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Show I.iikt-sid- Economy Review Consumer Price Index t 256.2 Have you ever heard the owner of a small business say, My business looks great on paper, but I cant meet tomorrows payroll? Perhaps youve had a similar problem a problem with cash flow. Cash and profits are not the same, and your company may be a success in terms of sales, number of employees and assets, but it can fail from lack of cash management. According to the Utah Association of CPAs, the projected cash flow statement is one of the simplest, most effective, and practical tools the small business owner has for managing money and profits. Its really ai map showing how your expected cash comes and goes from day to day or month to month. If you ask for a bank loan when youre out of cash, you probably wont get it. But, if you bring along a projected cash flow statement showing how you expect to repay the loan, you have a better chance. In fact, the projected cash flow statement is so important that the Small Business Administration requires it before they will consider giving you a loan. In terms of cash flow, dont only count up your sales. What you should count, according to CPAs, is the actual cash to be received for those sales. For instance, you may sell $10,000 worth of golf balls this month, but the cash to be realized from those sales (253.9) The consumer price index is changed near the end of the month, according to the University of Utah Bureau of Economic and Business Research. The base year is 1967. That is, items that cost $100 in 1967 cost $256.20 today. The previous months rate is in parentheses. FHA-V- 15.167 (15.417) 13.5 (13.5) A ' Mortgage rates are an average of the rates at three lending institutions in the area. Conventional r?tes are for 80 percent leans. We have ignored discount points and other refinements. Last weeks figures are in parentheses. f Money Market 30-Mon- th 14.478 Rate (13.432) 12.0 (12.0) lane 9 Solving Small Business Cash Flow Problems , Home Mortgage Rates Conventional Het iew. Janunn 15, 1981. e ($io,ooomin.) ($100 min.) The new rate is effective each Thursday morning. This is the rate fective today. The variable rate changes less frequently. may flow in over the next three months or more. So, the net sales figure is not as critical as cash received and the cash spent to make those for those sales sales. In the same vein, expenses are not the same as cash but outflow. Expenses may include depreciation No is cash not factor. cash real is a depreciation flowing out of your hands to pay for depreciation. Your utility costs or payments for raw materials, however, are expenses as well as cash outflow. Heres how to prepare your projected cash flow statement. Use a large sheet of lined paper with columns across for the months of the year, or whatever period you wish to chart. Down the left or hand side of the paper list income and expenses cash inflow and outflow. Count up your cash on hand, whatever is available in checking and savings accounts. Label this top category beginning cash. basis. Now estimate sales on a Figure out the time lag in collecting money for these sales and convert this information to collections of accounts receivable. This is the actual cash you expect to receive from those sales. Next, list any from a loan, perhaps, or other cash you expect rents. The bottom line in this section will be total cash available. Next, calculate what you will spend to meet the projected sales. Estimate operating costs (fixed and variable) such as salaries, utilities, rent, supplies, inventory, taxes, insurance, advertising, and travel. Add these up and you have total cash spent. Subtract this figure from total cash available and month-by-mon- youll know how much cash will be left at the end of the month. This ending cash figure is then tran- sposed to the top of the next month's column as-,- ; beginning cash." There may be months when youll have no cash left over, or you will have spent more than you took in. That's why the projected cash flow statement is so important, CPAs say. You'll know ahead of time if thats going to happen. Include an actual column next to each column on the projected cash flow statement, so you can compare your estimated income and outlays with what really happened each month. Let's say you will need to spend $10,000 for new inventory in six months, but your projected cash flow statement indicates you will have only $5,000 in available cash. You can arrange now for a loan or plan to cut expenses. ; i th DUTCH BOY CARPET CLEANERS WE ALSO SPECIALIZE IN FURNITURE CLEANING. "Over 20 Years Experience" 0 or 27 South Main, Layton 773-500- 363-261- 5 766-187- 0, PRIME RIB DINNER with salad, choice of & hot bread. potatoe (GOOD THURS.