MGMT 3320 Chapter Notes - Chapter All: Deferral, Inventory Turnover, Fixed Cost

• School: University of Guelph
• Department: Management
• Course: MGMT 3320
• Professor: Trent Tucker

Document Summary

Mgmt 3320 equation sheet for first quiz. Gross profit = sales - cost of goods sold. Contribution margin = sales - variable costs (we will most likely not be dealing with this. ) Operating profit = gross profit - amortization - selling and administrative. Earnings = operating profit - interest taxes. Return on capital & valuation from the basic income statement: Earnings per share = earnings / number of shares. Payout ratio = (dividends per share) / (earnings per share) Price earnings ratio = market share price / earnings per share. Dividend yield = dividends per share / market share price. Return on assets (roa) = net income / total assets. Return on equity (roe) = net income / shareholders" equity. Dupont method = (cid:894)net i(cid:374)(cid:272)o(cid:373)e / sales(cid:895) (cid:894)sales / assets(cid:895) (cid:894)assets / ow(cid:374)e(cid:396)s" e(cid:395)uity(cid:895) Average collection period (days sales outstanding) = accounts receivable / average daily credit sales. Average daily credit sales = accounts receivable / average collection period.