FORMULAS

Question 1

SE - BV PER SHARE

Answer 1

Common Shareholders Equity
/ Common shares outstanding
= BV per Common Share

Question 2

SE - Common Shareholders Equity

Answer 2

Total Equity

• Preferred Stock Outstanding
• Cumulative Preferred Dividends in Arrears

Question 3

SE - Cash Dividends

Answer 3

Cash Dividends
-  PF Current %
-  PF in Arrears
=  Balance
- CS PF %
=  Balance Pro-rated

Question 4

SE - Stock Dividends

Answer 4

Small (Less than 20 - 25%) Use MV

Large (Greater than 20 -25%) Use PV

Question 5

SE - Basic EPS

Answer 5

Net Income - Pref Dividends
/ WACSO
= Basic EPS

Question 6

SE - Diluted EPS

Answer 6

Net Income + Interest (net of tax)

/ WACSO + converted shares

Question 7

SE - Diluted stock options/warrants

Answer 7

If market price is greater than option price

Question 8

WC

Answer 8

CA - CL

Question 9

CR

Answer 9

CA/CL

Question 10

QR

Answer 10

CA + Net Rec + MS

/ CL

Question 11

Cash Ratio

Answer 11

Cash + MS

/ CL

Question 12

A/R Turnover

Answer 12

Credit Sales

/ Ave Net Rec

Question 13

A/R Turnover in Days

Answer 13

365

/ A/R Turnover

Question 14

Inventory Turnover

Answer 14

COS

/ Ave Inventory

Question 15

Inventory Turnover in Days

Answer 15

365

/ Ave Inventory

Question 16

Operating Cycle

Answer 16

A/R turnover in days + Inventory turnover in days

Question 17

WC Turnover

Answer 17

Net Sales

/ Ave WC

Question 18

Total Asset Turnover

Answer 18

Net Sales

/ Ave Total Assets

Question 19

Return on Total Assets

Answer 19

Net Income

/ Ave Total Assets

Question 20

Return on Investment

Answer 20

Net Income + Interest (net of Tax)

/ Ave (Liabilities + Equity)

Question 21

Dupont Return on Assets

Answer 21

Net Profit Margin x Total Assets Turnover

Question 22

Return on Common Equity

Answer 22

Net Income - Pref Dividends

/ Ave Common Equity

Question 23

Debt to Equity

Answer 23

Liabilities

/ Common Equity

Question 24

Debt Ratio

Answer 24

Liabilities

/ Assets

Question 25

TImes Interest Earned

Answer 25

NBIT

/ Interest

Question 26

SIRAGE - G

• recognized in I/S
• recognize in OCI Corridor Approach

Answer 26

Unrecognized G/L
-  Greater of 10% PBO or FV PA
=  Excess
/ Ave Service Life
=  Amortization

Question 27

SIRAGE - E

Answer 27

Funded Status
/ Greater of 15 years or Ave Job Life remaining
= Amortization of existing net oblig or asset

Question 28

SIRAGE - E (Post retirement)

• Expense
• Amortize

Answer 28

Funded Status
/ Greater of 20 years or Ave Job Life remaining
= Amortization of existing net oblig or asset

Question 29

Lease Discount/Premium Amortization
Bond Issue Costs
Straight Line

Answer 29

Straight Line
Discount/Premium/Bond Issue Costs
/ Period Outstanding

Question 30

Reportable Segment Tests

Answer 30

10% Size (Combined revenues, Greater of Profit or Loss or Assets)
75% Sufficiency (Consolidated Revenues)

Question 31

Operating profit Segment

Answer 31

Segment Revenues (External and Internal)
(Direct costs)
(Allocated Costs)
= Operating Profit

Question 32

Lack Commercial Substance

Answer 32

Partial gain if boot received is less than 25%

Full gain is boot received is greater than 25%