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FAR > FAR Cumulative Formulas > Flashcards

FAR Cumulative Formulas Flashcards

1
Q

Comprehensive Income

A

PUFI + OCI

P- Pension Adjustment
U - Unrealized Gains/Losses
F - Foreign Currency Items
I - Instrument Specific Credit Risk

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2
Q

Basic EPS

A

Income Available to Common Shareholders / WACSO

Income Available to Common Shareholders = Net Income - Preferred Dividends

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3
Q

Weighted Average Common Shares Outstanding (WACSO)

A

Shares Outstanding at the Beginning of the Period + Shares Sold During the period - Shares reacquired during the period + Stock Dividends and Stock Splits - Reverse Stock Splits

Stock Dividends and Splits are Retroactively Adjusted
Shares Sold/Reacquired are based on a time-weighted basis

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4
Q

Diluted EPS

A

Income Available to Common Shareholders +Interest on Dilutive Securities / WACSO (with all securities converted to common stock)

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5
Q

Treasury Stock Method

REMEMBER the use is for Stock Options and Warrants

Average Price > Strike Price

A

Number of Shares - # of Shares * Excercise Price / Average Market Price

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6
Q

Book Value per Common Share

A

Assets - Liabilties - Preferred Equity - Dividends in Arrears

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7
Q

Common Share Outstanding

A

Shares Issued - Shares Repurchased

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8
Q

Retained Earnings

A

Net Income/Net Loss (Dividends Declared) +/- Prior Period Adjust. +/- Accounting Changes Retrospective

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9
Q

Liquidity

A

Current Assets / Current Liabilities

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10
Q

Solvency

A

Debt / Equity

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11
Q

Current Ratio

Ability to meet short term obligations

A

Current Assets / Current Liabilities

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12
Q

Quick Ratio

A

Cash and cash equivalents + Short term marketable securties + A/R (net) / Current Liabilities

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13
Q

A/R Turnover

Success of collecting outstanding A/Rs

A

Sales (net) / Average A/R (net)

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14
Q

Day Sales in A/R

Average # of days to collect A/R

A

Ending A/R (net) / (Sales (net) / 365)

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15
Q

Inventory Turnover

How quickly inventory is sold - the higher the better

A

COGS / Average Inventory

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16
Q

Days in Inventory

Average # of days to sell inventory

A

Ending Inventory / (COGS / 365)

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17
Q

A/P Turnover

Average # of times trade payable turnover during a period

A

COGS / Average A/P

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18
Q

Days in Payable Outstandings

Average # of days to collect A/R

A

Ending A/R / (Sales (net) / 365)

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19
Q

Cash Conversion Cycle

A

Days Sales in A/R + Days in Inventory - Days in Payable Outstandings

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20
Q

Debt-to- Equity

A

Total Liabilities / Total Equity

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21
Q

Total Debt Ratio

A

Total Liabilties / Total Assets

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22
Q

Equity Multiplier

A

Total Assets / Total Equity

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23
Q

Times Interest Earned

A

EBIT / Interest Expense

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24
Q

Gross Profit Margin

A

Sales (net) - COGS / Sales (net)

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25
Q

Return on Sales

A

Net Income / Average Total Assets

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26
Q

Dupont Return on Asset

A

Profit Margin x Asset Turnover

27
Q

Operating Cash Flow Ratio

A

CFs from Operations / Current Liabilities

28
Q

Profit Margin

A

Net Income / Sales (net)

29
Q

Return on Equity

A

Net Income / Average Total Equity

30
Q

Top Down EBITDA

A

Sales - COGS - Operating Expense (excluding depreciation and amortization)

31
Q

Bottom Up EBITDA

A

Net Income + Income Tax + Interest Expense + Depreciation/Amortization Expenses

32
Q

Dividend Payout

A

Cash Dividends / Net Income

33
Q

Asset Turnover

A

Sales (net) / Average Total Assets

34
Q

Cash to Accrual

Accrual Basis Revenue

A

Cash Basis Revenue + Ending A/P - Beginning A/P - Ending Unearned Revenue + Beginning Unearned Revenue

