Scoring Score Score Score Score Score

$1.$ Is the Auditor's Opinion "clean?" Is it dated within $90-120$ days $($in general$)$ of

their "year$-$end? $"$ Is the audit firm a reputable firm? $25$

$2.$ Is the management letter reasonably "clean", so no $($or few$)$

"material weaknesses" or "significant deficiencies?" $10$

$3.$ Are they "making money?" So$,$ is the basic business $($operating results$)$ profitable?

How is the historical trend in the operating margin? $25$

$4.$ Do they have cash? Do they have adequate working capital $($Quick Ratio$)$

to pay their bills as they come due for the next year? How is cash flow from

operating activities $($cash flow statement$)?20$

$5.$ Is the $$Balance Sheet$$ strong. Do they have positive Unrestricted Net Assets

$($Stockholders$\text{'}$ Equity$)?$ Are the various categories of net assets growing

vs$.$ being depleted? $20$