Absorption

Percent of overhead expenses covered by gross profit from service, body shop and parts departments (also known as fixed coverage).

Accelerated Depreciation

A method of computing depreciation which provides greater depreciation allowances in the early years of an asset's use than in subsequent years.  See Depreciation.

Accounting System

An organized method of recording transactions of a business and reporting operating results in a predetermined format.

Accounts Payable

A liability on an open account to a creditor for purchases of merchandise and/or services.

Accounts Receivable

A claim against a debtor on an open account for the sale of merchandise and/or services.

Accrual Basis Accounting

The method of record keeping wherein all income earned and all expenses incurred, regardless of when collected or paid, are recorded in the accounting records in the period in which they are earned or incurred.

Accruals

Expenses which have been incurred but not yet paid.  Also, income which has been earned but not received in cash.

Accrued Liability

The liability covering an expense recognized or incurred but not payable until a future date.

Accumulated Depreciation

The accumulated total of amounts charged to a depreciation expense.

Acid Test Ratio

The ratio of the total current assets, less inventories and prepaid items, to current liabilities.

Actual Time

Hours spent by technicians to perform assigned work on repair orders.

Additional Paid-In Capital

Amounts of cash or other property from owners/ officers above the par or assigned value of stock.

Additions to Income

Income derived from sources other than regular dealership activities.

Add-On Interest

Interest charged on the amount of a loan.  Payments are computed by adding the amount of the loan and interest then dividing by the number of months in the loan period.

Allowance for Doubtful Accounts

Estimated amount of accounts and notes receivable that may not be collected.

Amortization

A systematic charge-off of an asset's cost to expenses over the period estimated to be benefited by the asset.

Amortization of Leaseholds

Periodic charges to allocate the cost of capital improvements on leased property, written off over a period deemed appropriate by IRS regulations.

Appraisal

Establishing the actual cash value of a used vehicle or other item traded in on a new vehicle purchase.

Assets

All items of value - tangible or intangible - owned by a business.

Available Time

Time technicians are physically present and available to work.

Bad Debt

Expense account used when a receivable is judged uncollectable.

Balance Sheet

A statement of financial position as of a specific date; shown on page 1 of the Operating Report.

Bird Dog Fees

Commissions paid to a person, not regularly employed by a dealership, for a sales "lead" resulting in the sale of a vehicle.  This expense is considered a sales commission and is recorded in Account 011, Vehicle Salespeople - Compensation & Other.

Blue-Sky

Also, known as Goodwill.  A component of the total purchase price of acquired assets that exceeds the amounts that can reasonably be assigned to the individual assets.  Purchase price in excess of tangible asset value.

Book Value

The wholesale value of a used vehicle as determined by a recognized wholesale appraisal guide or the vehicle’s depreciated value at any given time.  Also, the current net worth of a dealership, or fixed asset.

Breakeven

Estimated volume of new vehicle units required to cover fixed expenses and reach zero operating profit.

Break-Even Point

The volume point in terms of sales at which a no-profit, no-loss situation would occur; this concept is intended for use in planning and setting objectives for each department.

Budget Maintenance

Lease arrangement where a given amount is set aside for maintenance.  Customer is responsible for all costs.  If costs are under the allotted amount, the customer receives a refund; if over, the customer pays the overage.

Buy/Sell Agreement

The legal contract outlining the sale of a dealership.

Capital Investment

Money or property invested in the business by the owners, plus the accumulated net profit from operations less withdrawals.

Capital Stock

Represents the amount which the Stockholders originally invested in the business.

Capital Surplus

See Paid-In Surplus.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Cash Flow Forecast

A projection of the movement of funds of a certain future period for the planning cash needs.

Cash Position

Sum of cash and Contracts in Transit, plus new vehicle equity and 75% of used vehicle equity, minus Accounts Payable and one month’s average expenses.

Certificate of Deposit

A negotiable or transferable interest bearing receipt payable to the depositor for funds deposited with a financial institution.  The term is generally 30 days or longer.

Chargeback

An amount charged back to a dealership by finance or insurance companies as a result of the cancellation or early retirement of a finance or insurance company agreement with a customer.

Chattel

An item of tangible, moveable or immovable property, except real estate, e.g., furniture and fixtures.

Clearing Account

A General Ledger account in which the sum of all debits and credits should agree, leaving a zero balance.

