COMM 111 Study Guide - Final Guide: Gain Capital, Capitalization Rate, Cash Flow
17 Dec 2012
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Days sales in receivables: avg a/r/one days sales, debt ratio=total liabilities/total assets, return on sales/profit margin=net income/sales revenue. Acid test=cash+ sti + net current receivables/current liabilities. Book value per common share= total se-preferred equity / #of common shares outstanding (preferred equity=redemption value +cumulative dividends) Roe(common shares only) = net income-prefered dividends/ avg common shareholders equity. Estimated value of one common share = estimated future annual income/ investment capitalization rate. Eps=net income-preferred dividends/ avg # of common shares outstanding. Income tax expense=ibit (income statement) x income tax rate. Income tax payable=taxable income (income tax return) x income tax rate. Income statement, statement of cash flow, balance sheet, retained earnings. Assets: current: (cash, a/r, n/r, inventory, prepaid expenses), land, buildings and equipment. Liabilities: accounts payable, notes payable, accrued liabilities(money later) Shareholder"s equity: contributed capital (common shares, preferred shares), Trial balance: list of accounts with balances (should balance)
