formulas Flashcards
contribution margin in dollars
ContributionMargin =Sales − VariableCosts
contribution margin in percantage
(sales - variable costs/Sales) x 100
Gross margin in dollars
Sales - COGS
Gross margin in percantage
(Sales - COGS/Sales) x 100
break even point in dollars
(fixed costs/ sales - variable cost) = Answer x sales
break even point in units
(fixed costs/ sales price - variable cost)
W-4
an employment form required by law that you complete so that your employer can determine the proper amount to withhold from your paycheck
W-2
Given to employees by the end of January; summarizes an employee’s earnings and tax withholdings for the year
1040
A tax form filled out by an individual and filed with the IRS that determines the amount of income tax owed in a single year.
Withholding
taking tax payments out of an employee’s paycheck before he or she receives it
Taxable income
income on which tax must be paid; total income minus deductions
Net income
The amount you take home after withholding is taken out of each paycheck
Capital Gain
a profit from the sale of property or of an investment.
Totals for the year need to be taxed as additional income.
Above the line deductions
deductions subtracted from gross income and available to all taxpayers, regardless of taking the standard deduction or itemizing deductions (below the line).
Standard deduction
A slated amount that you may subtract from taxable income instead of itemizing your deductions below the line. The amount is determined by your filing status. All taxpayers are eligible except if not a US citizen or if your spouse itemizes deductions in married filing separately.
standard deduction amounts:
single: 13,850
Married jointly: 27,700
Above the line examples
Examples are: student loan interest and retirement contributions.
Below the Line
Itemized expenses that are claimed and proven through documentation instead of taking the standard deduction.
Below the line examples
Examples are: medical bills and charitable donations.
Gross income
the total amount of income from wages before any payroll deductions
April 18
the last day you can send in federal income tax forms
January
the month when W-2s should arrive from your employer
Common Stock
One vote per share
Dividends are not guaranteed
Preferred Stock
Fixed dividend
May not include voting
