on Behalf of; acornerofspaceintime ...

Can you ask someone about EBITDA or Earnings Before Interest, Tax, Depreciation, Amortization?

I am most interested in the interest portion. Each open short position costs money (or interest to own).

If you don't mind just asking if that $4.1 Billion EBITDA could be eaten up by massive interest payments requiring a $1.15 B investment or if interest payments are limited to loans via some tax code? Anyway it has always been interesting to me that Citadel never posts a number for profit but instead choose to publish stats like Net Revenue or EBITDA.

It could definitely be that they are moving money in a way to decrease taxes and maximize distributions or it could be that they are actually losing massive amounts of money in interest payments.

If I plan to refinance and change lenders to break my 5 year fixed mortgage/25 year amortization to move to a lower 5 year fixed or variable rate, what happens to my mortgage's amortization? Does it reset to a new loan with a 25 year amortization or if I am 2 years in, does the loan become a 23 year amortization with the new loan and rate? Assume I will borrow approximately the same principal I still have to pay when I change lenders and break the mortgage term.

Trying to research mortgages, and come across a lot of American info of course.

One point I'm slightly confused about - do American mortgages not have terms (5, year, 10 year etc.) like in Canada?

Do American's just pay off their entire mortgage (for the 30 years that they got it or whatever) at the rate they originally got it (assuming fixed) since the mortgage doesn't renew?

I think I came across the above somewhere, but may be mistaken.

Thanks.

I heard they exist, but I haven't found a single lender that would do 30-year amortization on balances under $1M. Does anyone know of such a lender?

Good day,
I would like some assistance with creating a formula to auto populate columns E to R.
My biggest challenge is the second scenario where the payment date is after the term start date.
Since the item was paid for in April but the term start date was February, 3 months of expense must be booked in April for (Feb, Mar, April).
Please note the month day for start date is all treated the same, i.e. whether it was the 1st, 7th, 15, 22nd , they will all receive the full month monthly amount and not a prorated amount.

https://preview.redd.it/5axdaj4mrhb81.png?width=1341&format=png&auto=webp&s=acc8883c52d61c621d33afe5ebcdf8114bcaf5c3

Thanks in advance

Duck me right?

I just found out that one can change the amortization term of a mortgage at any time simply by calling the bank and making the request (the amortization term cannot be less than mortgage term however). So if I wanted to change it from 13 years to 25 years I could…at any time!

Is this true, was I given the right info? I thought amortization terms were set in stone dueing the term.

EDIT: thank you to all for the feedback. There were some great and factual responses among (sorry you didn’t get the votes). So yes, I’ve confirmed that you can change the amortization term so long as it is below your original amortization term. So for example if you had 25yr amortized when you bought your place, and paid it down to 13yrs like I did, you can bring it back up to 25, or lower to 7yrs. But you can’t increase it to 30yrs. And yes the longer amortization the more interest you pay so risky. However if you’re facing health or job issues this knowledge will give you power and flexibility. Obviously check with your mortgage advisor first. Cheers!

I've created an amortization schedule for my credit card payments in excel, but the downfall is that the schedule is only accurate if I don't spend on my credit card at all until it is paid off.

I was just looking for some ideas as to how I can incorporate balance increases on my credit card into my amortization schedule without having to re-do the whole table from square one.

I'm trying to create an self amortizing formula to automatically start and stop at the correct months based on the dates. I've spent hours on this trying to use IF and IF(AND( formulas but my Excel skills aren't the best to tackle this. My screenshot shows an example of the situations I come across. Sometimes we receive invoices after we already started using a service, so the formula would need to take that into account. In this example, the services started in January but we received the bill in February. So ideally the amort schedule would show $2,000 total in February, $1,000 as a catch up from January and another $1,000 of normal monthly activity in February. Since the service period ends in October, the formula would need to recognize that and not show any expense afterwards.

https://preview.redd.it/niw1mcgkh6681.png?width=1136&format=png&auto=webp&s=4c61ad04ddf2864ff3e187365292f0a9b6aab076

Not sure if I Dave understood the ts correctly since I am not a finance professional, so if anyone helps me clear this up I'll be super grateful.

Supose I run a private medical practise, and so so as a corporation.

One year, I have profits of say, $200k. Now, using these profits, I decide to acquire some new lasers for, say 200k.

Now, if I'm getting this right, lasers are basically classified as medical equipment and the reason I purchased them was with the expectation of enhancing future income, so I can't just expense them and deduct the amount 200k - 200k = 0.

I have to amortize them over a specified period of time.

Supose this is 10% a year. So I can deduct 20k.

