First Time Poster (BEC Formulas)

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    Topic
  • #180647
    CPAsweetness
    Member

    So, I have been lurking on this forum for over a year now and I wanted to shout out.

    I recently passed my first section of AUD. I am taking BEC next. I have to say that I don’t think I would have passed AUD if it wasn’t for this forum.

    Since I recently started BEC, I noticed there are soooo many formulas. So, I typed out a lot of them, and I wanted to share my list with you. It’s going to be quite long, but if copied and pasted to a to a source document, it shouldn’t be as scary. Hey. Feel free to add if I missed one you think is important.

     APR (annual percentage return) = Effective Interest Rate * # of periods in year

     Asset turnover = Sales / Total Assets

     Breakeven Point in terms of units = fixed costs / Contribution Margin

     Breakeven Point in terms of dollars = fixed costs / contribution margin ratio

     Cash conversion cycle = inventory conversion period + receivables collection period – payables deferrable period

     Current ratio = current assets / current liabilities

     Contribution Margin = revenue – variable costs

    or = sales – variable costs

     Cost of Goods Sold = Beg. Inventory + Inv. Purchases – End. Inventory

     Dividend Payout Ratio = cash dividend per share / Earnings per share

     Economic Value Added = net operating profit after taxes (NOPAT) – cost of financing

     Effective Interest Rate = (principle * rate * time) / principle

     Gross Margin = revenue – cost of goods sold (or gross profit)

     Inventory conversion period = Average Inventory / Cost of sales per day

    Average inventory = (Beginning inventory + Ending inventory) / 2

    Make sure to use 365 days per year unless stated otherwise

     Inventory Turnover = cost of goods sold / average inventory

     Marginal propensity to consume = change in spending / change in disposable income

     Marginal propensity to save = change in savings / change in income

     Number of Days Sales in Inventory = # of days in year (usually 365 or 360) / Inventory Turnover

    • Quick Ratio = Quick assets (cash, marketable securities, and A/R) / current liabilities

    • Residual Income (RI) = operating profit – interest on investment (or required rate of return)

    • Times interest Earned Ratio = earnings before interest and taxes / interest expense

    • Total costs = fixed costs + variable costs or y = mx + b, where m = slope, x = variable value, and b = y intercept

    • Variances – plug in the corresponding units:

    • Labor Efficiency – SR * (SH – AH). Actual Quantity Purchased/Consumed *(standard price per unit – actual price per unit)

    • Labor Rate – AH * (SR – AR). Standard price per unit * (standard quantity used – actual quantity used)

    • Material Price – AQ * (SP – AP). Actual Quantity Purchased/Consumed *(standard price per unit – actual price per unit)

    • Material Efficiency – SP * (SQ – AQ). Standard price per unit * (standard quantity used – actual quantity used)

    • Fixed overhead spending – (budgeted-standard fixed overhead to incur – actual fixed overhead incurred)

    • Fixed overhead volume – (budgeted-standard fixed overhead to incur – ((actual production * standard labor hours)*(budgeted-standard fixed overhead to incur/budgeted labor hours))

    • Weighted Average Cost of Capital = [(cost of capital A / Total Amount)(rate of cost)(1-Tax Rate)] + [(cost of capital B / Total cost amount)(rate of cost)]

    • Work in process = Direct Material used + Direct Labor + Manufacturing Overhead

    • Average accounts receivable = (Beg. A/R + End. A/R) / 2

    • Average accounts receivable collection period = sales on credit / average accounts receivable

    • Average total assets = (Beginning total assets + Ending total assets) / 2

    • Book value per share = common stock equity / common stock shares outstanding

    • Common stockholders’ equity = stockholders’ equity – preferred stock liquidation value

    • Contribution Margin Ratio = (sales – variable costs) / sales

    • Cost of financing= (Total assets – current liabilities) * Weighted average cost of capital

    • Cross-Elasticity = % change in demand for certain product A / % change in price of certain product B.

    • Debt to equity = Total debt / total equity

    • Debt to total assets = total liabilities / total assets

    • Discounted Payback Period = multiply by Present Value factor until initial invested amount reached. Disregard salvage value

    • Fixed asset turnover = sales / average net fixed assets

    • Gross Profit = revenue – cost of goods sold

    • Income Elasticity = % change in quantity demanded / % change in income

    • Internal Rate of Return = Initial Investment + Cash Flow in Period n/ (1 + Discount Rate) to the nth power (# of periods).

