FFMA equations Flashcards
(15 cards)
Depreciation expense
depreciable amount/useful economic life
Depreciable amount
cost - residual value
Net Book Value
PPE(at cost) - accumulated depreciation
Straight line method
NBV - (depreciation - accumulated depreciation)
depreciation for the year = cost x %
Reducing balance method
net book value x %
Interest expense
interest expense x outstanding balance
Dividend
pence per share x no. of shares
Dividend
% x nominal value x no. of shares
Retained earnings Account
(retained earnings + profit for the year) - (interim + final dividend)
Cost of sales
(opening inventory + purchases) - closing inventory
Prepayment amount
invoice amount x no. of months after y/e / no. of months covered
NRV
selling price - costs to complete - costs to sell
Net Trade receivables
trade receivables - Provision for doubtful debts
Change in PDD
Closing provision - opening provision
Profit/loss on disposal
sales proceeds - net book value
