Term
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Definition
| Cash and cash equivalents + short trm investments + current receivables/current liabilities |
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Term
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Definition
| Net Sales - Cost of Goods Sold/Net Sales |
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Term
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Definition
| SALES - RETURNS AND ALLOWANCES - SALES DISCOUNTS = NET SALES |
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Term
| Total Cost Of Merchandise Purchased |
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Definition
| Invoice cost of Merch Purchases - purchased discounts received - Purchase returns and allowances + cost of transportation in |
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Term
| What is the title on a Multiple step Income Statement |
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Definition
| Company name, Income statement, and "For Year Ended" month/date/year. |
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Term
| What is on a Multiple Step Income Statement |
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Definition
| The statement has three main parts: (1) gross profit, determined by net sales less cost of goods sold, (2) income from operations, determined by gross profit less operating expenses, and (3) net income, determined by income from operations adjusted for nonoperating items. i.e interest revenue, sale from building, (less interest expense). |
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Term
| How to get Cost Of Goods Sold |
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Definition
| Beginning Inventory + Purchases = COGS |
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Term
| How to get Units Available For Sale |
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Definition
| Add up all units Beginning Inventory and all purchases |
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Term
| How to get Ending Inventory |
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Definition
| Total units purchased - total units sold |
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Term
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Definition
| COGS - Sales = Gross Profit |
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Term
| Relative market value of "lump some purchase" equation |
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Definition
| appraisal/(land appraisal + Land Improvements appraisal)* purchase price = land cost (recorded) |
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Term
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Definition
| 2 * Straight-line reate = double decline rate I.E (2 * 20% = 40% SO.. 40% *10,000 = 4,000 <---Depreciation expense |
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Term
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Definition
cost - salvage value/total units of product = Depreciation per unit
Depreciation per unit * units produced in period |
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Term
| Straight line Depreciation |
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Definition
| Cost - Salvage Value / Useful life = per year depreciation |
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