1. Pete Oettinger, CPA, CGMA, Partner Wegner CPAs
Where Did My Cash Go?
Pete Oettinger, CPA, CGMA, Partner
Wegner CPAs

2. Instructions To Receive Continuing Education Credits:
1) Participants must complete an evaluation of each session. A link to the evaluation form will be ed after the conference. Participants MUST complete the form by May 31, 2017 to receive credit. 2) You must attend EACH session to receive credit. Make sure you badge has been scanned upon entry for each individual session. 3) Submission of you e-Profile ID is required to obtain credit. If you don’t have your e-Profile ID yet, go to to register.

3. Learning Objectives
Review the purpose of each type of financial statement by dissecting different areas and what each indicates Discuss the importance of accurate accounts receivable, inventory reporting and how buying groups impact financial statements Understand overall cash flow analysis and the pain of increasing sales too fast without having extra cash available Review bank financing and the key analysis points on and off the financial statements

4. Understand the purpose of each
Objective 1
Understand the purpose of each
financial statement

5. Balance Sheet
Assets – what you own Liabilities – what you owe Equity – difference between what you own and what you owe, not what the business is worth

7. Profit and Loss
Revenue – Sales, Rx and OTC Cost of Goods Sold – purchases less rebates Expenses – personnel, operating, general and administrative EBITDA or Net Ordinary Income or Net Operating Income Other Income and Expenses – miscellaneous income, expenses; interest, depreciation, amortization Net Income (Loss)

9. Cash Flow
Operating Activities – cash increase, decrease due to everyday business Investing Activities – cash increase, decrease due to major purchases or sales of business assets Financing Activities – cash increase, decrease due to debt structures

11. Objective 2
Importance of accurate accounts receivable, inventory reporting and buying groups

12. Accounts Receivable
Probably the most difficult area in pharmacy Ties to sales – affects margin Analytics used as much as actual reports – use 3-prong approach
POS reports making daily journal entries
Third-party software open claims report, outstanding payments summary
Analytics – third-party sales average length to collect

13. Inventory Reporting & Buying Groups
Inventory – periodic vs. perpetual ties to COGS and accounts payable – affects margin
Inventory Reporting & Buying Groups
Reports to help with obsolete inventory, managing brand name and generic quantities
Adjustment reports to help with inventory controls
Buying groups – purchasing power, cash savings, assistance in reports

14. Overall cash flow analysis
Objective 3
Overall cash flow analysis

15. Overall Cash Flow Analysis
Whether opening a new pharmacy or increasing sales in your present pharmacy, it takes financial resources from liquid cash or line of credit Sales increasing quickly – takes days to get money Inventory – need to replenish and pay for in 7-14 days

17. Objective 4
Bank financing

18. Bank Financing
Types of Financing: lines of credit, term loans for business assets, real estate, new business ventures – both business and personal Financial statements will be organized, consistent, and improving Debt Coverage Ratio: EBITDA/principal and interest payments Current Ratio: current assets/current liabilities Personal financial statement – liquidity, personal obligations

19. Pete Oettinger, CPA, CGMA, Partner pete.oettinger@wegnercpas.com
Thank you!
Pete Oettinger, CPA, CGMA, Partner
Wegner CPAs
123 Second Street
PO Box 150
Baraboo, WI 53913
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