Net present value (NPV) is the present value of all future cash flows of a project or investment in excess of the initial amount invested. The future cash flows are discounted at the company’s cost of capital, adjusted for specific risk&n... Read more
There are other instances when notes payable or a promissory note can be issued, depending on the type of business you have. When you repay the loan, you’ll debit your Notes Payable account and credit your Cash account. For the interest that a... Read more
For investors, a negative stockholders' equity is a traditional warning sign of financial instability. It may also affect a company's ability to secure financing or investment. It can also make it difficult for investors to assess the company's fina... Read more
The discount rate refers to the Federal Reserve's interest rate for short-term loans to banks, or the rate used in a discounted cash flow analysis to determine net present value. Sales tax isn’t included as part of the revenue for a company —... Read more
If the market value of the inventory is unknown, the net realizable value can be used as an approximation of the market value. An accounts receivable balance is converted into cash when customers pay their outstanding invoices, but the balance must... Read more
If they say gross, they probably mean either revenue or gross profit (you may need to ask for further clarification). Freight-in is the costs incurred in having the goods delivered to the business. The freight-in account is normally a debit balance... Read more
Our manual calculation of net present value and Excel NPV assumes that cash flows occur at the period-end. If we want to determine net present value based on the exact date those cash flows occur, we can use Excel XNPV function. CIN equals cash inf... Read more
However, if the organization has accepted a gift restricted by the donor, it has agreed to honor the restrictions. In cases where the gift must be used for a specific program(s) or set aside permanently, the liquidity calculation should be adjusted... Read more
The whites lacked inner divinity, and were intrinsically violent; they overthrew the Tribe of Shabazz and achieved global dominance. A millenarian tradition, it maintains that Fard Muhammad will soon return aboard a spaceship, the "Mother Plane" or... Read more
