| page 3 Calculators on the Interenet of Possible Use in Accounting previous page C. Income Statement – sales and prices, margins and profits, returns 1. Sales and prices a. Sales price for a given wholesale cost markup percentage. www.csgnetwork.com/costpluscalc.html. This calculator, from Computer Support Group, serves the purpose of a handheld calculator in that you can quickly determine how much to add to the wholesale price, when you used a pre-determined markup percentage. b. Dollar amounts markdown for a percentage markdown. www.csgnetwork.com/retailmdowncalc.html. This calculator, from Computer Support Group, will compute the dollar amount to reduce the sales price of an item, given the percentage mark down that is advertised. c. Markups using different methods. www.csgnetwork.com/retailsalescalc.html. This calculator, from Computer Support Group, offers the opportunity to find the pricing for products using the markup approach that you best understand and feel comfortable with. Whatever approach is used, it is critical that sufficient difference (between sales price and cost of product sold) is achieved to allow for a profit, once other expenses are paid for. Having a calculator to investigate various retail prices, cost of goods sold, a dollar markup, and percentage markup combinations should be useful. d. Assistance in setting product-selling prices. www.dinkytown.net/java/ProfitMargin.html. This calculator, from KJE Computer Solution, will compute a selling price for up to ten products in order to obtain desired gross margins. Inputs are wholesale costs and markup percentages (which need to be varied to get to desired gross margins). The needed selling prices are calculated. e. Increases in sales prices with inflation. www.csgnetwork.com/gdpcalc.html. This calculator, from Computer Support Group, shows you how product costs (sales prices) have increased, based on US Government data. For example, a $1 sales price for a product in 2000 would have a price of $1.10 in 2005 (estimated), on a national average, according the US Government’s collected data and analysis. This calculator would seem to be useful in evaluating how a company is increasing its product sales price in comparison to a standard. f. Price changes and comparison using the CPI. www.minneapolisfed.org/research/data/us/calc. This link takes you to site, maintained by the Federal Reserve Bank of Minneapolis, at which you can compute a price change from a previous year to the current year, for goods sold, based on the US Government’s consumer price index (CPI). For example, $1 of goods or services in 2000 requires $1.14 to purchase in 2005. g. Price changes based on PPI. www.csgnetwork.com/ppicalc.html. This calculator, from Computer Support Group, computes a wholesaler’s price change from a previous year to 2001, based on the US Government's producer price index (PPI). For example, $1 of wholesale goods in 1990 costs $1.07 in 2001. 2. Margins and profits a. Sales cost volume price profit breakeven calculator. www.dinkytown.net/java/BreakEven.html. This link takes you to a site, maintained by KJE Computer Solutions, LLC, at which you can use a sales cost volume price profit calculator. Provide the variable unit cost, fixed cost, expected unit sales, and price per unit and you will get back the total variable costs, total of all costs, total revenue, and profit. You can also get a report that shows the breakeven point in units. b. Gross profit margin percentage. www.bankrate.com/brm/news/biz/bizcalcs/ratiogross.asp. This calculator, from bankrate.com, computes the gross profit margin ratio (or percentage). Although easily calculated, with a hand calculator, this online calculator makes the process more certain. 3. Returns Return on your equity in the company. http://cgi.money.cnn.com/tools/returnrate/returnrate.jsp. This calculator, from CNN, will compute your return on capital you have invested in your company. Inputs include the initial and present capital (equity) values, and any amounts you have added or withdrawn. This looks to be a good computation for the small business owner, where such a result as provided by the calculator might be of high interest. Click here to go to next page (page 4) |