Your annual income is a key piece of information that will help you make your budget, apply for loans, and pay your taxes. Whether you need to calculate it for your business or your personal finances, it’s important to understand all that’s included in your annual income. Both gross and net income are essential for
When a business has more working capital than its current liabilities, it is known as the “solvency” of the business. This is an excellent situation for any company and can be used for many different purposes. As a business owner, you might find unexpected short-term expenses and managing cash flow to be challenging. But a
Consider a retail store that experiences a holiday season sales surge, followed by a slower first quarter. If your accounts receivable turnover ratio is lower than you’d like, there are a few steps you can take to raise the score right away. They found this number using their January 2024 and December 2024 balance sheets.
An asset costing $20,000 has estimated useful life of 5 years and salvage value of $4,500. Calculate the depreciation for the first year of its life using double declining balance method. While the straight-line depreciation method is straight-forward and most popular, there are instances in which it is not the most appropriate method. Assets are
When the company pays the cost of having the flyer printed, a journal entry is done. A contra account is used to show the opposite effect or reduction of a related account. A business called Show-Fleur offers private driving tours of local botanical gardens — all from the comfort of high-end limousines. Contra liabilities The