Closed-End Lease

Lessor furnishes the equipment and assumes depreciation risks.  Closed-end leases are operating leases.

Compensating Balance

Minimum balance on deposit required by lending institutions for the privilege of borrowing money from them.

Compound Interest

Interest computed on principal plus interest.

Contingent Liability

A liability which may or may not cause an expense to be incurred by the dealership (e.g., recourse finance contracts, service contracts).

Contract

An agreement between two parties for consideration to do a particular thing (e.g., the lease agreement).

Contracts in Transit

The amount to be received by the dealership from retail finance contracts approved by banks and other finance institutions.

Control Account

A General Ledger account, the balance of which is the total of one class of accounts carried in a subsidiary ledger.

Covenant Not to Compete

An agreement, where for consideration, the seller of a business agrees not to compete with the buyer for a period of time.  Also, called "Non-Compete Agreement".

Cost of Sales

The total cost of merchandise and/or labor sold during a given accounting period; for recommended costing procedures.

Credit

To record an entry with a minus balance.

Credit Life Insurance

Life insurance that pays the remaining balance of a vehicle finance note in the event of the customer’s death.

Current Assets

Unrestricted cash and other assets that are expected to be converted into cash, sold or consumed during the normal operating cycle of a business – usually 12 months.

Current Liabilities

Short term debt, regardless of its source, including any accrued liability which is to be paid out of current assets within the next 12 months.

Current Liabilities

Debts and obligations of a business which are due and payable within the next 12 months.

Current Portion LTD

Principal payments on long term loans due and payable within the next 12 months.

Current Ratio

The ratio of current assets to current liabilities.

Curtailment

The reduction of obligated debt by making a partial payment.

Customer Deposit

Down payment or deposit made by vehicle buyer prior to delivery, or service/parts customer prior to repair or special order.

Customer Satisfaction Index (CSI)

The level of customer satisfaction as determined by surveys of dealership customers.

Daily Operating Control (DOC)

A report intended to keep management informed as to daily progress toward sales and profit goals.

Debit

To record an entry with a positive balance.

Debt to Equity Ratio

The ratio comparing total liabilities to the capital invested by owners.  It is a measure of risk but also may indicate dealer’s ability to secure additional creditor capital.

Deductions from Income

Expenses incurred in connection with activities other than department operations.

Deferred Income

Income that will not be earned until a future period.

Delayed Payment Privilege

A privilege granted by a financial institution to a dealership whereby the payoff of the vehicle note is delayed after the sale.  Customer vehicle sales on extended payment terms usually qualify for delayed payment privilege.

Departmental Profit

The amount by which the departmental gross profit exceeds the departmental total expenses.

Deposits in Transit

Deposits made as of the last day of the month but which did not appear on the bank statement for that month.

Depreciation

An allowance for the wear and tear, exhaustion, and decline in value of business property.

Direct Costs

Costs directly allocable to the production of lease and rental income, that vary directly with the number of units in service.  For example, interest paid by the dealership on a lease unit would be a direct cost relating to the income produced by that unit.

Discount

Reduction from retail price.  Dealers often take or offer discounts as a reward for paying invoices early.

Discounted Finance Contract

An installment sales contract assigned by the dealer to a bank or finance company.  The net proceeds from such a contract equal the face amount of the contract less amounts withheld by the finance institution such as finance charges.

Discounted Interest

Interest computed on the total amount of the loan and then deducted from the proceeds of the loan.

Dividends

Portion of profits paid to the stockholders of a corporation.

DOC

Daily Operating Control; a daily (usually computer generated) report giving details of previous day’s sales and operations.

Effective Net Worth

Net Worth excluding “Other Assets” plus 50% of LIFO Reserves.

Equity

The excess of assets over liabilities (also known as Net Worth).

Escrow Account

Money deposited with a third party that is not to be delivered until the fulfillment of certain conditions.

iEXAM

A sophisticated computer based comparison program used by Auto Manufacturers to compare specific operations to other groups of operations in order to seek out profit opportunities.

Expenses

Costs of doing business other than the cost of goods and services sold in the normal course of business.

Fair Value

The selling price of the vehicle to the lease customer as if the transaction was purchased at the current market price.

Finance and Insurance Income

Income earned as a result of retail vehicle sales being financed and/or insured through the dealership.

Finance Lease

The lessor furnishes the vehicle with the lessee assuming the risk of depreciation.  See Open-End Lease.

