formulas not given on the sheet

Question 1

how do you analyse a current ratio?

Answer 1

1.5-2.5 is good

below is bad

above is bad

Question 2

what is the formula for the easy pay back period?

Answer 2

initial investment cost

over

cash flow from investment period

Question 3

what is the hard payback period?

Answer 3

additional cash needed

over

annual cash flow in the next year

times by

12

and then add the number of year at the end.

Question 4

what is the formula for depreciation is the residual value is 0FOR STRAIGHT LINE METHOD?

Answer 4

cost of asset over lifespan

Question 5

what is the formula for the depreciation if the residual value is is more than 0? FOR STRAIGHT LINE METHOD?

Answer 5

purchase cost - redidual value

over

life span.

Question 6

what is the formula for units of production rates in the UNITS OF PRODUCTION METHOD? aka setep one

Answer 6

purchase cost - residual value

over

total quantity produced in life span.

Question 7

what is the formula for the deprecation if the UNITS OF PRODUCTION METHOD/ step 2?

Answer 7

UPR x quantity actually produced.