### What is High-low point method?

High-low point method is often a technique used in order to divide a merged cost into their variable and set components. Sometimes it will be......

### Financial Leverage: Theory and Mathematical Explanation

Financial leverage (or simply leverage) means acquiring assets while using funds provided by means of creditors and desired stockholders for the main benefit of common......

### Preparation of common size statement: Mathematical Solution

Common size statement is one in which all the items are expressed as a percentage of a base item. Common size statements are helpful in discovering......

### Vertical analysis of financial statements: Mathematical Solution

Vertical analysis (common-size analysis) is usually a popular method involving financial statement analysis that shows each item on a statement as a portion of a......

### Horizontal analysis of financial statements: Mathematical Solution

Horizontally analysis is usually a financial statement research technique that shows changes within the amounts of corresponding financial statement items over a period of time.......

### Capital Gearing Ratio: Mathematical Solution

Capital gearing ratio is a useful tool to investigate the capital structure of any company and also computed by dividing more common stockholders equity by......

### Fixed Assets to Equity Ratio: Mathematical Solution

Fixed assets to equity ratio measures the contribution of stockholders as well as the contribution of debt sources within the fixed assets with the company.......

### Proprietary Ratio: Mathematical Solution

The proprietary ratio (also referred to as net worth percentage or equity ratio) is needed to evaluate the soundness in the capital structure of any......

### Times Interest Earned Ratio: Mathematical Solution

Times interest earned ratio shows the amount of times the 12-monthly interest expenses are included in the net running income (income previous to interest and......

### Debt to Equity Ratio: Mathematical Solution

Debt to equity ratio can be a long term solvency percentage that indicates the particular soundness of long-term financial policies with the company. It shows......

### Mathematical Solution: Dividend Payout Ratio

Dividend payout ratio discloses what area of the current earnings the corporation is paying to be able to its stockholders such as dividend and what......

### Mathematical Solution: Dividend Yield Ratio

Dividend yield ratio explains what percentage of the market price of a share a firm yearly pays to be able to its stockholders as dividends.......

### Mathematical Solution: Return on Capital Employed Ratio

Return on capital employed ratio is calculated by dividing the net income before interest and tax by capital employed. It measures the success of a......

### Mathematical Solution: Earnings Per Share Ratio

Earnings per share (EPS) ratio measures the amount of dollars of net income have been gained by each write about of common stock. It is......

### Mathematical Problem: Aging of Accounts Receivable Method

Example: The company uses the Aging Method to calculate bad debts. The company produced the following aging schedule on December 31, 2013: Allowance for Doubtful......