Whether you are a newbie or an adept student, you do undergo your share of struggle with economics assignment. The sense of accomplishment dawns in only after the submission of the assignment within the ascertained time frame. Writing economics project to determine revenue earnings homework answers involve scouring through numerous statistical data and analytical tools over the internet. The buck does not stop here. Specific knowledge of industries and a general cognizance of market condition do help in writing an economics project.
Basic concept of revenue earnings
- Revenue of a firm is generated by top line selling of its product and services.
- Earnings are the bottom line profit remaining after deducting the cost of goods sold from revenue generated.
- The cost of goods includes production cost, overhead expenses, taxes, depreciation, amortization, and interest.
- Earnings and not revenue are the ultimate measure of the profitability and viability of a business.
- The growth of a firm is ascertained by the â€˜earnings resultsâ€™ report published at the end of every quarter to inform the investors. Thus determining revenue earnings homework answers has great importance in economics.
- Despite lucrative revenue generation, a firm can run out of business if earnings are less than or equal to zero.
- Earnings â‰¤ 0 implies (production cost + overhead cost + interest+ taxes) â‰¥ revenue.
- In an income statement, revenue or sales are displayed on the left-hand side of the statement in a horizontal format and on top of the statement in a vertical format.
- Top line revenue holds much cognizance in running a business, however, revenue alone does not reflect the health of a company.
Forms of earnings
Among the various forms, we will discuss some relatively easy to understand forms. It will help us connect better.
- EBT is earning before taxes are paid.
- EBIT is earning before interests and taxes are paid.
- EBDITA is earnings before depreciation, interest; taxes are paid. In other words, itâ€™s the earning before all these costs are deducted from revenue.
How do you calculate earnings?
Now that we know how to separate revenue and earnings, we must know how to calculate EPS or earnings per share which are a good indicator of a companyâ€™s profitability. Evaluating a certain stock rests upon the determination of EPS and holds supreme importance in investment decisions.
EPS = (Net income â€“ dividend on preferred stock)/(Average outstanding shares)
There do exist some contradictory implications of EPS calculation however they vary case-to-case basis.
Ascertaining revenue earnings homework answers within the given framework of a case study is never easy. Students often face certain challenges to determine the correct answers. To top that, validating the answers with sufficient data and diagram adds on to the existing pile of problems.
Common mistakes made while writing assignment
- Lack of belief in oneself:
Finding out the correct answer seems like an easy task when pitched against validating the same.
Fix it by thinking logically and put all the thread in place. Back up your answers with statistics and diagrams if possible.
- Well-read does not guarantee wisdom:
Read as much as you can assimilate. Reading lot of relevant articles and theories does not make sense if you are unable to use them while writing answers.
Fix it by summarizing and retaining the basic information from all the reading in your note-book. Use mind-mapping to get the basic idea of the theory and try connecting the dots of your project.
- Ascertaining revenue earnings homework answers is relatively easy and hence left out to be solved at the last minute:
Do not fall under the notion and wait till the eleventh hour to finish homework.
Fix it by addressing the concerns immediately. This helps to save your precious time and energy.
- Donâ€™t make yourself more competitive than what is necessary:
Constant judging your work and comparing it with others will lead to undue stress thus adversely affecting your performance.
Fix it by relaxing and be logical. Indulge in some other activities and take a short break to recharge your batteries.
Quick tips to overcome challenges faced trying to determine revenue earnings homework answers
- Follow carefully the instructions and guidelines for writing the assignment.
- Focus on the variables that determine the answers to a mathematical question.
- The statistics related to a particular case is bound to be different than another case; hence complete engagement with the subject is essential.
- Approach the problem from a productive perspective to find out the correct answers.
- Be ready with all relevant statistical and analytical tools to resolve the question.
Any regular economics assignment revolves around few topics of macro and microeconomics. The case study rests upon the foundation of these subject matters. The students are given the task of ascertaining revenue and earnings to help them prepare reports on the feasibility of running a certain business. The topics that are mostly in use to determine revenue earnings homework answers are as follows:
- Demand and supply of labor
- Productivity and income growth
- Business cycle
- Wages and employment
- Income and output
- Aggregate supply and demand
- Relevant studies on consumption, saving and investment
Economics assignment related to revenue earnings take into consideration the social cost of production of goods and service. For example, the cost of producing a car does include the pollution cost incurred to the environment. Attaching a value to the social cost is extremely difficult though not completely impossible and requires intricate, complicated tools and data. Seeking revenue earnings homework answers lets you deal with such challenging situation to spice up your life and activate your gray cells.