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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (15721)	4/26/2001 11:54:07 AM
From: OldAIMGuy	Respond to of 18929

Now see what all of you have done! Here it is nearly Noon on the East Coast and I've not even checked any of my stock prices yet! Shame on you all for delaying that joyous moment! Best regards, Tom

To: OldAIMGuy who wrote (15721)	4/26/2001 12:30:34 PM
From: LemonHead	Read Replies (2) \| Respond to of 18929

Hi Tom, LIFO is important and I guess I should have worded that differently. But I think you see the point I was trying to make. It is and has been a constant issue with my crew here at the shop. I preach constantly that they have to know the net dollar amount of a transaction in order to understand what the "per cent" means in relationship to that transaction. For example if I sell a light fixture for $10 at a gain of 42.8% and then a single screw that cost $.01 for the same "per cent" gain, does it really make sense? Notta!!! Matrix pricing balances the transaction costs throughout the inventory if properly applied. I received this LIFO formula from fellow AIMer Don Carlson. Hi Keith, The calculation should be: 1. Gain (bought at $7, sell at $10) [($10 / $7) -1] * 100 = 42.9% LIFO gain. 2. Loss (bought at $10, sell at $7) [($7 / $10) -1] * 100 = -30.0% LIFO loss. * note that the sell number is always divided by the buy number. ------------------------- Gain with different purchase prices: Buy 50 shares at $7 = 50 * 7 = 350 Buy 70 shares at $8 = 70 * 8 = 560 Sell 120 shares at $10 = 120 * 10 = 1200 [ ( 1200 / {350 + 560} ) -1] = 31.9% LIFO gain Best Regards, Don Carlson I really appreciate the formula for figuring LIFO gains on combined sells. Thxs Don Keith PS - Just wanted to make sure that if we report LIFO gains or losses that we all use the same pencil. <g>

To: OldAIMGuy who wrote (15721)	4/28/2001 8:41:05 AM
From: Steve Grabczyk	Read Replies (1) \| Respond to of 18929

Old retail formula: "For percentage change take the new value divided by the old value and subtract 1 from the result." (10/7)-1=.429........Plus 43%. This works in spreadsheets and on most calculators that use RPN due to order of operations rules. The nice thing about this formula is that it (heaven forbid) also automatically calcs the % decline as well. For example (7/10)-1= -3 .........Down 30%. Thought I'd get my 2 cents (2%) in there. BTW: I agree on LIFO not meaning 'squat'. Regards, Steve