Accounting

How to Calculate Income as a Percentage of Revenue

How to Calculate Income as a Percentage of Revenue

The net income of a company can be measured before or after taxes. Measuring a company's income as a percentage of revenue is one way to gauge how efficiently the company works - ...

How to Calculate Margin Mix

How to Calculate Margin Mix

A company’s margin mix is based on its sales mix. Many businesses sell more than one product or service, and those businesses must determine which products are the most ...

How to Calculate the Interest Expense With Net Income & EBIT

How to Calculate the Interest Expense With Net Income & EBIT

Knowing a company's earnings before interest and taxes (EBIT) as reported on a balance sheet helps investors gauge the effectiveness of the business model, unhampered by ...

How to Calculate a Ratio for Allocating Expenses to Rental Income

How to Calculate a Ratio for Allocating Expenses to Rental Income

You may only deduct expenses from your rental property in the proportion that you used it to generate rental income at a fair market price. For full-time rental properties, this ...

How to Calculate Stock Variance Given the Beta

How to Calculate Stock Variance Given the Beta

Stock investors consider various factors to determine whether a stock provides sufficient returns for the amount of risk it has. Beta measures the extent to which a stock's value ...

How to Calculate Interest Rate Using Present and Future Value

How to Calculate Interest Rate Using Present and Future Value

Present value, interest rate and future value all relate closely to the time value of money. While the interest rate – a percentage of the present value, also called the ...

How to Calculate Taxes on a Cash Windfall

How to Calculate Taxes on a Cash Windfall

While a cash windfall like winning the jackpot on a slot machine or winning at the dog track can be thrilling, Uncle Sam also wants his share. Cash windfalls are counted as ...

How to Calculate a Cash Budget

How to Calculate a Cash Budget

To stay afloat and prosper, a company must keep track of its incoming and outgoing cash. A cash budget is a type of management plan in which a business tracks the amount of money ...

How to Build an Automated Stock Trading System

How to Build an Automated Stock Trading System

An automated stock stock trading system can improve the accuracy and performance of your investments -- and will also save you time and reduce the risk of operator error. Using ...

What Circumstances Cause a Firm to Experience Diminishing Marginal Returns?

What Circumstances Cause a Firm to Experience Diminishing Marginal Returns?

The law of diminishing returns, or the law of variable proportions, acknowledges that a firm can combine its resources in different proportions and still produce the same product. ...

Multiple Step vs. Single Step Income Statement

Multiple Step vs. Single Step Income Statement

An income statement, also known as a profit and loss statement, demonstrates a company's financial performance during a defined period of time such as a month, quarter or year. An ...

How to Calculate a Marginal Revenue Derivative

How to Calculate a Marginal Revenue Derivative

Economists informally call a product's marginal revenue the increased revenue from a single new sale. This definition is not entirely accurate. That formula finds the increased ...

How to Calculate the Annualized Holding Period Return

How to Calculate the Annualized Holding Period Return

The holding period return, or HPR, calculates the overall rate of return for the time that you held a particular investment. Since people hold investments for varying periods of ...

The Advantages of Calculating Accounts Receivable Turnover

The Advantages of Calculating Accounts Receivable Turnover

The accounts receivable turnover ratio is an effective measure of your company’s liquidity. It measures the amount of credit you extend and how quickly you collect on those ...

How Can I Do My Taxes Without My W-2s?

How Can I Do My Taxes Without My W-2s?

The Form W-2 that you receive from your employer each year makes filing your income taxes much easier because all of the information that you need for your tax return is listed in ...

How to Calculate the Amortization of Intangible Asset

How to Calculate the Amortization of Intangible Asset

Intangible assets include trademarks, patents, copyrights and trade names. Another common intangible asset is the remaining value of an acquired company that cannot be assigned to ...

How to Calculate Selling Price Variance

How to Calculate Selling Price Variance

Sales price variance measures the change in a company's total budgeted revenue to the actual revenue earned on a product. To figure the selling price variance, you need to know ...