Other Income and Expenses
Items which are not part of the normalbusiness operations:
Gain or loss on sale of fixed assets
Interest
Gain or loss on investments
Currency exchange gain or loss
Extraordinary depreciation of assets
Donations
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Inflation Accounting
Incercompany adjusts for inflationwhere rate is > 10%.
Subtract inflation rate from trend to prior
year in %.Alternative: state budget and monthly
P&L figures in DM.
If assets are restated in local accounts,show inflation adjustment as part ofretained earnings.
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Benchmarks
Units soldNumber of employees (jobs)
Days sales in inventory
Days sales outstandingAccounts receivable overdue > 30 days
Quick ratio
Capital needsYield on equity
Return on investment
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Units Sold
Should agree with Product Linereport
New Intercompany machinesonly
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Number of Employees
Number of jobs
two half-time persons = 1 job
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Days Sales in Inventory
Compares the average of the inventoryfigures for the last 12 months with thetotal cost of goods sold for the last 12
monthsExpressed in days, not months
Cost of sales is reduced by costs for
(depreciation for rental machines)
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Days Sales in Inventory
Formula: Sum of inventory values for last12 months divided by sum of cost ofsales (without depr. for rental) for last
12 months times 30
24,224,798 / 3,956,907 * 30
= 184 days
Inventory Cost of Sales
Aug CY 2.218.515 230.445
Jul CY 2.252.132 273.464
Jun CY 2.048.066 373.421
May CY 2.106.589 263.974
Apr CY 2.182.664 243.113
Mar CY 2.011.131 371.913
Feb CY 1.930.058 309.371
Jan CY 2.002.905 219.318
Dec PY 2.125.011 523.057
Nov PY 1.957.428 389.982
Oct PY 1.712.267 364.529
Sep PY 1.678.033 394.320
Total 24. 224. 798 3. 956. 907
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Days Sales Outstanding
Compares the average of the accounts
receivable (A/R trade andIntercompany) figures for the last 12months with the total sales for the last
12 monthsExpressed in days, not months
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Days Sales Outstanding
Formula: Sum of accounts receivablevalues for last 12 months divided bysum of sales for last 12 months times
30
35,423,056 / 6,964,487 * 30
= 148 days
A/R Sales
Aug CY 2.726.403 428.088
Jul CY 2.893.664 489.844
Jun CY 2.956.111 697.221
May CY 2.777.851 463.307
Apr CY 2.998.173 462.779
Mar CY 2.808.770 708.007
Feb CY 2.631.016 611.802
Jan CY 2.583.081 475.118
Dec PY 3.070.087 557.376
Nov PY 3.397.432 730.824
Oct PY 3.432.275 657.226
Sep PY 3.148.192 682.895
Total 35.423.056 6.964.487
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A/R Overdue > 30 days
Accounts receivable tradewhich are overdue more than
30 daysBased on due date, not
invoice date
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Quick Ratio
Liquid assets / current liabilities
Liquid assets are cash and cash
equivalents, investments ), A/R Trade,A/R Intercompany and other assets
Current liabilities are A/P trade, A/P
Intercompany and other liabilities
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Capital Needs
Average total monthly cash payments
Payments include purchase of goods
and services, all expenses, taxes,payment of loans, purchase of fixedassets, etc.
Sum of cash outflow per month for thelast 12 months / 12
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Yield on Equity
Profit after tax as % of average totalcapital
Calculated on a rolling 12-month basis
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Yield on Equity
Formula: Sum of profit after tax for last 12months divided by average total equityfor last 12 months
3,642,530 / 594,811,682 * 12
= 7.3 %
Profit after Tax Equity
Aug CY 147.599 50.764.829
Jul CY -70.295 50.617.230
Jun CY 394.689 50.687.525
May CY 324.416 50.292.836
Apr CY 153.287 49.968.420
Mar CY 372.843 49.815.133
Feb CY 16.939 49.442.290
Jan CY 286.315 49.425.351
Dec PY 511.764 49.139.036
Nov PY 419.046 48.627.272
Oct PY 384.692 48.208.226
Sep PY 701.235 47.823.534
Total 3.642.530 594.811.682
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Return on Investment
Operating profit as % of total assets
Calculated on a rolling 12-month basis
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Return on Investment
Formula: Sum of operating profit for last12 months divided by total assets
4,375,838 / 53,617,091
= 8.2 %
Operating Profi t Total Assets
Aug CY 452.918 53.817.091
Jul CY -104.199
Jun CY 552.034
May CY 449.672
Apr CY 194.966
Mar CY 546.573
Feb CY -295
Jan CY 419.792
Dec PY -457.530
Nov PY 684.190
Oct PY 540.692
Sep PY 1.097.025
Total 4.375.838
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