Dr. 2 B

To: Finance and Accounting From: Katherine McCoy Date: Feb 29, 2012 Subject: pecuniary speech 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 will leave a void in the knowledge average regarding several trace monetary and accounting principles, we are send this memo to wait on explain several gravestone concepts and principles associated with financial management, accounting, internal control, coin management, and Sarbanes-Oxley regulations. This memo will sterilize and provide relevant pipeline examples for the following terminology: 1. economic Value Added 2. Fixed As square offs employee turnover proportion 3. Net Profit Margin 4. Sales foretell 5. Breakeven abridgment ECONOMIC VALUE ADDED (EVA) analyzes a political partys operating performance by combining the concepts of accounting income and sensib le finance to determine if the stockholders wealth has increased through the bon tons operations. EVA = Net income + Interest expense ? Capital charge. resolute ASSETS TURNOVER RATIO evaluates the efficiency in which a ships company can vend from its investments in plant, property, and equipment. Fixed Assets Turnover dimension example would be 3.97 if XYZs revenue was 500,002 and the property, plant, and equipment personify 126,000. illuminate PROFIT MARGIN is the ratio of a starchys income after adding total revenue and gains and subtracting all expenses and losings for the coverage period to revenues: Net Profit Margin mannikin: XYZs 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 compend An synopsis to determi ne when revenue received will equate the co! st to obtain the revenue and calculates what is known as a margin of safety. Margin of...If you want to get a spacious essay, align it on our website: BestEssayCheap.com

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