Put the number (digit) of the relevant ratio next to its defintiion.

1. average interest rate

2. earnings per share

3. return on equity

4. debt/equity ration

5. gross profit margin

6. inventory turnover

7. price/earnings ratio

a gives the company's pricing policy and mark-up margins. An adequate gross margin allows a company to pay its expenses, and then expand.

b determines the average interest rate at which a company borrows funds

c compares the current market price with earnings to calculate if a stock is over or undervalued. Used as a prediction or expectation of future performance.

d. indicates the return a company gets on the owners' investment. Companies that make high returns often do not require more debt investments.

e. shows the turnover of inventory, and can be compared against sales figures, to show the demand for the company's products.

f. indicates what proportion of equity and debt an enterprise uses to finance its assets. A more stringent test is to use just the long-term debt.

g. calculates the profit made o a per-share basis. This is quoted by US publicly held companies in their financial statements.

Listen to the accountant explaining ratio analysis to some managers in her company and complete the text.

Working capital is the current  divided by the current liabilities

Return on Assets (ROA) is income plus interest expense divided by assets.

Debt/asset ratio is the total assets divided by total

Payment reminder emails are tricky.

You have to maintain a balance of being polite enough to maintain a great relationship with your client, but stern enough that your client feels a sense of urgency to pay you.

Complete the following rules with the appropriate words:

confirm, well, payment, overdue, totalling, invoice,

1. Use a clear subject line, including the invoice number and the payment date:

Subject: Payment Reminder: #1 – due October 1

2. Start with a polite introduction

Hi {Client Name},

I hope you’re !

3.Make the payment terms clear

The most important part of your email is to remind the client how much is due, and when the payment is (or was) due. Don’t be vague: include the exact due date of the invoice and avoid making confusing statements like “due on receipt.”

If this isn’t your first reminder, you may want to use this opportunity to check with your client that they have actually received your invoice.

Can you please  receipt of this invoice? I’d like to confirm I have the right contact details for payments.

5. Include consequences of late payment (optional)

As a reminder of the payment terms, a late fee of 5% will be applied for every week the  payment is not paid.

6. Keep the copy short and friendly

Don’t say: You have to pay me by October 1.

Here’s how to write a great one-week reminder email:

Advanced Payment Reminder Email

Subject: Payment Reminder: Invoice #01 – Due October 1

Hi Maria,

I hope you’re doing well! This is a friendly reminder that invoice #1, totalling $1,000, is due for payment on October 1—one week from today.

Please feel free to contact me if you have any questions about the invoice or payment details.

Due Date Payment Reminder Email

It’s also advisable to send a payment reminder on the date the invoice is due. In this case, you still want to keep it friendly, but you should include more payment details.

Here’s a great example of a payment reminder email on the payment due date:

Subject: Payment Reminder: Invoice #01 – Due Today

Hi Maria,

Good morning! I just wanted to remind you that invoice #1, totalling $1,000, is due for payment today (October 1). 

I’ve reattached the invoice for your convenience. Payment can be made by direct deposit, bank transfer, or check.

One Week Late Payment Reminder Email

Once the client has reached a week without paying you, you have the green light to shift to a firmer tone.

Here’s how to write a late payment reminder email:

Subject: Payment Reminder: Invoice #01 – One Week Overdue

Hi Maria,

I hope all is well. My records indicate that I have yet to receive payment for invoice #1, totalling $1,000. The invoice was due on October 1st, making it a week overdue.

I’ve reattached the invoice for your convenience. Payment can be made by direct deposit, bank transfer, or check.

Complete with the appropriate term.

1. The tax people pay on their wages and salaries is called

2. A tax on wages and salaries or on company profits is a

3. A tax levied at a higher rate on higher incomes is called

4. A tax paid on property, sales transaction, imports and so on is a/an

5. A tax collected at each stage of production, excluding the already taxed costs

6. Profits made by selling assets are generally liable to

7. Gifts and inheritances over a certain value are often liable to

8. The annual tax imposed on people's fortunes in some countries is a/an

9. Making false declarations to the tax authorities is called

10. Reducing the amount of tax you pay to a legal minimum is called

Complete the conversation with the following words:

depends, so, clarify, mean, basically, exactly

Kathy: Hi, Javier, how is it going?

