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40 Cards in this Set
- Front
- Back
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Net income
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revenue - expenses
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EB retained earnings
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BB retained earnings + net income - dividends
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Gross profit margin
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(Revenue - COGS) / Revenue
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Total asset turnover
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sales / total assets
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operating profit margin
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(Revenue - COGS - SGA) / Revenue
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ROA
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(Net income / Sales) X (Sales/ assets) or NPM x TAT
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Net profit margin
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net income / sales
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long term debt to equity ratio
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long term debt / equity
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EB inventory
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BB inventory - COGS + goods available
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Accounts receivable, net
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accounts receivable, gross - allowance for uncollectibles
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allowance for uncollectibles
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+ bad debt expense - write offs + BB
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bad debt expense
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credit sales X percentage
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gross profit
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contract price - total cost
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liquidity
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decrease in inventory
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inventory turnover ratio
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COGS / average inventory
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accounts receivable turnover
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credit sales/ accounts receivable
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accounts payable turnover
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purchases/ accounts payable
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FIFO inventory
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LIFO inventory + EB LIFO reserve
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FIFO COGS
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LIFO COGS - change in LIFO reserve
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LIFO reserve
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LIFO left over - FIFO left over
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Gain (loss)
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proceeds - book value
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Book value
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PPE, gross - accumulated depreciation OR Cost - accumulated depreciation
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Impairment loss IFRS
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balance sheet carrying value (value of asset) - expected future cash flows
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Impairment loss US GAAP
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occurs when carrying value exceeds the sum of undiscounted cash flows
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Straight line depreciation
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(Total cost - salvage value) / years
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EB accounts payable
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BB accounts payable+ amount purchased - amount paid
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quick ratio
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tests liquidity. current assets (except inventory and pre-paid accounts) / current liabilities
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ROE
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(Net income/ sales) X (Sales/total assets) X (Total assets/common equity)
or net profit margin X total asset turnover X financial leverage or Net income/ equity |
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Discount bond
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if coupon rate < market rate; proceeds are less than par
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Premium bond
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if coupon rate > market rate; proceeds are greater than par
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cash flow from operating activities
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net income + add back non-cash deductions (depreciation, amortization, losses), subtract non-cash additions (gains). Add or deduct changes in current assets and current liabilities.
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cash flow from investing activities
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includes purchases of long term assets (such as purchase of PPE) and proceeds from the sale of long term assets
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cash flow from financing activities
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includes all additions to or reductions of interest bearing debt, common and preferred stock, as well as dividends paid
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Purchases
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Ending inventory - Beginning inventory + COGS
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Goodwill
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Acquisition cost - net assets
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cash collected from customers
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sales - change in non cash assets + change in liabilities
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cash paid to suppliers
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COGS - change in non cash assets + change in liabilities
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cash paid to employees
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wage expense + change in liabilities
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payment (bonds)
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(par value X coupon rate) / 2
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growth rate in sales formula
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70 / growth rate = amount of time it takes
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