Exam 1 Flashcards
Internal Rate of Return %
Future value / present value ^ 1 / periods - 1
Days in AR
AR at year end / (annual sales / 365)
Accounts receivable
Days in AR x (annual sales / 365)
Sales
(Accounts receivable at year end / days in AR) x 365
Days in inventory
Inventory at year end / (annual cost of sales / 365)
Inventory
Days in inventory x (annual cost of sales / 365)
Cost of Sales
(Inventory at year end / days in inventory) x 365
Days in AP
Accounts payable at year end / (annual cost of sales / 365)
Accounts payable
Days in AP x (annual cost of sales / 365)
Cost of sales (#2)
(Accounts payable at year end / days in AP) x 365
PPE
beginning of year PPE + gross PPE additions for year - PPE retirements for year - depreciation expense for the year
Intangible assets
beginning of year intangible asset balance + gross additions - retirements - amortization expense
Long-term debt
beginning of year debt - ((monthly payment of principal and interest x 12) + annual interest expense) - current portion of long term debt
Retained earnings
Retained earnings beginning of year + annual net income or loss - dividends
Operating cash cycle
Days in AR + days in inventory
CCC
OCC - days in AP
Gross profit %
Mark up % / (1 + mark up %)
Gross profit $
Sales x gross profit % or (sales - cost of sales)
Cost of sales %
Cost of sales / sales
Cost of sales $
Sales x cost of sales % of (sales - gross profit $)
Mark up %
Gross profit % / (1 - gross profit %)
