When you are about to select a field for the calculator to compute, you press the compute button (CPT) first. The CPT button is normally pressed before calculating a payment (PMT), number of periods (N), present value (PV), future value (FV) and interest rate period (I%). For examp...
The units of production method of depreciation (which is also referred to as the units of activity method) assumes that an asset's useful life is more related to its usage rather than the mere passage of time
Compute your annual compound interest rate. You will need to take your interest rate and convert it into a decimal or percentage that can be added to 1 (100%). You can use the excel formula for this. Add your annual compound interest rate to 1. This is the number you are multiplying ...
What is depreciation? What are the methods used to compute depreciation? What factors should be considered when determining materiality? What is component depreciation, and when must it be used? Explain how to calculate working capital. How to calculate the contribution margin ratio?
Now Mr. Hari Lal Ltd. knows that their dolls' cost must include Rs. 85,200 every month. Mr. Hari Lal Ltd. must compute the average fixed cost to establish the appropriate pricing per doll. Calculate Fixed and Variable Costs How Do You Calculate Fixed Costs Per Unit?
Determine the Overhead Rate Once you’ve estimated the manufacturing overhead costs for a month, you need to determine the manufacturing overhead rate. This is the percentage that you must pay for overheads every month. To compute the overhead rate, divide your monthly overhead costs by your...
Related to this QuestionExplain what information does the debt to total assets ratio mean. Explain how to compute accounting ratio liability divided assets. What is revealed by debt to total assets ratio? Describe how to calculate the debt ratio. Explain its purpose and what it evaluates. How ...
How do you determine your expected discount rate on a stock investment? Is a tangent line to a circle infinite? Does it go on forever or just sometimes? Compute the exact value of the following sum: \sum_{k=1}^{\infty} \frac{2^k}{5^{k+1 ...
The MACRS uses two methods to compute depreciation. These methods are thedepreciating balance methodand thestraight-line method. The depreciating balance method applies a depreciation rate against the non-depreciated balance. The straight-line depreciation computes the depreciation cost of a fixed asse...
Income taxes complicate DSCR calculations becauseinterest paymentsare tax deductible andprincipalrepayments are not. A more accurate way to calculate total debt service would be to compute it like this: TDS=(Interest×(1−Tax Rate))+Principalwhere:TDS=Total debt service\begin{aligned} &\text{TDS...