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Tip of the Day Pay All Credit Card Balances In Full Each Month

Pay All Credit Card Balances In Full Each Month - It is necessary to pay all credit card balances in full each month to prevent paying extremely high interest rates...

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Inventory Turnover

Inventory Turnover – Inventory Turnover is an accounting and warehousing formula that determines whether stored product is being sold or delivered at industry rates.  Low turnover indicates problems with sales or buying issues.  High turnover is generally a very good sign, because storage and management costs are reduced.  If the high turnover is not within industry ranges, there could be other factors affecting turnover, such as theft.  The formula for inventory turnover is: the cost of goods sold divided by the average inventory.  Average inventory is the beginning inventory plus the ending inventory (each month) divided by two.

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Definition of the Day Coverage Ratio

Coverage Ratio - the term coverage ratio is a type of accounting tool that helps measure a company’s ability to survive and grow.  Simply by comparing the company’s assets (gross profits) and liabilities (expenses) are a form of figuring the coverage ratio. The higher the assets, and the lower...

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