Math for Managers

Math for Managers

by Michael C. Thomsett
Released November 2018
Publisher(s): De Gruyter
ISBN: 9781547400652

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Book description

Math for Managers is a practical summary of formulas every manager needs. The book is organized into logical chapters, and each formula introduced includes an example and the Excel program needed to make the process of calculation simple. It adds a practical side to the challenge of calculating the sometimes complex formulas of compound interest, rates of return, breakeven after tax liability, balance sheet and income ratios, depreciation, reports and budgets, proration, statistics, and more. Additional appendices are provided to explain incredible math shortcuts.

This book will benefit managers and executives at any level within an organization, as well as academic instructors and business students.

Michael C. Thomsett is a market expert, author, speaker, and coach. His many books include Stock Market Math, Candlestick Charting, The Mathematics of Options, and A Technical Approach to Trend Analysis.

Table of contents

  1. Cover
  2. Title page
  3. Copyright
  4. Contents
  5. Chapter 1: Compound Interest: The Power of Money
    1. Time Value of Money—The Concept
      1. Simple Interest
      2. Daily Compound Interest
      3. Annual, Semi-annual and Quarterly Interest
      4. Monthly Compounding
      5. Accumulated Value of a Series of Deposits
  6. Chapter 2: Present Value and Sinking Funds
    1. Present Value of a Single Deposit
      1. Sinking Fund Payments and Present Value Per Period
    2. Loan Amortization
      1. Reading Loan Amortization Tables
  7. Chapter 3: Rates of Return
    1. Return on Revenue and Equity
    2. Cash Return and Cash Flow
    3. Returns on Purchases and Sales
    4. Investment-based Returns
    5. Annualized Return
  8. Chapter 4: Calculating Breakeven and After-Tax Profit
    1. Hidden Costs
    2. The Inflation Effect
    3. Taxes in the Profitability Equation
    4. Breakeven Calculations: Inflation and Taxes
    5. Calculating Cash Flow
  9. Chapter 5: Financial Reporting Formulas: The Balance Sheet
    1. Balance Sheet Basics
    2. Working Capital Ratios
    3. Ratios for Management of Working Capital
    4. Capitalization Ratios
    5. Combined Ratios
  10. Chapter 6: Financial Reporting Formulas: The Income Statement
    1. Income Statement Basics
      1. Dollar and Percentage Reporting
    2. Cost of Goods Sold Relationships
    3. Revenue and Profitability Trends
  11. Chapter 7: Depreciation Calculations
    1. Basic Depreciation Rules
    2. Straight-line and Declining Balance Depreciation
    3. Class Lives and Recovery Periods
    4. Depreciation Calculations for Real Estate
    5. Home Office Depreciation
    6. Amortization
  12. Chapter 8: Bringing Reports to Life: Powerful Arguments with the Numbers
    1. Picking Your Report Format
    2. Narrative Sections
    3. Financial Sections
    4. Combining Narrative and Financial
    5. Graphics in Reports
  13. Chapter 9: Budgeting Calculations: Assumptions and Pro-rations
    1. Documenting Your Assumptions
    2. Addressing the Expense Issues
    3. Prorating Expense Estimates
    4. Calculating Variances
    5. Revising Budgets
    6. The Nature of Revenue Forecasts
  14. Chapter 10: Statistics for Effective Reporting
    1. Management Application of Statistics
    2. Statistical Averages
    3. Dispersion, Deviation and Variance
    4. Accuracy in Statistics
  15. Chapter 11: Incredible Math Shortcuts
    1. Addition
      1. Addition Shortcut # 1: Adding from the Left
      2. Addition Shortcut # 2: Rounding up
      3. Addition Shortcut # 3: Fast Addition in Steps
      4. Addition Shortcut # 4: Fast Addition by Columns
    2. Subtraction
      1. Subtraction Shortcut # 1: Add the Distances From 100
      2. Subtraction Shortcut # 2: Alter Both Sides to Simplify
      3. Subtraction Shortcut # 3: Convert to Two Steps
    3. Logical Rules
    4. Multiplication Shortcuts
      1. Multiplication Shortcut # 1: Squaring Numbers
      2. Multiplication Shortcut # 2: Dropping the Zeroes
      3. Multiplication Shortcut # 3: Multiplying by 4
      4. Multiplication Shortcut # 4: Multiplying by 5
      5. Multiplication Shortcut # 5: Multiplying by 11 or 12
      6. Multiplication Shortcut # 6: Multiplying by 9
      7. Multiplication Shortcut # 7: Multiplying by 15
      8. Multiplication Shortcut # 8: Multiplying Two Numbers 2 or 4 Digits Apart
    5. Division Shortcuts
      1. Division Shortcut # 1: Fast Division by 4
      2. Division Shortcut # 2: Fast Division by 5 or 25
  16. Chapter 12: Incredible Conversion, Measurement and Time Shortcuts
    1. Conversion
    2. Measurements
    3. Time Shortcuts
  17. Appendix A: Summary of Formulas
  18. Appendix B: Summary of Excel Programs
  19. Glossary
  20. Index

Product information

  • Title: Math for Managers
  • Author(s): Michael C. Thomsett
  • Release date: November 2018
  • Publisher(s): De Gruyter
  • ISBN: 9781547400652