McGregor Enterprise Steve Simpson is a very average man. He wears classes, weighs barely 145 pounds and stands at just 5'7". If you even noticed Steve, his baby face and full head of short, brown hair gave the look of a college accounting student absorbed with how to survive finals week. But, looks can be deceiving. The 35-year-old son-in-law of the town's wealthiest man is the president and the driving force behind McGregor Enterprises, one of the nation's largest, privately held gift wholesalers. Certainly, marrying the owner and chairman of the board's daughter didn't hurt Steve's ascent through the ranks of McGregor Enterprises. His ability to quickly grasp numbers and their relationships to the gift business, though, was the overriding reason Steve became president and chief operating officer (COO); his marriage to David McGregor' only daughter was why he achieved his current position at the young age of 29. Now, as Steve Simpson met with David McGregor to discuss the owner and chief executive officer's (CEO) concerns with the latest financial statements of the company, it became, once again, apparent to Steve why he needed to break away from his father-in-law and start a business of his own. When David McGregor failed to understand the financials of the company or got a half-baked idea about someone stealing money, Steve was subjected to tirades of epic proportions. David McGregor knew how to design and sell innovative gift products, but he knew nothing about how to manage corporate finances-a fact that he often failed to recognize. This led to hours of listening to the rants and raves about the financial health of the company. "At times, I wonder what my daughter sees in you!" David McGregor yelled. "I've spent 30 years building this company. I've got the two hottest products in the gift market today. Then I look at the preliminary financials that your wonder boy accountant gives me and our profits are pathetic. Can you explain that to me?" "With all due respect, Mr. McGregor, the 2021 figures are only preliminary numbers. Every year there are reclassifications and accrual adjustments that are made by Andy, our wonder boy accountant, as you call him. Afterwards, I review the financials. You've never looked at the preliminary financials in the past, so I can see why you might be confused. Until these adjustments are completed, let's not jump to the conclusion that our financial results are disappointing. I will admit, though, gross margins have decreased slightly over the past few years." "I don't know how many of these adjustments you're expecting to make, but I'd better see a more positive bottom line when you are done! And when you begin your clarification of these numbers, you can first explain why my gross margin appears to be down. I can't go to the bank and ask for a larger credit line with these financials! How do I explain to my ultraconservative banker that I've increased sales but made less money per sale? He's been on me to spend money for an outside audit, and if he sees these numbers, I'll have to agree. I don't want to