Assessing cash flows is essential for evaluating a company’s liquidity, flexibility, and overall financial performance. The statement of cash flows is a central component of an entity’s financial statements. Potentially…

PV (along with FV, I/Y, N, and PMT) is an important element in the time value of money, which forms the backbone of finance. There can be no such variable…

These costs exclude variable costs required to manufacture products, such as direct materials and direct labor. In this case, for every product you manufacture, you allocate $25 in manufacturing overhead…

The Income Summary account has a new credit balance of $4,665, which is the difference between revenues and expenses (Figure 5.5). The balance in Income Summary is the same figure…

Sales tax provides nearly one-third of state government revenue and is second only to the income tax in terms of importance as a source of revenue. Sales taxes are much…

Even if they are turned into electronic facsimiles, the practice is generally safe. The funds will be automatically taken from your account, depending on how you set things up. You…

This is also called the "short scale." As another example, it's much easier to remember that a trillion is written with four sets of three zeros than it is to…

Retail accounting refers to a set of methods to assess the value of your inventory. There are several different formulas to compute retail accounting figures, but almost all examine the…

The "number of bond-year dollars" equals the sum of the product of each year's maturity value and the number of years to its maturity. Our interest rate assumption will be set at…

So, after deducting $10.00 from $20.00, the contribution margin comes out to $10.00. In this breakeven point example, the company must generate $2.7 million in revenue to cover its fixed…