Monster Media 1994 #1

home *** CD-ROM | disk | FTP | other *** search

/ Monster Media 1994 #1 / monster.zip / monster / BUSINESS / CASHFLW.ZIP / MANUAL.TXT < prev next >

Wrap

Text File | 1994-01-05 | 53KB | 1,548 lines

PAGE 1 ================================================================== UP YOUR CASH FLOW (Shareware Version) (c) 1993 by Granville Publications ================================================================== * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * You may use this shareware program free of charge for 30 days. After 30 days you must register the program with us (Print ORDER.FRM for a registration form), or remove the program from your hard drive. Continuing to use the program after the 30-day period without registering it is illegal. With your registration you will receive technical support and information regarding other Granville Publications Software products. If you have any questions regarding registration, call us at 800-873-7789. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * PAGE 2 Table of Contents Installation...................................... 4 Printing Instructions............................. 5 General Instructions.............................. 6 Screen Commands and Hot Keys...................... 6 (Edit)............................................ 6 (Use Forecast).................................... 7 (Continue)........................................ 7 (Main Menu) / (Expense Description) / (Payroll Departments)............................. 7 ESCAPE key........................................ 8 F3 = Reports key.................................. 8 Hot Keys.......................................... 8 Tips for Best Results............................. 8 Housekeeping...................................... 8 Name, Beginning Balances, Sales and Expenses...... 9 Beginning Balances................................ 9 Sales............................................. 9 Sales Forecast.................................... 9 Annual Sales Forecast............................. 9 Sales Forecast by Month...........................10 Sales Collections by Month........................10 Actual Collections or Any Collection Amount You Choose.................................11 Sales by Product or Product Line......................................11 Recap of Sales by Product/Line......................................13 Sales Collections by Month........................14 Cost of Goods Sold................................14 Recap by Month....................................15 Payment of Purchases Cash Flow....................15 More About Cost of Goods Sold.....................17 Prepaid Expenses and Amortization.................17 Expenses..........................................18 Expenses Forecast.................................18 Expenses-Basic Payment Assumption.................18 Expenses To Be Forecast...........................18 Annual Expense....................................18 Expense by Month..................................19 Expense Cash Flow.................................19 Payroll...........................................19 Payroll Menu......................................20 Annual Payroll....................................20 PAGE 3 Payroll by Month..................................20 Computation of Payroll by Listing Employees.......21 Payroll Tax Expense...............................21 Proprietor's/Partner's Draws......................21 Term Loans/Interest Expense.......................22 Purchase of Equipment.............................22 Sale of Assets....................................22 Income Tax Expense/Estimated Tax Payment..........23 Break-Even Analysis...............................23 Create List and Consolidate Entities..............23 Create A New Entity...............................23 List of Entities Created..........................23 Consolidation Menu................................24 Preparing More Than One Consolidated Forecast.....24 Multiple Year Forecasts...........................25 Clean Up..........................................26 Next Year Forecast ("What If" Analysis)...........27 About the Ratios..................................27 Current Ratio.....................................27 Trouble Shooting With Up Your Cash Flow...........28 What's the fastest way to get my question answered?......................28 Accessing the Program after Installation..........28 Error messages....................................28 What is an "Entity"?..............................29 Printing..........................................29 Balance sheets....................................29 General printing difficulties.....................30 Theory of Accounts................................30 Accounts Receivable...............................30 Inventory.........................................30 Prepaid Expenses..................................30 Prepaid Taxes.....................................30 Other Assets......................................31 Property and Equipment............................31 Accumulated Depreciation..........................31 Accounts Payable..................................31 Accrued Expenses..................................31 Income Tax Payable Balance........................31 Accounts Receivable Credit Line...................31 Term Loan.........................................32 Common Stock......................................32 Paid-In Capital...................................32 Retained Earnings.................................32 Net Worth (Unincorporated Business)...............32 Version 4.01 Features.............................33 Household Cash Planner Features...................35 PAGE 4 ============ Installation ============ FOR BBS DOWNLOADS: 1. Change to the directory you copied and ran CASHFLOW.EXE from. 2. Type "INSTALL" and press the enter key. Follow the instructions. FOR DISKETTES FROM VENDORS: 1. Place the disk into your drive. 2. At the DOS prompt, type the letter of the disk drive you have chosen, followed by a colon, and press ENTER (A: or B:). 3. Type INSTALL and press ENTER. 