Explain the debt to total assets ratio. How is it calculated? How is the accounts receivable turnover computed? What information does this ratio provide? How do you compute the unadjusted cost of goods sold? 1. What are some types of receivables for accounting? 2. How does accounts receiv...
How to calculate ending inventory Ending Inventory:Ending inventory is determined at the end of an accounting cycle and is the value of goods that are available for sale. The value is determined as the market value of the goods or the cost of the inventory, whichever is lower....
Average Liabilities The simplest way to calculate an average for interest-bearing liabilities is to compute the interest charge for a given period of time for each group of liabilities, then add these charges together and divide the sum by the number of liabilities. ...
Solvency: The ability of an organization to meet its long-term financial obligations is called Solvency. At the point when experts wish to find out about the solvency of an organization, they take a look at the total value of its assets contrasted with total liabilities held. ...
Calculate book value of equity by subtracting a firm's total liabilities from its total assets to arrive at stockholders' equity. You can find these figures on the balance sheet. For example, in Apple's 1Q report, released February 1, 2018, the company reported total assets of $406.794 bil...
Understanding the composition and value of a company’s total assets is essential for investors, lenders, and financial analysts as it helps assess the company’s capacity to generate income, manage its liabilities, and support future growth. By analyzing the trends in total assets over time, sta...
You compute the value of the penalty by multiplying the replacement cost ($500,000) with the multiplier, 0.25 (1 – 0.75). So by violating the coinsurance clause, you are not only unable to receive the full replacement cost, but you also have to pay a hefty penalty. ...
How to find the gross profit rate? Explain. How to calculate operating expenses on income statement? Explain how to compute earnings and profits (E&P). How do calculate the ratio in accounting? How to calculate total revenue?. Explain the computation and importance of gross profit. ...
The second step is to compute thenet incomethat belongs to the minority interest owners of the subsidiary. It is simply the subsidiary’s total net income multiplied by the minority interest percentage. Again, using the 25% minority interest percentage, and an assumed net income of $1 million,...
Stockholders' equity is the remaining assets available to shareholders after all liabilities are paid. It is calculated either as a firm'stotal assets less its total liabilitiesor alternatively as the sum of share capital and retained earnings lesstreasury shares. Stockholders' equity might include co...