Please enable JavaScript.
Coggle requires JavaScript to display documents.
Managing Profit and Financial Statement (Priorities of Assets in…
Managing Profit and Financial Statement
Measure of Profitability
Rate of Return on Sales= Net Profit/Sales
Rate of Return on Assets= Net Profit/Asset
Rate of Return on Equity= Net Profit/Equity
DuPont Formula
A ratio that epitomizes the entire art of financial management of developing firm
Return on Invesment
Asset Efficiency
Sales/Total Assets
+
Operating Efficiency
Net Income/Sales
Ways to Report Sales
Percentage on Completion Method
Completed Contract Method
Installment Method
Cost of Goods Sold
Direct Labor
Cost of Materials
Factory Overhead
How to Record Ending Inventory
First-in First-out (FIFO)
Last-in Last-out (LIFO)
Type of Financial Statement
The Compiled Statement
The Reviewed Statement
The (audited) Certified Statement
Debt/Equity Ratio
Used for the bank to analyse if they want to give a lending to a business.
Debt/Equity
General Creditor Ratio (GCR)
Assets available for general creditors/General Creditor Claims
Priorities of Assets in Bankruptcy
Priority Claims
Secured Creditor’s Claims
General Creditors
Subordinated Creditors
Equity Holders
General Approach in Bankruptcy
Absolute Priority
Relative Priority
Depreciation Expense
Accelerated Depreciation
Unit Depreciation
Decelerated Depreciation