Finance Receivables-Current

Portion of finance reserve income free of contingencies that is due and payable by the lending institution(s).

Finance Receivables-Deferred

Portion of reserve income held by finance institutions as a contingency against the outstanding liability.

Financial Statements

Statements that reflect the collection, tabulation and final summarization of the accounting data.  Automotive financial statements are generally the balance sheet, profit and loss statement and gross profit analysis.

Fixed Assets

Assets required for operation and not purchased for resale in the normal course of business.

Fixed Coverage

A measure of the fixed gross profit expressed as a percentage of total fixed overhead expense.  The ratio is intended primarily as a measure of the effectiveness of the Service and the Parts Departments in the context of the dealership's total expense structure.

Fixed Departments

Service, parts and body shop departments which provide more regular sources of sales than vehicle department.

Fixed Expenses

Operating expenses which do not vary materially in the short term with changes in sales volume.

Fixed Gross Profit

The combined gross profits of the Service and the Parts and Accessories Departments.

Fixed Net Loss

The excess of the total fixed overhead expense over the combined gross profits of the Service and the Parts and Accessories Departments.  See Unabsorbed Overhead.

Fixed Overhead Expenses

Expenses that do not vary proportionately with vehicle sales.  These include personnel, semi-fixed and fixed expenses.

Fixed Sales

Sales generated in the Service and Parts Departments.

Flat Rate Time

The time allowance to perform a particular service function based on time studies and specified in various service manuals used in the automotive industry.

Fleet Sales

Vehicle sales made to fleet customers such as leasing companies and commercial accounts holding fleet certificates.

Floor Plan

The financing of vehicle inventories.

Forecast

A projection of sales, expenses and profits for a specific future period for the purpose of setting objectives and planning.

Frozen Capital

The amount that certain accounts receivable and vehicle inventory accounts exceed accepted levels to conduct business.  Frozen Capital is generally associated with used vehicle inventories, service and parts receivables and Contracts in Transit.

General Ledger

A book of final entries to which journal totals are posted and summarized.

Goodwill

The amount paid for a business in excess of the fair market value of the net assets purchased.  Also referred to as “Blue Sky".

Gross Profit

Net sales less cost of goods or cost of labor.

Group

A category on the Composite and Expense Trends based on like size sales volume within the same sales area.

Guarantee

A written promise by one person (the co-signer) to be liable for the debt of another person in the event that the debtor fails to perform his obligation.

Guide Averages

Averages applicable to various elements of the business, derived from composites of dealership operating reports, which are intended for use in the comparative evaluation of the performance of dealership operations.

Holdback

Amounts specified as Holdback on new vehicle invoices billed to the dealership.  The amount of the holdback is generally a small percentage of the list price of the vehicle plus the total of the list prices of optional equipment and accessories on the vehicle.

Indirect Expense

An expense of a general nature not directly applicable to an operating department.

Insurance

A contractual relationship which exists when one party agrees to indemnify or guarantee another against loss from a contingent event.

Insurance - Additional Named Insured

Anyone other than the insured who is protected against loss by the terms of the policy.

Insurance - Collision

Any act or instance of hitting or striking another object, regardless of fault, in which the insured's vehicle loss is covered.

Insurance - Combined Additional Coverage

Coverage which pays for direct and accidental loss of or damage to a vehicle caused by only those perils explicitly listed in the policy.

Insurance - Combined Single Limit

One total amount of coverage applicable to any one loss without restriction on the amount any one person may collect.

Insurance - Comprehensive

Coverage against a loss caused by all perils on an insured vehicle.

Insurance - Credit Disability

In the event of the disability of an insured individual, prior to the expiration of the contract, the insurer will pay to the named recipient (in accordance with policy provisions) the insured individual's monthly payment during the term of disability.  Generally, benefits are payable after a 30-day waiting period.

Insurance - Credit Life

In the event of the death of an insured individual, prior to the expiration of a contract, the insurer will fulfill the insured's remaining contract obligations in accordance with policy provisions.

Insurance - Garage Liability

Insurance that protects the dealer on sales and service activities but may not cover the risks of a dealership's leasing activity.

Insurance - Liability Insurance

Coverage insuring the loss for any damages caused by the insured's negligence.

Insurance - Loss Payee

A clause providing for payment of a loss for which the insurer is liable to the insured and to someone other than the insured.