35
Q

Cash to Accrual

COGS

A

Cash Paid for Purchases + Ending A/P - Beginning A/P - Ending Inventory + Beginning Inventory

36
Q

Cash to Acrrual

Accrual Operating Expenses

A

Cash Paid for Operating Expenses + Ending accrued liabilities - beginning accrued liabilities + ending prepaid expenses + beginning prepaid expenses

37
Q

Bank Reconciliation

DO Bank Reconciliation

A

(+) Deposits in Transit
(-) Outstanding Checks

38
Q

Book Reconcilation

Book Reconcilation in BINS

A

(+) Bank Collect
(+) Interest Expense
(-) Non-Suffient Funds (NSF)
(-) Service Charges

39
Q

Discounting - Sale of Notes Receivable

Present Value

A

Face Value - Unearned Interest

40
Q

Discounting - Sale of Notes Receivable

Maturity Value

A

Interest + Face Amount of Note

41
Q

Discounting - Sale of Notes Receivable

Bank Discount

A

Discount * Maturity Value

42
Q

Discounting - Sale of Notes Receivable

Amount Paid by the Bank

A

Maturity Value - Bank Discount

43
Q

Discounting - Sale of Notes Receivable

Interest Income (Expense)

A

Amount Paid - Face Value

44
Q

Composite Depreciation - Averaging Economic Lives

Depreciable Base

A

Cost - Accumulated Depreciation

45
Q

Composite Depreciation - Averaging Economic Lives

Annual Depreciation

A

Depreciable Base / Useful Life

46
Q

Composite Depreciation - Averaging Economic Lives

Average Composite Life

A

Total Depreciable Base / Total Annual Depreciation

47
Q

Weighted Average Method

Used for homgenous products (periodic)

A

Total Inventory Costs Available / Total Number of Units Available

48
Q

Moving Average Method

A

Total Inventory Cost / Total # of Units Available

49
Q

Lower of Cost and Net Realizable Value

Net Realizable Value

Used for FIFO or Weighted Average

A

Selling Price - Cost to Sell

50
Q

Lower of Cost and Market

Market Ceiling

Used for LIFO or retail inventory method

A

NRV = Selling Price - Cost to Sell

51
Q

Lower of Cost and Market

Market Floor

A

NRV - Normal Profit

52
Q

Lower of Cost and Market

Replacement Cost

A

Cost to Purchase the Item

53
Q

Cost of Goods Sold

A

Beginning Inventory + Purchases - Ending Inventory

Beginning Inventory + Purchases = COG Available for Sale

54
Q

Straight Line Depreciation

Service potential declines over time

A

Cost - Salvage Value / Estimated Useful Life

55
Q

Sum-of-the-year’s Digits Depreciation & Depreciation Expense

Provides higher expenses in early years and lower expenses in later years

A

S = Useful life x (Useful life + 1) / 2
Depreciation Expense = (Cost - Salvage Value) x Remaining Life / Sum of the years digit

56
Q

Units-of-Production Depreciation

Service production declines with use

A

Number of Units Produced x (Cost - Salvage Value)/ Estimated Total Units

57
Q

Double Declining Depreciation

Used when asset has rapid obsolescene

A

Cost - Accumulated Deprecation x ( 2/Useful Life)

NO Salvage Value

Max Accumulated Depreciation = Cost - Salvage Value

58
Q

Depletion

Depletion Base

A

Total Cost (Cost of Land + Development Costs + Restoration) - Residual Value

59
Q

Depletion

Unit of Depletion Rate

A

Depletion Base / Estimated Recoverable Units

60
Q

Depletion

Yearly Depletion

A

Unit Depletion x Units extracted

61
Q

Depletion

Yearly Depletion in COGS

A

Unit Depletion x Units Sold

62
Q

Impairment

Test of Recoverability

A

Undicounted Future Net Cash Flows - Net Carrying Value

If Positive - No impairment Loss
If Negative - Impairment Loss

63
Q

Impairment

A

Discounted Future Net Cash Flows - Net Carrying Value

FAR (3 decks)

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