Free Example of Pro Forma Income Statements
In the planning and fund seeking stages of your business, you most likely created cash flow forecasts or sales forecasts and included them in your …
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Get Down with Knowledge about Product Costs versus Period Costs
Ever wondered what the big difference is between product costs and period costs? Well, now is your big chance to find out! This exciting accounting …
Continue ReadingSignificance of Cash Flow Bonds to Your Business
The cash flow statement is an important statement to be included in the financial reports because it will show the company’s ability to pay its …
Continue ReadingContribution Margin Ratio - Its Signifiance in Planning Production and Sales
This article will guide the manager in understanding the effects of contribution margin to profitability and will help in formulating strategies to …
Continue ReadingPlanning your Business with Managerial Accounting Ratios
Managers are usually guided by some management tools in running their business. This article will present simple managerial accounting ratios that …
Continue ReadingAnalyzing a Break-Even Point Example - Managerial Accounting Essentials
Investors need to study what opportunities can give them the best return for their money. But how will this be possible? A simple tool like the …
Continue ReadingTypical Examples of Overhead Costs or Fixed Expenses: How to Classify & Pay for Them
Variable, fixed, initial… oh my! When it comes to classifying costs, it’s easy for non-accountants to get a little frustrated with technical …
Continue ReadingAccounting for Treasury Stock Purchases Using the Cost Method
Each year companies buy back their own stock. Understanding the accounting for treasury stock purchases helps the user of financial statements to …
Continue ReadingComparing Appropriated and Unappropriated Retained Earnings: Reporting Basics
What does it mean when a company reports one number for appropriated retained earnings and another number for unappropriated? Learn why this …
Continue ReadingExamples of Mixed Costs: Looking at the Fixed and Variable Components
While some costs can be classified as pure fixed or pure variable, many include elements of both types. We’ll look at several common examples of mixed …
Continue ReadingSolvency Ratio Analysis and Leveraging: How Much is Too Much?
How can you gauge whether you have the right amount of debt in your business? Does leveraging impact your long-term viability? Use the solvency ratio …
Continue ReadingThe Daily Cost of Money and Its Impact on Inventory Management
What does it cost to finance inventory? More importantly, how does someone figure out the daily cost of money and its impact on inventory costs?
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