Read the summary and the most important questions on Reader Financial Management FM3.2 | Sirks

• 1 Other ratios

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• Average payable period

  Average payables               * 365 days

  Annual credit purchases

   

  Dit is het tegenovergestelde van average collection period. Het is het aantal dagen dat een bedrijf neemt om de handelsschulden af te betalen.

• Average storage period of inventories

  average investories     * 365 days

  cost of goods sold

   

  Hoe lang het duurt om de voorraad te verkopen.

• 4 Profitability ratios

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• Return on total assets (after taxes) = ROA

  Net profit + interest     * 100%

  Average total assets

   

  Winst na interest en belasting     * 100%

  Gemidd. totaal vermogen

• Leverage effect (gearing)

  ROE (after taxes) = ROA (after taxes) + [ROA (after taxes) - Average Interest] * Average Debt            

                                                                                                                                                                    Average of equities

• P/E-ratio = price/earnings ratio

  Market price share

  EPS (after taxes)

• 6 16 A

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• Average issue price per share

  [Common stock * price (share)] + add. paid in capital     * 100

  Common stock

   

  Emissieprijs: prijs waarvoor effecten (aandelen en obligaties) op de markt worden gebracht.

• Is a company's takeover based on the NPV per share or the Book Value per share?

  Since you'll have the intention to continue the firm's activities, you're interested in the value of the company minus the future net profits:

  NET PRESENT VALUE per share

• 7 16 B

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• Depreciation expense tangable assets

  Gross fixed tangible assets * % depreciation

  Time

• Amortization expense goodwill

  Acquisition costs take over ( - market value)

  time/time

• 8 16 C

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• Intangables are considered as an asset and capitalized on the balance sheet. What is the alternative way of reporting intangible assets?

  The can be expensed (amortized = afgeschreven) at once, so they won't be considered as an asset. This means that the invested money in these intangibles will be seen as an immediate expense and this amount will be debited (afgeschreven gedebiteerd) on the income statement.