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accounting

CEO Daily Updates – 7.29.2020

July 29, 2020 by Craig Haynie

An analogy of Financial Reports | KN95 Masks on Sale | COVID-19 News Updates


Happy Wednesday! (Huuuuu……. Huuuuuuuuuuummm…) 

During our weekly leadership meeting, Gary (our Chief Administrative Steward) was giving the leadership team a refresher / class on financial statements (P&L, Balance Sheet, Cash Flow Statement). In an effort to help with some understanding I jumped in with an analogy that I personally really liked (it came to me in the moment), and I thought I would share it with you.  

First, the overview of the financial statements.  

In a business there are three primary financial statements used to monitor financial health and to inform decisions – the P&L, Balance Sheet, and Cash Flow Statement. You may or may not be familiar with these statements so I will, in my own words, explain what they tell you.  

The P&L (profit and loss) statement, or Income Statement, shows your income, cost of the goods or services you are selling (COGS), expenses, and profit (or loss). Income minus cost of goods equals your gross profit. It is from this gross profit that you can pay your expenses, and what’s left over is your net income. Taxes are a factor but they only show up on the P&L if you are a C corp. Otherwise, if you are an S Corp or LLC the taxes are the responsibility of the shareholders each year and therefore do not show up as an expense in the business.  

The Balance sheet shows the cash and assets of the business, as well as any liabilities – usually loans, but also the money you have booked as an expense but have not yet PAID. For instance, if you booked an expense for a vendor onto the P&L but have not yet sent the check, it shows up as a liability on the balance sheet in the “Accounts Payable” account. Glancing through the balance sheet you can see what cash you have in the bank, what people owe you (Accounts Receivable), what you owe as balances of loans and accounts payable, and also any “balance of value” of any fixed assets you purchased. For instance, if you bought a big ‘ol underwater basket weaving machine for $250,000 it is not (typically) able to be “expensed” on the P&L, and therefore shows up as an asset on the balance sheet. The IRS allows you to “depreciate” (write off) assets over a set amount of time, depending on the asset type, and to do that you transfer a piece of the value of that asset away from the balance sheet and onto the P&L. You are basically reducing the value of the asset and taking that reduction in value as an expense a little at a time. That one is maybe a little hard to wrap your head around without looking at it on paper.  

[Read more…] about CEO Daily Updates – 7.29.2020

Filed Under: CEO Daily Updates Tagged With: accounting, Business Finances, CEO, Coronavirus, COVID-19, Financial Reports, KN95 Masks

The Swiss Army Knife

November 2, 2010 by Martin Dyhr

At CablesAndKits.Com, the new generation of employee is constantly being groomed and smelted (that is an odd combo) into a durable and versatile being. Back in the day when I first started, I was sent through a pilot training program (not to be read as being trained to fly a plane, although you never know around here) that included a 360 degree view of everyone’s job. [Read more…] about The Swiss Army Knife

Filed Under: CablesAndKits.com News Tagged With: 360 degree view, accounting, cablesandkits, Chattanooga TN, Cisco, conditioning, core value, customer service, excellence, inventory, logistics, order processing, Parks and Recreation, purchasing, receiving, shipping, Swiss Army Knife, switch, training

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