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18 Cards in this Set
- Front
- Back
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Straight Line Depreciation
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(cost - residual value) x 1/useful life
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Per Unit Depreciation
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(cost - rv)/estimated total production x actual units produced
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Double Declining Balance
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(cost - dep. expense) x 2/useful life
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ROE
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income/avg. owner's equity
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Return on Assets
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income + interest expense/avg. of total assets
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Current Ratio
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current assets/current liabilities
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Quick Ratio
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quick assets/current liabilities
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Receivable Turnover
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net credit sales/average net receivables
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Inventory Turnover
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cost of goods sold/average cost of inventory
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Times Interest Earned
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net income + int. expense + income tax expense/interest expense
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Debt to Equity
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total liabilities/owner's equity
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When the item increases, add it to the balance
(indirect method) |
Depreciation and Amortization
Accounts Payable Accrued Expense Liabilities |
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When the item increases, subtract it from the balance
(indirect method) |
Accounts Receivable
Inventory Prepaid Expenses |
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Sales Revenue
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+ decrease in AR
- increase in AR |
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Interest/Dividend Revenue
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+ decrease in I/D Rec.
- increase in I/D Rec. |
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CGS
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+ increase in inventory
+ decrease in accounts payable |
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Other Expenses
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+ increase in prepaid expenses
+ decrease in accrued expenses |
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Income Tax Expense
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+Increase in Prepaid Income Taxes
+Decrease in Income Taxes Payable |
