Professional Documents
Culture Documents
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Principle 2: Format worksheet so that it is easy to understand. Borders, shading, and font choices can make important numbers stand out and get the attention they deserve if they are properly chosen.
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I. Income Statement
Gross Profit: = Sales Cost of goods sold Earnings Before Interest and Taxes (EBIT): = Gross profit all other expenses (SG&A, depreciation, etc) other than interest and taxes. Earnings Before Tax (EBT): EBIT-interest Taxes: = EBT Tax Rate Net Income: EBTTaxes=EBT(1-Tax Rate)
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$ in formula calculation
The $ in the formula will freeze the reference to a specific address.
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+ + -
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Dividend Payments
(1) Sign: Dividend payments have negative signs in the statement of cash flows (2) Dividends Paid = Net Income Retained Earnings (3) Retained Earnings = Newer Cumulative Retained Earnings Older Cumulative Retained Earnings
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