The art of mathematics in business : analyzing facts and figures for smart business decisions / Jae K. Shim.

Includes index.

Understanding simple interest -- Real (effective) interest rate -- The cost of credit: annual percentage rate -- Calculating due dates -- Promissory notes and bank discounts -- Trade credit -- Receivables and inventory financing -- Estimating the cost of debt and equity financing -- Establishing a budgeting system for profit planning -- What is the cost structure? -- Using budgeting to control cash -- Forecasting cash collections -- "What-if" analysis -- Budget accuracy ratios -- Projecting financing needs -- Naive forecasting models -- Moving averages -- Exponential smoothing -- Regression analysis -- Regression statistics -- Simple regression -- Trend equation -- Decomposition of time series -- Measuring accuracy of forecasts -- Cost of prediction errors -- X² (Chi-square test) -- Cash flow statement -- Using float -- Using a lockbox to get money sooner -- Bank reconciliation -- Putting excess cash to work -- What is the equivalent tax yield? -- Determining the optimal cash -- Cash ratios -- Cash flow from operations -- Cash forecasting -- Accounts receivable ratios -- Managing accounts receivable -- Inventory ratios -- How much to order (economic order quantity) and when to order (reorder point) -- Calculating quantity discounts (EOQ with quantity discounts) -- Determining production run size -- Allowing for safety stock -- Calculating inventory dollar burden -- Using the ABC system for inventory control -- Sales ratios -- How good is the merchandise? -- Factoring in trade discounts -- Calculating cash discounts -- Single equivalent discount and chain discount -- Markup calculations -- Cost as a basis -- Commission computation -- Cost-volume-profit analysis -- Contribution margin analysis -- How does product demand react to a price change? -- Figuring the risk-return trade-off -- Opportunity cost -- How many years does it take to get your money back (payback period)? -- How do you calculate future values? How money grows? -- Determining annual deposits (sinking funds) -- Determining the number of periods required -- Rules of 69 and 72 -- Computing interest rate -- How to calculate after-tax cash flows -- What is present value? How much is money worth now? -- Calculating loan payments -- Ranking proposals and projects -- Determining internal rate of return (time-adjusted rate of return) -- Capitalization rate -- Gross income multiplier -- Net income multiplier -- How are your assets operating? -- Repairs and maintenance ratios -- Maintenance and repair index -- Utilization of space -- Efficiency measurements -- Direst costs-to-sales ratios -- Balance sheet basics -- Profit and loss statement -- Ratios, proportions, and percentages -- Charts and graphs -- Comparing accounts over the years (horizontal analysis) -- Comparing accounts within the current year -- How to use index numbers -- Growth rate -- Current ratio -- Quick (acid test) ratio -- Operating cycle -- Are your defensive assets sufficient? -- Working capital -- Liquidity index -- Assessing asset utilization (turnover) -- Fixed-asset ratios -- Noncurrent assets to noncurrent liabilities -- Accounts payable ratios -- Current liability ratios -- How much debt do you have, and can you pay it? -- What obligations are pressing? -- Ratios of off-balance-sheet assets and liabilities -- Earning growth -- Profit margin -- Sales to current assets -- Sales to current debt -- Analysis of expenses -- Can you cover interest payments? -- Operating leverage -- Fixed-charge coverage -- Is your funds flow adequate? -- Discretionary cost ratios -- "Z-score" model: forecasting business failure -- Choosing profitability goals -- Simple (accounting) rate of return -- Return on total assets -- Residual income -- Flexible-budget variance -- Variance between actual sales and budgeted sales -- Variance between actual costs and budgeted costs -- Price variance -- Quantity variance -- Salesperson variances -- Warehouse cost variance -- Incremental cost and incremental revenue -- Averages (means): simple and weighted -- Median and mode -- Expected value and standard deviation -- Coefficient of variation -- Normal distribution -- Determining how much insurance is needed -- Factoring in coinsurance and copayment -- Evaluating insurance risk -- Estimating the value of a claim -- Permutations and combinations -- Sizing up human resource needs -- Calculating the cost of a fringe benefits program -- Determining profit-sharing bonus -- Employee efficiency -- Determining how much your business is worth -- Valuing a franchise.