APPENDIX A - QUESTIONS AND ANSWERS
What do I do if I find an "unbalanced" journal?
Bring the journal up in journal entry and correct it. Although the system will
not allow you to "save" an unbalanced journal, it will let you bring up a
journal that does not balance in order to correct it.
If you do not know how to correct the journal while you are in journal entry,
just "ABORT" out of the entry when you are prompted to save the journal. The
system will not save any of the changes on your screen - and the journal will
remain unbalanced until you correct it later.
What do I do if my monthly trial balance does not balance?
Print a Journal Activity Report by Journal Code and look for any "unbalanced"
journals. Also look for G/L Account Numbers that do not exist in the Chart of
Accounts file. Make any necessary corrections and reprint the Monthly Trial
Balance. You may also want to reprint any reports that would be affected by the
corrections.
What if my net income does not match the Retained Earnings?
Print out the income statement format by using the View A Format option on the
Financial Formats menu, and look for any problems in the format. You will find a
list of suggestions on the next page. Make any corrections necessary to the
format through the Define Income Statement option, and reprint the income
statement.
What if my balance sheet does not balance?
Print out the balance sheet format by using the View A Format option on the
Financial Formats menu, and look for any problems in the format. You will find a
list of suggestions on the next page. Make any corrections necessary to the
format through the Define Balance Sheet option, and reprint the balance sheet.
What do I look for if there's "a problem" with one of my formats?
Ö Check the line number references in the Format Header.
For an Income Statement:
Is the "Total Sales Line" correct?
Is the "Net Income Line" correct?
For a Balance Sheet:
Is the "Total Assets Line" correct?
Is the "Total Liabilities and Equities Line" correct?
For a Capital Statement:
Is the "Total Equity Line" correct?
Is the "Retained Earnings Line" correct?
For a Cash Flow Analysis:
Is the "G/L Cash Account" correct?
Is the "Net Change in Cash Line" correct?
Ö Check all the G/L Account Numbers in the Format Detail.
Are all the account numbers correct and valid accounts?
Are there any erroneously duplicate account numbers?
Are any accounts missing?
Are the account ranges correct and complete ranges?
Ö Check all the line number references in the Format Detail.
Are all the line number references correct and valid lines?
Are there any erroneously duplicate line number references?
Are there any missing line numbers?
Are the line range references correct and complete ranges?
Ö Check your departments and divisions (if applicable).
Have you recently added a new department or division to your Chart of Accounts
file?
If so, is the new department/division set up properly in file maintenance?
What do I do if I get an Error Log on a financial format?
999999 NOT Included in Format #000
This message is informing you that a G/L Account Number - based on its account
type - is missing from this financial statement. You need to change this format
to include this account number. Or if this account is not used anymore, set the
Inactive field in the Chart of Accounts file to a "Y". Or if the account type is
wrong, correct it.
999999 Invalid Acct for [financial statement]
This message is informing you that this G/L Account is used in this financial
format, but does not conform to the usual type of account found on this type of
financial. You need to change this format if the account should not be included
on this financial. Or if the account should be included, correct the Account
Type field in the Chart of Accounts file.
999999 Does NOT EXIST in Chart of Accts
This message is informing you that there is an account reference in this format
that is not in your Chart of Accounts file. You need to correct this format by
either removing this account reference or changing the reference to a valid
account number. Or add this account to the Chart of Accounts file.
L999 Acct 9999999 Not Valid; Too Long
This message is informing you that, on line 999, there is an account reference
that is too long. You need to change the format to correct this account number.
L999 Unable to Process Formula
This message is informing you that there is something wrong with the formula on
line 999. The formula found on this line does not conform to the "expected
calculation". You need to change this format to correct the formula on the
specified line.
How do I make adjustments to a previous period?
Go into Journal Entry and override the default period with the period that you
want to correct. After you have made your adjusting entries, you must "reclose"
the month by performing the Update Chart of Accounts option under the Monthly
Trial Balance. Remember to override the default period. You may also want to
reprint any reports or any financials that would be affected by the adjustments.
How do I make adjustments to a previous year?
Just like adjusting a previous period, you need to override the default period
when you are prompted for it. Remember to override both the period and the
fiscal year. The system will allow you to go back two years to make any
adjustments necessary.
