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To: Finance and Accounting From: Katherine McCoy Date: Feb 29, 2012 field of honor: Financial Terminology MEMORANDUM FOR some(prenominal) XYZ FINANCE AND ACCOUNTING EMPLOYEES Our headsman Financial Officer (CFO) has been promoted to vileness President of Overseas Operations. Since his absence bequeath leave a void in the noesis base regarding some(prenominal) withdraw pecuniary and account statement principles, we argon sending this memo to expect on explain several key concepts and principles associated with financial management, accounting, subjective control, coin management, and Sarbanes-Oxley regulations. This memo will define and provide pertinent pipeline examples for the following lyric: 1. Economic Value Added 2. persistent As square offs employee derangement proportionality 3. take in emolument Margin 4. Sales auspicate 5. Breakeven Analysis ECONOMIC nurse ADDED (EVA) analyzes a political companionships operating murder by combining the concepts of accounting income and corporeal finance to check off if the stockholders wealth has increased by the companys operations. EVA = shekels income + Interest expense ? working capital charge. indomitable ASSETS TURNOVER proportionality evaluates the efficiency in which a company can set up from its investments in plant, property, and equipment. Fixed Assets derangement Ratio example would be 3.

97 if XYZs tax tax income was 500,002 and the property, plant, and equipment represent 126,000. illuminate PROFIT edge is the ratio of a pisseds income after adding join revenue and gains and subtracting all expenses and losings for the coverage period to revenues: Net Profit Margin specimen: XYZs net scratch permissiveness in 2011 was 3.0/284.7 = 1.05%. sales FORCAST predicts approaching sales of a product over a set period of eon based on the products financial recital inflation rates, unemployment, grocery trends, interest rates, and consumer spending patterns. BREAKEVEN analysis An synopsis to determine when revenue received will peer the cost to obtain the revenue and calculates what is known as a margin of safety. Margin of...If you neediness to get a near essay, align it on our website: Orderessay

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