Total assets were $563,000, of which $310,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $31,000 per year, and in 2007 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $45,000 per year for each of the last 10 years. Other assets have not changed since 2007.
A system of writing off inventory into cost of goods sold in which the items purchased last are written off first. Referred to as last-in, first-out inventory method.
Martin Electronics has an accounts receivable turnover equal to 12 times. If accounts receivable are equal to $80,000, what is the value for average daily credit sales?
Return on equity can be calculated as ROA × Equity multiplier. What is another way to express this equation?
A solvency ratio measuring the number of times interest and lease payments are covered by operating income, calculated as (EBIT + lease payments) divided by (interest payments + lease payments).
An analysis of a firm's financial ratios over time; used to estimate the likelihood of improvement or deterioration in its financial condition.