FORMULAS Flashcards
INVENTORY TURNOVER
COGS / Ave Inv.
RATE OF RETURN (on Assets)
hint: ‘return’ = net inc
NI / Ave Assets
RR = NI/AA
Days Sales in Average Receivables
360 / Receivables Turnover Ratio
Receivables Turnover Ratio
Net Credit Sales / Ave. Receivables
GROSS MARGIN PERCENTAGE
Rev. - Cogs / Rev
QUICK RATIO
QA / CL (Quick A: liquid w/in 3 mos =
Cash
Mktble securities
Net A/R
How soon must a Lg Accelerated Filer submit their 10-Q to the SEC?
40 days – Large Accelerated Filers must submit these quarterly reports 40 days after the end of the fiscal quarter.
Intraperiod income tax allocation
Applied to Extraordinary Items, Income from Continuing Operations, Discontinued operations, Cumulative effects of a change in Acctg Principle when applicable, and components of OCI. It is NOT applied to Operating income separately since Operating income is part of the above categories.
DEBT TO EQUITY RATIO
Total Liabilities / Total Equity
Liability = Assets - Equity Equity = Assets - Liability
Presenting tax liability in Personal Statement of Financial Condition - Calculated Unrealized Gain (Appreciated Assets)
A provision for est. income taxes is presented for the calculated unrealized gain on appreciated asset values between Liabilities and Net Worth on Personal Statement of Financial Condition.
Presenting tax liability in Personal Statement of Financial Condition - tax on income earned.
Provision for tax on income earned to date would be presented with the Liabilities.
Dollar Value Lifo - Formula for Index
EI CY / EI BY
Ending Inventory current year /
Ending Inventory base year
SYD Depreciation (Sum of Years’ Digits)
Cost - Salvage x [Remain. yrs / SYD]
or
Cost - Salvage x [Remain. yrs. life / T(T+1) / 2]
*T = Total yrs. useful life
UNITS of PRODUCTION
Cost - Salv.x [Hrs/Un. this yr / Total hrs/units]
Step 1 - Is their an IMPAIRMENT LOSS? goodwill impairment testing)
Step 1: Is CV less than FV? If yes, loss exists
Step 2 - Determine IMPAIRMENT LOSS
Step 2: Difference between CV & FV
GAAP - Once written down, cannot be written up.
IFRS - OK to write it up or down.
ARE INTANGIBLES AMORTIZED?
If INDEFINITE life - No (impairment testing annual)
IF DEFINITE life - Yes (amortized over useful life)
Ending A/R is equal to…
CREDIT SALES
Less Collections
Less Write offs
= Ending A/R (before allowance)
IFRS Vocabulary re. Receivables
GAAP: Allowance
IFRS: ‘Provision for’
CV of a bond
Face value +/- premium or discount
Formula Effective Interest Method
Face - disc/+prem = CV x EffRate = Int Exp - Int pmt (cash pd) = Amortized disc/prem
BEGINNING CV or PV of PROCEEDS from issuance of Bonds
- PV of FACE = (Face x PV lump sum x Eff Rate) +
2. PV of INT = (Face x Stated Int Rate x Time = Interest), then, (INT x PV-OA at EFF Rate)
STATED RATE
INT PMT / FACE VALUE ( x 2 if semi annual)
EFFECTIVE RATE
INT EXP / C V ( x 2 if semi annual)
INTEREST PAYMENT (Bond)
FACE x STATED RATE x TIME (always the same)
INTEREST EXPENSE (Bond)
CV x EFF. RATE x TIME (changes each period)
How calculate UNAMORTIZED PREMIUM
DIFF BETWEEN CV AND FV
CV - FV = DISC or PREM
How det. AMORTIZATION of PREMIUM or DISCOUNT
INTEREST EXPENSE - CASH INT. PMT = amort of prem/disc
