University:
Acadia University
Course:
BUSI 2013 | Managerial Accounting
Academic year:

2019
Views:

74

Pages:

4
Author:

Charlee Buchanan

Accounting Formula Sheet Debt-to-Equity Ratio = Average total liabilities / Average stockholders’ equity = (beginning total liabilities + ending total liabilities) / 2 . (beginning stockholders equity + ending stockholders equity) / 2 Return on Equity = net income / average stockholders equity = net income . (beginning stockholders equity + ending stockholders equity) / 2 Current Ratio (year end only) = current assets / current liabilities Inventory Turnover Ratio = Cost of goods sold / Average Inventory = Cost of goods sold . (beginning inventory + ending inventory) / 2 Earnings Per Share = Net Income / Number of shares outstanding To Analyze Inventory Beginning Inventory + Inventory Purchases - COGS = Ending Inventory To Analyze Prepaid Accounts Beginning prepaid amount + Additional payments - Expense during period = Ending prepaid amount To Analyze Accounts Receivable Beginning accounts receivable + Sales - Cash Collected = Ending accounts receivable To Analyze Accounts Payable Beginning accounts payable + Inventory Purchases - amount paid = Ending accounts payable To Analyze the relationship between Inventory & Accounts Payable Inventory Beginning Inventory + Inventory Purchases - COGS = Ending Inventory Accounts Payable Beginning accounts payable + Inventory Purchases - amount paid = Ending accounts payable To Analyze Notes Payable & Interest Payable Notes Payable Beginning notes payable + Additional Funds Borrowed - Payments made = Ending notes payable Interest Payable Interest payable + Interest accrued - Payments made = Ending interest payable To Analyze other Payables Beginning balance + Expenses incurred - Amounts paid = Ending balance To Analyze Land Beginning balance + Land bought - Cost of land sold = Ending balance To Analyze Retained Earnings Beginning balance + Net Income - Dividends = Ending balance Operating Cash Flow: Beginning cash balance +/- Operating cash flows +/- Investing cash flows +/- Financing cash flows Ending cash balance Financing Cash Flow: +/- change in notes payable + change in common stock - dividends paid Financing cash flows Investing Cash Flow: + change in the equipment and building accounts + amount received from the sale of land - amount paid for additional land purchased Investing cash flows + land sold = investing cash flow Complex Income Statement: Sales - Cost of goods sold Gross profit - All other operating expenses Net income (loss) from operations +/- Gain or loss on sales of other assets Net income (loss) Statement of Cash Flows Cash, beginning of period +/- Operating cash flows +/- Financing cash flows +/- Investing cash flows Cash, end of period Corporate Tax Formula: Gross income - Exclusions (municipal bond interest) Gross income recognized for tax purposes - Deductions Taxable income x Tax rate of 21% Regular income tax liability before credits - Credits = Total tax liability (federal income tax) Before Tax Cash Flow: Net income before taxes + Depreciation Expected cash flow before taxes After Tax Cash Flow: Net income before taxes X (1 – tax rate) . Net income after taxes + Depreciation Expected cash flow after taxes Contribution Margin Income Statement: Sales - Variable Costs Contribution Margin - Fixed Costs Net Income