ACCT3301 Lecture Notes - Lecture 8: Inventory Turnover, Asset Turnover, Gross Margin
Document Summary
Stocks and things you haven"t sold yet. When money goes into pension funds the idea is that the investment will earn enough cap gains so the fund is fully funded by retirement. Integrated method: integrated is part of a full year - typically use this one. Tax rate is the expected annual rate. Need to find effective rate* to be explained. Discrete: every quarter is its own unit - like a year. Asset turnover = sales / avg assets. Avg assets - avg beginning and end balances. Every dollar you"ve invested in assets generates x dollars in sales. Receivable turnover = sales (net) / avg receivables - allowance 4 bd. On average its taking you x days to get a return on your receivables. Cost of goods sold / avg inventory. X days for inventory to turn over. For every dollar you make how much ends up as profit.
