Accounting Equations
Double-Declining Depreciation
(Cost - Accumulated Depreciation) X (2/Life)
Straight-Line Depreciation
(Cost - Residual Value) / Life
Depreciation Expense Equation
(Cost - Residual Value) / Useful lifetime
Current Ratio Equation
(Current Assets)/(Current Liabilities )
Times Interest Earned
(Net Income + Tax Expense + Interest Expense) / Interest Expense
Earning per Share (EPS)
(Net Income - Preferred Stock Dividend) / # Common Stock Shares Outstanding
Cost of Goods Available for Sale
Beginning Inventory + Net Purchase = Total inventory cost
Retained Earning Equation
Beginning Retained Earning + Net Income -Dividends =
Total Equity Equation
Common Stock + Retained Earning
Working Capital Equation
Current Assets - Current Liabilities
Price Earning Ratio (P/E)
Market Price per Share / Earning per Share (EPS)
Return on Equity (ROE)
Net Income / Average Equity
Present Value of a Lump Sum
Present Value = Future Value X PV Factor
Present Value of an Annuity
Present Value of Annuity = Payment X PVA Factor
Interest Expense Equation
Principal X Rate X Time
Net Income Equation
Revenues - Expenses
Gross Profit Equation
Sale Revenue - Cost of Good Solds
Debt-to-Equity
Total Liabilities / Total Stockholders' Equity
Units of Production
[(Cost - Residual Value) / Useful Lifetime Units Production] X Actual Usage in the Year
Assets Liabilites Equity Equation
Assets = Liabilities + Equity
Future Value of a Lump Sum
Future Value = Present Value X FV Factor
Future Value of an Annuity
Future Value of Annuity = Payment X FVA Factor
