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Long-term debt, 181–185. See
also Debt; Loans
Objectives, conflicting, 54
Long-term goals, 145–147 O Index 217
Operating expenses, 22, 57–60
Long-term liabilities, 45–46, 96 Operating income, 60, 61
Operating plans, 147–153
M
Management by exception, 134, Operating statement. See Income
statement
135, 169
Manufacturing overhead, 127 Operational planning, 142, 143
Operations
Marketing and sales expenses, 59
Marketing and sales plans, reporting cash flow from, 87–93
trend reporting, 119
151–152
Market valuation of start-up com- Order backlogs, 112–113
Order processing time, 114
panies, 199–200
Materials requisition forms, 126 Other assets, on balance sheet,
41
Measurable goals, 146
Mechanic’s liens, 43 Other income and expenses, on
income statement, 61–62
Mission, in business plans, 144
Monthly closing cycle, 16 Outside investors. See Investment
capital
N Overhead, manufacturing, 127
Negative adjustments on cash Overview of operational plans,
flow statement, 90, 91, 93 149–150
Negative covenants, 45 Owners’ equity, 46–49. See also
Negative retained earnings, Stockholders’ equity
48–49
Negotiating acquisitions, 208 P
Negotiating valuation, 199–200, Padding budget numbers, 165
Parkinson’s Law, 160
201
Par value, 47
Net cash flow, 76–81, 96–97
Net income, 63, 87, 88. See also Payables. See Accounts payable
Payments, 26, 42, 43. See also
Statement of cash flow
Net profit, 76–81 Collection periods
Payroll, accrued, 43–44
Net profit margin, 106–108
Net reduction in long-term debt, PE ratio, 64, 65, 101
Performance evaluation, 134
96
Net worth. See Stockholders’ Personal computers, impact on
business, 2–3, 29
equity
Noncash items, 89 Planning. See Business planning
Preferred stock, 189–191
Notes payable, as current liability,
44–45 Prepaid expenses
adjustments on cash flow
Numbering, in chart of accounts,
21–23 statement, 90–91