4. You will be at the Cash Flow installation screen. Follow the instructions. ======================================== Accessing the program after installation ======================================== To access Up Your Cash Flow at any time after the initial installation procedure, go to your cashflow directory (CD\CASHFLOW) and type CASHFLOW. ============ Registration ============ It is very easy to register with us! Simply print the ORDER.FRM file, fill it out, and mail it to us. By registering with us, you will be entitled to free technical support, the Up Your Cash Flow Book - 172 pages on how to manage cash flow and the finances of your business, info on the latest upgrades and other Granville Software products. ============== Support Policy ============== After registering the program with us, you will be entitled to 90 days of free technical support by phone. After that period, you will given the option of receiving a yearly support contract, currently priced at $29.95 per year. * * * * * The installation program used by Up Your Cash Flow was written by Lincoln Beach Software and is entitled First Impression. Lincoln Beach Software reserves all copyright protection worldwide. For further information they may be reached at P.O. Box 1554, Ballwin, MO 63022 or 314-227-2431. Harold Holmes may also be reached on Compuserve at 70700,630. PAGE 5 ============ Housekeeping ============ This menu is used to set your printer and to set your monitor for proper display of graphics and color. ================ Saving Your Data ================ 1. All data entered is saved automatically. You can erase data by using the "Clean Up" program. 2. Copy data to a diskette by using the "Copy Data To/From a Diskette" selection on the main menu. ===================== Printing Instructions ===================== 1. You can print reports on a 132-column, 80-column or laser printer. 2. If you are using an 80-column dot matrix printer, you cannot print in landscape mode (sideways). The reports will print quarterly. 3. If you are using a laser printer, you can print full reports in landscape mode using legal-sized paper. You can also print quarterly reports in portrait mode on a laser printer. 4. For printing graphics, you must use a laser printer. 5. Printing Balance Sheets: To print the balance sheet, you must scroll the light bar using the down arrow key to the bottom of the screen, highlight "Return to Previous Screen," and press the ENTER Key. If you simply press Escape, the report will not print. PAGE 6 ==================== General Instructions ==================== 1. Read all of the menu explanations and tips before beginning (explanations are on the main menu). 2. For on-screen help, press F1. 3. For an on-screen glossary of accounting terms, press F2. 4. Use menus in sequence. 5. To view spreadsheets, use Page Up, Page Down, and left and right arrow keys. All information will appear on the screen. 6. When forecasting, please make certain that you complete all of the steps in each program. You can exit screens at various points within the program. However, if you do not complete the sequences asked for, your forecasts may not be complete. 7. Use decimals where indicated. 8. Rounding: Occasionally your cash balance on the cash flow will not agree with your cash balance on the balance sheet. This is the result of the number being rounded. ============================ Screen Commands and Hot Keys ============================ As you move through each section of the forecasting process, there will be several choices for determining the methods of forecasting. Available commands and tips for usage are as follows: (Edit) By moving the LIGHT BAR to the Edit command and pressing ENTER, you can move the cursor through the screen and enter data where needed. When the Edit command is surrounded by numbers, for example 1 Edit 1 or 2 Edit 2, you are given different options for forecasting your data. Move the LIGHT BAR to the Edit function of your choice by using the LEFT or RIGHT ARROW KEYS. Press ENTER. PAGE 7 EXAMPLE: (1 Edit 1) will move the cursor to Option 1, or (2 Edit 2) will move the cursor to Option 2. (Use Forecast) This function is found after you have entered data in various screen options, and will appear as 1 Use forecast 1 or 2 Use forecast option 2. The program is asking you to choose the appropriate option for the next step of your forecast. Move the LIGHT BAR to your choice using the LEFT or RIGHT ARROW KEYS. Press ENTER and the option you choose will be used in the next step of the program. EXAMPLE: When forecasting sales, the first step in choosing sales is to determine annual sales. The second step is to determine how the annual sales will be shown for each month of the forecast. The Use forecast command will select the sales forecasting option you indicate and advance you to the next step, where you will be asked to determine sales by month. (Continue) Use this function to advance to the next step of the program, with or without using the Edit or Use forecast function. EXAMPLE: After you have entered data in a forecast option, move the LIGHT BAR to Continue and press ENTER. You will proceed to the next step in your forecast. (Main Menu ) / (Previous Screen) / (Go Back) and Other Screen Commands Use these functions to move to the place indicated. (Sales) / (Expense Description) / (Payroll Departments) When you see these selections and your cursor at the bottom of the screen, you may edit the description to fit your needs. EXAMPLE: You may choose to use "Fees" in place of "Sales." Simply edit as desired and press ENTER to proceed to the next step of the program. PAGE 8 ESCAPE key You may exit most screens in the program by pressing ESCAPE. F3 = Reports When you see F3 = Reports at the bottom of the screen, you may use this function key to jump straight to the reports menu. This menu allows you to view or print all of the reports created by the program. Hot Keys These keys allow you to select an item, from the menu or the bottom of a screen, by choosing the corresponding Hot Key letter. If you have a color monitor, the Hot Key letter is the letter that's a different color from the rest of the word. If you have a monochrome monitor, the Hot Key letter is the highlighted letter, or the letter that is oddly capitalized in the middle of the word. ===================== Tips For Best Results ===================== For technical and