ACC231 - Exam 2 - Formula page

ACC231 - Exam 2 - Formula page - Gross Profit / Net Sales...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC231 - Exam #2 Formulas Interest income formula Principal amount of investment x interest rate x 1 / 12 = monthly interest income SL depreciation formula (original cost – SV) / expected life of asset in years = annual (yearly) depreciation amount DDB depreciation formula NBV at beginning of year x 2 / expected life of asset in years = annual depreciation amount Units of production depreciation formula (original cost – SV) / estimated life in units = per unit depreciation amount Gross Profit Percentage
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Gross Profit / Net Sales Current Ratio Current Assets / Current Liabilities Inventory Turnover COGS / Average Inventory Quick Ratio (Cash + Marketable securities + A/R) / Current Liabilities A/R Turnover Net Sales / Average net Accounts Receivable Note: Average Balance Sheet amounts = (beginning balance + ending balance) / 2 Marketable securities are often referred to as "Short-Term Investments" All interest percentages are ANNUAL percentages (e.g. 9% means 9% per year)...
View Full Document

This note was uploaded on 06/16/2011 for the course ACC 241 taught by Professor Karengeiger during the Spring '08 term at ASU.

Ask a homework question - tutors are online