Equations Flashcards
Gross Profit
Revenue - Cogs
Operating Income
Revenue - Expenses( not tax)
Net income
Operating income - income tax expense
Gross Profit Margin
Gross Profit / sales
Gross Profit Margin
Gross Profit / net sales
To get the end of shareholders equity
Beginning shareholders equity: A - L
Net income: R - E
Change SE: NE - dividends declared
End SE: beginning + change
Beggining Retained earnings formula
Net income - dividend declared
Ending retained earnings
Beginning RE + Net income - dividend declared
Shareholders
Common + retained earning
Net sales
Sales - sales return and allowances - sales discount
Inventory turnover
Cogs / average inventory
Working capital
Current assets - current liability
Days in inventory
365 days/ inventory turnover
Profit margin
Net income / net sales
Current Ratio
Current Assets/ Current liability
Debt to total assets
Total liability / total assets
Steps for shareholders equity
Beginning: A - L
Net income: R - E
Changes: NE - Dividend Declared
End of SE: begging + change
Cogs
Beginning inventory + purchases - ending inventory
Basic earnings per share
Net income - preferred dividends
/ weighted average number of common shares