-- S AT. ONLY) SEAFOOD $05 ALSO SPECIALIZING IN: STEAKS Crab Oysters Tenderloin Top Sirloin New York Shrimp THE NEWLY ELECTED officers for the Roy Chamber of Commerce are, from left, G.R. Oleson of G.R. Oleson Inc., first vice president; Boyd L. Stock, of Rollins-Stoc- k Veterinary Clinic, VA Collects second vice president; and E.D. McColley, manager of The Citizens Bank, president, 200 South Overpayments The Veterans Administration is working to collect overpayments in Utah and elsewhere mostly payments for schooling which either wasn't undertaken as pledged, or wasnt completed as promised, an official said. The problem of educational overpayments to veterans is extremely complicated because it involves Congress, educational institutions, state approval agencies and veterans in training as well as the Veterans Administration, said Elmer J. Smith, director of the Salt Lake City VA Regional Office. During fiscal 1980, more than $2.3 billion was paid by VA in education benefits to veterans. At the same time, VA reported education overpayments balance of accounts receivable as $420.6 million. Further, the VA current established overpayments account represents only 1.2 percent of the $35.2 billion paid under the GI Bill since its inception more than 36 years ago, Smith said. Veterans education debts most often are caused by changes in training status which arent known or acted upon promptly. A review of VA records by its Inspector General indicates that education overpayments, or debt, are attributable 58 percent to delays by veterans and educational institutions - in reporting changes in training status, 22 percent to untimely processing of changes in training status by VA regional offices, and 20 percent to retroactive terminations required by the prohibition of payment for courses not counted to satisfy graduation requirements. y Smith added that regional workloads, a on mail and schools, delays reporting requirement probably make it inevitable that some overpayments ' will occur. He noted that aggressive compliance surveys are conducted by the Salt Lake City and other VAt regional offices nationally at all schools where veterans are receiving education benefits to verify and assure the propriety of payments. The compliance-surve- y program initially serves to increase overpayments caused by a schools failure to report dropouts and reductions in training time. Subsequently, the surveys result in reduced overpayments. The Salt Lake City VA Regional Office and others have increased emphasis on reducing delays in timely processing of changes in training status reported by schools and veterans. The VA also has adopted procedures under which the U.S. Postal Service will stop delivery of a benefit check after VA learns of changes in the veterans eligibility. Those procedures alone should reduce overpayments by more than $30 million a mail-interce- pt year. The VA Inspector General conducts and supervises audits and investigations of VA benefit programs such as education payments. He has made a number of recommendations to promote effectiveness and to , prevent fraud and abuse in those programs. The Inspector General hasnt found widespread fraud in the program, Smith said. t The completion and full national integration of Lake City VA Regional Office automated Target system poermits exploration of new and faster means for adjusting education benefits. The system would reduce overpayments by shortening by four days the previous average processing time of 10 to 19 days. Smith said that during fiscal 1980, more than $276 million in overpayments were collected or offset from the veterans other benefits. Thats because when a debt is created, a veteran is advised in writing and requested to make arrangements for immediate repayment or payment by installments or he or she can request appeal, waiver or compromise as appropriate. .When administrative collection procedures have failed, VA previously referred all cases of debts of over $600 each to the U.S. Justice Department for civil action. As a result, more than $10.6 million was collected. However, until November 1979, VA lacked authority and none else would pursue civil action on the-Sal- n Layton- 376-901- 5 - - A message in the public interest from Davis North Medical Center . accounts under $600 each. With its new authority, the test with delegation VA embarked on a three-phas- e in which of authority from the Justice Department the VA district counsel in Denver and nine other locations pursued collection of debts under $600 each. It permits the VA to disclose information to credit bureaus for three purposes related