Internal Percentage Flow

Percentages

Percentages

If you buy a new piece of bookkeeping supplies Equipment for $5,535, and you receive a cash flow of $1,000 per year for 8 years. What is the internal percentage of return?

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Jan 20, 2024
Rating
starstarstarstarstar 		Evaluating the Internal Rate of Return
by: BB

To calculate the internal rate of return (IRR), you can use the following formula:

IRR
=
(
Cash Inflow per Year
Initial Cost
)
1
Number of Years
−
1
IRR=(
Initial Cost
Cash Inflow per Year
​
)
Number of Years
1
​

−1

In this case:
IRR
=
(
1
,
000
5
,
535
)
1
8
−
1
IRR=(
5,535
1,000
​
)
8
1
​

−1

Let's calculate this:

IRR
=
(
0.1804
)
0.125
−
1
IRR=(0.1804)
0.125
−1
IRR
≈
0.0443
IRR≈0.0443

Convert the decimal to a percentage:
IRR
≈
4.43
%
IRR≈4.43%

So, the internal rate of return for the equipment investment is approximately
4.43
%
4.43%.

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Percentage Charged For Freight

by Sue Darley
(Florida)

In our nursery business, when we deliver plants out of state, we charge the customer freight on the total amount of the invoice. I already know how to set up the freight charges in the items list and have already done so.

What I would like to know is, is it possible to have the invoice not show the actual amount of the percentage that we charge, such as 4% of 9%, etc.

We would prefer that our customers not see the exact percentage that we charge.

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Jan 20, 2024
Rating
starstarstarstarstar 		Concealing Freight Percentage Charges
by: BB

Yes, you can achieve this in QuickBooks. Instead of displaying the exact percentage on the invoice, you can create a separate item or service for freight charges and manually enter the total amount you want to charge. This way, your customers won't see the detailed breakdown of the percentage on the invoice.

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Percentages

Percentages

Percentages

If my P & L says sales are x amount for one particular month, but last year the figure was y .. how do I work out the figure whether increased or decreased as a percentage?

Comments for Percentages

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Jan 20, 2024
Rating
starstarstarstarstar 		Calculating Sales Percentage Change
by: BB

To calculate the percentage increase or decrease in sales, use the following formula:

Percentage Change
=
(
New Value
−
Old Value
Old Value
)
×
100
Percentage Change=(
Old Value
New Value−Old Value
​
)×100

If the result is positive, it's a percentage increase. If it's negative, it's a percentage decrease.

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