This leaves me with net (? Gross? Not sure about the terminology here) profits of 200k - 20k = 180k.

On paper.

But nowhere do I have this 180k stashed away because I just paid it all to the guy who supplied me with the lasers.

Assuming a corporate tax rate of 21% (I know some small businesses have pass through (but let's just assume this) I owe the government around 40k in taxes on my profits.

So my question is this : How on earth am I supposed to come up with the 40k???

*Side question: When amortizing over a period of time, by the time you've deducted the last cent of initial cost, hasn't inflation already wiped out a significant portion of that? As in, can you deduct inflation as well to adjust to the real value of the cost of investment?

Edit: I understand I used the wrong term. Depreciation is fur assets and amortization is for non tangible assets.

Hi PFC,

Let's say that my goal is to pay off mortgage in 15 years. The bank allows to increase the monthly payments up to 100%, would it be smart to renew with a 30 years amortization and then doubling the monthly payment? It would bring back the amortization to 15 years, but if there is a financial emergency, I will have the option to reduce the monthly mortgage payment by half until the situation is better. There is still the 15% annual lump sum available to pay it off faster or to catch-up if I had to reduce the monthly payments for a couple months.

What do you think? Is this a good strategy? Are there any drawbacks?

I work at a tech company that's affected by the changing tax laws of the Tax Cuts and Jobs Act. I don't fully understand what it means by amortizing R&D costs over five years, but as part of this change, I'm being told that we'll be required to track time spent on software development work. Click start on a work item, do your work, click stop.

Do auditors really require this? If so, would they accept some sort of automated way of pulling this data without forcing engineers to use a stopwatch?

For background, I’m an Electrical Engineer looking at potentially switching over to software in the future. I coded a small program using Jupiter notebook that allows user to upload a csv file, which will then output the loan schedule. The user can the rerun the program with the csv using any additional payments and refinancing options - so essentially it lets the user run loan comparisons with a decent amount of flexibility. The cumulative interest and principal are graphed in jupyer. I know I need a lot more practice, but I’m curious if mini-projects like this would hold any weight at all.

Jedi Master himself, Eli Ben-Sasson, has an intriguing riddle: (1) Eli Ben-Sasson on Twitter: “Riddle (I’ll answer this tomorrow): Why are Rollup txs CHEAPER than Validium ones on StarkEx? Rollup tx: 600 gas (@dydxprotocol)< 650 / Validium tx Wut??????????????? (Numbers from @StarkWareLtd production systems today)” / Twitter

So, how can a validium with off-chain data be cheaper than rollup with on-chain data availability? Here’s my hypothesis: it comes down to transaction amortization.

A single STARK batch costs ~5M gas to verify on Ethereum, and increases poly-log for larger batches. So, it’s a highly sub-linear increase — the more transactions you have, the lower your costs are. If you have 1,000 transactions in a batch, the batch cost is very high — at 5,000 gas per transaction. If you have 1 million transactions, it’s going to be only 7–XX gas (large margin for error — I don’t know the numbers for a 1M tx batch, but it’ll be very, very low) or so — basically negligible. As a side note, StarkEx has a brilliant feature — SHARP — that lets multiple instances share this batch cost, but that’s actually a separate topic from this particular discussion. As far as I’m aware, dYdX hasn’t yet joined the SHARP bandwagon — which is why this post exists.

So, while on-chain data is awfully expensive till data sharding releases — and why there’s so much work around validium — if you have enough activity, there’s a break-even point at which rollups actually become cheaper because its per-transaction batch costs are much lower. dYdX is the only rollup instant on StarkEx currently, and it’s clear to see it has the most activity. We’ve seen peaks as high as 25 TPS, with averaging 10+ TPS over the last weekend. While this may not seem like a large number, remember — derivative trades are highly complex. Especially dYdX with fraction-of-a-second oracle updates — something not even possible on monolithic blockchains — though with the magic of signature aggregation this barely costs anything with a zkR. Either way, the 25 dYdX TPS peak is more like 150-200 TPS adjusted to simple ETH transfers. Of course, this is far from StarkEx’s capacity — it can easily scale to thousands of TPS today, and tens of thousands once data sharding is here or through validium, and even more as provers improve. But, this is enough capacity at which the batch costs start rapidly diminishing. At 600 gas at 50 gwei, the avera

Discuss

Ticker: AGFS

I am looking at this one company that has solid operating & free cash flow. The problem is that this company's earnings are so bad due to expenses being incurred by the depreciation and amortization. So when you look at its income statement: Gross profit- excellent, Operating Income-negative. It has a lot of SG&A expenses but what surprises me the most is how big the operating expenses are coming from the dep'n and amortization. That's why it has solid cash flow because when the dep'n and amort are added back to the cash flow statement, it's a huge chunk.

