The full equation: $123.9 billion (total revenue) -$93 billion (cost of sales) -$25.9 billion (administrative expenses) -$625 million (interest payments on debt) +$837 million (gains on interest) = about $5.2 billion (profit) Net income: This is the most comprehensive, “bottom-line” ...
In the formation of accounting data, a basic accounting equation is used for financial statement no matter if you are just a small business or a multimillion company. The Italian mathematician Luca Pacioli formulated a basicaccounting equation formulain 1494 in his work “A Treatise on Accounts an...
As per the given profit equation,operating incomecan be derived as follows: - Operating Income = 12,789 – 1,144 – 1,200 – 452 - 306 Operating Income = 9,687 Calculation of profit income attributable to shareholders can be done as follows: - ...
What is the MC=MR rule and profit maximization, and does this rule represent a socially optimal position, regarding price and quantity of goods and services? Explain graphically the profit maximizing level of price and output. For a purely competitive firm, price equals marginal revenue. What is...
The accounting equation ensures that the balance sheet remains balanced. Each entry made on the debit side has a corresponding entry or coverage on the credit side. The accounting equation is also known as the basic accounting equation or the balance sheet equation. ...
this formula, we can solve for any of the components of the equation. This allows us to create a synthetic call or put option. If a portfolio of the synthetic option costs less than the actual option, based on put-call parity, a trader could employ an arbitrage strategy to profit. ...
Unearned revenue is listed under “current liabilities.” It is part of the total current liabilities as well as total liabilities.On a balance sheet, assets must always equal equity plus liabilities. Both sides of the equation must balance....
As a chocolate entrepreneur, you may have wondered what sort of profit margin to anticipate from sales of your chocolate products. Gross profit margin as an equation depicts, over a certain time interval, sales adjusted for costs, divided by total revenues. Higher margins are generally better, ...
For the last stage, graphing the equation can help but you can also do a quick check by subbing in x=79 and x=81 to see that x is the maximum point of the graph, meaning it yields the highest possible profit. Also note that the leading coefficient is negative so t...
Accounting is a professional system for organizing the operations of a business into accounts and categories. Accounting uses a double-entry system that keeps the accounting equation in balance.Answer and Explanation: The accounting equation shows total assets (a firm's valuable resources) are equal ...