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RATIO CALCULATIONS © r a t i o s 1 . d o c Written by Professor Gregory M. Burbage, MBA, CPA, CMA, CFM Please observe all copyright laws The ratios below should be committed to memory as you encounter them during the semester; they will be included on the midterm exams (when presented in the chapters) and all of them will be included on the final. In effect, you will be tested twice on each ratio. The number in the left column represents the exam that will include the ratio. NBIT (net income before interest and taxes) = Net income + interest expense + income taxes. An average = (beginning of year balance + end of year balance) / 2 . Remember, in the world of finance and business, some ratio formulas could be different from those shown below. The most common deviation is NOT using averages in the denominator . You should check your comparative source before making calculations. Capital expenditures are the amounts spent during the current year to purchase long-lived assets. ON EXAM #
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This note was uploaded on 12/14/2010 for the course BUS 3103 taught by Professor Nugent during the Spring '09 term at Texas Woman's University.
- Spring '09
- Cost Accounting