After you have made your adjusting entries, you must "reclose" the month by
performing the Update Chart of Accounts option under the Monthly Trial Balance.
You may also want to reprint any reports or any financials that would be
affected by the adjustments.
NOTE: When you are all done making adjustments to a previous year, there is NO
NEED TO RECLOSE THE YEAR. In fact, the system will not let you close a year more
than once. Instead, it automatically makes the necessary adjustments to the
Chart of Accounts file when - through the Monthly Trial Balance Update option -
you "reclose" a period from a previous fiscal year.
APPENDIX B - FINANCIAL STATEMENTS
Demo Systems, Inc.
Income Statement
For Month Ended February 28, 1994
Current % YTD %
SALES REVENUE.............. 9,999.00 99.0% 9,999.00 99.0%
COST OF GOODS SOLD......... 9,999.00 99.0% 9,999.00 99.0%
----------- ------ ----------- ------
GROSS PROFIT............... 9,999.00 99.0% 9,999.00 99.0%
----------- ------ ----------- ------
OPERATING EXPENSES
Salaries & Wages......... 9,999.00 99.0% 9,999.00 99.0%
Telephone Expense........ 9,999.00 99.0% 9,999.00 99.0%
Office Supplies.......... 9,999.00 99.0% 9,999.00 99.0%
Insurance................ 9,999.00 99.0% 9,999.00 99.0%
Building Rent............ 9,999.00 99.0% 9,999.00 99.0%
Advertising Expense...... 9,999.00 99.0% 9,999.00 99.0%
Depreciation Expense..... 9,999.00 99.0% 9,999.00 99.0%
Miscellaneous Expense.... 9,999.00 99.0% 9,999.00 99.0%
----------- ------ ----------- ------
TOTAL OPERATING EXPENSES... 9,999.00 99.0% 9,999.00 99.0%
----------- ------ ----------- ------
OTHER EXPENSES
Interest Expense......... 9,999.00 99.0% 9,999.00 99.0%
Loss on Sale of Equip.... 9,999.00 99.0% 9,999.00 99.0%
TOTAL OTHER EXPENSES....... 9,999.00 99.0% 9,999.00 99.0%
PROFIT/LOSS BEFORE INC TAX 9,999.00 99.0% 9,999.00 99.0%
Provision for Inc Taxes.. 9,999.00 99.0% 9,999.00 99.0%
----------- ------ ----------- ------
NET INCOME/LOSS............ 9,999.00 99.0% 9,999.00 99.0%
=========== ====== =========== ======
Income Statement
Demo Systems, Inc.
Comparative Income Statement
For Month Ended February 28, 1994
---- 1994 ---- ---- 1994 ---- ---- 1993 ----
Current % YTD % YTD %
SALES REVENUE........... 999,999 99.0% 999,999 99.0% 999,999 99.0%
COST OF GOODS SOLD...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
GROSS PROFIT............ 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
OPERATING EXPENSES
Salaries & Wages...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Telephone Expense..... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Office Supplies....... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Insurance............. 999,999 99.0% 999,999 99.0% 999,999 99.0%
Building Rent......... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Advertising Expense... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Depreciation Expense.. 999,999 99.0% 999,999 99.0% 999,999 99.0%
Miscellaneous Expense. 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL OPERATING EXPENSES 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
OTHER EXPENSES
Interest Expense...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Loss on Sale of Equip. 999,999 99.0% 999,999 99.0% 999,999 99.0%
TOTAL OTHER EXPENSES.... 999,999 99.0% 999,999 99.0% 999,999 99.0%
PROFIT/LOSS BEFORE TAXES 999,999 99.0% 999,999 99.0% 999,999 99.0%
Provision for Taxes... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
NET INCOME/LOSS......... 999,999 99.0% 999,999 99.0% 999,999 99.0%
======== ===== ======== ===== ======== =====
Income Statement
Demo Systems, Inc.
