Index loss 52, 150-151 O Olsen, Kenneth 4 profit margin 150 M, N Madoff, Bernie 271-272 profitability ratios 200-201 operating expenses 51 proforma 219 make vs. buy decision 228 operations 53 purchase variance 138 manufacturing costing 117-121 opportunity cost 241 pyramid scheme 272 manufacturing variance 138-139 orders vs. sales 9, 47 qualitative analysis tools 219 Maslow, Abraham 229 OREO Cookies 279-280 quantitative analysis tools 219 matching principle 12 other assets 29, 110, 112 quick ratio 197 materiality 12 overhead 118-119 R ratio analysis 193-205 McDonald's Big Mac 277 measurement, units 11 P, Q par value 97 raw materials 23, 117, 127 mission 222-223 payback period 256 real dollars 242, 277-280 mix variance 139 payroll expense 99, 105 real options 257 modified internal rate of return (MIRR) 253, 256 period, periodicity 12, 45 receivable days 199 Monte Carlo analysis 257 PEST Analysis 224 retained earnings 40, 98, 104, 114, 136, 142,146, 152, 156, 160, 164, 166, 176, 178 mortgage 37, 101 Ponzi scheme 271 return on assets, equity and sales 201 NASDAQ Composite Index 274 post-money valuation 231-232 return on investment (ROI) 256 negative surprise 225 preferred stock 97 revenue 9, 13, 56 net borrowings 70 pre-money valuation 231-232 revenue recognition 13, 207 net fixed assets 28 PP&E purchases 69, 102, 110, 112 risk 225, 241 net income 55-56 present value (PV) 241, 243, 246, 247 rocket science 1 net sales 46 prepaid expenses 24, 164 Rowling, J.K. 225 net present value (NPV) 239, 249-257, 263 price-earnings multiple 184 nominal dollars 242, 277-280 pricing 148 S sale of capital stock 72, 96 non-cash transactions 63 product costs 148-151 non-operating income 54 profit 9, 56, 150-151 sales & marketing expense 104, 146, 152, 156, 160 -- 283 --