Schaum's Quick Guide to Business Formulas: 201 Decision-Making Tools for Business, Finance, and Accounting Students

by Shim, Jae; Hartman, Stephen; Siegel, Joel

• ISBN13: 9780070580312
• ISBN10: 0070580316
• Edition: 1st
• Format: Paperback
• Copyright: 1997-11-22
• Publisher: McGraw Hill

Summary

The Fastest, Easiest Way to Learn: Schaum's Quick Guides These concise, quick reference guides are perfect for business people, writers, and students at all levels. Written by top experts, they offer readers the easiest, most efficient strategies to master or learn a new skill. All Schaum's Quick Guides include do's and don'ts for avoiding common errors, handy checklists, and practice exercises for building skills quickly.

Author Biography

Joel G. Siegel, Ph.D., CPA, is professor of finance and accounting at Queens College, New York City. Jae K. Shim, Ph.D., is professor of finance and accounting at California State University, Long Beach. Stephen W. Hartman, Ph.D., is professor of management at New York Institute of Technology. Drs. Siegel and Shim also consult in finance, and Dr. Hartman is a management consultant.

Table of Contents

Preface	xiii
1. Accounts Payable Ratios	1	(1)
2. Accounts Receivable Management	2	(4)
3. Accounts Receivable Ratios	6	(2)
4. Acid-Test (Quick) Ratio	8	(1)
5. Actual Cash Value	9	(1)
6. Adjusted Gross Income	9	(1)
7. Alpha Value	10	(1)
8. Amortized Loan	11	(1)
9. Annual Percentage Rate	12	(3)
10. Applied (Predetermined) Overhead Rate	15	(1)
11. Arbitrage	16	(2)
12. Arithmetic Average Return	18	(1)
13. Asset Utilization (Turnover)	19	(2)
14. Audit Fees to Sales	21	(1)
15. Average (Arithmetic Mean)	21	(2)
16. Bad-Debt Ratios	23	(1)
17. Bank Reconciliation	24	(3)
18. Barron's Confidence Index	27	(1)
19. Beta	27	(4)
20. Black-Scholes Option-Pricing Model	31	(1)
21. Bond Valuation	31	(2)
22. Bond Yield	33	(4)
23. Book Value per Share	37	(1)
24. Breadth Index	38	(1)
25. Breakeven Formulas	39	(2)
26. Capital-Asset Pricing Model	41	(1)
27. Capitalization Rate	42	(1)
28. Cash Flow Ratios	43	(2)
29. Cash-Management Models	45	(2)
30. Cash Plus Cash Equivalents to Working Capital	47	(1)
31. Cash Ratios	48	(1)
32. Certainty-Equivalent Approach	49	(1)
33. X(2) (Chi-Square) Test	50	(3)
34. Coefficient of Variation	53	(1)
35. Common-Stock Valuation	54	(4)
36. Contribution Margin	58	(2)
37. Controllable (Budget, Spending) Variance	60	(1)
38. Conversion Ratio	61	(1)
39. Corporate Planning Models	61	(4)
40. Correlation Analysis	65	(4)
41. Cost of Capital	69	(6)
42. Cost of Credit	75	(2)
43. Cost of Prediction Errors	77	(1)
44. Credit Cost on Installment Purchase	78	(1)
45. Current-Liability Ratios	78	(1)
46. Current Ratio	79	(2)
47. Decision Matrix	81	(2)
48. Decision Tree	83	(1)
49. Decomposition of Time Series	84	(6)
50. Defensive Interval Ratio	90	(1)
51. Deposits Times Capital Ratio	90	(1)
52. Depreciation Formulas	91	(3)
53. Direct Costs-to-Sales Ratios	94	(2)
54. Discretionary-Cost Ratios	96	(1)
55. Dividend Ratios	97	(2)
56. Dollar-Cost Averaging	99	(1)
57. Du Pont Formulas	100	(3)
58. Earnings per Share	103	(2)
59. EBIT-EPS Approach to Capital Structure	105	(3)
60. Economic Order Quantity	108	(1)
61. Economic Production Run Size	109	(1)
62. Effective Annual Yield	110	(2)
63. Effective Interest Rate	112	(1)
64. Effective Tax Rate	113	(1)
65. Elasticity of Demand	113	(2)
66. Equity Ratios	115	(2)
67. Equivalent Taxable Yield	117	(1)
68. Estimated Expenses versus Cash Expenses	118	(1)
69. Expected Value and Standard Deviation	119	(3)
70. Exponential Smoothing	122	(2)
71. Fixed-Asset Ratios	124	(5)
72. Fixed-Charge Coverage	129	(1)
73. Flexible-Budget Variance	130	(1)
74. Foreign-Exchange Gains and Losses	131	(1)
75. Forward Premium (or Discount) on a Forward Exchange Contract	132	(1)
76. Funded Debt (Long-Term Debt) to Operating Property	133	(1)
77. Funds-Flow Adequacy Ratio	133	(1)
78. Future (Compound) Value	134	(2)
79. Future Value of an Annuity	136	(2)
80. Geometric Average Return	138	(2)
81. Gordon's Dividend Growth Model	140	(1)
82. Gross Income Multiplier	140	(1)
83. Gross Profit Variance	141	(5)
84. Growth Rate	146	(1)
85. High-Low Method	147	(3)
86. Holding-Period Return	150	(1)
87. Horizontal Analysis	151	(1)
88. Housing-Affordability Measures	152	(1)
89. Index-Number Trend Series	153	(1)