Please tell me the importance of depn & amort when they are not even "real cash expenses." My guess is, and you can correct me on this one, is that the stock market is ONLY obsessed with earnings. So this company is under the radar for now, but once all the depn & amort has been written off, net profits will be positive and therefore will take the market's attention. Is that the case here? AGFS is trading at low multiples and could be a deep valued stock. FYI its book value is 3 times its share price but the tangible bv is negative. Intangibes of this company are like 80% of its total assets, which Ive never seen before in a company.

Is there such feature? All I can find is for leases and prepaid amortizations. We currently do this on a spreadsheet but it'd be nice if we could have it in NetSuite like they do leases.

I have done this exercise:

>Yamaska Mining issued a 5-year, $50 million face, 6% semiannual bond when market interest rates were 7%. The market yield of the bonds was 8% at the beginning of the next year. Using the effective interest rate method, what is the initial balance sheet liability, and what is the interest expense that the company should report for the first half of the second year of the bond's life (the third semiannual period)?
>
>Initial liability; Interest expense, first half of year 2
>
>A) $47,920,849; $1,689,853
>
>B) $47,920,849; $1,750,000
>
>C) $50,000,000; $1,500,000

ANSWER: This is a discount bond since the market interest rate at issuance exceeds the coupon rate. The initial liability is equal to the proceeds received when the bond was issued. We can find this amount from the following calculation: FV = 50,000,000; N = 10; I = 3.5; PMT = 1,500,000; CPT → PV = $47,920,848.67. Change N to 8 and calculate PV to get liability value at the beginning of the second year of the bond's life, 48,281,511. Interest expense for the next semiannual period is 48,281,511(0.035) = $1,689,853. The subsequent change in the market rate has no effect on the amortization of the discount.

I don't understand the logic behind the interest expense computation, specifically the last sentence (which is the reason because I got it wrong): "The subsequent change in the market rate has no effect on the amortization of the discount.".

I computed the interest expense of the PV with I=8/2=4 and N=8 where the correct answer is computing the interest expense of the PV with I=7/2=3.5. Why the solution doesn't change the initial yield (7%) to the third semiannual period yield (8%)?

I've often seen the common recommendation that instead of refinancing into a 15-yr fixed, to pay a 30-yr fixed mortgage with 15-yr size payments.

However, assuming for the sake of this question, that the rate between the 2 mortgages is the same, doesn't the difference in amortization schedules impact your payoff? In a true 15-yr mortgage after a few years more and more of the fixed payment will go towards principal given the faster dropoff of interest, whereas under a 30-yr the interest portion will still be high, for quite some time. So although I am paying the equivalent of 15-yr payments, the same amount is not going towards principal.

If I am making a $5,000 payment under a 30 and under a 15, in 10 years wouldn't I have paid off a much greater portion of principal under a true 15-yr, rather than my forced 15-yr?

Edit: Thank you everyone! I believe I've gotten my answers. Now onto whether to payoff early or not.

Hi! Hope someone can guide me with this query. My condo downpayment, which I pay through a 4-year monthly installment scheme, will be completed in February 2022. However, due to pandemic delays, turnover will be pushed to December 2022. Will I have to immediately start amortization after completing my equity/downpayment in March 2022, or must it start once the Condo is RFO? TIA!

Chapter 1 - A Midnight Stranger

Chapter 2 - Artistic Inspiration

Chapter 3 - The Fuck Palace

Chapter 4 - The Amortization of Hubris.

He paced along the length of the meeting room, trying hard to maintain his cool. Why was Vily listening to these morons? Literally nothing good was going to come of this.

“This is a fucking waste of time” spat Vince Draken, “We are not making any progress, we haven’t made any progress in months and frankly I have better shit to be doing.”

Manny stopped his pacing and looked up, waiting for Vily’s response. He saw Noraus nodding in agreement, but Vily was shaking his head.

“Look Vince, you may be Warden of the North, but you don’t seem to be grasping this strategy. Imperium are contained. We are winning. I don’t know aboot you but from where I’m standing things are looking good.”

Manny could see the vein throbbing on Vinces forehead.

“Contained? contained my hole. INIT has been dropping Astrahus in Curse again. ASTRAHUS IN CURSE VILY, DO YOU UNDERSTAND? DOES THAT SOUND LIKE THEY ARE FUCKING CONTAINED TO YOU? This war has cost me my two best US TZ Corporations, I’ve had to send Nituspar back into therapy before he spiraled again. Goons are chanting “Mr. Vee is forming” over the walls of 1DQ. Does that sound fucking contained to you Vily?”. Vince sat back rubbing his temples.