Insurance - Medical Payments

Coverage that pays for medical, surgical or dental services due to an accident.  Coverage is limited and applies without regard to negligence.

Insurance - Proof of Insurance

Written document (Certificate of Insurance) from an insurance company which attests that the vehicle is insured for certain coverages and limits.

Insurance - Umbrella

A contract that covers losses over and above the limits stipulated on the primary insurance policy.

Insurance - Uninsured Motorist

This is a protection against loss from being involved in an accident with a motorist who is not protected by insurance.  It will cover losses caused by the uninsured motorist.

Internal Control

The system of control adopted by a business to safeguard its assets, check the accuracy and reliability of its accounting data, and promote operational efficiency.

Internal Sales

Sales of vehicles, labor or parts by any department to another operating or administrative department of the business for example: accessories added to a vehicle for sale on the showroom floor.

Inventories

Merchandise available for sale in the dealership.

Inventory Adjustment

Adjustment to inventory value to reflect actual market value of vehicles or parts (also known as write-down).

Investment Turnover Ratio

The ratio of net sales to net worth.

Journals

The book of original entry in which the source documents (invoices, repair orders, etc.) are recorded and summarized as to account classifications.

Lease

A contract between an owner and a user of property.  The owner turns over the use of his property to the user in return for periodic rental payments.

Lease Term

The duration of a lease.

Leasehold Improvements

The cost of improvements made to leased facilities.

Leaseholds

The cost of improvements to leased property (land, buildings) as well as any premium paid to acquire a lease.

Lessee

The user of leased property.

Lessor

The party who leases the property to the user or lessee.

Letter of Credit

An instrument issued on behalf of a buyer of a buyer by a financial institution certifying that a third party is entitled to draw upon its credit with the financial institution up to a certain sum.

Leverage

The extent to which the dealer uses “other people's money” (liabilities) rather than their own money.  Measured by the Debt-to-Equity ratio.

Liabilities

All debts owed by the business.

Lien

A legal right on the property of another for payment of a debt.

LIFO (Last-In, First-Out)

LIFO, assumes that goods are sold in the reverse order of their acquisition.  Thus, cost of sales is based upon the most recent costs.  Ending inventory is based upon the costs of the earliest purchase made.  This is a method of income deferral for income tax reduction only.  LIFO reserves must be reversed at a future date and all relevant taxes paid.

LIFO Deduction

Accounting expense taken to reflect the inflationary increase in the cost of inventory.

LIFO Reserve

Cumulative deduction for LIFO reflecting the difference between actual cost of inventory and cost based on a historical base period.

Limited Liability Company

Legal entity that is neither a Partnership nor Corporation, where owners are responsible for company debts only to the extent of their capital contribution.

Liquidity

The ability to meet short term financial responsibilities, or how quickly specific assets can be converted into cash.

Long Term Liabilities

Debts, including mortgages payable and any accrued or contingent liabilities, which are not to be paid during the current operating cycle.

Maintenance Contract

Agreement to maintain a vehicle over a certain term at a prepaid price.

Maintenance Lease

Lessor furnishes the vehicle and pays for maintenance according to the terms of the lease.

Majority Ownership

Ownership of greater than 50% of equity.

Minority Ownership

Ownership of less than 50% of equity.

Mortgages

Notes payable secured by mortgages on real properties, such as land, buildings, and building improvements.

Motor Vehicle Report

A report which is available through a state's Motor Vehicle Agency to indicate a vehicle’s registration history and outstanding violations.

Net Book Value

Cost of asset less accumulated depreciation for the asset.

Net Lease

The lessor furnishes the vehicle and assumes the depreciation risks; commonly referred to as an operating lease.

Net Profit

Total sales and additions to income less total cost of sales, total expenses and deductions from income.

Net Sales

Total sales after all returns, allowances and discount.

Net Worth

Total assets less total liabilities, representing the owner's equity in the business.

New Vehicle Inspection (PDI)

A labor sale chargeable to the factory dealing with the preparation of new vehicles for delivery.

Non-Recourse Finance Contracts

An installment sales contract assigned by the dealer to a bank or finance company for which the dealer is not liable for customer contract defaults.

Officer Loan

Liability of dealership to owner(s).

Open Account

Unsecured accounts receivable or accounts payable, which are normally due within 30 days.

