MGCR 211 Lecture Notes - Lecture 16: Inventory Turnover, Operating Cash Flow, Current Liability
3 Sep 2016
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Percentage of completion (ie: for construction or services) Expenses for the period / total cost of the project = % completed. Earnings per share = net income / ave # of common shares outstanding. Comprehensive income- total change in shareholder"s equity (from non-owner sources), including net income and other gains and losses. Return on assets measure income earned per of assets. Return on equity measures income earned per invested in shares. Allowance method (percentage of credit sales/aging of accounts receivable) Interest = principle * interest rate * time. Inventory: weighted average- the cost of items is determined with a weighted average of items purchased. Amortization: accelerated or declining-balance method multiplies carrying value by a fixed. %, so that carrying value and amortization expense decreases each year. Percentage rages are lower when the asset has a longer live. Double-declining-balance method uses a % double the straight-line rate. Gross profit = sales cost of goods.