accounting support, please call 1-800-873-7789 or 310-477-3924. NOTE: You must be registered to receive assistance. To register, please call: 1-800-873-7789. For on-screen help, press F1. For an on-screen glossary of accounting terms, press F2. ============ Housekeeping ============ This menu is used to select your printer and set your monitor for proper display of graphics and color. PAGE 9 ================================= Name, Month, Type of Entity, Year ================================= You can change information in this section at any time during your forecast. When choosing the fiscal period for your forecast, you may use months, or the numbers 1 through 12. If you do not enter a fiscal period, the program will assume January through December. ================== Beginning Balances ================== You may not have beginning balances. The program does NOT REQUIRE you to enter this information. ===== Sales ===== When forecasting sales, follow the guidelines below. Sales Forecast (screen 1) 1) The first screen explains the sales forecasting process. At the bottom of the screen, the description of "sales" can be edited as desired. 2) Type the desired name for sales and press ENTER. Annual Sales Forecast (screen 2) There are three options for forecasting your annual sales: 1 Edit option 1: Forecast sales by adjusting the prior year's sales by a designated amount or a percentage. 2 Edit option 2: Enter sales at any level you choose. 3 Edit option 3: Compute forecasted sales by product or any other unit of production. See "Sales Forecasting by Product or Product Line" on page 9 for more details. Using Options 1 and 2: After you enter your data in Option 1 and/or 2 above, you can choose which option to use for your forecast. 1) Scroll to Continue and press ENTER. PAGE 10 2) Next, choose your desired annual sales by moving the LIGHT BAR with the RIGHT or LEFT ARROW KEYS to 1 Use Forecast 1 or 2 Use Forecast 2. 3) Press ENTER. Using Option 3: See "Sales Forecasting by Product or Product Line" on page 9 for more details. Sales Forecast by Month (screen 3) There are four columns on this screen: Column 1: This column is used to enter the prior year's sales by month. In doing this, the forecasted annual sales will automatically be calculated in the ratio that the prior year's sales occurred. These calculations will appear in Column 2. Column 2: This column, titled "New Sales," will show forecasted annual sales in the ratio that the prior year's sales occurred. Column 3: This is the forecasted sales divided into equal amounts for each month. Column 4: This column allows you to enter the monthly sales as you wish. 1) After you enter your data, scroll to Continue and press ENTER. 2) You may now choose forecast 2, 3 or 4 (forecast numbers correspond to column numbers). 3) Move the LIGHT BAR using the RIGHT or LEFT ARROW KEYS to your choice and press ENTER. Sales Collections (screen 4) Use this screen to indicate how sales will be collected during your forecast period. Read the screen explanation and enter the required information. It is not necessary to enter data in both of the two available options. However, YOU MUST CHOOSE ONE, or collections will not appear in your cash flow forecast. Sales Collections by Month (screen 5) Column 1: Enter the prior year's collections by month. In doing this, the forecasted collections (previous screen option 1) will automatically be calculated in the ratio that collections occurred in the prior year. This is displayed in Column 2. PAGE 11 Column 2: This displays new collections in the ratio that collections occurred in the prior year. Column 3: This displays forecasted collections (previous screen option 1) as equal for each month. Column 4: This column shows the results of the information entered in the previous screen under option 2. 1) After you have entered your data, scroll to Continue and press ENTER. 2) You now have the opportunity to choose the monthly collections you want to use for your forecast. 3) Scroll to your choice and press ENTER. You now have the opportunity to enter your actual collections or any collection amounts you choose (screen 6). This screen gives you the option of editing your collections. Enter your actual collections or any amounts you wish. The sales forecast procedure is now complete. Sales by Product or Product Line (screen 3): Using Annual Sales Forecast Option 3: 1) Select Annual Sales Forecast option 3 (3 Edit option 3). 2) Press ENTER and the following screen will ask for your product information. 3) Move to Edit: Number, Name, Price, etc. and press ENTER. 4) NOTE: You MUST enter a product number. If your products are not numbered, enter any number you wish. 5) Supply the rest of the required information and return to Edit. 6) Use the Edit Units function in the same manner to estimate the number of units you plan to sell during the forecast year. 7) After all products and units are entered, scroll to Continue and press ENTER. PAGE 12 8) The next screen will display your product sales totals for each month. 9) Press ENTER and follow the rest of the Forecasting Sales by Product or Product Line procedures. ======================================== Professional Firms: Forecasting Sales by Staffperson: ======================================== 1) Use Annual Sales Forecast option 3, Sales by Product or Product Line. 2) When the field asks for the Product Number, designate an employee number. 3) When the field asks for Product Name, enter the employee's name. 4) Complete the balance of the program. 5) By following these steps, you will budget your sales revenue by employee. ================================================= Forecasting Sales by Salesperson Selling a Single Product: ================================================= 1) Use Annual Sales Forecast option 3, Sales by Product or Product Line. 2) When the field asks for the Product Number, enter the salesperson's employee number. 3) When the field asks for Product Name, enter the salesperson's name. 4) You can enter as many salespeople as you like. 5) Complete the balance of the program. 