Variable cost vs. Fixed cost: Is Higher Gross Profit Always a Good Thing?
Variable cost vs. fixed cost is one of the most important concepts in managing a company. Knowing it will help entrepreneurs make smarter decisions.
Michael "Shoe" Xu
How Raw Material Procurement and Manufacturing Affect Balance Sheet
If you have read my last post, you know that our fictional company has been created, and has procured land usage right and fixed assets such as manufacturing plant, equipment, etc. Now the company is ready to produce.
In this episode, we will keep following the economic activities and learn
How to Prepare Balance Sheet - Using a Company's Creation as Example
Having a financial mindset helps an entrepreneur build resource allocation skills and judgments. Here we discuss how to prepare balance sheet to help cultivate that understanding.
Relationship Between Income Statement and Balance Sheet
The undistributed profit goes into retained earnings. This is the most direct relationship between income statement and balance sheet.
Income Statement: the Formula that Tells if We Make a Profit or Loss
To know whether your biz makes a profit, you have to understand Income Statement - the formula that tells if you make a profit or loss.
Understanding Balance Sheet: A Comprehensive Guide for Beginners
Assets equal Liabilities plus Shareholders' Equity. But what can this equation and all the information on Balance Sheet tell us? Read this guide to learn the basics.
Shareholder's Equity: the Last Piece on Balance Sheet
Learn about the structure of shareholder's equity, and how capital stock, additional paid-in capital, surplus reserve, and retained earnings work.
Geography and Identity: How Cities I've Lived in Shape Who I Am Today
I've been traveling in the past few days to Hong Kong and Shenzhen. Compared with Shanghai, these cities are more or less the same when looking on the outside, but when you spend a few days there, you inevitably experience the nuanced differences, like how people behave, how
Liabilities: Current and Noncurrent
A company will classify liabilities within 12 months as current and beyond 12 months as Noncurrent. Read to learn more.
Fair Value vs. Historical Cost: Rules, Applications, and Exceptions
Knowing the total worth of your assets on the balance sheet is important. But what number should you use? Fair value or historical cost?