| page 2 Calculators on the Internet of Possible Use in Accounting previous page 3. Inventory a. Carrying cost of inventory. www.pmicp.com/calculators/carryingcost.html. This calculator, from Parts Management Inventory Control Programs, computes the carrying cost for a known inventory value. Factors used in computing the carrying cost include: a cost of capital rate; any state and local tax rates imposed on inventory; a rate for storage; and a risk cost (which is made up of expected obsolescence, damage, and pilferage). b. Average inventory cost. www.csgnetwork.com/averageinventorycalc.html. This calculator, from Computer Support Group, will compute the inventory item average cost for all the costs associated with your inventory. Add the total cost for each component (e.g. shipping, handling, labor) associated with the total inventory in the top entry cell, and click “Enter Inventory Cost Factors”. For each type of inventory item, enter the total cost of the item type and then enter the total numbers of inventory items for all item types. Clicking “Calculate Inventory Average Data” will give inventory items average cost (all inventory items, regardless of item type, will have the same average cost). Although the result can be easily found with a spreadsheet, this calculator helps to lead you through the process. The calculator might help in verifying inventory amounts shown on the balance sheet. c. Savings by optimizing inventory purchase amounts and dates. www.pafis.shh.fi/~stecon02/afis/we2/calculate/calculate.html. At this site, you can calculate the economic order quantity (EOQ), or the amount of inventory that when ordered at the order rate calculated will give the lowest ordering and carrying costs for the year. For a small business, these calculators can be quickly used to come up with a sensible inventory-ordering plan. One of the inputs for the EOD calculator is carrying cost, which can be calculated by using another calculator identified else where in this article, and which usually comes out to be about 10 to 20% of the inventory value. Another input is expected demand, which can be just last year’s inventory used plus any adjustment expected for growth. And the final input is ordering cost, per unit, which should be fairly easily estimated using financial statement values from the previous year. The object here is not necessarily to be exact, but approximate. Even if you are close, you will help your company a lot by pursuing a sensible plan, rather than using a random inventory order plan. This calculator seems to be good in determining optimal order quantities and frequency for lowest inventory overhead costs (i.e., order and carrying costs). d. Optimizing inventory amounts calculator. www.dinkytown.net/java/Inventory.html. This inventory analysis calculator, from KJE Computer Solution, is good for helping to decide upon an optimal inventory level during the course of a year when an estimate of sales growth is reasonable and a safety stock amount is known. The present inventory at the beginning of the period and the current per week inventory demand (sales level) is needed. If the current inventory level is too high for the current demand and estimated demand growth level, this will become apparent in the calculation’s results. e. Improved inventory management effects on net income. www.microsoft.com/BusinessSolutions/roi/rms.aspx. This calculator, from Microsoft, allows you to choose various input values for: percentage overstocking; reductions in theft, shrinkage, and inventory control; and increased inventory management productivity. Choosing these values will show the effects of the values on income. Also given are various actions that might increase sales. 4. Working Capital a. A current ratio calculator. www.csgnetwork.com/bizliqbalsheetcalc.html. This calculator, from Computer Support Group, will compute your current ratio (called liquidity ratio on the calculator). A useful feature is being able to enter amounts for the various accounts that generally make up current assets and current liabilities, such that mistakes of omissions are easier avoided. b. Working capital status. www.dinkytown.net/java/Capital.html. This calculator, from KJE Computer Solution, will quickly show you what your current ratio is. The results that are presented on the calculator and in the report are useful in emphasizing deficiencies in working capital. B. Balance Sheet - Liabilities 1. Accounts Payable (AP) a. Savings for AP payments with discounts. http://fms.treas.gov/prompt/discount.html. This calculator, from the US Treasury, computes the annual percentage savings you will gain by paying a vendor before the due date of his invoice, if your payment qualifies for a percentage discount. Although this calculator is for use by US Government payment departments, it works equally well for all accounts payable departments. Discount for early payment of a bill usually results in higher savings than would be earned by investing the discounted amount, and therefore should always be made, if funds are available. This calculator will show you the annual percentage savings. b. Interest on payments late up to 30 days. http://fms.treas.gov/prompt/ppcalc1.html. This calculator, from the US Treasury, computes the interest that is due on a late payment (up to 30 days late) using simple interest. The payment due, the days late, and the interest penalty are needed. c. Interest on payments late more than 30 days. http://fms.treas.gov/prompt/ppcalc2.html. This calculator, from the US Treasury, computes the interest due on a payment to a vendor more than 30 days late, when compounded interest is used to determine the interest. 2. Debts a. Amortization calculator. http://ray.met.fsu.edu/~bret/amortize.html. This link takes you to an amortization calculator, created by Bret Whissel, which will give you an amortization schedule and other repayment details for loans. A frequently asked questions section is helpful in using the calculator under various conditions. A nice feature is the cumulative principle and interest payments, given on the amortization schedule. b. Loan amortization. www.dinkytown.net/java/SimpleLoan.html. Here is another loan amortization calculator, from KJE Computer Solution. Presenting more than one in this article, I believe, is useful because each of the amortization calculators vary in the information they present and/or the format presented. For example, this calculator presents the total interest paid on the calculator, without having to search for it on the report. Also, a graphical representation is presented of the remaining principle balance. c. Payment comparison – loan and credit line. www.dinkytown.net/java/PaymentOptions.html. This calculator, from KJE Computer Solution, will compare payments on a loan, depending on the payment option you have. Payment options include: only paying interest on the loan, with no reduction in principle; and paying 1%, 1.5%, or 2%, respectively, of the remaining principle, plus interest. Total principle payments, total interest payments, and ending loan balance (for the term of the loan) are provided for each option. d. Loan comparisons. www.dinkytown.net/java/CompareLoan.html. This calculator, from KJE Computer Solution, allows you to compare a loan you need, but where the terms of the loan offered by lending institutions may vary, e.g. interest rate, origination fee, and other fees and costs. The annual percentage rate, upon which a decision should be based, if possible, is provided for each set of terms. e. Balloon loan calculator. www.dinkytown.net/java/BalloonLoan.html. The calculator, from KJE Computer Solution, at this site will help you consider balloon loan options. Monthly payments are lower with such a loan, but an earlier payoff plus remaining interest is required. click here to go to next page (page 3) |