Intangible assets lack physical substance, but they’re incredibly valuable to businesses. The value of most tangible assets decreases over time due to age, wear and tear or obsolescence. This process is known as depreciation, which allows businesses to deduct the declining value of these assets from their taxes. An intangible asset can be classified specifically … Leer más
There is a price for the project at any time in the capital market, equal to its discounted cash flow. Investment thus entails the irreversible transformation of the reserve and manufactured capital into a new composite asset, a producing project having value equal to the discounted cash flow. Therefore, the formulas for present value and … Leer más
Managers, investors, and creditors see how effective the company is in collecting cash from customers. This measures how many days (on average) a company takes to pay its suppliers. DPO provides a helpful view of cash liquidity, financial health, and other metrics like average inventory and annual revenue. DSO ownership: What does that even mean? … Leer más
Enter your loan amount, interest rate, term, and start date, and this calculator will give you all the information you need nearly instantaneously! You can use this calculator for most loans, including auto loans, personal loans, mortgages, and more! Before you take the money from your lender, see precisely how much it’s going to cost … Leer más
And if you’re interested in procurement, keep reading as we’ll be weaving that keyword throughout our discussion. Depreciation expense is considered a non-cash expense because the recurring monthly depreciation entry does not involve a cash transaction. Because of this, the statement of cash flows prepared under the indirect method adds the depreciation expense back to … Leer más
The tax rate for an employee’s portion of the Social Security tax is 6.2%. As a self-employed individual or sole proprietor, you are both the employee and the employer. Therefore, you are responsible for both sides of the social security and the Medicare tax deductions. Looking in simple terms, if an employee is paid twice … Leer más