Managerial Accounting Formulas Final
Required increase in Present Value/Factor for # of Years
Annual Value of Intangible Benefits
CM/Sales
CM ratio
Average Operating Assets x Percentage of minimum rate of return
Dollar Amount of Minimum Rate of Return
Net operating income/sales
Margin
Investment Required/Annual net cash inflow
Payback Period
Sales/average operating assets
Turnover
Investment Required/Annual Net Cash inflow
Factor of the Internal Rate of Return
Net Present value of the project/Investment Required
Project Profitability Index
Net Operating Income/Average Operating Assets
ROI (equation 1)
Margin x Turnover
ROI (equation 2)
Net operating income - (average operating assets x minimum required rate of return)
Residual Income
Net operating income - minimum required rate of return dollar amount
Residual Income (Equation 2)
Annual Incremental net operating income/initial investment
Simple rate of return
