formula - SUMMARY OF ENGINEERING ECONOMY RELATIONSHIPS...

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SUMMARY OF ENGINEERING ECONOMY RELATIONSHIPS Elasticity Demand - (dQ/Q) / (dP/P) or - (dQ/dP) / (Q/P) Supply identical except without negative sign Arc Elasticity Demand - ( Q/average Q) / ( P/average P) or - ( Q/ P) / (average Q/average P) Supply identical except without negative sign Debits|Credits The account that gives value (i.e. decreases) is credited The account that receives value (i.e. increases) is debited Assets, expenses and dividends move together Liabilities, shareholder's equity and sales move together Accounting Measures of Liquidity Working capital Current Assets - Current Liabilities (positive) Current ratio Current Assets / Current Liabilities (above 2.0) Quick ratio Liquid Current Assets / Current Liabilities (above 1.0) Accounting Measures of Leverage Debt ratio Liabilities / [Liabilities + Shareholders' Equity] (range of 0.2 to 0.4) Debt to equity ratio Long-term debt (LTD) / Shareholders' Equity (range of 0.6 to 0.8, up to 1.0) Times-interest-earned Earnings before interest on LTD and taxes / Interest on LTD
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formula - SUMMARY OF ENGINEERING ECONOMY RELATIONSHIPS...

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