ADM 1340 Study Guide - Final Guide: Gross Profit, Retained Earnings, Market Price

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Philip Mc Ilkenny

Document Summary

Shareholders" equity = common shares + retained earnings. Depreciation expense = equipment cost / estimated useful life. Carrying amount = cost of the assets accumulated depreciation. Working capital = current assets current liabilities. Current ratio = current assets / current liabilities. Debt to total assets = total liabilities / total assets. Earning per share = profit available to common shareholders / weighted average number of common shares. Price-earnings ratio = market price per share / earnings per share. Gross profit = sales revenue cost of goods sold. Profit (loss) before income tax = gross profit operating expenses. Profit (loss) = profit (loss) before income tax income tax expenses. Cost of goods available for sale (later converted to cost of goods sold) = Cost of goods purchased = cost of merchandise + freight cost purchase returns purchase discounts. Net sales = gross sales sales return and allowances sales discounts. Gross profit margin = gross profit / net sales.