What equation must the balance sheet satisfy?
Assets equal Liabilities plus Equity.
How is profit calculated on the income statement?
Profit equals Revenue minus Expenses.
What does depreciation reduce on the balance sheet?
The carrying value of a fixed asset.
What percentage of cumulative positive pre-tax income is corporate tax in the course model?
25%.
What formula calculates net fixed-asset value?
Net value equals gross fixed assets minus accumulated depreciation.
What does runway measure in cash metrics?
The number of months before cash is exhausted.
What is the formula for contribution margin of a product?
Contribution margin equals Revenue minus Variable costs.
How do you calculate the break-even model result?
Result equals margin rate times revenue minus fixed costs.
What formula defines the seasonal coefficient in sales forecasting?
Coefficient equals observed sales divided by corrected sales.
How is the monthly forecast calculated in production forecasting?
Monthly forecast equals trend times seasonal coefficient plus or minus commercial-action effect.
Answer 11 questions on Financial Management and Kolumpi.
1. Which description correctly distinguishes the balance sheet, income statement, and cash flow statement?
2. A company reports a profit this year but has not yet collected several major customer invoices; what does this situation demonstrate?
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