5 | Time Value Formulas Flashcards
0
Q
Abbreviations: I
A
Amount invested at the beginning if the period.
1
Q
Abbreviations: FV
A
Future Value
2
Q
Abbreviations: i
A
Interest rate.
3
Q
Abbreviations: n
A
Number of compounding periods.
4
Q
Future Value of a single amount.
A
FV = PV (1 + i)^n
5
Q
Present Value if a single future amount.
A
PV = FV / (1 + i)^n
6
Q
Activitiy Ratios
Asset Turnover Ratio
A
Net Sales
___________________
Average Total Assets
7
Q
Activity Ratio
Receivables Turnover Ratio
A
Net Sales
________________________
Average Accounts Receivable
8
Q
Activity Ratio
Average Collection Period
A
365
______________________
Receivables Turnover Ratio
9
Q
Activity Ratio
Inventory Turnover Ratio
A
COGS
________________
Average Inventory
10
Q
Activity Ratio
Average Days in Inventory
A
365
_____________________
Inventory Turnover Ratio
