Author: Anfisa Dmitrieva

Vertical Analysis: In this type of analysis, figures in the financial statement for a single year are analysed. It involves the study of relationship between various items of Balance Sheet or statement of Profit & Loss of a single year or period….

If the Johnson kitchen addition, as mentioned above, requires 50 labor hours, and Susie needs to decide on a labor rate per hour. She also needs to budget for all materials, including a cost per square foot for lumber. A labor shortage, for example, …

Once the value per dollar of cash flows is found, the actual periodic cash flows can be multiplied by the per dollar amount to find the present value of the annuity. Time value of money is the concept that a dollar received at a future date is worth …

You’ll learn about the most widely used financial statements to complete the analysis. We’ll also discuss how to calculate vertical analysis and interpret the results. So, for example, when analyzing an income statement, the first line item, sales, w…

An annuity is essentially a loan, a multi-period investment that is paid back over a fixed period of time. The amount paid back over time is relative to the amount of time it takes to pay it back, the interest rate being applied, and the principal . …

Just fill in the data in the relevant fields and apply the appropriate features and it’s done. Includes use of Instant Deposit without the additional cost. Instant Deposit is an additional service offered by QuickBooks Payments subject to eligibility…

Unearned revenue should be entered into your journal as a credit to the unearned revenue account, and a debit to the cash account….

Because it is money you possess but have not yet earned, it’s considered a liability and is included in the current liability section of the balance sheet. In February, after you complete the second month’s worth of work, you can then take $1,000 of …

However, it is almost always seen as a worthy investment in your business in the short term while helping to grow your business over the long term. Investing activities refer to any transactions that directly affect long-term assets. This can include…

Essentially, the cash flow statement is concerned with the flow of cash in and out of the business. The statement captures both the current operating results and the accompanying changes in the balance sheet and income statement. As an analytical too…