Javier: It's not easy, all this in English. We didn't do any of this on my course.

Kathy: Can I help?

Javier: Well, maybe you could a couple of things. Let's see. Ah, here we are. Provision for income tax. What does that

Kathy: Ok. Provision means putting money aside so that we have something to pay with later. So provision for income taxes is talking about the current year's expense which will have to be paid in the future.

Javier: Like provisional?

Kathy: Not . Provisional just means temporary, you know, not final. Like a provisional budget. It's not a final version.

Javier: I see. And what about deferred income tax balances. What does deferred mean?

Kathy: put off to another day. The income has been recognized in the accounts, but the tax owing on that income will only be realized in the future.

Javier: OK. How does that affect associated companies?

Kathy: Well, it . Associated companies and affiliates are a special case. Deferred taxes are not normally recognized on distributed earnings, but only if the plan is to re-invest the profits.

Javier: if we don't invest the profits, we pay tax.

Kathy: Exactly.

Then listen and check

Listen to the recording and complete the answers.

How does the accountant calculate the profit before tax figure?

The profit minus expenses

Why is the taxation amount only an estimate?

because they don't know until much later how much they will have to pay

Do they file the interim tax return?

-

Complete the notes based on the recording.

Taxation expense is calculating by subtracting   expenses from operating .  This gives us an estimate, which we use to prepare an tax return. We need it to justify the taxation expense we include in the P&L.

If there is any difference between the profit before tax and the taxable income, we record it as a net tax asset or liability on the balance sheet.

Complete with the appropriate term.

1. The tax people pay on their wages and salaries is called

2. A tax on wages and salaries or on company profits is a

3. A tax levied at a higher rate on higher incomes is called

4. A tax paid on property, sales transaction, imports and so on is a/an

5. A tax collected at each stage of production, excluding the already taxed costs

6. Profits made by selling assets are generally liable to

7. Gifts and inheritances over a certain value are often liable to

8. The annual tax imposed on people's fortunes in some countries is a/an

9. Making false declarations to the tax authorities is called

10. Reducing the amount of tax you pay to a legal minimum is called

Complete the conversation with the following words:

depends, so, clarify, mean, basically, exactly

Kathy: Hi, Javier, how is it going?

Javier: It's not easy, all this in English. We didn't do any of this on my course.

Kathy: Can I help?

Javier: Well, maybe you could a couple of things. Let's see. Ah, here we are. Provision for income tax. What does that

Kathy: Ok. Provision means putting money aside so that we have something to pay with later. So provision for income taxes is talking about the current year's expense which will have to be paid in the future.

Javier: Like provisional?

Kathy: Not . Provisional just means temporary, you know, not final. Like a provisional budget. It's not a final version.

Javier: I see. And what about deferred income tax balances. What does deferred mean?

Kathy: put off to another day. The income has been recognized in the accounts, but the tax owing on that income will only be realized in the future.

Javier: OK. How does that affect associated companies?

Kathy: Well, it . Associated companies and affiliates are a special case. Deferred taxes are not normally recognized on distributed earnings, but only if the plan is to re-invest the profits.

Javier: if we don't invest the profits, we pay tax.

Kathy: Exactly.

Then listen and check

Listen to the recording and complete the answers.

How does the accountant calculate the profit before tax figure?

The profit minus expenses

Why is the taxation amount only an estimate?

because they don't know until much later how much they will have to pay

Do they file the interim tax return?

-

Complete the notes based on the recording.

Taxation expense is calculating by subtracting   expenses from operating .  This gives us an estimate, which we use to prepare an tax return. We need it to justify the taxation expense we include in the P&L.

If there is any difference between the profit before tax and the taxable income, we record it as a net tax asset or liability on the balance sheet.