Financial Calculations: DSO, ROA, ROE, and More
Financial Calculations
1. Baker Brothers’ Days Sales Outstanding and Cash Freed Up
Question: Baker Brothers has accounts receivable of $700,000 and sales of $2,000,000. What is Baker’s days sales outstanding? How much cash would Baker Brothers free up if it reduced its days sales outstanding to 45 days?
Solution:
DSO = (Accounts Receivable / Sales) * 365
DSO = (700,000 / 2,000,000) * 365 = 128 days
Cash Freed Up = (128 days – 45 days) * (2,000,000 / 365) = $454,794.35
2. Debt Ratio from Equity Multiplier
Question:
Read MoreAudit Planning & Supervision: A Comprehensive Guide
1. Audit Planning
Definition
Audit planning is the process of formulating the desired future state for an organization. It involves considering alternative courses of action, evaluating them, and defining appropriate mechanisms to achieve the proposed objectives. Additionally, it includes determining the allocation of human and physical resources for efficient use.
2. Importance of Audit Planning
Adequate planning and monitoring enable auditors to obtain satisfactory results that support their opinion.
Read MoreProduction and Manufacturing Systems
Production and Manufacturing
Production adds value to a good or service through transformation. It amends goods or services to satisfy a need.
Production Examples:
- Copper extraction
- Car assembly
- Rock concert preparation
The Input
Every element undergoing transformation within a system is an input.
Types of Input:
- Physical Information: Raw materials, product preforms, other supplies, accounting, financial, sales data, etc.
- Human Energy: Students, patients, unskilled workers
- Energy Sources: Electricity, oil,
Adjectives in English: Comparative and Superlative Forms
Adjetivo | Comparativo | Superlativo | Español | |
1 | angry | angrier | angriest | enfadado, enojado |
2 | bad | worse | worst | malo |
3 | big | bigger | biggest | grande |
4 | bitter | bitterer | bitterest | amargo |
5 | black | blacker | blackest | negro |
6 | bossy | bossier | bossiest | mandón |
7 | brave | braver | bravest | valiente |
8 | brief | briefer | briefest | breve |
9 | bright | brighter | brightest | brillante, luminoso |
10 | broad | broader | broadest | ancho, amplio |
11 | busy | busier | busiest | ocupado, ajetreado |
12 | calm | calmer | calmest | tranquilo |
13 | cheap | cheaper | cheapest | barato, económico |
14 | clean | cleaner | cleanest | limpio, sano |
15 | clear | clearer | clearest | claro, |
Management Accounting Concepts and Formulas
Management Accounting
The processes and techniques that focus on the effective and efficient use of organizational resources to support managers in their tasks of enhancing both customer value and shareholder value.
Key Concepts
- Costing Techniques: Methods of costing and their applications, covered in Weeks 1-8 of the ACCG2000 course.
- Using Costing for Decision Making: Applying costing information to make informed business decisions, covered in Weeks 9 and 10 of the ACCG2000 course.
- Budget Setting and
Management Accounting Concepts and Formulas
Management Accounting:
The processes and techniques that focus on the effective and efficient use of organizational resources to support managers in their tasks of enhancing both customer value and shareholder value.Costing Techniques:
Methods of costing and their applications, covered in Weeks 1-8 of the ACCG2000 course.Using Costing for Decision Making:
Applying costing information to make informed business decisions, covered in Weeks 9 and 10 of the ACCG2000 course.Budget Setting and Evaluating