101 financial solutions diagnosis and remedy

Publish Date 6-18-2007

Copyright 2007 by
DELTA PUBLISHING COMPANY
P.O. Box 5332, Los Alamitos, CA 90721-5332

Preface
Chapter 1. Pricing, Sales, and Advertising Miss Margins
1. Sales Do Not Support Advertising Expenditures
2. Revenue Base Erosion
3. Increased Product Pricing Causes a Reduction in Sales
4. Lowered Price Shrinks Margins
5. High Level of Merchandise Returns
Chapter 2. Inventory and Production Shortfalls
6. Low Turnover of Merchandise
7. Deficient Inventory Balances
8. Excessive Ordering and Carrying Costs
9. Ordering IncorrectQuantities of Inventory
10. High Rate of Inventory Stockout
11. Theft of Inventories
12. Miscounted Inventory
13. Inaccurate Inventory Records
14. High Rate of Product Obsolescence
15. Manufacturing SchedulesMissed
16. Poor-Quality Goods Produced
17. Lack of Inventory Storage Space
18. Delayed Receipt of New Inventory
Chapter 3. Profit Targets Are Off
19. Unrealistic Break-Even Point
20. Product or Service Does Not Break-Even
21. Excessive Cost-to-Production Volume
22. Weak Sales Mix
23. Unprofitable Profit Centers
24. Potential Loss of a Contract
25. Product Refinement Generates a Loss
Chapter 4. Risk-Return Unbalance
26. Disproportionate Risk to Return
27. Risk in the industry
28. Risk in Corporate Operations
29. Lack of Diversification
30. Inflationary Risk
4
31. Political Risk
32. Foreign Exchange Risk
33. Social and Environmental Risks
34. Management Unaware of Financial Problems
Chapter 5. Inability to Finance Weakens Business Development
35. Market Price of Stock Fails
36. Bond Rating Drops
37. Inability to Obtain Financing
38. Inability to Issue New Securities
39. Dividends Are Restricted
40. Restrictive Loan Agreements Are Breached
Chapter 6. Business Control Threatened
41. Bankruptcy Looms
42. Inability to Curb Financial Problems
43. Inability to Repay Debt
44. Takeover Threat
45. Costs Increase After Acquisition
46. Financial Inconsistencies After Acquisition
Chapter 7. Cash Flow Disturbances
47. Inadequate Cash Position
48. Surplus Funds
49. Delayed Customer Payments
50. Paying Cash Too Soon
51. Cash Outflows Exceed Cash inflows
52. Going Broke While Maintaining Profits
53. Inefficient Use of Cash
Chapter 8. Mess in Accounts Payable and Receivable
54. Vendors Price Increases
55. Hidden Discount Costs
56. Poor Credit Rating
57. Check Fraud and Improper Payments
58. Stringent Credit Requirements
Chapter 9. Lackluster Financial Statements
59. Inadequate Working Capital
60. Inadequate Liquidity
61. Insolvency
62. Excessive Debt
63. Off-Balance-Sheet Liabilities
5
64. Deficient Asset Use and Turnover
65. Low Rate of Return
66. Lack of Residual Income
67. High Cash Realization Risk in Assets
68. Poor Profitability and Growth
69. Poor-Quality Earnings.
70. Unstable Operations and Earnings
71. Unstable Income
72. Low Price/Earnings Ratio
Chapter 10. Costs Out of Control
73. Excessive Labor Costs
74. Excessive Operating Leverage
75. Inadequate Cost Controls
76. Lack of Cost Information
77. Distorted Cost Information
78. Supplies Increase in Cost or Are Unavailable
79. Cost Reductions Hamper Development
80. Reduced Discretionary Costs Hurt the Business
81. Up-Front Costs Impede Project Authorization
82. Pricing Lowers Profits
Chapter 11. Budgeting and Cost Control Problems
83. Actual Costs Exceed Budgeted Costs
84. Actual Costs Exceed Standard Costs
85. Actual Revenue Below Standard Revenue
86. Inaccurate Sales and Expense Estimates
87. Lack of the Right Product at the Right Time
88. Poor Use of Production Capacity
89. Expansion Exceeds Financial Resources
Chapter 12. Fragile Internal Controls
90. Costs Not Closely Tracked
91. Assets Not Monitored
92. Recordkeeping Errors
93. Credit Card Fraud
94. Cumbersome Accounting Procedures
Chapter 13. Tax Planning and Preparation
95. Incomplete and Inaccurate Tax Recordkeeping
96. Underpayment of Corporate Estimated Taxes
6
97. A Regular Corporation is Subject to Double Taxation, Once at the Corporate Level and a Second
TimeWhen the After-tax Corporate Net Income is Paid to the Shareholders
98. Avoiding Tax Upon the Transfer of Property by One or More Persons to a Corporation
99. Incorrect Classification of Employees
100. Miscellaneous Fringe Benefits Not Recorded as Income
101. Excessive Compensation Paid to EmployeesWho are also Corporate Shareholders
102. A Corporation May Not Have Sufficient Funds with which to Purchase a Deceased
Shareholder's Stock Interest
Glossary