FAR Ratios & Formulas
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/44
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai | Chat |
|---|
No analytics yet
Send a link to your students to track their progress
45 Terms
Net Income - Preferred Dividends / Weighted Average Common Shares Outstanding
What is the Basic EPS formula?
Net Income + Non-Cash Expenses - Gains - Increase In Current Assets + Increase In Current Liabilities
When looking at the operating section of the SOCF, what is the formula for making adjustments?
Total Cost Of Inventory / Total Units Available For Sale
How do you calculate the Weighted Average Cost Per Unit when looking at inventory?
Ending Inventory at Current Year Cost / Ending Inventory at Base Year Cost
How do you calculate the price index for Dollar-Value LIFO? (Step 1)
Average Accumulated Expenditures * Interest Rate
How do you calculate Capitalized (Avoidable) Interest?
Net Book Value * (2 / Useful Life)
How do you calculate depreciation using the Double-Declining Balance method?
(Cost - Salvage) * (Units Used / Total Estimated Units)
How do you calculate depreciation using the Units Of Production method?
Lease Liability + Initial Direct Costs + Prepaid Lease Payments - Lease Incentives
How do you calculate the ROU Asset?
Carrying Value of Bond * Market Rate
How do you calculate Interest Expense using the Effective Interest Method?
Interest Expense - Cash Interest Paid
How do you calculate the Amortization of the Discount/Premium?
Temporary Difference * Future Tax Rate
How do you calculate the DTA/DTL?
Current Tax Payable ± Change In Deferred Taxes
How do you calculate Income Tax Expense?
Cumulative Costs Incurred / Total Estimated Costs
How do you calculate the % Complete (Over Time Revenue Recognition)?
(% Complete * Total Contract Price) - Previously Recognized Revenue
How do you calculate how much Revenue to Recognize (Over Time Revenue Recognition)?
Current Assets / Current Liabilities
How do you calculate the Current Ratio?
Quick Assets / Current Liabilities
How do you calculate the Quick Ratio?
Total Liabilities / Total Equity
How do you calculate the Debt-to-Equity Ratio?
Net Income / Average Equity
How do you calculate the Return-on-Equity Ratio?
Net Income - Preferred Dividends + Adjustments for Dilutive Securities / Weighted Average Shares Outstanding + Dilutive Shares
How do you calculate Diluted EPS?
(Cost - Salvage) * (Remaining Life / Sum Of Years Of Asset Life)
How do you calculate depreciation using the Sum-of-the-Years-Digits method?
Net Income / Average Total Assets
How do you calculate the Return-On-Assets ratio?
Accounts Receivable / (Net Sales / 365)
How do you calculate the Days Sales in Accounts Receivable ratio?
Total Debt Ratio
Which ratio would best indicate the percentage of a company's assets that are financed by creditors?
Profit Margin
To evaluate how much net profit a company generates from each dollar of sales, which ratio should be used?
Total Assets / Total Equity
How do you calculate the Equity Multiplier?
(Net Income + Interest Expense + Income Taxes) / Interest Expense
How do you calculate the Times Interest Earned ratio?
Net Sales / Average Total Assets
How do you calculate the Asset Turnover ratio?
Price Per Share / Basic EPS
How do you calculate the Price-to-Earnings ratio?
Net Income / Revenue
How do you calculate the Net Profit Margin?
Operating Cash Flow Ratio
Which ratio would best indicate a company's ability to generate cash from operations relative to its current liabilities?
COGS / Average Inventory
How do you calculate Inventory Turnover?
Net Credit Sales / Average A/R
How do you calculate Accounts Receivable Turnover?
(Increase Without Inflation - Base Year Increase) * Price Index
How do you calculate the inventory layer for Dollar-Value LIFO? (Step 3)
Beginning Inventory + Purchases - Ending Inventory
How do you calculate COGS?
Carrying Value - Fair Value
How do you calculate Impairment Loss?
Ending Inventory / (COGS / 365)
How do you calculate Days in Inventory?
Beginning ARO Liability * Credit-Adjusted Risk-Free Rate
How do you calculate Accretion Expense?
Face Value * Stated Interest Rate
How do you calculate Interest Payable?
Carrying Value * Market Interest Rate
How do you calculate Interest Expense?
Purchase Price - Fair Value of Net Assets Acquired
How do you calculate Goodwill?
(Gross Income - Deductions) * Current Tax Rate
How do you calculate Current Income Tax Expense?
Temporary Difference * Enacted Tax Rate
How do you calculate a DTA/DTL?
Ending Inventory at Current Year Cost / Price Index
How do you calculate the ending inventory at base year for Dollar-Value LIFO? (Step 1)
Ending Inventory at Base Year Cost - Beginning Inventory at Base Year Cost
How do you calculate the increase without inflation (base year) for Dollar-Value LIFO? (Step 2)
Beginning Inventory at Dollar-Value LIFO + LIFO Layer
How do you calculate the ending dollar value inventory for Dollar-Value LIFO? (Step 4)