Module 1 Formulas

Total Assets

Total Assets

= Total Liabilities + Total Stockholders' Equity

Net Working Capital

= Current Assets - Current Liabilities

Ending Retained Earnings

= Beginning Retained Earnings + Net Income - Dividends + Other Increases in Retained Earnings

Change in Cash (Cash Flow Equation):

Change in Cash

= Net Cash from Operating Activities + Net Cash from Investing Activities + Net Cash from Financing Activities

Weighted Average

= (Sum of Weighted Terms) / (Total Number of Weighted Terms)

Average Price Per Unit

= Total Revenue / Total Number of Units Sold

Break-even Formula (Marketing):

Net Profit

= (Price - Variable Cost) * Sales Volume - Fixed Cost

Return on Assets (ROA):

= Net Income / Average Total Assets

Return on Equity (ROE):

= Net Income / Average Stockholders’ Equity

Operating Income

= Gross Profit - Operating Expenses