The financial troubleshooter : spotting and solving financial problems in your company /
Jae K. Shim.
- Mason, Ohio : Thomson, c2005.
- xii, 257 p. : ill. ; 24 cm.
CHAPTER 1. CASH FLOW DISRUPTIONS 1 Inadequate Cash Position 2 Surplus Funds 5 Delayed Customer Payments 7 Paying Cash Too Soon 9 Cash Outflows Exceeding Cash Inflows 12 Going Broke While Maintaining Profits 13 Inefficient Use of Cash 15
CHAPTER 2. DISARRAY IN ACCOUNTS PAYABLE AND RECEIVABLE 19 Vendor Price Increases 19 Hidden Discount Costs 21 Poor Credit Rating 23 Check Fraud and Improper Payments 25 Too Stringent Credit Requirements 28
CHAPTER 3. INVENTORY SHORTFALLS 31 Low Turnover of Merchandise 32 Deficient Inventory Balances 35 Excessive Ordering and Carrying Costs 37 Ordering Incorrect Quantities 39 High Rate of Inventory Stockout 41 Theft 43 Miscounted Inventory 46 Inaccurate Inventory Records 47 High Rate of Product Obsolescence 49 Missed Manufacturing Schedules 51 Poor-Quality Goods 53 Lack of Storage Space 56 Delayed Receipt of New Inventory 58
CHAPTER 4. WEAK PROFIT AND CONTRIBUTION MARGIN 61 Unrealistic Breakeven Point 62 Product or Service Failing to Break Even 64 Excessive Cost-to-Production Volume 68 Weak Sales Mix 71 Unprofitable Profit Centers 74 Potential Loss of a Contract 78 Loss Resulting from Product Refinement 80
CHAPTER 5. ANEMIC FINANCIAL STATEMENTS 83 Inadequate Working Capital 84 Inadequate Liquidity 85 Insolvency 90 Excessive Debt 92 Off-Balance-Sheet Liabilities 96 Deficient Asset Use and Turnover 97 Low Rate of Return 99 Lack of Residual Income 102 High Cash-Realization Risk in Assets 105 Poor Profitability and Growth 106 Poor-Quality Earnings 110 Unstable Operations and Earnings 114 Unstable Income 119 Low Price/Earnings Ratio 122
CHAPTER 6. COSTS CUTTING INTO PROFITS 125 Excessive Labor Costs 126 Excessive Operating Leverage 129 Inadequate Cost Controls 130 Lack of Cost Information 132 Distorted Cost Information 134 Supplies More Expensive or Unavailable 136 Cost Reductions Hampering Development 138 Reduced Discretionary Costs Hurting the Business 139 Up-Front Costs Impeding Project Authorization 140 Pricing that Lowers Profits 141
CHAPTER 7. FINANCING UNDERMINING BUSINESS DEVELOPMENT 145 Falling Market Price of Stock 146 Drop in Bond Rating 148 Inability to Obtain Financing 150 Inability to Issue New Securities 152 Dividends Restricted 155 Restrictive Loan Agreements Breached 157
CHAPTER 8. RISK OVERSHADOWS RETURN 159 Risk Disproportionate to Return 160 Risk in the Industry 162 Risk in Corporate Operations 163 Lack of Diversification 166 Inflation Risk 169 Political Risk 171 Foreign Exchange Risk 175 Social and Environmental Risks 176 Management Unaware of Financial Problems 178
CHAPTER 9. BUDGETING AND FORECASTING PROBLEMS 181 Actual Costs Exceeding Budgeted Costs 182 Actual Costs Exceeding Standard Costs 184 Actual Revenue Below Standard Revenue 186 Inaccurate Sales and Expense Estimates 188 Lack of the Right Product at the Right Time 190 Poor Use of Production Capacity 191 Expansion Outpacing Financial Resources 193
CHAPTER 13. BUSINESS OWNERSHIP THREATENED 221 Bankruptcy on the Horizon 222 Inability to Curb Financial Problems 225 Inability to Repay Debt 229 Takeover Threat 231 Increased Costs After Acquisition 233 Financial Inconsistencies After Acquisition 235
CHAPTER 14. TAX PLANNING AND PREPARATION 237 Incomplete and Inaccurate Tax Recordkeeping 238 Underpayment of Taxes 239 Double Taxation 240 Incorrect Classification of Employees 242 Fringe Benefits Not Recorded as Income 244 Excessive Compensation to Employee Shareholders 245 Funds Insufficient to Buy a Deceased Shareholder's Stock