Accounting Formulas

I will get an A idc

Future Value

PV (1+r)^t

Present Value

FV/(1+r)^t

Retained Earnings

Beginning RE + Net Income - Dividends

Book Value of Equity

Equity = Assets - Liabilities

Market Value of Equity

Stock Price x Shares Outstanding

Market-to-Book

MVE/BVE

Book-To-Market

BVE/MVE

Current Ratio

Current Assets/Current Liabilities

Quick Ratio

Quick Assets/Current Liabilities

Debt-To-Equity

Liabilities/Equity

Times Interest Earned

Net Income + Interest Expense + Tax Expense / Interest Expense

Earnings per Share

Income / Average Outstanding Shares

Profit Margin

Net Income / Sales

Return on Assets

Net Income / Total Assets

Return on Equity

Net Income / Equity

Asset Turnover

Sales / Average Total Assets

Receivable Turnover

Sales / Average AR

Average Collection Period

365 / Receivables Turnover

Inventory Turnover

COGS / Average Inventory

Average Days in Inventory

365 / Inventory Turnover

Cash Collection

Revenue ± Change in AR

Allowance

Beginning - Write Offs + Expense

Refund Liability

Beginning + Estimated - Actual

% of Completion

Contract Price x Cost incurred/Total cost