March 2009 Archive

To pay interest on its debt a business needs sufficient earnings before interest and income tax (EBIT). To test the ability to pay interest, the times-interest-earned ratio is calculated. (more…)

Here is a website that can give you information if you have a problem with file extensions. There are many of file extensions. Sometimes we find new file format that we never known before. Usually people will try to open it with some software that available in their Windows. Well, you should be careful if you want to open unknown file format. If you push it, perhaps the file will broke or interrupted. (more…)

Future is unpredictable and unforeseen for common people like us eventhough we have hunch. We never know what will happen tomorrow even next hour. What we can do is prepare and do precaution if something might happened especially bad things. Something must probably concern is having life insurance. It is important especially if somebody already has family and this person has important role to finance your family. We can not predict what will happen and the best thing to do is prepare for the worse. If this person has life insurance and something bad suddenly happened to the person, the insurance company where this person insured will give compensation for the death of the person. The insurance company will provide cash payment for the beneficiary. This much help to overcome the financial problem which might occur. (more…)

Some debt is good, but too much is dangerous. The debt-toequity ratio is an indicator of whether a company is using debt prudently or is overburdened with debt that could cause problems (more…)

Inventory is many weeks away from conversion into cash. Products usually are held two, three, or four months before being sold. If sales are made on credit, which is normal when one business sells to another business, theres a second waiting period before accounts receivables are collected. In short, inventory is not nearly as liquid as accounts receivable; it takes a lot longer to convert inventory into cash. Furthermore,
theres no guarantee that all the products in inventory will be sold, or sold above cost. (more…)