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ACC200 > CHAPTER 13 Formulas > Flashcards

CHAPTER 13 Formulas Flashcards

1
Q

How to compute dollar change.

A

Dollar change=Analysis period amount - Base period amount

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2
Q

How to compute percent change

A

Percent change=Analysis period amount-base period amount ÷ Base period

Then, multiply answer by 100

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3
Q

How to compute trend percent

A

Analysis period amount ÷ Base period amount

Then, multiply by 100

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4
Q

How to compute Common-Size Statements

A

Common-size percent (%)= Analysis amount ÷ Base amount

Then, multiply by 100

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5
Q

How to compute Working Capital

A

Current assets - Current liabilities = Working capital

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6
Q

How to compute Current ratio

A

Current ratio = Current assets ÷ Current liabilities

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7
Q

How to compute Acid-Test Ratio

A

Acid-test ratio = Cash+Short-term investments + Current receivables ÷ Current liabilities

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8
Q

How to compute Accounts Receivable Turnover

A

Accounts receivable turnover = Net sales ÷ Average accounts receivable, net

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9
Q

How to compute Average Accounts Receivable

A

Average accounts receivable = Beg. Acts. Rec. + End Accts. Rec. ÷ 2

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10
Q

How to compute Inventory Turnover

A

Inventory turnover = Cost of goods sold ÷ Average inventory

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11
Q

How to compute Average Inventory

A

Average inventory = Beg. Inventory + End. Inventory ÷ 2

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12
Q

How to compute Days’ Sales Uncollected

A

Day’s sales uncollected = Accounts receivable, net ÷ Net sales

Then, multiplied by 365

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13
Q

How to compute Days’ Sale in Inventory

A

Day’s sales in Inventory = Ending inventory ÷ Cost of goods sold

Then, multiplied by 365

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14
Q

How to compute Total Asset Turnover

A

Total asset turnover = Net sales ÷ Average total assets

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15
Q

How to compute Average Total Asset

A

Average Total Asset = Beg. Asset + End. Asset ÷ 2

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16
Q

How to find Debt-to-Equity Ratio?

A

Total liabilities ÷ Total Equity = DER

17
Q

How to find Times Interest Earned?

A

Income before interest expense and income taxes ÷ Interest expense

18
Q

How to find Income Before Interest and Taxes?

A

Net Income + Interest Expense + Income Taxes = IBIT

19
Q

Gross Margin Ratio

A

Net-Sales - Cost of goods sold ÷ Net sales

20
Q

Profit Margin

A

Net Income ÷ Net sales

21
Q

Return on Total Assets

A

Net Income ÷ Average total assets

22
Q

Return on Equity

A

Net Income ÷ Average total equity

23
Q

Dividend Yield

A

Annual cash dividends per share ÷ Market price per share

24
Q

Price-Earnings Ratio

A

Market price per common share ÷ Earning per share

ACC200 (4 decks)

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