Cash flow from investing activities All you need to know Bloom Group S A.
Financing activity in a cash flow statement focuses on how a firm raises capital and pays it back to investors through capital markets. This section of the cash flow statement measures the flow of cash between a firm and its owners and creditors. Analyzing the cash flow statement is extremely valuable because it provides a […]
Vertical Analysis: Definition, Formula & Examples
For example, through vertical analysis, we can assess the changes in the working capital or fixed assets (items in balance sheet) over time. Vertical analysis, also known as common-size analysis, is a technique used to assess the relative proportions of different line items within a financial statement. This allows for meaningful comparisons and identification of […]
Accounting For Real Estate Developers: All You Need To Know
Detailed CIP records give stakeholders confidence in a company’s financial practices, especially during audits. Unplanned expenses can inflate CIP balances, affecting the overall financial outlook. In this guide, we’ll explore what construction-in-progress accounting is, who uses it, why it matters, and how to effectively manage CIP accounts. One of the best tools that equipment depreciation […]
How To Calculate Inventory Turnover Days Unlock Your Potential
Understanding your inventory turnover ratio helps you make smarter decisions about pricing, production, and inventory management. This insight can also help you keep an optimal amount of stock on hand and maintain a healthy bottom line. Different industries and business models have varying standards for inventory turnover measures. A ratio that is considered good in […]
Bookkeeper360 Review for March 2025 Best Bookkeeping Services
The best part is connecting this software and Xero to your credit cards, online wallets, and bank account is seamless. You can integrate Xero and seamlessly link your chart account and general ledger to simplify the processes. While you can hire an accountant or buy any accounting software, they might not fulfill your needs. We […]
Top 5 pandemic-proof industries
As more people than ever are stuck at home due to coronavirus fears, homeowners have much more time to tend to their lawns and gardens. As such, landscaping and general yard care companies are seeing unseasonably good business. Clogged drains, pipe leaks, and electrical wiring issues can cause problems whether during a bear market recession […]
Operating Cycle Definition, Formula, Analysis & Example
The operating cycle is important for measuring the financial health of a company. Bad debt is considered unrecoverable and is written off as a loss by the creditor or lender. Every business owner tries their best to reduce bad debt to maintain an easy flow of working capital. When the operating cycle is long, there […]
What Is Obsolete Inventory, and How Do You Account for It?
When the obsolete inventory is finally disposed of, both the inventory asset and the allowance for obsolete inventory is cleared. In our example on inventory write downs, an allowance for obsolete inventory account is created when the value of inventory has to be reduced due to obsolescence. This method involves estimating the percentage of sales […]
1 1: Define Managerial Accounting and Identify the Three Primary Responsibilities of Management Business LibreTexts
Suppose one of the controls put into place is to measure the sales in the current stores to determine if selling the company’s products in new stores is adding new sales or merely moving sales from existing stores. This control measure, same-store sales, must be evaluated to determine the effect of the decision to expand […]
Gross Margin Definition, Components, Significance, & Factors
Companies use gross profit margin to identify areas for cost-cutting and sales improvement. A high gross profit margin indicates efficient operations, while a low margin suggests areas needing improvement. The gross profit margin (also known as gross profit rate, or gross profit ratio) is a profitability metric that shows the percentage of gross profit of […]