YTD Income Statement
For Month Ended February 28, 1994
** Plant #1 ** ** Plant #2 ** *** TOTALS ***
SALES REVENUE........... 999,999 99.0% 999,999 99.0% 999,999 99.0%
COST OF GOODS SOLD...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
GROSS PROFIT............ 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
OPERATING EXPENSES
Salaries & Wages...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Telephone Expense..... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Office Supplies....... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Insurance............. 999,999 99.0% 999,999 99.0% 999,999 99.0%
Building Rent......... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Advertising Expense... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Depreciation Expense.. 999,999 99.0% 999,999 99.0% 999,999 99.0%
Miscellaneous Expense. 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL OPERATING EXPENSES 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
OTHER EXPENSES
Interest Expense...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Loss on Sale of Equip. 999,999 99.0% 999,999 99.0% 999,999 99.0%
TOTAL OTHER EXPENSES.... 999,999 99.0% 999,999 99.0% 999,999 99.0%
PROFIT/LOSS BEFORE TAXES 999,999 99.0% 999,999 99.0% 999,999 99.0%
Provision for Taxes... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
NET INCOME/LOSS......... 999,999 99.0% 999,999 99.0% 999,999 99.0%
======== ===== ======== ===== ======== =====
Divisional Income Statement
Income Statement
For February 28, 1994
For Plant #1:
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Income Statement per Dept
Income Statement
For February 28, 1994
For Plant #2:
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Income Statement
For February 28, 1994
For Plant #3:
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Income Statement
For February 28, 1994
For ALL Departments:
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Balance Sheet
Demo Systems, Inc.
Balance Sheet
February 28, 1994
A S S E T S
CURRENT ASSETS
Checking/Savings....... 999,999
Accts Receivable....... 999,999
Inventory.............. 999,999
Prepayments............ 999,999 999,999
----------
TOTAL CURRENT ASSETS..... 999,999
----------
FIXED ASSETS
Equipment & Tools...... 999,999
Less Accum Depr...... 999,999CR 999,999
Furniture & Fixtures... 999,999
Less Accum Depr...... 999,999CR 999,999
----------
TOTAL FIXED ASSETS....... 999,999
----------
TOTAL ASSETS............. 999,999
==========
L I A B & E Q U I T Y
CURRENT LIABILITIES
Accounts Payable....... 999,999
Interest Payable....... 999,999
Accrued Liabilities.... 999,999 999,999
----------
TOTAL CURRENT LIABILITIES 999,999
----------
LONG-TERM DEBT........... 999,999 999,999
----------
TOTAL LIABILITIES........ 999,999
==========
STOCKHOLDERS' EQUITY
Common Stock, $1 Par... 999,999
Retained Earnings...... 999,999 999,999
----------
TOTAL LIAB & EQUITY...... 999,999
==========
Balance Sheet
Demo Systems, Inc.
Comparative Balance Sheet
February 28, 1994
---- 1994 ---- ---- 1993 ---- -- Net Differ --
A S S E T S
CURRENT ASSETS
Checking Account...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Accts Receivable...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL CURRENT ASSETS.... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
FIXED ASSETS
Equipment & Tools..... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Furniture & Fixtures.. 999,999 99.0% 999,999 99.0% 999,999 99.0%
Less Accum Depr....... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL FIXED ASSETS...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL ASSETS............ 999,999 99.0% 999,999 99.0% 999,999 99.0%
======== ===== ======== ===== ======== =====
L I A B & E Q U I T Y
CURRENT LIABILITIES
Accounts Payable...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Interest Payable...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Accrued Liabilities... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL CURRENT LIAB...... 999,999 99.0% 999,999 99.0% 999,999 99.0%
LONG-TERM DEBT.......... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL LIABILITIES....... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
STOCKHOLDERS' EQUITY
Common Stk, $1 Par.... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Retained Earnings..... 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL STOCKHOLDER EQUITY 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL LIAB & EQUITY..... 999,999 99.0% 999,999 99.0% 999,999 99.0%
======== ===== ======== ===== ======== =====
Capital Statement
Demo Systems, Inc.
Retained Earnings Statement
February 28, 1994
---- 1994 ---- ---- 1993 ---- -- Net Differ --
Common Stock, $1 Par,
50,000 Authorized..... 999,999 99.0% 999,999 99.0% 999,999 99.0%
Retained Earnings, Beg.. 999,999 99.0% 999,999 99.0% 999,999 99.0%
Retained Earnings, YTD.. 999,999 99.0% 999,999 99.0% 999,999 99.0%
-------- ----- -------- ----- -------- -----
TOTAL STOCKHOLDER EQUITY 999,999 99.0% 999,999 99.0% 999,999 99.0%
======== ===== ======== ===== ======== =====
Cash Flow Analysis
Demo Systems, Inc.