6) The final report will be your "Sales Forecast by Salesperson" spreadsheet. ================================================ Forecasting Sales by Salesperson Selling Several Products: ================================================ You can use the procedure above for each product sold by the salesperson, or you can determine the approximate annual sales by salesperson in dollars by completing the following steps: PAGE 13 1) Divide the annual sales by 100. 2) EXAMPLE: A salesperson will sell approximately $1,200,000 for the year. $1,200,000 / 100 = $12,000. 3) Use Annual Sales Forecast option 3, Sales by Product or Product Line. 4) When the field asks for the Product Number, enter the salesperson's employee number. 5) When the field asks for Product Name, enter the salesperson's name. 6) When the field asks for Sales Price, enter the result of the total sales divided by 100. 7) In the example above, the sales price is $12,000 ($1,200,000 / 100 = $12,000). 8) When the menu asks you to estimate the number of units to be sold by month, enter the percentage of the total sales the salesperson will make in each month. 9) EXAMPLE: The salesperson will make 10% of his/her sales in January and 5% in February. You enter (10) in January and (5) in February. Complete the balance of the year. REMEMBER: The total of the units should equal 100. 10) The final report will be your "Sales Budget by Salesperson" spreadsheet. Simply print the "Sales by Product" spreadsheet. Recap of Sales by Product/Line (screen 4) Sales Collections (screen 5) Use this screen to indicate how sales will be collected during your forecast period. Read the screen explanation and enter the required information. It is not necessary to enter data in both of the two available options. However, YOU MUST CHOOSE ONE, or collections will not appear in your cash flow forecast. PAGE 14 Sales Collections by Month (screen 5) Column 1: Enter the prior year's collections by month. In doing this, the forecasted collections (previous screen option 1) will automatically be calculated in the ratio that collections occurred in the prior year. This is displayed in Column 2. Column 2: This displays new collections in the ratio that collections occurred in the prior year. Column 3: This displays forecasted collections (previous screen option 1) as equal for each month. Column 4: This column shows the results of the information entered in the previous screen under option 2. 1) After you have entered your data, scroll to Continue and press ENTER. 2) You now have the opportunity to choose the monthly collections you want to use for your forecast. 3) Scroll to your choice and press ENTER. You now have the opportunity to enter your actual collections or any collection amounts you choose (screen 6). This screen gives you the option of editing your collections. Enter your actual collections or any amounts you wish. The sales forecast procedure is now complete. ================== Cost of Goods Sold ================== Follow these general instructions for the Cost of Goods Sold section of your forecast. Cost of Goods Sold - Determining inventory levels for the next 12 months (screen 1) 1) If you have inventory, move to Edit and press ENTER. 2) Select "Constant" or "Fluctuate" inventory levels. PAGE 15 Cost of Goods Sold (screen 2) There are four options available for determining Cost of Goods Sold. (Using options 1 and 2) (1 Edit 1 or 2 Edit 2): 1) Scroll to the appropriate Edit function and press ENTER. 2) Provide the data requested. 3) Scroll to Continue and press ENTER. (Using options 3 and 4:) To forecast cost of goods sold by variable or fixed amounts or by product or product line, see "Using options 3 and 4" below. Cost of Goods Sold Recap by Month (screen 3) You will see five columns. Two columns have been numbered Column 1 and Column 2. Column 1 is the result of the Cost of Goods Sold, previous screen option 2, Material, Labor and Overhead. Column 2 is the result of the Cost of Goods Sold, previous screen option 1, Cost of Goods Sold as a Percentage of Sales. Move the cursor to the number of your choice (1 Use forecast 1 or 2 Use forecast 2) and press ENTER. Cost of Goods Sold - Payment of Purchases Cash Flow (screen 4) 1) This screen is for determining how purchases will be paid. Labor is assumed paid 100% in the month incurred. 2) Enter your payment schedule. 3) Scroll to Continue and press ENTER. Using option 3: Cost of Goods Sold using Fixed and Variable Costs (3 Edit 3): 1) Select 3 Edit 3 and press ENTER. 2) Use the Edit function to enter the requested data. PAGE 16 3) NOTE: You may use the command keys at the bottom of the screen to enter different data for each month of the forecast or use the same data for all months. 4) After you have completed entering data for the 12 months, scroll to Continue and press ENTER. 5) See Cost of Goods Sold - Payment of Purchases Cash Flow (screen 4) on page 13. Using option 4: Cost of Goods Sold by Product or Product Line. 1) Use the Edit function to enter the data requested. 2) Scroll to Continue and press Enter. 3) You will now see a Recap of Costs by Product/Line. 4) Press ENTER and you will advance to Payment of Purchases Cash Flow (screen 4). See "Cost of Goods Sold - Payment of Purchases Cashflow (screen 4) for instructions on how to enter your purchase payment assumptions. ================================================== Manufacturers: Creating Greater Detail for Cost of Goods Sold, Labor and Overhead. ================================================== 1) If your are using Entity #1 as your primary forecasting model, go into Entity #2 and use that payroll program to list all your cost of goods sold labor (direct and indirect labor). 2) You can list each employee by using the normal payroll expense section of the main menu. 3) After you have listed all your employees, print the payroll spreadsheet. 4) This information becomes your supporting schedule for your cost of goods sold labor. 5) Now return to Entity #1. 6) Under the cost of goods sold fixed and variable amounts, insert each month's totals from the printout of Entity #2 on the fixed labor line. PAGE 17 7) The labor section of your cost of goods sold forecast will now have a detailed support schedule listing all of the individuals who make up the labor portion of cost of goods sold. 8) The same procedure can be used for overhead. 9) Go into Entity #3 and name it "Cost of Goods Sold Overhead." 