The might increase or decrease depending on the demand for the product in the market. Since their usage isn’t constant, they’re included as variable overhead costs. Accountants calculate this cost for the whole facility, and&nb... Read more
A bond will always mature at its face value when the principal originally loaned is returned. Alternatively, if market conditions are favorable and demand is high, you may consider pricing your bonds at a premium above face value. This strategy all... Read more
Days Sales in Inventory (DSI) calculates the number of days it takes a company on average to convert its inventory into revenue. In order to efficiently manage inventories and balance idle stock with being understocked, many experts agree that... Read more
Profit margins are one of the simplest and most widely used financial ratios in corporate finance. A company’s profit is calculated at three levels on its income statement. This most basic is gross profit, while the most comprehensive is net p... Read more
We have calculated the gross margin ratio to be 70% while the unit margin is $7. From the gross margin, it means that 70% of revenue is profit for the company. From the unit margin, it means that for each unit of soap the company sold at $10, the co... Read more
But let’s also consider that you incurred $50 in transaction fees from the broker ($25 when you bought the investment, and another $25 when you sold). Although stocks can be risky investments, there are steps to help you reduce your risk. For... Read more
Computes the future value of annuity by default, but other options are available. For example, if you decided to invest $100.00 at an interest rate of 10% – assuming a compounding frequency of 1 – the investment should be worth $110 by the end of on... Read more
Throughout the remainder of this book, we will focus on using the financial calculator to solve problems involving compound interest, instead of using the formulas as illustrated above. The more compounding periods there are, the greater the future... Read more
If you choose, you can use a separate Form W-2 for fringe benefits and any other benefit information. A health savings account (HSA) is an account owned by a qualified individual who is generally your employee or former employee. Any contributions... Read more
Even though they both have a stated interest rate of 10%, the effective annual interest rate of the loan that compounds twice per year will be higher. Effective annual rate (EAR) is an interest rate that reflects the true return on an investment or... Read more
