Cash Flow from Operations – Capital Expenditures Contributed Capital measure of the capital contributed by the stockholders of a company when they purchase ownership shares in the company Earned Capital

cash flow

1. cash flow operating activities 
2. ” ” investing activities 
3. ” ” financing activities

Free Cash Flow

Cash Flow from Operations – Capital Expenditures

Contributed Capital

measure of the capital contributed by the stockholders of a company when they purchase ownership shares in the company

Earned Capital

– measure of the capital that is earned by the company, reinvested in the business, and not distributed to its stockholders
– that is not retained earnings

Measures for profitability analysis

comparison of profitability between companies of different sizes

Return on Sales Ratio

net income/net sales

Solvency

a company’s ability to pay its long-term financial obligations

Debt to total assets ratio

total liabilities/total assets

Cash Discount

A deduction that a vendor allows on the invoice amount to encourage prompt payment

Costs of Goods available for sale

the total cost spent on inventory that was available to be sold during a period

Cost of goods sold (cost of sales)

the total cost of merchandise sold during the period

Credit period

the amount of time allowed before full payment is due

Discount period

Time period in which a cash discount is available and the buyer can make a reduced payment.

FOB destination

When the buyer is responsible for shipping costs

FOB shipping point

ownership of the goods passes to the buyer when the public carrier accepts the goods from the seller

Gross profit

 

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