Financial

What is an Income Statement - Revenue and Expenses Explained

THE INCOME STATEMENT

Categories: Financial

Step 3 for Calulating a Weighted Average - Forecast the Sales Percentage

STEP 3 -  FORECAST THE SALES PERCENTAGES FOR YOUR PRODUCT LINE

So far you have created a product line list and a list of all the products you plan to sell within each of your product lines. The next task is to assign sales percentages to your product line. In other words, you must forecast the rate at which you feel customers will purchase each product line. In our retail clothing store example, assume John assigns the following sales percentages to his product line:

Categories: Financial

How to Calculate Gross Margin

GROSS MARGIN:

One final term you should understand is Gross Margin. Sales or revenues are subtracted from the cost of goods sold to arrive at the gross margin. MRS. BLUE's gross margin is $150,000. Here's how it's calculated.

Categories: Financial

Sections of an Income Statement and Examples

SIX (6) SECTIONS OF THE INCOME STATEMENT:

Heading: ( first section of the income statement)

The heading outlines the name of the company, the type of statement that follows (in this case, the income statement) and the time frame of the statement. Here is the heading of the company TRY OUR BIKES.

 

TRY OUR BIKES
Income Statement
For the Period Ending August 31, 200X

 

Categories: Financial

Weighted Average for Multiple Products

WHAT ARE WEIGHTED AVERAGES

If you plan to sell more than one type of product, you should consider calculating a weighted average selling price and a weighted average product cost. The weighted average selling price reduces all your selling prices (of each product you plan to sell) down to one single selling price.

Categories: Financial

Liquidity Ratios Explained - Examples and Calculations

LIQUIDITY RATIOS:

Categories: Financial

Examples of Notes or Assumptions to the Financial Statements

NOTES TO THE FINANCIAL STATEMENTS:

Notes to the financial statements are developed for existing businesses as well as proposed businesses. The Notes summarize or explain specific areas of a company's financial statements. The purpose of developing these notes is to reduce any confusion a reader may have when reading financial statements.

Categories: Financial

Step 5 for Calulating a Weighted Average - Cost for each Product

STEP 5   -  DETERMINE YOUR COST(S) FOR EACH PRODUCT

To this point, we have used only percentages as our major forecasting tool. Now its time to determine the cost of each product you plan to sell.

Categories: Financial

Step 7 for Calulating a Weighted Average - WA Product Costs

STEP 7 - Calculate Your Weighted Average Product Cost

Two final calculations are required in order to determine a  weighted average product cost.

Categories: Financial

Ratio Calculations and Trend Analysis

Part 2 - Trend Analysis

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