FINA3310_Ch1to3_Formulas - Formulas for Chapters 1, 2, 3...

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Formulas for Chapters 1, 2, 3 Remember that the subscript END denotes the most recent year while BEG the year before the END year Taxes average tax rate = total taxes due/taxable income Balance sheet current assets = cash + marketable securities + accounts receivable + inventories gross fixed assets = land and buildings + machinery and equipment + furniture and fixtures + vehicles net fixed assets = gross fixed assets – depreciation total assets = current assets + net fixed assets current liabilities = accounts payable + notes payable + accruals total liabilities = current liabilities + long term debt common stockholders’ equity or common stock equity = common stock at par + paid-in capital in excess of par + retained earnings stockholders’ equity = preferred stock + common stock at par + paid-in capital in excess of par + retained earnings (Par value of common stock Paid in capital in excess of par) initial sales price of common stock Number of common shares outstanding + = net working capital = currents assets – current liabilities Balance sheet identity: total assets = total liabilities + stockholders’ equity
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FINA3310_Ch1to3_Formulas - Formulas for Chapters 1, 2, 3...

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