Income Statement

Two of the most popular options are the solo 401 and the SEP IRA. If you stash the cash in a traditional 401 or SEP IRA, you can take a tax break on this year’s taxes. The solo 401 is great because you can stash up to 100 percent of your earnings into the account, up to the annual maximum. Meanwhile, the SEP IRA allows you to contribute only at a 25 percent rate. In addition, the solo 401 permits you to make an additional contribution of up to 25 percent of your profits in the business. ( […]

MGF comes up often in the context of control systems and digital filters because control systems and digital filters are often represented by SFGs. Net gains and losses are also used to determine how much of a profit a business is making and how much money the company has left after subtracting expenses.
Learn financial modeling and valuation in Excel the easy way, with step-by-step training. Gain the confidence you need to move up the ladder in a high powered corporate finance career path. Sec […]

Net income represents the overall profitability of a company after all expenses and costs have been deducted from total revenue. Net income also includes any other types of income that a company earned, such as interest income from investments or income received from the sale of an asset. Nonresident aliens are subject to regular income tax on income from a U.S. business or for services performed in the United States. Nonresident aliens are subject to a flat rate of U.S. income tax on certain e […]

According to the Henry J. Kaiser Family Foundation, Medicare spending accounted for 15% of total federal spending in 2018 and is expected to reach 18% by 2029. The Biden administration is negotiating with lawmakers in Congress over about $2 trillion in additional spending on social and climate initiatives and debating how to pay for those programs. From the end of 2008 to 2019, the amount of federal debt held by the public nearly tripled. This report describes federal debt, various ways to meas […]

For related information, read about how to account for depletion and other non-cash charges. Charlene Rhinehart is an expert in accounting, banking, investing, real estate, and personal finance.

Instead of using a contra‐asset account to record accumulated depletion, companies may also decrease the balance of natural resources directly. Therefore, depletion expense of $5,000,000 might be recorded by debiting depletion expense for $5,000,000 and crediting the gold mine for $5,000,000. The compa […]

The company can receive or pay interests depending whether it owns or owes the money. Interests are fixed and dividends are variable except when preference shares are involved. A simple interest is determined based on the original amount while the compound interest is calculated on the accumulated interest hence called the interest on the interest.

When interest expense occurs and is paid, the corporation’s cash is reduced by the interest payment, but some cash (more…) […]

In this example, the cost of the machine on 1 January 2001 is $110,000, but the cost on 31 December 2001 is $99,000 (i.e., 110,000 – 11,000 for depreciation). Prepaid expenses, inventories of various kinds, properties, and other assets are examples of costs. The amount of cash paid or liability incurred for a commodity or service is referred to as the cost of that item. Cost is a balance sheet item and expenses are an income statement item. Assume that a company purchases a delivery truck to be […]

It is accounted for when companies record the loss in value of their fixed assets through depreciation. Physical assets, such as machines, equipment, or vehicles, degrade over time and reduce in value incrementally. Unlike other expenses, depreciation expenses are listed on income statements as a “non-cash” charge, indicating that no money was transferred when expenses were incurred. There are many different terms and financial concepts incorporated into income statements. Two of th […]

Expert freight shipping tips and fast, easy tools to help you ship freight. Understanding the differences between each is as simple as knowing how much responsibility the buyer and supplier assume under each agreement. An FOB shipping point agreement is signed and the container is handed off to the freight carrier at the shipping point. Cost and freight obligates a seller to arrange sea transportation and provide the buyer the needed documents (more…) […]

Coke’s variable-costs are much lower than their fixed-costs because they have so much invested in automation. Better analysis can be done as the fixed and variable expenses are bifurcated. Data is placed in an organized manner, which helps the management to understand how changes in production and sales volumes will affect the profit. The contribution margin and the variable cost can be expressed in percentage of (more…) […]