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BA 303 Formula List

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					                           BA 303 Formula List
                              Chapters 2-3
Balance Sheet
    Assets = Liabilities + Owners Equity
    Cumulative Retained Earnings ending = Cumulative Retained Earnings beginning +
       Additional Retained Earnings (from income statement)
    Net Working Capital = Current Assets – Current Liabilities
    Change in Net Working Capital = Net Working Capital ending – Net Working
       Capital beginning

Income Statement
    EBIT = Revenue – Expenses – Depreciation
    Taxable Income = EBIT – Interest
    Net Income = Taxable Income – Taxes
    Operating Cash Flow (OCF) = EBIT + Depreciation – Taxes
    Cash Flow from Assets (CFA) = OCF – Net Capital Spending – Change in Net
      Working Capital
    Net Capital Spending = Fixed Assets ending – Fixed Assets beginning + Depreciation
    Cash Flow from Assets = Cash Flow to Creditors + Cash Flow to Stockholders

Cash Flow Statement
    Increase in an asset = decrease in cash

    Beginning Cash
        – Cash flow from Operations
        – Cash Flow from Investment
        – Cash Flow from Financing
     = Ending Cash

    Cash Flow from Operations = Net Income + Depreciation +/- A/P, A/R, Inv.
    Cash Flow from Investment = - (Net Capital Spending)
    Cash Flow from Financing = - Dividends +/- Notes Payable, LTD, Common
     Stock

Common Size Statements
All line items on Income Statement – divide by Revenue
All line items on Balance Sheet – divide by Total Assets

Du Pont Formula & Components
NOI = Profit Ratio * Asset Turnover * Leverage
Profit Ratio = Net Income/Sales
Asset Turnover = Sales/Assets
Leverage = Assets/Total Equity

				
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posted:10/15/2010
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