Also, as retirement accounts, annuities allow early withdrawals without penalty under certain situations. For example, the annuitants become disabled, suffer a major medical adjusting entry for bad debts expense emergency, or are diagnosed with a terminal illness. In addition, some contracts offer benefits for using penalty-free withdrawals to pay for long-term care expenses. How an Annuity Works However, in comparison…
The income statement usually contains information about a company’s revenues and expenses that you need to perform the calculation. Your business’s net income is the metric that will tell you how much you earned in a particular period (year, month, or quarter). An income statement of your financial statement will provide you with an insight into your operating income and…
You can calculate a company’s net working capital by subtracting its current liabilities from its current assets. When a company’s assets are less than its total current liabilities, it may have trouble paying creditors. If a company’s change in NWC has increased year-over-year (YoY), this implies that either its operating assets have grown and/or its operating liabilities have declined from…
Calculating cash flow from assets is helpful because of the insights it provides into a company’s financial health, efficiency, and operational effectiveness. Cash from financing activities includes the sources of cash from investors and banks, as well as the way cash is paid to shareholders. This includes any dividends, payments for stock repurchases, and repayment of debt principal (loans) that are…
A cashier’s check is a check that draws from the bank’s funds rather than the individual account holder’s. It’s a form of payment that guarantees the recipient there is enough money to cover the check. However, the person requesting the cashier’s check must first provide the bank with enough money to cover the check’s value. At your request, the financial…