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No. of Recommendations: 2
Hi Fools,

(If I bore you..please atleast read the questions at the end. I will greatly appreciate the help!)

Well I finished the book Saturday at the firehouse. I enjoyed it. I took with me a hard copy of Select Comfort's 2004's annual report. Picked at random, it was on top of my stack from doing a SCSS Tom G. type thumbnail and I needed a hard copy in case I couldn't get "pc" time at work.

I barely got to scratch the surface working the 3 income statements Saturday night there and wound-up spending half the day Sunday at home trying to replicate what the book taught. Anyhow, I feel I pretty much plowed right through the steps. It took a good amount of time but I went slow, used old fashion pencil and paper, took notes, and made sure I understood what I was doing as I moved on. I found the task to be less difficult "hands-on" than I feared it to be after reading the material. I also made some use of the past 800 posts on this board when I was unsure a bit. I have to admit, after feeling kinda smart completing this first go around...reading some of the posts by Hewitt, Jim, Ears, Kitty, Mike(Mklein9), and Daniel(FW) I was once again humbled and grew a migrane.....hehehehe. So I figured I would just post and stop reading a while....

I came up with Accrual profits of .80, Defensive of .56, and Enterprising of .68 for last year (2004) SCSS for what its worth. I also used 2003 numbers to get the 2-yr ave.'s needed. Maybe someone can check those numbers before I go any farther? Here are a few more questions I hope you guys can help me with:

#1. What do you guys do with negative working capital? This was asked at the onset of this board's creation but never really answered. I have SCSS with
(32621) for 2004 and (26114) for 2003 for a (6507) that I ADDED back to the defensive P&L opposed to being subtracted in the book. Is this ok?

#2. Did we find an easy way to calc CoE? (I used that free-web and rounded to 9%) I know this has been beaten to death on this MB. What a b&*ch....

#3. I treated R&D same as AD and used 3 years depr. for each. Is it better to use higher numbers for R&D and am I correct in treating it through the same steps as AD?

#4. Do we do anything with Goodwill other than run it through the ratio in the 5-min test? I didn't incorporate it in my defensive P&L. I read a post by Hewitt that confused me but I don't think the book says to plug it into anything other than the test ratio.

#5. Had no problems doing the Operating lease portion but....where do you come up with the discount rate (I used 8% like the book but there was no reason to it)? Then I reused that 8% to get the Interest tax benefit (like in the book)?

#6. Is Daniel's Excel template early on this MB the best one going? Looks awesome....

Like I said, I had no real problems getting the info and plugging it in....just not real sure of some of the issues I listed. I have a B.S. degree with the Accounting specialty but confess to have only worked in that field for 18 months part-time (hey, atleast I recouped my tuition with that CPA firm)and haven't practiced it at all for 4-5 years. You can forget a lot in that amount of time when you don't use it. Certainly rusty. This book is probably a bit tougher than Hewitt thinks it is on those without any prior accounting knowledge. Still would be a great read for anyone!

I really would like to improve my skills.

Thanks guys,

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