    • Marginal utility = change in total utility / change in quantity

    • Market/Book Ratio = common stock price per share (or market value)/ book value per share

    • Market Capitalization = Common stock price per share * common stock shares outstanding

    • Operating leverage= % change in operating income / % change in unit volume

    • Operating Profit Margin = Operating profit / net sales

    • Preferred Stock Valuation – dividend per share / required rate of return

    • Price/Earning (PE) Ratio = common stock price per share / Earning per share

    • Profitability Index = project net present value / cost of project

    • Receivables Collection Period = Average Accounts Receivable / Credit Sales per day

    • Receivable Turnover = Net credit sales / average accounts receivable

    • Reorder Point= delivery time of stock + safety stock or could be stated as = average daily demand * average lead time

    • Return on Assets (ROA) = net income / average total assets

    • Return on Equity (ROE) = net income / Average common stockholders’ equity

    • Return on Investment (ROI) = Net Income / Total Assets

    • Return on sales (ROS) = net income / Sales

    • Safety Stock= (Max. Daily demand * Max. Lead time) – reorder point

    • Total asset turnover = sales / average total assets

Viewing 15 replies - 1 through 15 (of 25 total)
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    Replies
  • #831610
    caotran
    Participant

    I found this post is very useful. Thank you very much.

    #1308938
    Hui
    Participant

    Fantastic! Thanks!

    dzz
    #1317251
    alexio senchez
    Participant

    Bumping this. Thanks for effort, I printed out a copy for myself.

    Alex

    #1317253
    mylifeisover
    Participant

    Thanks

    ROAD TO CPA

    AUD - 59, 73, 86
    BEC - 72
    FAR -
    REG -

    #1327184
    grandia01
    Participant

    thank you so much kind sir/madam!!

    #1329257
    cpac
    Participant

    Thank you so, so much!! Just wrote out a bunch of note cards. Thanks!!!

    Working hard...

    AUD: 74, 91 1/18

    BEC: 78 12/16

    FAR: 65, 73, 66, 83 8/17

    REG: 64, 80 1/18

    #1329279
    klg020
    Participant

    You are an angel. Thank you <3

    B - 12/10/2016
    A - 94!!!!!!!!!! (7/1/2016)
    R - 10/7/2016
    F - 8/27/2016

    #1329365
    letsrun4it
    Participant

    it's a nice reference sheet but without memorizing any of them you should know nearly all of them by test day just from working so many problems. people who memorize formulas the week of the test are destined to fail.

    on BEC the only thing i'd find acceptable to be putting in your head the week of the test is the cost accounting formulas .

    AUD - 86
    BEC - 85
    FAR - 76
    REG - 78
    DONE!

    BEC: 85
    REG: 74, 78
    AUD: 86
    FAR: October?

    #1426497
    SONA
    Participant

    Thanks a lot. It is very helpful.

    AUD :56, 72, 77!
    FAR : 74, 77!
    BEC : 72, 75!
    REG : 72, 81!
    #1450862
    tangerinemdr15
    Participant

    Thanks for this! I feel like I'm drowning with all these formulas.

    AUD - 84
    BEC - 86
    FAR - 79
    REG - 80
    Now faith is the substance of things hoped for, the evidence of things not seen.
    Hebrews 11:1
    AUD- 84  Jan. 2017
    BEC- 86 May 2017
    FAR- 71, 79 -Oct 2016
    REG- 74,73, 80 April 2018
    #1450904
    Char143
    Participant

    LOVEEEEE THISSSSS!!!!!!!!!!!!!

    AUD - 84
    BEC - 79
    FAR - 78
    REG - 79
    I'm done! 🙏🏼

     

    Licensed CPA

    AUD (2/16)-84
    REG (05/16)-69 Retake (7/16)-79 (ty ninja MCQ)
    BEC-TBD
    FAR-9/8/16

    #1451090
    Tncincy
    Participant

    Absolutely wonderful. Thank you for being a great ninja…. 🙂

    It begins with a 75
    Been here too long as a cheerleader.....time to pass

    It begins with a 75
    Been here too long as a cheerleader....ready to pass

    #1451919
    CPAIN2K17
    Participant

    Thank you!

    Wiley CPAExcel + Ninja MCQ & Notes

     

    AUD - 97 (1/24/17)

    BEC - 84 (3/10/17)

    FAR - 94 (5/31/17)

    REG - 88 (8/16/17)

    #1454625
    Summie
    Participant

    Aww thanks for sharing this. I have 20 days between my AUD and BEC exams so Ill refer back to this.

    I take AUD in a week. Any advice? Esp regarding chapter 4 info?

    #1501171
    mmgarland08
    Participant

    thanks for sharing!!

Viewing 15 replies - 1 through 15 (of 25 total)
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