How do dividend distributions affect additional paid in capital?

June 30, 2024 No Comments

A: Whether a dividend distribution has any effect on additional paid-in capital depends solely on what type of dividend is issued: cash or stock. What Is Additional Paid-In Capital? Additional paid-in capital is a subaccount of the paid-in capital section on a company’s balance sheet.

How do earnings and revenue differ?

June 30, 2024 No Comments

A: Understanding Revenue Versus Earnings Revenue is the total income earned by a company for selling its goods and services. Revenue is called the top line because it sits at the top of the income statement, which also refers to a company’s gross sales. Revenue is the income generated before expenses are deducted. Revenue is also called net sales

How do gross margin and contribution margin differ?

June 30, 2024 No Comments

A: Gross profit margin measures the amount of revenue that remains after subtracting costs directly associated with production. Contribution margin is a measure of the profitability of various individual products. Gross margin is synonymous with gross profit margin and only includes revenue and direct production costs. It does not include operating

How do gross profit and gross margin differ?

June 30, 2024 No Comments

A: Gross profit and gross margin show the profitability of a company when comparing revenue to the costs involved in production. Both metrics are derived from a company’s income statement and share similarities but show profitability in a different way. Gross Profit Gross profit refers to the money a company earns after subtracting the costs

How do I calculate compound interest using Excel?

June 30, 2024 No Comments

A: Compound interest is interest that’s calculated both on the initial principal of a deposit or loan, and on all previously accumulated interest. For example, let’s say you have a deposit of $100 that earns a 10% compounded interest rate. The $100 grows into $110

How do I calculate cost of goods sold (COGS) using the first in, first out (FIFO) method?

June 30, 2024 No Comments

A: The first in, first out, or FIFO, method is a cash flow assumption commonly used to determine cost of goods sold, or COGS. FIFO assumes that the first products acquired are also the first products sold, with the oldest cost being reported on the income statement so the

How do I calculate fixed asset depreciation using Excel?

June 30, 2024 No Comments

A: Depreciation is a method that allocates the cost of a company’s fixed assets over the assets’ useful life. In other words, it allots a portion of a company’s cost of fixed assets to periods in which the fixed assets helped generate revenue. Microsoft Excel

How do I calculate production costs in Excel?

June 30, 2024 No Comments

A: It is impossible for a single method of calculating production costs to work for all businesses, much less for a Microsoft Excel template or method to cover this. This is because production costs are calculated differently by each type of business and for different

How can you calculate volatility in Excel?

June 30, 2024 No Comments

A: Although there are several ways to measure the volatility of a given security, analysts typically look at historical volatility. Historical volatility is a measure of past performance. Because it allows for a more long-term assessment of risk, historical volatility is widely used by analysts and

How can you use a cash flow statement to make a budget?

June 30, 2024 No Comments

A: To use the cash flow statement to make a budget, a company needs to combine the operating cash flow portion of its cash flow statement with its cash budget. A company’s cash budget and its operating cash inflows of its cash flow statement are

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