Dr. 2 B

To: Finance and Accounting From: Katherine McCoy Date: Feb 29, 2012 Subject: monetary lyric MEMORANDUM FOR any XYZ FINANCE AND ACCOUNTING EMPLOYEES Our Chief Financial Officer (CFO) has been promoted to wickedness President of Overseas Operations. Since his absence get out leave a void in the knowledge animal foot regarding several trace monetary and accounting principles, we are send this memo to wait on explain several come upon concepts and principles associated with financial management, accounting, internal control, coin management, and Sarbanes-Oxley regulations. This memo will dress and provide relevant pipeline examples for the following terminology: 1. sparing Value Added 2. Fixed As square offs employee turnover correspondence 3. Net Profit Margin 4. Sales foretell 5. Breakeven analysis ECONOMIC VALUE ADDED (EVA) analyzes a political partys operating performance by combining the concepts of accounting income and inca rnate finance to determine if the stockholders wealth has increased through the participations operations. EVA = Net income + Interest expense ? Capital charge. stubborn ASSETS TURNOVER RATIO evaluates the efficiency in which a come with can vend from its investments in plant, property, and equipment. Fixed Assets Turnover proportion example would be 3.

97 if XYZs revenue was 500,002 and the property, plant, and equipment terms 126,000. illuminate PROFIT MARGIN is the ratio of a unanimouss income after adding total revenue and gains and subtracting all expenses and losings for the coverage period to re venues: Net Profit Margin prototype: XYZ! s net profit permissiveness in 2011 was 3.0/284.7 = 1.05%. gross sales FORCAST predicts approaching sales of a product over a set period of time based on the products financial recital inflation rates, unemployment, market trends, interest rates, and consumer spending patterns. BREAKEVEN digest An synopsis to determine when revenue received will mate the cost to obtain the revenue and calculates what is known as a margin of safety. Margin of...If you want to get a respectable essay, align it on our website: BestEssayCheap.com

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