Cash Flow Analysis for ABL - Classical Analysis

Classical Analysis

This section deals with external and internal factors that could influence a company. This classical approach to business analysis is reviewed as a foundation to the sources of data and likelihood of attaining sales forecast numbers.

Outline:
EXTERNAL FACTORS:
Economy
Company Position
Industry
Financial Strength
Management

INTERNAL FACTORS:
Nonrecurring Items
Bad Debts
Inventory Write-offs
Salaries
Family members as employees
Non-business expenses
Fringes
Pension and retirement expenses
Bad debts not written-off
Capitalized or expensed items
Interest on subordinated debts
Affiliated debts, rents, payments
Insurance costs
Salary changes for new management
MIS, accounting procedures
Research and development commitments
Warranty reserves
Tax Liabilities
Classes of stock
Lease obligations
Copyrights and patents
Legal action against company or by company


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