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Resources for Accountants

Cash Conversion Cycle [Video]

The cash conversion cycle (or cash-to-cash cycle) is the length of time between (1) when a company pays cash for its inventory and (2) when it receives cash from its customers. The cash conversion cycle is the sum of (a) the number of days it takes to sell inventory and (b) the number of days it takes to collect receivables MINUS (c) the number of days it takes to pay the company’s suppliersCCC = Days to Sell Inventory + Days Sales Outstanding – Days Payable OutstandingThe cash conversion cycle is important because it tells you how long the company needs to finance its inventory. And the longer the cash conversion cycle, the more financing the company will need.For example, let’s say a company purchases inventory from a supplier today. The supplier says the company can pay for the inventory in 25 days. But the company doesn’t sell the inventory for 40 days. And once the inventory is sold, it takes another 30 days to collect cash from the customer. Thus, when it’s time to pay the supplier for the inventory (25 days) the company is still 45 days away from receiving cash for the inventory (30 + 40 – 25). The company needs to pay for the inventory on day 25 but doesn’t receive cash for the inventory until day 70. That 45-day period of time is the cash conversion cycle.The company will need to borrow money or come up with some other form of financing to bridge the gap until it receives cash from customers .A long cash conversion cycle can lead to costly finance charges, so companies can save a lot of money by shortening the cycle.#shorts — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING• A 44-PAGE GUIDE TO U.S. TAXATION• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS• MANY MORE FREE PDF GUIDES AND SPREADSHEETS* http://eepurl.com/dIaa5z— SUPPORT EDSPIRA ON PATREON*https://www.patreon.com/prof_mclaughlin— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/* https://michaelmclaughlin.com

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Resources for Accountants

Earnings season: Easy explanation [Video]

This video will teach you about earnings season and how you can use it best. #earningsseason #quarterlyresults #wallstreetmojo #financialresults #corporateearnings Chapters: 00:00 – Introduction 00:45 – What is earnings season? 02:25 – How to make the best use of the earnings season? 03:42 – Important concepts 05:16 – Conclusion What is earnings season? Companies must release their quarterly earnings as per the law and usually release them within two weeks of the quarter's last month. Most companies release their earnings during April, July, October, and January. This is known as earnings season. (Explained in detail in the video) How to make the best use of the earnings season? Investors usually look for companies that beat the estimates vigorously, and if everything else looks good, they may invest in those companies. Many market participants also use options strategies like straddles to capitalize on the market's volatility that the earnings season brings. (Explained in detail in the video) Important concepts Earnings surprise Bellwethers Aggregate expectations vs aggregate reality (Explained in detail in the video) This will be all for this video on earnings season. Don’t forget to subscribe to the channel, give this video a like, and share it with others. ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo

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Resources for Accountants

Tax Rules for S Corporations in the US [Video]

This video provides an overview of the tax rules for S corporations in the United States. An S corporation is a business entity type that provides the limited liability of a corporation but is taxed as a flow-through entity (no double taxation like C corporations). Profits (or losses) of the S corporation flow through to shareholders and are taxed at the shareholder (but not corporate) level. An S corporation must be organized in a U.S. state. After creating a corporation, shareholders must file Form 2553 with the IRS to elect for the company to be treated as an S corporation. Not all corporations be an S corporation, and there are requirements based on the type of corporation, the number of shareholders, and types of shareholders. Income and deductions of an S corporation are allocated to an S corporation on a pro rata basis. In contrast to partnerships, special allocations (non pro rata) are not allowed. Distributions to shareholders are generally nontaxable to the extent the shareholder has basis, although distributions can be taxable if they exceed the shareholder's basis or if the distributions pertain to earnings and profits (E&P) accumulated by the corporation prior to its election to become an S corporation. A shareholder's basis is increased by capital contributions, share purchases, and the shareholder's pro rata share of income items, while the shareholder's basis is decreased by nontaxable distributions to the shareholder and the shareholder's pro rata share of deductions and losses (although the shareholder's basis can never go below zero). In contrast to partnerships, a shareholder's basis is not increased when the S corporation borrows money (unless the shareholder loans money to the S corporation). While S corporations are flow-through entities and are thus not subject to income tax, S corporations may be subject to taxes in certain situations. 0:00 Overview 0:33 What is an S corporation? 2:51 How to create an S corporation 3:40 Requirements to be an S corporation 8:01 Allocating income and deductions 11:19 Tax consequences of distributions 14:53 Calculating a shareholder's basis 17:13 Taxes on S corporations — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com

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Resources for Accountants

What is Trading desk? -Youtube Shorts [Video]

