Midterm Exam Formula Summer 2015

Chapter Two:
Assets
1.Current Assets
cash marketable securities short term invest
account receivable inventorie s prepaid expenses.
2.Fixed Assets
land building machines cars depreciati on.
3.Others Assets
goodwill copyright franchises .
Liabilitie s
1.Current Liabilitie s
account payable notes payable accrued expenses
income taxes payable
2.Others Liabilitie s

Inventory turnover ratio

Sales
Total Revenue

Average inventory balance Average inventory

Day' s Sales Outstandin g (DSO)

Total Assets Turnover

Receivable s
Receivable s

Average sales per day annual sales/365

Sales
Total Assets

Profitability Analysis:
net income available to common stockholde rs
sales

Profit Margin on Sales

Return on Total Assets (ROA)

net income interest expense(1 - tax rate)

average total assets (debt equity)

net income
average common equity
Net income
Sales
Assets

Sales
Assets Stockholde r' s equity
(Profit Margin) (Asset tur nover) (Financial leverage)
Return on Common Equity (ROE)

long term bonds mortgages long term notes

Stockholders equity
1.Preferred stock

Market Value Analysis:

2.Common stock
3.treasury stock

Price - to - Earning Ratio (P/E)

4.Capital surplus
5.Retained earnings (net income - cash dividend)

Book Value per share

Working Capital Current Assets Current Liabilitie s

Chapter Four:

change in Current Assets change in Current Liabilitie s

Capital surplus
Market price of stock per par value
# of common stock
Earnings per Share (EPS)

net income
# of share (common stock outstnding )

Price per share

Earnings per share

total stockholde r equity - preferred stock

Average shares outstandin g

General Formula
if PP CP, find ieffective for PP

r
ia 1

if PP CP

1
M

Net income Taxable income - Income Taxes

r
ia 1

1/ M

Debt Management Analysis:

comp continuous Fo rmula

Taxable income Net Sales - Cost and operation expense - interest payment

Debt Ratio

total debet current liabilitie s long - term debt

total assets
total assets

EBIT
Time - Interest - Earned Ratio

Interest expense
Earnings Before Interest and income Taxes

Interest expense

Liquidity Analysis:
current assets
Current Ratio
current liabilitie
Quick Ratio (Acid - Test)

current assets - inventorie s

current liabilitie

Asset Management Analysis:

i e k 1
to find r

lin # e r

Amortized Loans : API A to find balance

Total interest payment (A N) - Loan
I n Loan API
Pn A I n
The Remaining Balance Bi A( P / A, API , N i )

Midterm Exam Formula Summer 2015

Add - On Inerest Loans : API P N
Total add - on interest P i N
Principal add - on interest P (P i N)
Monthly installmen t

Principal add - on interest

N (months)

P (P i N)
N (months)
to find Rate RATE (N, A,-P, F(0))

Inestment in Bonds :
interest earned (Pv) face value coupon rate

Yield to maturity Pv (all interest earned) face value

equivalanc e to Markert Price
The current Yield

annual interest earned

A

market price of bond Pv

Chapter Five:
Payback period

Initial cost
Pv

Unifform annual benefit

A