Formulas Flashcards
Double Declining Balance
1/(Useful Life x 2 x Book Value)
Sum of the Years Digits
Depreciation Expense = (Cost - Salvage Value) x Remaining Useful Life / SYD
Admission of New Partner - Bonus Method
*NO Goodwill
New Partnership Equity = Old Partnership Equity + New Partner Contribution
New Partner Equity Amount = New Partnership Equity x New Partner %
Bonus to Prior Partners = New Partner Contribution - New Partner Equity Amount
Admission of New Partner - Goodwill Method
*YES Goodwill
Partnership Value = New Contribution / New Equity %
Goodwill to Old Partners = Implied Value of Partnership - Capital Accounts of all partners
Gross Margin
Sales - COGS
Inventory Turnover
COGS / Average Inventory
Average Day’s Sales
365 / Inventory Turnover
COGAS
Beginning Inventory + Purchases
Weighted Average Cost per Unit
COGAS / Total Units
Quick (Acid) Ratio
(Cash + A/R + Trading Securities) / Current Liabilities
Current Ratio
Current Assets / Current Liabilities
Working Capital
Current Assets - Current Liabilities
A/R Turnover
Credit Sales / Average A/R
Inventory Turnover
COGS / Average Inventory
Days Sales in Inventory
365 / Inventory Turnover
Days to Collect A/R
Average A/R / Average Sales Per Day
Pension Expense
Service Cost \+ Interest - Actual Return on Plan Assets \+ Unexpected Loss (Gains) \+ Amortization of Prior Service Cost
Book Value - C/S
Total Common Stock
- Total Preferred Stock
- P/S Dividends in Arrears
- P/S Liquidation Premium
Book Value per Share
Total Book Value / Shares Outstanding
Book Value per Share Payout Ratio
Dividends per Share / Earnings per Share
Basic Earnings per Share
(Net Income - Preferred Dividends) / Average C/S Outstanding