10) Enter the sales you entered from Entity #1 into your monthly sales, and then use the expense schedule to detail all your manufacturing overhead. 11) Produce a printout of the schedule, and then enter the expense totals in the fixed overhead amount section of Entity #1. 12) You will now have all of your overhead detailed in a separate schedule. This schedule will support the amount determined for your fixed overhead amount in your original forecast. ============================= More about Cost of Goods Sold ============================= 1) For the cash flow forecast, the program will automatically compute purchases and apply payment assumptions to the purchases. 2) If you are determining cost of goods sold by product, or any unit of production, the number of units must be entered or edited in the sales forecast section option 3, Sales by Product or Product Line. This will also update Cost of Goods Sold. 3) When you forecast sales by product, it is not necessary to forecast cost of goods sold by product. You can use any of the options in the Cost of Goods Sold section. ========================================= Prepaid Expense Payments and Amortization ========================================= Unless you edit the enter alternative data in the Prepaid Expenses screen, prepaid expenses will be amortized over a 12-month period. The prepaid expenditure will appear on the cash flow forecast and the amortization will appear on the profit & loss forecast. PAGE 18 ======== Expenses ======== There are 27 preprogrammed expense categories and 99 user-defined expense categories. All preprogrammed expense titles can be edited as you wish. Expense Forecast (screen 1) This screen explains the expense forecasting procedure. Expenses (Basic Payment Assumption) (screen 2) This screen explains the procedure for payment of expenses. Please read the information provided. Expenses to be Forecasted (screen 3) 1) Scroll down the list to the expense you want to forecast and press ENTER. 2) The expense title will appear at the bottom of the screen. 3) You can now edit the description as needed. 4) After you have edited the expense title, press ENTER. Annual Expense (screen 4) There are three options available for determining your annual expense. Option 1: 1 Edit 1: Enter the prior year's expenses or any amount you think you may incur. Enter forecasted increase by a dollar amount or percentage. Option 2: 2 Edit 2: This option calls for the annual expense to be a percentage of sales. Enter the appropriate percentage. Option 3: 3 Edit 3: This option calls for the annual expense to be calculated by entering a given monthly amount. PAGE 19 1) After you have entered your data in any or all of the options 1, 2 or 3, scroll to Continue and press ENTER. 2) You must choose Continue and select forecast 1,2 or 3 for this expense to appear in your profit & loss forecast report. You can now choose which options to use for your annual expense forecast. 3) Scroll to your choice and press ENTER. Expense by Month (screen 5) There are three columns on this screen. Column 1: Expense as a percentage of sales. Column 2: Expenses equal each month. Column 3: Allocate As You Wish: You may enter monthly expenses as you wish by selecting the 3 Edit 3 command at the bottom of the screen. 1) After you have viewed or entered your data, scroll to Continue and press ENTER. 2) You can now select the monthly expense you want to use for your forecast. 3) Scroll to the monthly expense forecast of your choice and press ENTER. Expense - Cash Flow (screen 6) This screen will allow you to edit your basic payment assumption determined in Screen 2 above. The screen will ask for the fixed portion of the expense. This is required to compute your break-even sales. ======= Payroll ======= 1) For forecasting purposes, the program assumes that payroll will be paid 100% in the month incurred. 2) Each of the preprogrammed department titles can be changed to tailor descriptions as needed. PAGE 20 Payroll Menu (screen 1) You are given four payroll departments. You have the option of editing the title of any of the departments. To do so, scroll to the department you wish to edit and press Enter. Type the new department name and press Enter. Annual Payroll (screen 2) Option 1: Determine your payroll by adjusting the last 12 months' payroll or by making an estimate of your current expectations. Option 2: Determine your payroll as a percentage of forecasted sales. Option 3: Estimate your monthly payroll Option 4: Determine your payroll expense by listing your employees and making an actual salary computation. Using Options 1,2 or 3: Choosing one of these options will bring you to "Payroll By Month (screen 3). Using Option 4: Choosing this option will bring you to "Computation of Payroll by Listing Employees" (screen 4). For explanation of this screen, see "Computation of Payroll by Listing Employees" (screen 4) on page 19. Payroll By Month (screen 4) There are three columns on this screen. Column 1: Payroll as a Percentage of Sales Column 2: Payroll Equal Each Month Column 3: Allocate As You Wish: You may enter monthly payroll as you wish by selecting the 3 Edit 3 command at the bottom of the screen. 1) After you have viewed or entered your data, scroll to Continue and press ENTER. 2) You can now select the monthly payroll you want to use for your forecast. PAGE 21 3) Scroll to the monthly payroll forecast of your choice and press ENTER. Computation of Payroll by Listing Employees (screen 4) 1) Adding an employee: You must enter a name and number for each employee. You may enter compensation on an hourly, weekly or monthly basis. By selecting one of these options, all of the others will calculate automatically. 2) Deleting an employee: Enter the employee number in the appropriate space and hit Enter. Delete the employee's name and wage information. 