In addition, capital expenditures (Capex) consist of not only the new purchase of equipment, but also the maintenance of the equipment. The beginning of period (BoP) book value of the PP&E for Year 1 is linked to our purchase cost cell,. Read more
Discover how to go from having a cash flow challenge to smart money management. However, if expenses are cut too much it could also have a detrimental effect. For example, paying less on advertising reduces costs but also lowers the company’s. Read more
The dollar-value LIFO method allows companies to avoid calculating individual price layers for each item of inventory. Instead, they can calculate layers for each pool of inventory. However, at a certain point, this is no longer cost-effective, so it’s vital to. Read more
A credit memo is a posting transaction that can be applied to a customer’s invoice as a payment or reduction. A delayed credit is a non-posting transaction that you can include later on a customer’s invoice. You sell paper goods to. Read more
Every dollar a company pays out to its shareholders is money that the company isn’t reinvesting in itself to make capital gains. Dividend yield is a method used to measure the amount of cash flow you’re getting back for each dollar. Read more
The weighted average cost method requires a single cost calculation to determine the average value of all items in stock. Since every item is valued at the same amount, there is no need to maintain detailed inventory purchasing records, which means. Read more
The dividend payout ratio is a financial indicator that shows how much of the net income is given back to the stockholders in terms of dividends. A closer value to 100% means the company pays all of its net income as. Read more
Our PTO accrual calculator lets you determine the appropriate accrual rate to use per pay period based on your business workdays, hours in a workweek, and annual vacation days. That said, calculating PTO (Paid Time Off) can be a confusing task. Read more
If he paid a total sum of $14,400 for the yearly insurance, the company will make the following journal entry upon receipt of the payment. The unearned revenue account declines, with the coinciding entry consisting of the increase in revenue. We. Read more
But it can also indicate that the company does not have suitable projects to generate better returns in the future. Therefore, it is utilizing its cash to pay shareholders instead of reinvesting it into growth. Dividend payable is a short term. Read more