Académique Documents
Professionnel Documents
Culture Documents
Land, Building, equipment, and vehicles
Cost Accumulated Depreciation = Net Fixed Asset
Usually reported NET of accumulated depreciation
Current Liabilities
to be paid or satisfied with service performance within one year
Usually consist of account payable, shortterm notes payable, mortgage
payable, and bonds payable
Owner's Equity
Contributed capital, stock equity including both stock and paid in capital
accounts
Retained earnings, internally generated profits plowed back into the business
Operating expenses
reporting before EBIT as deductions from sales
Cost of goods sold
cost of inventory items sold
Selling expenses
(including other selling expenses) incurred directly in selling of merchandise
(advertising, commission, sales wages, and delivery expenses)
Administrative or general expenses (including other expenses)
incurred in the operations of the business EXCLUDING selling expenses (office
wages, credit card expense, utilities, rent, etc.)
Depreciation
physical wearing out of fixed assets as well as functional obsolesce
Corporate Tax Computation[average (effective) tax]
arithmetic mean of total taxes paid divided by total taxable income (EBT)
Corporate Tax Computation
[marginal tax rate]
tax rate on the next taxable income (EBT) dollar earned
Corporate Tax Computation
[Progressive tax rate ]
capped at an average tax rate of 34% (after the 39% tax bracket)
Financial conditions (liability)
ability to satisfy current operating needs (to pay current liabilities when due)
Financial conditions (solvency)
ability to pay both current and long term debt when due
Financial conditions (profitability)
ability to sustain operations during grave economics times (including boycotts,
heavy regulations, and consumer activism)