How to Demo AO In 30 minutes

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A few simple rules Add value Suppliers Customers Purchase Sell “Harvest”

End of year 1 Close the books at the end of the year 4x2 2x3 + 2x4 5x4 12 12 6x4 20 20 5 18 14 20 4 6 2

4x2 12 20 14 6x4 2x3 + 2x4 5x4 6 5 18 4 2

Financial Statements Year 1 24 36 27 9 4 5 18 6 3 1 2 60 61 37 39 100 14 20 8 76 12

Business Review Year 1 How well have the assets been used? Industry benchmark: 15 % How much has the owners value grown? Expectations: 10-15 % _____ Return On Equity Total equity M % Net profit Operating profit Return On Assets Total assets 9 100 2 5 39 What can be done to improve profitability?

Year 1 revised Working capital - The capital required to run the day-to-day operations. WORKING CAPITAL Accounts receivable Inventory payable + Inventory 42 + Accounts receivable 20 – Accounts payable = Working capital 62 How do you release some of this to cash and what do you do with it?

The Good News Reduce inventory Borrow less Better credit control Loans: – 40M Interest: – 4M Simplify How much cash do you have now and what can you do with it?

Financial Statements Year 1 after changes 24 36 15 6 4 25 11 2 9 3 8 10 12 42 66 20 23 43 60

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