Review Journal Entries for Addition Transactions

Managing returns and allowances requires careful accounting to ensure financial statements reflect all adjustments. Returns occur when a company sends back goods due to defects or discrepancies, while allowances refer to price reductions granted by suppliers for minor issues that do not warrant a return. If a lease is classified...

Corporate Finance Explained: Mastering Financial Modeling CFI

Finance professionals in FP&A, investment banking, private equity, corporate development, and CFO roles who want to sharpen their modeling skills and learn from real-world corporate finance case studies. Remember, it’s important to plan changes and understand the dependencies in your model before making edits. This will help you avoid errors...

Payback Period What Is It, Formula, How To Calculate

According to payback method, the equipment should be purchased because the payback period of the equipment is 2.5 years which is shorter than the maximum desired payback period of 4 years. Unlike net present value , profitability index and internal rate of return method, payback method does not take into...

How to Calculate Payback Period in Excel

However, there are additional considerations that should be taken into account when performing the capital budgeting process. The payback period is a fundamental capital budgeting tool in corporate finance, and perhaps the simplest method for evaluating the feasibility of undertaking a potential investment or project. The payback period is favored...

Why is my Delaware franchise tax bill so high and how is it calculated?

This foundational document is filed with the state to legally form the corporation. It often includes details about the classes of stock the corporation is authorized to issue, including the par value of each class. For VC-backed startups, it will specifically mention the par value of preferred shares. Any changes...

Journal Entry for Issuance of Common Stock

It’s essential to keep track of these changes to accurately represent a company’s equity. To declare a dividend, a corporation’s board of directors must have a credit balance in Retained Earnings and a cash balance large enough to pay the dividend and still meet upcoming needs. To calculate the weighted-average...

How to Calculate Contribution Margin for Your Business

The calculator will not only calculate the margin itself but will also return the contribution margin ratio. For the month of April, sales from the Blue Jay Model contributed \(\$36,000\) toward fixed costs. Looking at contribution margin in total allows managers to evaluate whether a particular product is profitable and...

Closing Entry Definition, Types & Examples

These accounts are closed directly to retained earnings by recording a credit to the dividend account and a debit to retained earnings. Advanced accounting platforms serve as the foundation for an efficient closing month-end process. These systems centralize financial data, enforce consistent accounting rules, and provide the structure needed for...

Your Restaurant Cash Flow Playbook: Practical Strategies That Work

She focuses on improving company’s operating performance through strategic analysis of financial and other operating data. Her goal is to Car Dealership Accounting drive revenue and profitability for her clients while still providing insight, guidance, financial foresight and industry experience. Cash flow, simply put, is the movement of money in...

Income Tax by State: 2024-2025 Rates and Brackets

By understanding state taxes, you can better decide what location best suits your financial needs. That means every state has its own specific policy — with eight states not charging any income tax at all. Tech/Business refers to the technology and business environment, including its innovation capacity, entrepreneurship, and competitiveness....