Statement of Cash Flow
For Month Ended February 28, 1994
-- 1994 -- -- 1994 -- -- 1993 --
Current YTD YTD
CASH WAS PROVIDED BY:
Net Income/Loss from Operations... 999,999 999,999 999,999
Adjustments to Income:
Add Back in Depreciation........ 999,999 999,999 999,999
Increase in Accts Receivable.... 999,999 999,999 999,999
Decrease in Inventory........... 999,999 999,999 999,999
Increase in Prepayments......... 999,999 999,999 999,999
Decrease in Accts Payable....... 999,999 999,999 999,999
Increase in Accrued Interest.... 999,999 999,999 999,999
Increase in Sales Tax Payable... 999,999 999,999 999,999
Increase in Other Taxes......... 999,999 999,999 999,999
-------- -------- --------
Total Adjustments................. 999,999 999,999 999,999
-------- -------- --------
CASH PROVIDED BY OPERATIONS....... 999,999 999,999 999,999
-------- -------- --------
Short-Term Loan................... 999,999 999,999 999,999
Long-Term Loans................... 999,999 999,999 999,999
Issuance of Common Stock.......... 999,999 999,999 999,999
-------- -------- --------
TOTAL CASH PROVIDED................. 999,999 999,999 999,999
-------- -------- --------
CASH WAS APPLIED TO:
Purchase of Equipment/Tools....... 999,999 999,999 999,999
Purchase of Furniture/Fixtures.... 999,999 999,999 999,999
Purchase of Vehicles.............. 999,999 999,999 999,999
-------- -------- --------
TOTAL CASH APPLIED.................. 999,999 999,999 999,999
-------- -------- --------
NET INCREASE IN CASH................ 999,999 999,999 999,999
======== ======== ========
Financial Analysis
Demo Systems, Inc.
Financial Analysis
February 28, 1994
--1994-- --1993-- --1992--
LIQUIDITY ANALYSIS:
Current Ratio..................... 2.15:1 2.20:1 1.45:1
Acid-Test (Quick) Ratio........... 1.47:1 1.09:1 0.51:1
ACTIVITY ANALYSIS:
Accounts Receivable Turnover...... 8.70 7.90 79.63
# of Days' Sales in Ending A/R.... 46.35 59.88 10.12
Inventory Turnover Rate........... 7.27 1.25 3.44
Days' Sales in Ending Inventory... 50.11 281.51 196.85
Total Asset Turnover.............. 3.12 1.43 1.16
PROFITABILITY ANALYSIS:
Profit Margin on Sales............ 17.02% 28.07% -72.13%
Return on Investment.............. 57.97% 46.62% -96.33%
Rate Earned on Equity............. 112.11% 92.89% 192.58%
CAPITAL STRUCTURE ANALYSIS:
Debt to Equity Ratio.............. 1.93:1 1.89:1 -8.01:1
Times Interest Earned............. 19.36:1 17.41:1 -14.62:1
Cover Page
Demo Systems, Inc.
Interim Financial Statements
For Two Months Ended
February 28, 1994
Overhead Analysis
Demo Systems, Inc.
Departmentalized Interim Income Statement
For Two Months Ended February 28, 1994
-----------------------------------------
DEPARTMENT REVENUE % PROFIT/(LOSS) OVERHEAD ---- NET PROFIT ----
BEFORE OVERHD FEBRUARY YTD
Dept #1 99,999 25.0% 50,000 (10,000) 40,000 249,999
Dept #2 99,999 25.0% 50,000 (10,000) 40,000 249,999
Dept #3 99,999 25.0% 50,000 (10,000) 40,000 249,999
Dept #4 99,999 25.0% 50,000 (10,000) 40,000 249,999
________ ______ _________ ________ _______ _______
Subtotal 399,996 100.0% 200,000 (40,000) 160,000 999,996
Overhead (40,000) 40,000
________ ______ _________ ________ _______ _______
TOTALS 399,996 100.0% 160,000 0 160,000 999,996
________ ______ _________ ________ _______ _______