Manny resumed his pacing, waiting for this bullshit to end. He had other things to be doing. His plans required his attention. His plans, these would be the pinnacle of his Eve career. The right that would undo the wrong of B-R.

His mind drifted back to before the start of the war.

==

15 Months Ago

Walking into his office he slammed the door behind him. Another unsuccessful meeting. Why were they questioning his abilities. Firing up his laptop, he opened up google docs and browsed to his master plan. The stigma of B-R still hung over him. You would think that 8 years later people would have forgotten it.

Setting aside his frustrations he began reviewing his document. They wanted the document to sound more professional, not to be emba

I am trying to create an amortization table, and based on the instructions from school, the payments are on 6/30 and 12/31. How do I automatically autofill that? What formula should I use?

Currently, I have the EDATE formula but it is making it 6/30 and 12/30 since it only changes the month not the day. Any tips?

https://preview.redd.it/k993jys7gyo71.png?width=427&format=png&auto=webp&s=96bd5490e1ac51a82fe18e7977117b5450ca6e20

I have the following data - Number of shares 10000, start and end date 24 months, fair value 100 and attrition rate ranges from 20%-30% for various periods . If I need to know the value of shares net of attrition for a particular month in power bi, how do I go about this.

This is one data and the same has to be done for 100 lines items with different details.

Is it possible to do it in power bi and if yes, can anyone help me out with this? Thanks

Me and my partner bought a new home three months back. We have been paying $500 extra per month towards principal and I'm also thinking to make a big payment to pay off the principal. Our loan amount is $520k. When should we ask our lender to adjust our amortization schedule?

Thank you :)

Tl;Dr When do you ask lender to adjust your Amortization schedule after paying extra towards principal?

These books were done by a bookkeeper, however they never recorded depreciation or amortization.

What would the other side of my journal entry be?

I need assistance on writing a program that finds the monthly mortgage payment of a 30 year fixed rate of a home that cost $559,700 at an interest rate of 4.625.

The formula im using is A = P(i + i over (1+i) to the power of n minus 1)

Where

A = periodic payment amount

P = amount of principle

i = periodic interest rate (as a decimal)

n = total number of payments

Note: The values I gave are user input

this the code I have so far

import math

P = int(input('Please enter the principal:'))

i = float(input('Please enter the interest rate (APR):'))

n = int(input('Please enter the term of loan (i.e., the number of years):'))

A = (P*(i+(i/(math.pow(1+i, n))-1)))

print()

print(f'Your monthly payment will be: ${A:.2f}')

Can someone advise me on if I'm doing something wrong? Please and thank you.

So according to my accounting manual;

Product costs are essentially the costs that are included as a cost of inventory and recorded as an asset until the product is sold. Once the product is sold, the product costs are moved to cost of goods sold. As a result of being a cost of inventory, product costs may be incurred in one period but not expensed on the income statement until a later period.

And also considering that “Depreciation of manufacturing equipment” is part of the product costs.

It logically means that DEPRECIATION would remain a “cost of inventory” if no sales have been registered during the period?

This is very illogical to me because that means that if a manufacturing company used up its equipment to produce all year long but made no sale whatsoever, we wouldn’t debit a depreciation in the income statement. Therefore, the equipment asset value wouldn’t be reflecting reality because the accumulated amortization would not have been credited in the assets section.

Any kind soul to enlighten me because clearly, I am missing something here.

Thank you so much in advance.

I owe $190k on my mortgage. I'm a single parent with two young children. I am securely employed with almost 15 years in the government of Canada. My home would sell for well over 600k right now.

My payments are currently $700 biweekly (I raised them and used to throw money on my MTG when I was not single). All things remaining the same, my current mortgage would be paid off in 12 years, 3 months.

I bring in $2000 net/bi-weekly. I will be graduating university in less than a year and this should increase by at least 200/biweekly (I'm government and the degree will move me to the next level). I also want to save for my kids' education while living comfortably.

I am considering seeing if I can re-amortize my 190k from 12 years to 25 years, brining my payments to half. Then I can bank the other half in case I need it or throw it on the mtg in bulk if I don't (ensuring the mtg allows for this when I renew this year). Or I could invest it (I currently have passive investments in my wealthsimple TFSA). Thoughts? Anything I'm forgetting?? I renew my mortgage in a few months.

Tldr; should I extend my amortization? If so, what do I do with the extra cash?

So I have a fixed amount which needs to multiplied by a different rates for different periods. Is it possible to do it in power bi and if yes, can you help me out in doing it? Thanks in advance