#shorts #tradingdesk #financialmarkets #wallstreetmojo What is a trading desk? | MUST WATCH | WALLSTREETMOJO A trading desk would be a bank or financial institution department that buys or sells financial assets on behalf of clients. The trading desks would comprise expert traders with vast knowledge about the mechanisms of the markets, and they know how to get the best price for their clients. To know more about it, check out our Youtube video. https://www.youtube.com/watch?v=4FW8kXtr-is ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo

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Resources for Accountants

Take or pay – Youtube Shorts [Video]

#shorts #takeorpay #contractualclause #wallstreetmojoWhat is take or pay?| MUST WATCH | WALLSTREETMOJO The take or pay clause basically stipulates a buyer takes the goods from the seller in exchange for the pre-determined amount. They must pay a fine if they refuse to take the goods.So what this contractual clause does is that it protects sellers in case the buyer refuses to honor the terms of the contract.To know more about it, check out our Youtube video. https://www.youtube.com/watch?v=se4du84LgpY========================================================================== Subscribe to Our Channel – Youtube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn https://www.linkedin.com/company/wallstreetmojo/ Facebook https://www.facebook.com/wallstreetmojo Instagram https://www.instagram.com/wallstreetmojoofficial/ Twitter https://twitter.com/wallstreetmojo

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Resources for Accountants

8 Ways Companies Manipulate Profits [Video]

Here are 8 ways companies manipulate their profits: 1. Aggressive revenue recognition – The company records a fictitious sale or records a legitimate sale too soon.2. Improper capitalization – The company converts a routine expense into an asset, spreading the cost over multiple periods.3. Changing accounting methods – The company switches from LIFO to FIFO.4. Changing estimates – The company changes the estimated useful life and salvage value for fixed assets, spreading the cost over a longer period of time and boosting profits today.5. Changing the timing of events – The company sells an investment with an unrealized gain.6. Altering business decisions – The company slashes R&D or postpones maintenance on equipment to make the company appear more profitable.7. Related-party transactions – The company inflates profits through sham transactions with related parties.8. M&A – The company frequently engages in acquisitions and pressures target firms to shift profits from the pre-merger period to the post-merger period.So there you have it; 8 ways companies manipulate profits.#shorts — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING• A 44-PAGE GUIDE TO U.S. TAXATION• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS• MANY MORE FREE PDF GUIDES AND SPREADSHEETS* http://eepurl.com/dIaa5z— SUPPORT EDSPIRA ON PATREON*https://www.patreon.com/prof_mclaughlin— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/* https://michaelmclaughlin.com

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Resources for Accountants

Earnings estimate: Easy explanation [Video]

In this video, you will learn about earnings estimate.#earningsestimate #financials #wallstreetmojo #companyresults #financialresultsChapters:00:00 – Introduction00:40 – What is the earnings estimate?01:29 – How to calculate earnings per share estimation?06:29 – Earnings surprise and how does it affect share price?07:25 – ConclusionWhat is the earnings estimate?Before companies release their financial results, analysts usually forecast the company’s financial results.They use various methods to determine how well or poorly the company did in the quarter or the entire financial year. This is what the earnings estimate is.Earnings estimate is significant as it allows investors to have a benchmark to compare the company’s performance, and accordingly, they can plan their investments.(Explained in detail in the video)How to calculate earnings per share estimation?Earnings estimate is calculated by calculating how much the company would earn in total and then dividing it by the number of outstanding shares to give EPS, which stands for Earnings Per Share.Analysts have to study all company revenue streams and work around them to figure out how much a company will earn in the next quarter or financial year.(Explained in detail in the video)Earnings surprise and how does it affect share price?When the company declares its results, it will either beat the estimate, that is, the company performed better than what the analysts forecasted, or the company would’ve performed poorly, and their results were below the estimates.If it beats the estimate, it’s a good sign, and the share price can go up. But if it fails to keep up with estimates, the share price might go down.This is all for this video. Subscribe to the channel, give the video a like, and share it with others.==========================================================================Subscribe to Our Channel –Youtube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1LinkedIn https://www.linkedin.com/company/wallstreetmojo/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/Twitter https://twitter.com/wallstreetmojo

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Resources for Accountants

A Little Encouragement from Edspira [Video]

I created Edspira to help others, and I sincerely hope you achieve your dreams. Don't give up! If you need some encouragement, you can reach out to me on LinkedIn or send me a message by clicking here: https://www.edspira.com/contact-2/ But seriously, please don't reach out to ask me to do your homework for you. — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com

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Resources for Accountants

Member Spotlight Series: Amplifying the Diverse Voices of the Profession [Video]

This month, we feature Tiffany Prudhomme, CPA, national managing partner at BDO USA, LLP in our member spotlight series, amplifying the diverse voices of the accounting and finance profession. Tiffany shares her thoughts on inclusion, her work at BDO and the AICPA® & CIMA® Women’s Initiative Executive Committee, of which she is a member.#aicpadiversity #AICPAWomenLead