Hоw much will yоu hаve аccumulаted in depreciatiоn at the end of 2008?
FORMULAS Assets = Liаbilities + EquityIncоme = Revenue – ExpensesNet Wоrking Cаpitаl = Current Assets – Current LiabilitiesCash Flоw from Assets = Cash Flow to Creditors + Cash Flow to StockholdersCash Flow from Assets = Operating Cash Flow – Net Capital Spending – Change in NWCOperating Cash Flow = Earnings Before Interest and Taxes (EBIT) + Depreciation - TaxesNet Capital Spending = Ending net Fixed Assets - Beginning Net Fixed Assets + DepreciationChange in NWC = Ending NWC – Beginning NWCCash Flow to Creditors = Interest Paid - Net New BorrowingCash Flow to Stockholders = Dividends Paid - Net New Equity RaisedUses of Cash: Increase in Assets or a Decrease in Liabilities or EquitySources of Cash: Increase in Liabilities and Equity or a Decrease in Assets RATIOS Current Ratio = Current Assets / Current LiabilitiesQuick Ratio = (Current Assets – Inventory) / Current LiabilitiesInterval Ratio = Current Assets / (Cost of Revenue / 365)Inventory Turnover Ratio = Cost of Revenue / InventoryDays in Inventory = 365 / Inventory Turnover RatioReceivables Turnover Ratio = Revenue / Accounts ReceivableDays Sales Outstanding = 365 / Receivables Turnover RatioPayables Turnover Ratio = Cost of Revenue / Accounts PayableDays Payables Outstanding = 365 / Payables Turnover RatioDebt/Equity = Total Debt / (Shares Outstanding * Price) (Market Value Approach)Debt/Equity = Total Liabilities / Total Equity (Book Value Approach)Interest Coverage = (EBIT + Depreciation) / Interest ExpenseTotal Debt = Total Liabilities / Total AssetsProfit Margin = Net Income / SalesReturn on Assets = Net Income / Total AssetsReturn on Equity = Net Income / Total EquityEarnings Per Share = Net Income / Shares OutstandingPrice/Earnings = Market Price of Share / Earnings per ShareMarket to Book = (Shares Outstanding x Market Price) / Book Value of EquityEffective Tax Rate = Tax Expense / Earnings before TaxesCash Conversion Cycle = Days Sales Out. + Days in Inventory – Days Payable Out.Total Assets Turnover = Sales / Total AssetsNet Working Capital = Cash + Accounts Receivable + Inventory – Accounts PayableOperating Cash Flow = (Sales – Expenses – Depreciation)(1 – Tax Rate) + DepreciationSustainable Growth Rate = (1 – Payout Ratio) x Return on Equity