Dr. 2 B

To: Finance and Accounting From: Katherine McCoy Date: Feb 29, 2012 Subject: monetary speech communication 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 bequeath leave a void in the knowledge ancestor regarding several trace pecuniary and accounting principles, we are direct this memo to wait on explain several refer concepts and principles associated with financial management, accounting, internal control, coin management, and Sarbanes-Oxley regulations. This memo will countersink and provide relevant pipeline examples for the following terminology: 1. economic Value Added 2. Fixed As square offs employee turnover rest 3. Net Profit Margin 4. Sales foretell 5. Breakeven synopsis ECONOMIC VALUE ADDED (EVA) analyzes a political partys operating performance by combining the concepts of accounting income and substantial finance to determine if the stockholders wealth has increased through the communitys operations. EVA = Net income + Interest expense ? Capital charge. decided ASSETS TURNOVER RATIO evaluates the efficiency in which a familiarity can vend from its investments in plant, property, and equipment. Fixed Assets Turnover symmetry example would be 3.

97 if XYZs revenue was 500,002 and the property, plant, and equipment salute 126,000. illuminate PROFIT MARGIN is the ratio of a truehearteds income after adding total revenue and gains and subtracting all expenses and losings for the coverage period to revenues: Ne t Profit Margin case: XYZs net profit perm! issiveness in 2011 was 3.0/284.7 = 1.05%. 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 compendium An synopsis to determine when revenue received will fit the cost to obtain the revenue and calculates what is known as a margin of safety. Margin of...If you want to get a sufficient essay, align it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay