1. John Power, CPA Power Financial, LLC

2.  It’s more than “Are we making money?” – You can be profitable all the way into bankruptcy!

3.  Balance Sheet Management is just as Important.

4.  It’s more than “Are we making money?” – You can be profitable all the way into bankruptcy!  Balance Sheet Management is just as Important.  Contingency Planning and Risk Management are more important than ever

5.  Covenants are Negotiable!  Don’t agree to something that is inappropriate or you can’t meet.  Monitor Your Compliance

6.  Working Capital  Current Ratio  Debt Service Coverage  Debt to Equity or Local Ownership % ◦ Periods of high commodity prices can raise havoc with this ratio.

7.  Not meeting the loan covenants is grounds for calling the loan…you don’t want that in your financial statement notes!!

8.  Expanding beyond the “traditional” commodities can be good business but brings some new business risks.  Boards need to understand these risks and develop policies.  The sales/collection process is completely different for some commodities.  All it takes is one weak link in the chain!