3) Exiting Payroll by Employee section: Enter "999" in the field that asks for employee number. =================== Payroll Tax Expense =================== For forecast purposes, it is assumed that payroll tax expense will be paid 100% in the month incurred. Once you enter your payroll tax rate, it is not necessary to change this number when you change your payroll. The payroll tax will automatically update. ============================== Proprietors' / Partners' Draws ============================== Any amounts that you enter into this selection will be reflected in the forecast as follows: Payments are reflected as cash outlays on the cash flow forecast. There is no impact on the profit & loss forecast. The draws will be reflected as a reduction of net worth on the balance sheets. ======================== Loans Due To/From Owners ======================== This section allows you to enter any loans due to or from the owner of the business. These figures will also appear as a separate line item on your balance sheets. PAGE 22 ============================= Term Loans / Interest Expense ============================= This section asks for loan payment terms and current loan balances. You should have this information available before proceeding with this part of your forecast. ===================== Purchase of Equipment ===================== Equipment loans entered here will automatically be included in your forecast. It is not necessary to enter them into any other section. However, they should be amortized using the term loan amortization menu. ============== Sale of Assets ============== Only use this sub-menu for the sale of property and equipment. The program will automatically calculate the gain or loss on the sale and apply this amount to the profit & loss forecast. You can enter three methods of payment for the sale of an asset, or a combination of the three (cash payment, note receivable, or payment of debt). To facilitate the use of this section, please have the following information available: 1. Sales price of the asset. 2. Sales expense (commission, etc.). 3. Original cost and total depreciation taken on the asset. 4. Anticipated method of payment. PAGE 23 =========================================== Income Tax Expense / Estimated Tax Payments =========================================== 1) The program requires an estimated effective tax rate. 2) Once you enter the tax rate, it is not necessary to change or re-enter the rate when you make changes in the forecast. 3) The income tax expense will automatically be adjusted to reflect any changes in the forecast. =================== Break-Even Analysis =================== 1) This selection will display your estimated monthly break-even sales. 2) If you are using Cost of Goods Sold in your forecast, indicate the fixed portion of your payroll. 3) The fixed portion of the forecasted expenses will automatically compute based on the information you supplied while forecasting expenses. =================== Create a New Entity =================== 1) Enter the number of the entity you wish to create. 2) Choose a number from 2 - 99 (entity number 1 is automatically created). ======================== List of Entities Created ======================== 1) This menu selection displays the entities you created and their respective names. 2) Use this section to retrieve any entity you have created. 3) Scroll the LIGHT BAR to the entity title and press ENTER. 4) You will automatically return to the main menu with the appropriate entity displayed. PAGE 24 ====================== Consolidated Forecasts ====================== First, create a standard chart of accounts by going to the Consolidation Menu. Select Consolidated Account Titles and edit the 126 account titles to include all accounts you plan to use in any of the forecasts you plan to consolidate. Create entities to consolidate by using the Create Entities selection. At the time the entity is being created, the program will ask you if you wish to use the consolidated account titles. Answer YES, and all of the account titles will be changed to those created in the Consolidated Account Titles section. After you have created all of the entities to be consolidated, run your forecasts for each individual entity. Next, consolidate the entities by using the Entities to Consolidate program. If you wish to make changes to the consolidation, you must run the Clean Up program in the Consolidation Menu. Then, after making any changes to individual entities, reconsolidate the entities. Preparing more than one consolidated forecast: 1) After you prepare your first consolidated forecast, copy the data to a diskette, label and store in a safe place. 2) Enter the "Consolidated Reports" menu item and run the "Clean Up" program. This will only remove the data in the consolidation. 3) Return to the Consolidation Menu. 4) Select the "Entities to Consolidate" function. 5) Now you can consolidate any combination of entities. 6) Return to the "Consolidation Menu." 7) Scroll to "Consolidated Reports" and press enter to view your consolidated forecast. 8) Follow step (1) above. PAGE 25 9) You now have two diskettes, each with a separate consolidated forecast. 10) All of the separate entities are still on your system. ======================== Multiple-Year Forecasts: ======================== You can create multiple-year forecasts with Up Your Cash Flow by using the "Next Year Forecast" selection from the main menu. When you enter information into this selection, the program will automatically adjust all of the elements of your forecast for an additional year. You can create up to 99 consecutive years by following these steps: 1) Complete the first year of the forecast using entity #1 or another entity of your choice. 2) Copy the first year (entity #1) to a diskette. 3) Complete this step by using the "Copy Data (to) (from) a Diskette" selection. 4) Copy the data on the diskette back onto the program by assigning it another entity number (EX: entity #2). 5) Complete this step by using the "Copy Data (to) (from) a Diskette" function from the main menu. 6) After you have copied the data from the diskette into the entity number you selected, you must use the "List of Entities Created" selection to use (make active) the entity you copied into the system. 7) EXAMPLE: If you assigned the data on your diskette to entity #2, simply scroll the LIGHT BAR to "List of Entities Created" to Work On menu to entity #2 and press enter. This will bring entity #2 onto the screen. 8) To create the next year's forecast, select the menu option "Next Year Forecast." Entity #2 will become year 2 of the forecast. 