Double Declining Balance Method DDB Formula + Calculator
While depreciation is used for calculating the descending costs of tangible assets, Amortization is used in the case of intangible assets. Suppose a company purchased a fixed asset (PP&E) at a cost of $20 million. This method is best suited for assets that lose a big portion of their value at the beginning of their […]
Cash Flow from Financing Activities
With more money is flowing in than flowing out, a positive amount indicates an increase in business assets. We can see that the majority of Walmart’s cash outflows were due to repayments of long-term debt of $13.010 billion, the purchase of company stock for $9.787 billion, and dividends paid for $6.152 billion. Although the net […]
Cash Discount Program vs Surcharge: What’s The Difference?
With a surcharge program, you’re increasing the cost for credit card users, whereas, with a cash discount program, you’re decreasing the cost for cash users. If you do decide to proceed with a surcharge program, you must notify your credit card processor and credit card association 30 days before you begin charging. Also, you can […]
Gross Margin Ratio Learn How to Calculate Gross Margin Ratio
Gross margin alone specifies how much profit a firm makes after deducting the costs from the revenue generated. There is no definite answer to “what is a good margin” — the answer you will get will vary depending on whom you ask, and your type of business. Firstly, you should never have a negative gross […]