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Hidalgo County Herald
Lordsburg, New Mexico
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July 2, 2010     Hidalgo County Herald
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July 2, 2010
 

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HIDALGO COUNTY HERALD FRIDAY, JULY2,2010 3 ! SBDC Report The use of financial statements as roadmaps By CHUCK STRANGIFor the SBDC A few years ago a letter ar- rived from one of my former accounting students. He wrote: "I've just completed my first month on the job. It hasn't been exactly what I expected. The fact was that the account- ing department was three months behind on all the entries and postings. After four weeks working six days a week about ten to twelve hours a day we are just about caught up." Ron's initiation to the real accounting world is not unusual. I don't know what the circum- stances were to cause the situa- tion in the business where Ron is, working. But my experience has shown is happens quite of- ten. "Bean counters" sometimes are not given the support they should be given by some man- Senior Citizens Lunch Menu agers and business owners. Many managers allow this to happen because they are un- aware that the major reason for failures of small businesses is poor administration. When talking about poor administra- tion we are also talking about inadequate accounting records and procedures. When manag- ers fail to keep good records there are chances that they do not know the basics of reading financial statements. Financial statements are tools that provide a financial map for the small business and enable the manager to diagnose problems "early and take correc- tive actions before they develop into more serious threats. Three common reports pro- vide the manager with the fi- nancial information needed to maintain the firm's health; the Balance Sheet, the Income Statement, and the Statement of Cash Flow. The Balance Sheet is built "upon the fundamental account- ing equation: Assets=Liabilities + Owner's Equity. It provides in the form of a "snapshot" the firm's net worth as of a specific date with a summary of what assets are owned by the business and what claims creditors and owners have against their assets. It is usually prepared on the last day of a month or year. A "revenue" is an inflow of assets in the form of cash or ac- counts receivable from the sale of services and/or merchandise. Expenses are costs incurred to earn these revenues. An Income Statement (or Profit and Loss Statement) compares expenses against revenues over a certain period of time. If a Balance Sheet is a "snapshot". the In- come Statement is a "video tape" of its operations for a pe- riod of time. A Statement of Cash Flow indicates if you are solvent. That is, can you meet your bills and your pay- roll promptly? It shows what cash you had at the beginning of the month or year, where you obtained cash and how you spent it. The ending figure is your end of month cash balance. This statement is especially use- ful when seeking a loan, because the ,banker. can det.mme .if you Monday, July 5 The Ena Mitchell Senior Citi- zens Center will be closed in ob- servance of the 4 m of July Tuesday, July 6 King Ranch 2hicken Salsa Corn Spanish Rice Lettuce/Tomatoes/Peppers Cottage Cheese Pears Wednesday, July 7 Hamburger Steak Brown Gravy/Mushrooms Mashed Potatoes Green Beans/Onions WW Roll/Margarine Pineapple Chunks Thursday, July 8 BBQ Chicken Creamy Coleslaw Green Beans WW Roll/Margarine Chocolate Pudding/Topping Friday, July 9 Baked Fish Tarter Sauce Tater Tots Broccoli Salad Dinner Roll/Margarine ApricOts .......... : ............ have an ability to meet loan pay- ments. To match the current pace of change in the business world and maintain a competitive edge, a small business owner must know their businesses' daily financial position. An in- ability to do this can only result in unsound business decisions. It behooves everyone in busi- ness to understand fully the ba- sics of accounting. Dr. Strang holds Professor Emeritus of Accounting from Western New Mexico Univer- sity. He and his wife, Carrol, live part of the year in Hawaii and spend the summers in Sil- ver City. The SBDC offers assistance to entrepreneurs who are start- ing a business or wanting to expand an existing business. These services are available at no cost. Call 538-6320 for an appointment with a business advisor, or email sbdc@wnmu.edu. The SBDC office is located on the second floor of the Besse-Forward Glo- bal Resource Center on 12th Street on the campus of West- ern New Mexico University. More information may be found at http://www.nmsbdc.com/ silvercity/index.html Contact the SBDC office for more information about the following events: July 15, Lenders Fo- rum July 21, Cash Flow lulls.ill 8mmlmt.=00 l(,now someone could use a Sentimental Surprise? ,,/E I ,, We IBve = uNeqp dr We have all the tools to keep your Business ON TRACK & 1N THE BLACK We offer P.rossional Services for'all aspects of your small business! Including: # Payroll #Monthly, Quarterly & Annual Tax Preparation Financlal Statements Bank Reconciliations BOOKK = PIN00 :; 42 3125 1 l I Motel Drive * Suite A * Lordsburg Wyoming High School to be .restored By ELIZABETH MCNAMA RA May 26, 2010 Submitted by EDMUND SAUCEDOI Lordsburg A "This Place Matters" rally gathers for a picture out- side Natrona County High School, which county officials pledged to restore. In 2005, consultants hired by the School Facilities Com- mission arrived at the Natrona County High School in Casper, Wyo., intending to assess the condition of the 1927 facility. They "came in and listed all the problems in the school," recalls Mary numstone, vice president of the Alliance for Historic Wyoming, "but then said nothing needed main- tenance be- cause every- thing was go- ing to be quote-unquote replaced." Ever since. students, alumni, neigh- bors, and local preservation- ists have feared that the historic school would be de- molished--es- pecially since at least 20 his- torically significant scaools have been razed within the last decade. Earlier this month, how- ever, those fears were allayed when the commission ph;dged instead to modernize and t pdate the school without compramis- ing its historic inte decision, says Ken rection of the commissi, to dO with a general policy, from demolition habilitation. Natrona County School was designed by chitectural firm of Garbutt, Weider and Sweeney. The cor- nerstone was laid in 1924, and the main section of the Colle- giate Gothic-style brick build- ing, with notable terra-cotta details, was completed three years later. Late. last year, the Alliance for Historic Wyoming, Cadoma Foundation, and Natrona County Historic Preservation Commission teamed up to make the case, before the school fa- cilities commission and the lo- cal school board, that older schools can be renovated using historic tax credits. "So long as people come to the table with an open mind we can generally come to a consen- sus," Daraie says. "But I ask people to keep in mind not ev- erything old is worth saving, and those things that are aren't always suitable for schools." There are, of course, chal- lenges in transforming Natrona into a 21st-century facility. The classrooms are too small, and eight entryways present security concerns, as there is not enough funding to guard each entrance. "Not to mention accessibility is- sues .[for the handicapped]:' says architect Kurt Dubbe, who re- cently visited the school to docu- men't its his- toric features. T h e Wyoming School Fa- vilities Com- mission has pledged nearly $10 million for the first phase of redesign and construc- tion at Natrona. Dubbe, cur- rently busy developing a set of design recommen- dations, will present his findings to the school district in mid-June. Construction could begin as early as next summer. "Our po- sition is to re- tain whatever possible and to use a historic school as a historic school," Dubbe says. "We were pleased the school facilities commission was willing tO con- sider relaxing its guidelines." BOX OF 12 BOX OF 36 $1.00 $3.00 PHAT CRACKERS $1,50 !aP_00 .a .g _m _e _a _0.12 - k S & Lo t s o f Family pau other specials Phone: 809 Duncan Highway * Lordsburg t2 at t00cati00/ Y] :+ 'l +r +l]lrl "i + "lll'l't '1'+11' '. l i[["l IP+;'II+'I}' '*lrTI il+ .Iit lil]P,l+ lt'7!ll'iilil+i.ll'llI:l II111 I l l "l i' i+! T;:;li+ ]llMi[till,liililliiZ,7 +Clilriill!llti+lillllllitlll