9) You can follow this procedure for up to 99 years of forecasting. PAGE 26 10) For a detailed explanation of how the "Next Year Forecast" selection updates your forecasts: 11) Select the "Next Year Forecast" choice from the main menu and press ENTER. 12) Select the "Next Year Forecast" choice from the smaller menu and press ENTER. 13) Scroll the LIGHT BAR at the bottom of the screen to the selection "How this program updates the forecast" and press ENTER. ======== Clean Up ======== THIS SELECTION ERASES YOUR DATA! Please use it carefully. You can delete data, but save employee and product names and numbers, as well as expense and payroll titles you created, for future forecasting. Simply make the appropriate selections within the Clean Up section. If you do not save the edited titles, the program will automatically restore the original preprogrammed titles. PAGE 27 ======================================= Next Year Forecast ("What-If" Analysis) ======================================= When you edit or change sales figures to create next year forecasts, or "what-if" scenarios, all of the forecasts will automatically be updated. NOTE: All names, numbers, and units sold that you enter into the Sales Product or Product Line section will appear in Cost of Goods Sold option 4, Cost of Goods Sold by Product. However, using the Sales Forecast by Product or Product Line does not restrict you to using the Cost of Goods Sold by Product or Product Line. You can use any of the options available under the Cost of Goods Sold section. ================= About the Ratios: ================= As you may know, forecasting is not a science, and estimates are used throughout the process. Therefore, when reviewing the ratio analysis, try to remember that the ratios are based on your estimates of future events and their financial impact, and should be analyzed with this in mind. Current Ratio The calculation of term debt maturity to compute the current ratio is as follows: 1) All term loan monthly payments entered in the program are added together to ascertain the combined total of monthly payments. 2) This number is then multiplied by 12 to give the next 12 months' payments. 3) The total (payment x 12) is compared to the balance of term debt at the end of the forecast year, and the lowest number is used. 4) EXAMPLE: The total of all monthly payments is $4,500 per month. When you multiply $4,500 by 12, you get $54,000. The $54,000 is compared to the balance of term debt at the end of the forecast -- let's say $49,000. The $49,000 will be used as the amount maturing in the next 12 months and as part of the current liabilities. 5) The above method is also used for the current maturities for notes receivable. PAGE 28 ======================================= Trouble Shooting With Up Your Cash Flow ======================================= How to get fast technical support You must be registered and have an active service agreement. Determine the person and company name Up Your Cash Flow is registered under before calling. This is important. If we cannot locate you as a registered user in our database, we cannot provide technical support! FAX us a note! To save time, FAX us a print screen or description of your problem. Label the FAX "Granville: Urgent FAX." Our technical support staff will find the answer and call you as soon as possible. ============================== Cursor doesn't show on monitor ============================== If you are using a VGA monochrome monitor, and you cannot see your cursor or "light bar," do the following: Go into DOS and go to your cashflow directory Type mode mono and press ENTER (leave one space between mode and mono). Go back into the program. You should now be able to see your cursor and "light bar." ============== Error messages ============== Do a print screen of the error message, or write down the exact error message including the title of the screen you are in when the message occurs. Then call us, or FAX the print screen to 310-478-6070. PAGE 29 ================== What is an entity? ================== An entity simply refers to a single forecast. If you are creating a forecast for a business with multiple locations, you can forecast each location as a separate entity, and then consolidate all of the entities to produce a single integrated financial plan. If you are creating a forecast for a company with multiple departments, you can create a forecast for each department as a separate entity, and then consolidate all of the entities to produce one forecast for the entire company. ======== Printing ======== Can't print balance sheets 1. Go to the Reports Menu and select "Balance Sheets." PAGE 30 2. Choose the balance sheet you want to print and press ENTER. 3. Press the END key. When the "Return to previous screen" message is highlighted, press ENTER. Your balance sheet will now print. General printing difficulties Go into the Housekeeping function on the Main Menu and set the program for your particular type of printer. Most laser printers will work with the "HP laser" selection. Most dot matrix printers will work with the "Epson" selection. If your printer does not emulate an HP or an Epson, try these selections anyway. If it still does not work, select "other" and enter your printer codes from your printer manual in the spaces provided. ================== Theory of Accounts ================== Accounts Receivable The accounts receivable balance is calculated by taking the beginning balance, if any, plus forecasted sales, minus the forecasted collections. Inventory The inventory is not a calculated amount -- you provide it. Prepaid Expenses The prepaid expense balance is calculated by taking the beginning balance, if any, plus any outlay for prepaid expenses during the forecast, minus the forecasted amortization. Prepaid Taxes The prepaid tax balance is calculated by taking the beginning balance, if any, plus any estimated tax payments, minus the forecasted income tax expense. PAGE 31 Other Assets Other assets is not a calculated amount -- you provide it. Any amount entered in the beginning balance will be the same in the ending balance. This item will not change as a result of the forecast. Property and Equipment The property and equipment balance is calculated by taking the