Budget Bootcamp

I'm having such a good time in Budget Bootcamp! After completing the administrative budget, I've been attending other departments' budget approval meetings to "fill in the gaps." I 'get' the main premise behind the balance statements, but I'm going to ask my almost-CPA pal, Kassie, for some help in understanding EBITDA. I know it's "earnings before interest, taxes, depreciation, and amortization," but I don't know what it means. I know you want a positive EBITDA, because that means you have a positive cash flow…but when is the positive cash flow adequate? When is it lacking? How do you decide what the optimal ratio is? And when are you going to tell me to just be quiet and move onto something that won't lull you into an immediate comatose state?!

[Kassie, will you explain this to me, off-line?]

Anyway, I'm sitting in on all these budget meetings and I really feel my knowledge base growing. I'm trying to anticipate the questions and not let my mind wonder too much. It's unfortunate that the finance conference room overlooks the highway, so there's always a lot to watch.

ADD is never a problem. No thanks, I'm happy with Sprint as my long-distance provider!