to debt colleche explained. tion, Obtaining current-addres- s information, obtaining credit reports indicating the veterans ability to repay the debt and disclosing debt information when a veteran refuses to repay the debt. The law also grants VA authority to disclose information in connection with any proceeding. Further, the new law also codified and broadened VA authorization to offset indebtedness to the veteran or eligible person against other benefits which the VA may owe the individual. VA now is required to charge interest and administrative costs on accounts receivable. Although it is believed that all of those legislative changes will have a profound cumulative effect on our outstanding-deb- t balance, implementation of all of them await sufficient budgetary authority before VA can fully use those new tools, Smith said. Main St. Domft wait urntil you mealy meed ui to try amd fiodm Hill May Contract For Maintenance, Service Functions HILL AFB Four work functions here have been slated by the Air Force to undergo feasibility studies towards contracting to civilian companies. Affected at Hill are the aerospace ground equipment maintenance, transient aircraft maintenance, mail services and publications distribution functions. The Hill studies are part of an Air Force wide study of functions for possible conversion to civilian contracts at 83 bases. In each case, bids will be solicited and compared to cost of performance. Conversion will come about only if detailed investigations indicate the contractor can satisfactorily perform the functions and if savings of tax dollars can be achieved. If studies confirm that contracting is appropriate, the contracts would begin in late fiscal year 81 and carry over into fiscal year 82. At Hill, approximately 90 federal civilians and five military personnel are employed in the functions to be studied. If any of the four functions are determined to be most cost effective under civilian contract, the federal workers displaced will be given first refusal for employment on the contract in positions for which they are qualified. Also, employed who are eligible would be placed in the Department of Defense-wid- e computerized referral programs and afforded placements to vacancies throughout the department for which they are qualified. Davis North Medical Center 24 Hour Emergency Service on-ba- prrTTTTTrrTyriTmrmriTTrTTi'rKg Dealers Fen Hast King, Faugo, Oarri-taBig Finny, and athart. Culturad Stana and DO IT YOURSELF OR COMPUTE INSTALLATIONS Natural Rack. Coll Now 394-670- financing 0 UMU MM FJ A M U MM UI FJMUI fUMtM a 1 We understand your feelings when you or a member of your family needs fast medical care. When you enter our Emergency Room, your concern becomes our concern and treatment begins immediately. Thats why we offer Insta-Cara unique concept of emergency care here at Davis North Medical Center. e, Our goal is to have everyone who comes to our Emergency Room seen by a qualified medical professional within one minute of arrival. laboratory and a modern surgery department enable us to handle any emergency immediately and compassionately. When seconds count, youll find Davis North Medical Center with its unique Insta-Car- e concept of treatment puts your emergency first and unnecessary paperwork second. At Davis North Medical Center, we want you to he able to find us and Physicians specializing in Emergency Medicine and a specially trained staff of hospital professionals are on duty 24 hours a day, 7 days a week. Theyre backed by our modern community hospital with its many specialties including intensive and coronary care, radiology, pediatrics and special maternity services. Advanced facilities including txir fully equipped find us fast. This map highlights our location and provides the faster routes to our dixirstep. We suggest you keep it someplace where you can find it in an instant perhaps on your refrigerator door or near your telephone. In an emergency, youll he glad you did. Its also a gtxid idea to plan ahead how you would get to Davis North Medical Center in case of an emergency. Why not drive over the actual route you would take. If you call well arrange a tour ahead, of our Emergency Rexam for you and your family. At Davis North Medical Center ue want you to feel more secure knowing exactly u here to go u hen ou need 825-956- 1, help. For your adJed convenience, MasterCharge and Visa are accepted. Davis North Medical Center ovaHablau HARD TO FIND-EAS- Y TO DIAL WITH. SEE OUR AD IN THE YELLOW PAGES. Hi 825-956- 1600 W. Antelope Drive 1600 W. Antelope mta M DriveLayton, Utah 84041 Telephone (801 Cara 4 a trademark 0 Stryker Corporator! and 4 used with perm son ) 825-956- 1 |
