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16 Cards in this Set
- Front
- Back
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Working Capital=
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Current Assets - Current Liabilities
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Payables Turnover=
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COGS + change in Merch. / Average accounts payable
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Days Payable=
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365/ PAYABLE TURNOVER
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allocation of cost of a tangible long-lived asset over estimated useful life?
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depreciation
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exhaustion of natural resources
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Depletion
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allocation of cost of an intangible asset?
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Amortization
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Expenditure for ordinary repairs and maintenence?
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revenue expenditures
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expenditure for purchase or expansion of a long-term asset
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capital expenditure
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land improvements
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driveways, parking lots, fences, lighting, landscaping (flowers and shrubs)
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land
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– purchase price, commissions, fees, cost of preparing lands (demolition and grading), assessments, landscaping if permanent
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Debt to Equity =
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Total Liabilities/ Total Stockholders’ Equity
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Interest Coverage Ratio =
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income before income taxes + interest expense / interest expense
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Straight Line Method =
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Cost - residual value/ estimated useful life
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Production Method =
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Cost - residual value/estimated units of useful life X units used in year
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Interest Coverage ratio =
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Income before taxes + interest expense/ interest expense
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debt to equity=
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Total liabilities/ Total SE
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