1. CFO Career Grid Corporate Cost Accnt. Planning, Reporting, Investor Relations Business Analysis, Treasury Strategic Planning Acct.Audit Tax Entry Manager New Co.’s International Crossfunctional Development of Finance

2. Tax - Responsibilities Federal –Social Security –Corporate –Sales State –Sales –Payroll Audit –Any of the above.

3. Tax - Personnel Personnel –Rules & Regs.  Specialized/Technical People who make it their career During Audit Time(s) –Need other Specialists & Best Negotiators to provide support

4. Tax - Responsibilities Minimization of Given Tax Payments Effects of M&A’s –Classification of Assets –Ownership –Depreciation

5. Tax - Responsibilities International Planning Function –For at least 4-5 Countries –(or different places with Impacts on Business) Incentives Tax-Sheltered Programs

6. International Tax Planning U.S.GmbHEire 35% 55% 10% Royalties Trademarks Management Fees (Same Scenario w/ States) State Income Taxes Property Taxes Sales Taxes Corporate Payrolls

7. Lessons Learned - Tax Aggressively Challenge IRS –But reserve aggressively as well Global Businesses demand - World Class Planning Always include Tax Management in M&A –Planning and Negotiations –At the Beginning & Strategic Level

8. Operations & Cost Accounting Highly Competitive Global Economy Firms that Accurately Measure and Understand their Costs may Survive. Those that Don’t, Will Not.

9. Operations & Cost Accounting Controlling Costs & Capital –Raw Materials –Processes –Systems Capital Budgeting & Returns on Capital -- Productivity

10. CEO & Team Understand Concepts of System –Shared commitment to making them work efficiently. Timely & Accurate (System) Numbers Operations & Cost Accnt. System Imperatives

11. Integrated Systems  One Forecast –Marketing - Updated & Sensitized –Manufacturing as necessary –Distribution, etc… (-bonuses based on the above One Forecast) Operations & Cost Accnt. System Imperatives

12. Operations & Cost Accnt. Systems Management from Top to Bottom must Know the Systems Lower Levels must be trained in the use of the systems and the need for required discipline. –i.e.: Time Lines & Accuracy

13. Operations & Cost Accnt. Systems Responsibilities: Sales & Production Forecasts –Procurements –Maintenance of Product Data Records Info. must be clearly defined & accepted by the members of management –Inventory Levels Shrinkage, Obsolescence

14. Operations & Cost Accnt. Systems Assigned to Specific Management Fxns. Computer Based Systems –Updated on a Daily Basis For Key Items: Manufactured, Used, or Purchased –Constant Training & Retraining Accountability for Training

15. Operations & Cost Accnt. Systems Manufacturing/Inventory Planning Systems –Must be Soundly Conceived »Integrated with: Financial/Cost Accounting Systems

16. Operations & Cost Accounting Capital Appropriation Needs: 1.Climate in which Innovation Flourishes 2.Acceptable method for Evaluation of Proposals 3.Expenditures on a project to be Controlled & Periodically Reviewed 4.Planned Post-Audit Program 5.Shared Lessons Learned

17. Operations & Cost Accounting Budgeting & Financial Models Capital Expenditures Cost of Capital Capital Rationing –i.e.: Strategically Important Projects NPV & EVA

18. Analysis Methods Breakeven Point Cost/Volume Variance

19. Break-Even Point B.E.P. = Sales Revenue that Equals the Total Variable and Fixed Costs for a Given Volume at a Particular Capacity Utilization. BEP units = Fixed Costs Unit Contribution BEP dollars = Fixed Costs Contribution Margin

20. Cost-Volume-Profit Analysis $ Units Loss B.E.P. Profit Contribution Fixed Costs

21. Contribution Analysis Contribution = Excess of Sale(s) over the Variable Costs or the Amount of Money Available to Cover Fixed Costs & Generate Profit.

22. Ability to Analyze & Explain The Casual Factors Behind Changes in Profits. Variance Analysis

23. 1.Volume Variance Variance = = (100 units – 110 units) * $4 = ($ 40) -- Unfavorable due to Fewer Units Actual Quantity Standard Quantity _ Standard Profit Per Unit *

24. Variance Analysis 2.Price/Cost Variance Variance = = 110 units * ($9.5/unit - $10/unit) = $ 55 --Favorable if Price Unfavorable if Cost Actual Quantity Actual Price/Cost Standard Price/Cost * _

25. Earnings Variance Analysis Plan/ForecastActual Volume/Units100110 Revenue$ 1000$ 1045 Costs600715 Profit$ 400$ 330

26. Earnings Variance Analysis Plan/ForecastActualEarnings Variance Volume100110$ 40 Revenue$ 1000$ 1045 Costs600715 Profit$ 400$ 330 Good Volume Offset by Lower Price Levels and Higher Unit Costs

27. Operations & Cost Accounting Need to Account for & Manage: Overhead –Payroll, Benefits, etc… Absorption Sunk Fixed Semi-Variable Influenced –Affects of every addition Costs

28. Operations & Cost Accounting Manage By: Standard Cost Accounting –Std’s, Budgets, Variances Inventory Valuation and Control –Avg., Std., LIFO, FIFO, Cost Specific LOT

29. Operations & Cost Accounting Manage By: Budgeting –Cycles Annual are the most effective –Gamesmanship Under promise, Over deliver –Allocations Know their Influences

30. Lessons Learned - Restructuring Bite the Bullet, for everyone’s sake Cut Once and Cut Deep Collapse Layers Keep it Secret Do it Quickly Do All that You Can for Employees Continue Recruiting

31. L.L. – Restructuring II Empower People – Increase Span of Control Over Communicate, At All Levels Be Humble, Be Honest For People and Markets: “Cutting Losses Rather Than Hoping for Rebounds.” “Hope is Not a Strategy”