<3. FM =/
2007-10-31, 1:53 a.m.
Happy happy happy! Although i may be happy for a non-existent reason, oh well, think positive. Next up is for self-reference, so all you readers, just ignore it. =)
Checklist of what i need to know for FM tomorrow:
NPV = inflow-outflow
IRR/ROR = % of PVIF when NPV = 0.
To calculate IRR when found between two %. IRR = A + ((a / (a-b)) x (B-A))
profit + depreciation = cash flow.
ARR = avg profit / avg investment = (total profit/no. of years) / (initial cost + residual value)/2
Depreciation expected = (cost-resale value) / lifespan
Payback period: use cash flows!
Profitability Index = Inflow / net investment
Use PVIF when given FV. Use FVIF when given PV.
PayMenT(annuity) x FVIFA = FV
PayMenT x PVIFA = PV
Ratios:
Profitability:
(i) Gross profit margin = sales / gross profit
(ii) Net profit margin = sales / net profit
Liquidity:
(i) Current ratio = current asset/ current liability
(ii) Quick or acid test ratio = (current asset-stock) / current liability
Efficiency:
(i) Stock times = COGS / cl. stock
(ii) Debtors times = sales / debtors
(iii) Creditors times = sales / creditors
(iv) Asset turnover ratio = sales / total assets [FA+CA]
Gearing [measures mix between owners' funds and borrowings]:
(i)Debt ratio = total liabilities / total assets
(ii) Equity ratio = capital & reserves / total assets
(iii) Debt equity ratio = total liabilities / capital & reserves
Investment [measures return on investment]:
(i) Return On Equity = post tax profit / capital & reserves
(ii) Return On Capital Employed = Profit Before Interest & Tax / Owners Equity + Long Term liability
(iii) Return On Total Assets = post tax profit / total assets
(iv) Earning per share = post tax profit / no. of shares
(v) Interest cover = profit before interest / interest expense
(vi) Dividend pay out = ordinary dividend / profit after preferred dividend
Economic Order Quantity = ROOT ((2 x annual demand x cost per order) / annual carrying cost per unit)
Ordering cost = (annual demand x cost per order) / orders quantity
Ah, beautiful liar, been awhile since i heard that..reminds me of..the days i just began driving around..solo. xD Hearing R&B at night makes me feel like clubbing. =/ Gah.
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