90. Index of Bearish Sentiment	153	(1)
91. Indirect Labor to Direct Labor	154	(1)
92. Inflation Adjustments	155	(2)
93. Instability Index in Earnings	157	(1)
94. Insurance Reimbursement	157	(1)
95. Interest Computation	158	(1)
96. Interest Coverage (Times Interest Earned) Ratio	159	(1)
97. Interest-Rate Swaps	160	(2)
98. Internal Rate of Return (Time-Adjusted Rate of Return)	162	(2)
99. Intrayear Compounding	164	(2)
100. Inventory Ratios	166	(2)
101. Investment Income to Investments	168	(1)
102. Investment Turnover	168	(1)
103. Lawsuit Damages to Sales	169	(1)
104. Learning Curve	170	(4)
105. Least-Squares Regression	174	(3)
106. Leverage Ratios and Financial Leverage	177	(4)
107. Life Insurance Adequacy	181	(1)
108. Linear Programming	181	(3)
109. Liquid Assets to Take-Home Pay	184	(1)
110. Liquidity Index	184	(1)
111. Loan-Loss Coverage Ratio	185	(1)
112. Loans to Deposits	186	(1)
113. Maintenance and Repair Index	187	(1)
114. Margin Requirement	187	(1)
115. Marginal Cost and Marginal Revenue	188	(2)
116. Market-Index Model	190	(1)
117. Materiality of Options	191	(1)
118. Median	192	(2)
119. Mix and Yield Variances	194	(5)
120. Mode	199	(1)
121. Moving Average	200	(1)
122. Multiple Regression	201	(2)
123. Multiple-Regression Tests	203	(9)
124. Naive Forecasting Models	212	(1)
125. Net Asset Value	213	(1)
126. Net-Cost Method	214	(1)
127. Net Income Multiplier	215	(1)
128. Net Savings	216	(1)
129. Net Worth	216	(1)
130. Noncurrent Assets to Noncurrent Liabilities	217	(1)
131. Normal Distribution	218	(2)
132. Odd-Lot Index	220	(1)
133. Off-Balance-Sheet Assets and Liabilities	220	(1)
134. Operating Assets Ratio	221	(1)
135. Operating Cycle	222	(1)
136. Operating Leverage	223	(2)
137. Operating Revenue-to-Operating Property Ratio	225	(1)
138. Opportunity Cost	225	(1)
139. Opportunity Cost of Not Taking a Discount	226	(1)
140. Payback Period	227	(1)
141. Pension Formulas	228	(2)
142. Percent Earned on Operating Property	230	(1)
143. Percent-of-Sales Method for Financial Forecasting	231	(2)
144. Personal Debt to Personal Assets	233	(1)
145. Portfolio Theory	234	(3)
146. Preferred Stock to Total Stockholders' Equity	237	(1)
147. Present Value	238	(1)
148. Present Value of an Annuity	239	(2)
149. "Pressing" Current Liabilities to "Patient" Current Liabilities	241	(2)
150. Price-to-Book Value Ratio	243	(1)
151. Price-Earnings Ratio (Multiple)	243	(2)
152. Price (Rate, Spending) Variance	245	(1)
153. Profit Margin	246	(1)
154. Profitability Index	247	(2)
155. Program Evaluation and Review Technique (PERT)	249	(4)
156. Quality of Earnings	253	(2)
157. Quantity Discount Model (EOQ with Quantity Discounts)	255	(2)
158. Quantity (Usage, Efficiency) Variance	257	(2)
159. Realization Risk in Assets	259	(1)
160. Regression Statistics	260	(3)
161. Reorder Point	263	(2)
162. Repairs and Maintenance Ratios	265	(1)
163. Residual Income	266	(1)
164. Return on Total Assets	267	(1)
165. Risk-Adjusted Discount Rate	268	(1)
166. Risk Measures	269	(3)
167. Rule of 72 and Rule of 69	272	(1)
168. Rule of 78	273	(1)
169. Safety Stock	274	(4)
170. Sales-Mix Analysis	278	(3)
171. Sales Returns and Allowances to Sales	281	(1)
172. Sales to Current Assets	281	(1)
173. Sales to Current Debt	282	(1)
174. Sales to Personnel	283	(1)
175. Sales Variances	284	(1)
176. Salesperson Variances	285	(2)
177. Savings to Income	287	(1)
178. Selling Price Computation	288	(1)
179. Shadow Price	289	(2)
180. Simple Interest	291	(1)
181. Simple (Accounting) Rate of Return	292	(1)
182. Simple Regression	292	(2)
183. Simulation Model	294	(5)
184. Sinking Fund Computation	299	(1)
185. Systematic-Sampling Formula	300	(1)
186. Take-Home Pay to Debt-Service Charges	301	(1)
187. Taxable Income	302	(1)
188. Trading on the Equity (Real Estate)	302	(1)
189. Trend Equation	303	(2)
190. Valuation of a Business	305	(5)
191. Value of Option (Call and Put)	310	(4)
192. Value of Stock Rights	314	(3)
193. Variable Costs to Fixed Costs	317	(1)
194. Vertical (Common-Size) Analysis	318	(1)
195. Volume (Denominator) Variance	319	(1)
196. Warehouse Cost Variances	320	(1)
197. Weighted Average (Mean)	321	(2)
198. Wilcox's Gambler's-Ruin Prediction Formula	323	(1)
199. Working Capital	324	(2)
200. Yield on Preferred Stock	326	(1)
201. Z-Score Model: Forecasting Business Failures	327	(2)
Appendix	329	(12)
Index	341