Use the attached Quality Indicator Checklist and the financials from Triangle Company (Week 3), along with your homework from the previous week to answer the Balance Sheet and Profit & Loss Statement questions on the checklist. You may either record your answers on the document and attach it. This assignment is worth 30 points.

During Week 3 you computed the Days Account Receivable, Days Inventory, Days Accounts Payable, and Days Accrual. You were also given the company terms. When doing your Quality Indicator Checklist, you will use your calculations and compare with the company's terms.

Are the calculations near the terms? Within 10 days are within terms.

Quality Indicator Checklist

Balance Sheet Yes/No/Neutral

1. Does company collect?

Are Days Receivable nearly equal to Payment Terms? ____________

2. Does Company pay?

Are Days Payable about equal to Payment Terms? ____________

Are Payables

Are Days Accrual about equal to the payroll cycle? ____________

Are taxes current? ____________

3. Does Company control its inventory?

Are Days Inventory nearly equal to the Inventory cycle? ____________

Are Officers Committed?

Are there notes receivable? ____________

Are there notes payable or subordinated officer debt?

(Officer debt is a good indicator is truly subordinated) ____________

Does the Company have a profitable operating history?

Are retained earnings positive? ____________

Profit & Loss Statement

1. Is Company Growing?

Are Sales Rising? ____________

2. Does Company Maintain Margins?

Is COGS/Sales stable? ____________

3. Does company control overhead?

Is SGA/Sales stable or falling? ____________

4. Is company profitable?

Is Operating Profit/Sales stable or rising? ____________

Is EBT/Sales stable or rising? ____________

5. Is there any hidden cash flow?

Are there any discretionary expenses available to repay debt?__________

Insert answers in the Blue Shade TDIANISIE = CD TRIANGLE CO. PROFIT \& LOSS STATEMENT Insert answers in the Blue Shade TDIANISIE = CD TRIANGLE CO. PROFIT \& LOSS STATEMENT