beginning balance, if any, plus any forecasted purchases during the period, minus any forecasted disposal (or sales) of property and equipment. Accumulated Depreciation The accumulated depreciation balance is calculated by taking the beginning balance, if any, plus any depreciation taken during the forecasted period, minus depreciation taken on assets sold during the forecast. Accounts Payable The accounts payable balance is calculated by taking the beginning balance, if any, plus the purchases during the period, minus any forecasted payments. Accrued Expenses The accrued expense balance is calculated by taking the beginning balance, if any, plus all of the expenses in the forecast, minus any forecasted expense payments. Income Tax Payable Balance The income tax payable balance is calculated by taking the beginning balance, if any, plus the tax expense for the forecasted period, minus any estimated tax payments during the forecast. Accounts Receivable/Credit Line The accounts receivable/credit line balance is calculated by taking the beginning balance, if any, plus additional borrowings during the forecast, minus forecasted payments. PAGE 32 Term Loan The term loan balance is calculated by taking the beginning balance, if any, plus any additional borrowings during the year, minus forecasted principal payments on the term loans. Common Stock The common stock balance is indicated in the opening balance. This item will not change during the forecast. Paid-In Capital The paid-in capital balance is calculated by taking the beginning balance, if any, plus any forecasted investments made in the company. Retained Earnings The retained earnings balance is calculated by taking the beginning balance, if any, plus or minus the profit and loss for the forecast, minus forecasted dividends. Net Worth (Unincorporated Business) If the business is unincorporated, the net worth balance is calculated by taking the beginning balance, if any, plus or minus the profit or loss for the period, plus any investments made in the company, minus any draws by partners or the proprietor. PAGE 33 Up Your Cash Flow Version 4.01 is now available. Call 1-800-873-7789 today for information. Here is a list of features that make version 4.01 the leading cash planning software in America. ************ 17 NEW FEATURES IN VERSION 4.01 ******************** 1. Make changes and then use the new QUICKLOOK hot key to immediately see the impact of your changes on your P&L or Cash Flow reports. And QUICKLOOK is accessible throughout the program! 2. No more shuffling papers or racking your brain to remember product or employee numbers. QUICKLOOK gives you an instant list of all of the employees or products you've entered, right on the screen, all through the program. 3. Know exactly where your finances stand at all times, when you run comparisons between your forecasted P&L and your actuals. Get month and year-to-date numerical and percentage differences. Then analyze the variances and make sure-footed, hands-on decisions! 4. Create a safety zone for your business by setting minimum cash balances. Just tell Up Your Cash Flow how much cash you want to keep on hand, and Version 4.0 will adjust your credit line to maintain these balances. 5. Get all twelve monthly balance sheets on one report in spreadsheet format. 6. Get more detail in the Cost of Goods Sold section, with the option to enter labor by employee, by percentage of sales, or by a fixed monthly amount. Plus you can use up to 16 overhead accounts. 7. Slash costs when you separate "selling" expenses from "G&A" expenses, and get a classified Profit & Loss Forecast. You get over 150 total expense categories! 8. See how payroll affects your overhead, when you separate payroll and payroll taxes into separate "selling" and "G&A" categories. 9. No more copy in/copy out! Now you can copy data between entities without ever using a floppy disk. 10. Customize your forecast with the new exports to Lotus, Excel, Quattro Pro, and WordPerfect. 11. Get a snapshot of your future financial position when you print all of the ratios in one report. PAGE 34 12. Save time and hassles with the new on-screen calculator. It even runs a ticker tape and drops totals into Up Your Cash Flow fields. 13. Use the completely revised, comprehensive new User's Guide to answer questions in seconds, and guide you through advanced forecasting functions step by step. 14. Get greater detail and accuracy with the ability to use more decimal places when entering percentages. 15. Give your reports the personal touch -- choose titles like Projection, or Proforma, or type in any name you wish. 16. Greater printer compatibility, including bar graphs on a dot matrix printer! 17. Explore all the new features without entering numbers when you activate sample data in entity 99. ****************************************************************** Special limited time offer for ordering Up Your Cash Flow V. 4.01! Call 1-800-873-7789 today or print REG.401 for a registration form. ****************************************************************** Order now and you'll receive Granville Publications Software's, HOUSEHOLD CASH PLANNER, absolutely FREE! The latest version of Up Your Cash Flow and our new home program, all for one low price. Up Your Cash Flow the book $ 12.95 Up Your Cash Flow V. 4.01 . . . $ 99.95 Household cash planner . . . . . 24.95 --------- Total value $137.85 Your PAY -> $ 79.95 You SAVE -> $ 57.90 ***************************************************************** What the HOUSEHOLD CASH PLANNER does: 1. A household cash flow report for the next 12 months, in spreadsheet format without the need of any spreadsheet software. 2. A report of anticipated credit card expenditures before you do the "charging." Page 35 3. A check register for up to 4 checking accounts. 4. Automatic bank reconciliation. 5. A report that compares your cash plan with your actuals. 6. A built-in calculator. 7. Financial Analysis: To answer questions; What will my payments be?; How long to accumulate (X) dollars?; How much do I need to save each month to get (X) dollars? And much more. 8. Retirement analysis; tells you what you'll need to do to retire with enough money to live on. 9. 50 on-line tips for managing your money.