Open-End Lease

The lessor furnishes the vehicle and the lessee assumes the risk of depreciation.  An open-end lease usually referred to as a capital lease.  See Capital Lease.

Operating Expenses

Expenses that are necessary to departmental operations.

Operating Income

Gross profit generated from total dealership operations plus gross profit generated from the sale of financing, insurance and service contracts minus any provision for repossession losses and/ or chargebacks to finance, insurance and service contract income.

Operating Lease

A lease which does not qualify as a sales transaction (usually segregated between maintenance and non-maintenance operating leases).  See Closed-End Lease.

Operating Profit

Gross profit less expenses.

Other Assets

Assets not used or not intended for use in the automotive business.

Out-Of-Trust

A term used to describe the situation when a vehicle has been sold but the related note payable is still outstanding.

Over Allowance

Sales technique where a customer’s used vehicle is taken as a trade-in for more than wholesale value.

Overhead Expense

Personnel, semi-fixed and fixed expenses only partially related to the volume of sales and production.

Paid-In Surplus

Capital contributed by stockholders in excess of par or stated value of capital shares.  (No additional shares are issued to represent this increase in equity).

Par Value

The value printed on the face of the security certificate for a corporation.

Parts and Service Receivables

Amount due from retail/wholesale parts and service customers for purchases made on an open account.

Past Due

Receivables that are over 30 days unpaid.

Personnel Turnover Rate

The ratio of the number of personnel terminated and replaced to the average number of personnel employed during the period.

Planning Potential

Expected unit sales volume of new vehicles based market size and past sales performance, also called Market Share Responsibility (MSR).

PNVR

Per New Vehicle Retailed.

PNVS

Per New Vehicle Sold, (includes fleet).

Policy Expense

Service and/or parts given to customers, the expense of which is absorbed by the dealership.

Policy Work

The internal selling price of labor and materials for which neither the customer nor manufacturer will be charged.

Policy Work - Parts and Service

The repair or adjustment of defective service work and the replacement of defective parts and accessories sold.

Policy Work - Vehicles

The repair or adjustment of vehicles previously sold or leased.

Power of Attorney

The legal delegation of authority to act on behalf of another.

Prepaid Expenses

When an expense is paid for in advance of the dealership achieving a benefit.  Example: Paying insurance for 12-month policy.  1/12 would be expensed to January, the rest would be held in prepaid insurance which is reduced by 1/12 each month and expensed on the profit and loss statement to insurance expense.

Primary Market Area (PMA)

Geographical area in which a dealership is expected to sell and service vehicles.

Pro Forma Balance Sheet

A forecasted Balance Sheet developed to illustrate working capital and capitalization of proposed dealership.

Productive Personnel

Dealership personnel who directly create gross profits by their primary activity.  For example, service technicians and salespeople.

Productivity

Ratio of technicians’ actual hours to available hours.

Profit and Loss Statement

A statement of revenue and expenses for a specific period of time.

Protection Plan

Mechanical breakdown insurance or what is commonly referred to as an extended service contract.

Purchase Allowances

Discounts allowed to a dealer by the factory for the purchase of certain parts and accessories.

PUVR

Per Used Vehicle Retailed.

Ratio

Statistical relationship between two or more financial terms.

Reconditioning

Safety inspection, Mechanical, Body and cosmetic repairs on used vehicles prior to sale.

Reconditioning Cost

The cost incurred to restore a used vehicle to salable condition.

Recourse Contract

Agreement between dealer and finance institution wherein the dealer is obligated to guarantee the unpaid balance of a contract in the event the customer defaults on the loan.

Repossession

Re-acquisition of vehicle from customer who fails to make loan or lease payments.

Reserve

Money set aside to provide for possible future liabilities, asset adjustments, or expenses of the dealership.

Residual Value

The value of an asset at the end of its useful life.  In leasing, an estimate made of the wholesale value of the vehicle.

Retail

To sell products and services directly to individual customers.

Retained Earnings

Corporation profits accumulated in prior years retained in the dealership.

Return on Investment (ROI)

A ratio of profit to investment, expressed as a percentage, applying to a given accounting period.  Also, called Return on Equity (ROE).

Return on Sales

A ratio of profit to net sales, expressed as a percentage, applying to a given accounting period.

R.O.

Repair order in service department.

ROA

Return on Assets; annualized Net Profit divided by Total Assets (plus LIFO reserves, minus Total Other Assets).

Sales

The amount charged for products or services sold to customers in the normal course of business.

Sales and Profit Forecast

A projection of sales, expenses and profits for a specific future period for the purpose of setting objectives and planning.

Salesperson Productivity

A measurement of how many vehicles each salesperson sells per month.

S-Corporation

Federal tax classification for corporations where any profit is taxed personally to shareholders rather than to the corporation.

Security Deposit

An amount collected by the owner from the user at the beginning of a contract to provide a measure of protection for the owner against non-compliance with contract stipulations.  If not used, this deposit is refundable at the end of the contract term.

Self-Insurance

A practice whereby a company underwrites its own insurance protection.

Selling Expenses

Variable expenses directly related to sales and which usually increase proportionately when sales rise (e.g., commissions).

Selling Ratio

The ratio of used vehicle unit sales to new vehicle unit sales.

Semi-Fixed Expenses

Operating expenses which vary with, but not in direct proportion to, sales volume.

Service Absorption

See: Fixed Coverage.

Service Contract

Agreement providing repairs not covered by factory warranty.

Simple Interest

Charges for a loan of money computed by applying a rate against the amount of the loan outstanding for a given period.

“Stip”

“Stipulation”: term used by lenders requesting certain items be provided or completed in order to approve a credit contract, e.g., copies of W2’s, paystubs, etc.

Stock Order Allowance

Discounts allowed to a dealer for the purchase of certain parts and accessories submitted via a stock order pad as specified by the factory.

Sublet

Service or body work performed by an outside vendor.

Subsidiary

A company controlled by a parent company owing substantial interest.

Supportive Personnel

All employees other than productive personnel.

Technician Efficiency

Ratio of technician's flat rate or operation hours to actual hours.

Total Fixed Overhead

Total operating expenses of the building less Variable Selling Expenses.

Transportation Claim

A claim made for reimbursement of the cost of repairs to vehicles damaged in transit.

Treasury Stock

A purchase by a corporation of its own capital stock that is not retired.

Trial Balance

Listing of all account balances in which the total of debit amounts are equal to credit amounts.

True Turn

Parts inventory turnover based on stock orders only.

UIO

Units in operation; number of registered vehicles (within a certain model year period – usually 7 years) in a dealership’s market area.

Unabsorbed Overhead

The excess of the total fixed overhead expense over the combined gross profits of the Service and the Parts and Accessories Departments.

Unapplied Labor (Time)

Amounts paid to mechanics not billable to specific RO’s.

Upside Down

An undesirable condition where the market value of a vehicle is less than the loan balance or lease payoff.

Used to New Selling Ratio

The number of retail used vehicles sold retail during a period divided by the number of retail new vehicles sold.

Variable Departments

New and used vehicle departments.

Variable Expenses

Expenses directly related to vehicle sales, e.g., sales commissions.

Variable Gross Profit

The combined gross profits of the New and Used Vehicle Departments.

Variable Net Profit

The combined gross profits of the New and Used Vehicle Departments, less Variable Selling Expenses.

Variable Sales

Sales made by the New and Departments.

Variable Selling Expense

Operating expenses which are directly related to vehicle sales and tend to vary in direct proportion to vehicle sales volume.

Vehicle Delivery Receipt

An acknowledgement of receipt of a vehicle by the buyer or user.

Vehicle Equity

Inventory value less flooring debt.

Vehicle Return Receipt

A form completed at the end of lease contract where the lessor acknowledges return of the vehicle and agrees with the vehicles condition.

Warranty Claim Sales

A sale chargeable to the manufacture under the warranty claims provision of a selling agreement.

Warranty Receivable

Money due to dealership for repairs covered by factory warranty.

Water

The excess of stated inventory value above actual market value.

Wholesale

Used vehicles sold at auction or to independent wholesalers rather than to retail customers.  Also, parts sold to other dealers or businesses, usually at a discount.

Work in Process

Outstanding labor charged on repair orders that remain unbilled at the end of the month.

Working Capital

Total current assets less total current liabilities; net amount of liquid assets necessary to carry out day-to-day operations.  (Exclusive of LIFO).

Working Capital Requirement

Net amount of liquid assets necessary to carry out operations.  Based upon cash, inventory and receivable needs.

Write-down

Reduction in used vehicle or parts inventory value to market value.