The many questions-not-worth-their-own-thread question thread XXI

[ace99]

Thanks for the input guys. I'm just trying to get a rough idea for how much to budget. I had not clue if it would be $10 or over $100; I've never had to do it before.

I'll be dammed if I pay over $20 for suit cleaning. I think my last bill for the jacket and pants came to $17.

 

[Cutlass]

That's about as clear as I could ask for, thanks!

Your post applies to home mortgages, though. My contact with amortization is in relation to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Would amortization in this case be the decline in principle of the mortgage of the land the business owns? How would this situation change if the land were rented?

I'm not up enough on the accounting to really go further for you. If this is about your taxes, I think you should consult an accountant or tax preparer.

 

[salty mud]

Is it seen as socially acceptable to go abroad alone? I'm saving some money to go away later this year, and while I will probably have people to meet there I would probably be going alone.

 

[LegionSteve]

Is it seen as socially acceptable to go abroad alone? I'm saving some money to go away later this year, and while I will probably have people to meet there I would probably be going alone.

Yes, definitely. I have a friend who has travelled all over the world. I think he has been just about everywhere you can think of except probably the antarctic. Sometimes he travels with friends, and sometimes alone.

So yeah, if you have the confidence to do it, go for it.

 

[hobbsyoyo]

Is it seen as socially acceptable to go abroad alone? I'm saving some money to go away later this year, and while I will probably have people to meet there I would probably be going alone.

Go for it! My sister-in-law traveled around Europe alone, no problem.

 

[salty mud]

Sweet. I'll begin drawing up plans soon!

 

[really]

My contact with amortization is in relation to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Would amortization in this case be the decline in principle of the mortgage of the land the business owns? How would this situation change if the land were rented?

http://en.wikipedia.org/wiki/EBIDTA
EBITDA as a line on a company's income statement is used as a reporting number in calculation of relative profitability. (EBITDA relative to debt, interest, competitors etc)

It is used rather than the bottom line number because it is a raw measure of how a company is doing, what profit if any it is generating from business.

The other bits can be a bit distracting or could mask true performance. Interest might be high because of acquisition debt unrelated to current activity. Taxes might be low because of carried forward losses, depreciation might be low if the assets are old.

Normally rent would be above the EBIDTA line (the money was paid and used in the period), depreciation on an owned asset would be below this line (the money was paid out long ago and the asset was accounted for at the time)

Amortisation in the context of a mortgage wouldn't show up on an income statement - it is a balance sheet transaction.

 

[ELITEOFWARMAN8]

Does anyone here like me ?

 

[Cutlass]

Does anyone here like me ?

We might like you more if you weren't constantly asking for attention, and just joined in ordinary conversations.....

 

[Quackers]

Your genes and lifestyle are important parts of the equation. My suggestion is figure out how much you would like to eat of highly saturated products and then cut it in half. If you eat a stick of butter a week, cut it half a stick. If you eat beef 4 times a week, cut it to two. If you drink whole milk, switch to 2% or skim. Then eat more fruit.

I read today that eating olive oil, some types of nuts and other types of food can "cleanse" these troubled arteries. Is there truthful? Or are people engaging in wishful thinking? I imagine, open heart surgery is the only way to remove any artery blockage.

 

[Cheezy the Wiz]

I'm not up enough on the accounting to really go further for you. If this is about your taxes, I think you should consult an accountant or tax preparer.

Nope, it's about comprehending specific parts of a P&L statement.

http://en.wikipedia.org/wiki/EBIDTA
EBITDA as a line on a company's income statement is used as a reporting number in calculation of relative profitability. (EBITDA relative to debt, interest, competitors etc)

It is used rather than the bottom line number because it is a raw measure of how a company is doing, what profit if any it is generating from business.

The other bits can be a bit distracting or could mask true performance. Interest might be high because of acquisition debt unrelated to current activity. Taxes might be low because of carried forward losses, depreciation might be low if the assets are old.

Normally rent would be above the EBIDTA line (the money was paid and used in the period), depreciation on an owned asset would be below this line (the money was paid out long ago and the asset was accounted for at the time)

Amortisation in the context of a mortgage wouldn't show up on an income statement - it is a balance sheet transaction.

I know why EBITDA is used, what I'm trying to understand is how amortization relates to this number. What does it mean in the context of EBITDA?

The amortization of a debt instrument would be the same no matter the use of any underlying asset or asset the debt was used to finance. It is purely a function of the terms of the debt, based on the gradual repayment of the principal along with the interest.

A question, is this purely about amortization of a mortgage or other debt item? Because from an accounting perspective (which I would assume you are looking from if using metrics like EBITDA) you also have the amortization of intangible assets (equivalent to depreciation of tangible assets) and bond premiums/discounts (basically a method of converting from the stated interest rate to the market rate).
In an accountant frame of mind, the only amortization that should show up on the income statement, and therefore be part of earnings, is the amortization of intangibles. The amortization of mortgages is a finance concept and in accounting you just have interest and principal payments and premiums/discounts are all done through interest expense.
In fact the repayment of a loan's principal is specifically not earnings related, but capital.

Yes, I suppose I am interested in it as it relates to intangible assets.

 

[Birdjaguar]

I read today that eating olive oil, some types of nuts and other types of food can "cleanse" these troubled arteries. Is there truthful? Or are people engaging in wishful thinking? I imagine, open heart surgery is the only way to remove any artery blockage.

We only use olive oil in our house. It's best not to heat it to smoking to gain its benefits. Nuts are good too.

Nope, it's about comprehending specific parts of a P&L statement.

I know why EBITDA is used, what I'm trying to understand is how amortization relates to this number. What does it mean in the context of EBITDA?

Yes, I suppose I am interested in it as it relates to intangible assets.

We use EBITDA. My Accountants calculate Net Operating Income, then Net income and then add back any Interest, Taxes, Depreciation and Amortization expenses. That gives us Earnings before....

It is simply a calculation based on standard accounting expense items. If your business expenses include any of the I,T,D,A line items, just add them back. If it only includes one item, add that one back.

 

[say1988]

Yes, I suppose I am interested in it as it relates to intangible assets.

For all intents and purposes it is just depreciation of certain classes of assets (intangibles). In fact, in less formal circumstances depreciation and amortization are often used interchangeably no matter the type of assets being referred to. All the mechanics are the same and its purpose is the same as well. As such it is removed from Earnings for certain analyses for the same reasons. And since you never mentioned it I assume you understand depreciation and will elave it at that.

 

[Cheezy the Wiz]

I do. I was just confused because depreciation and amortization were named separately, so I thought when I conflated the two that I wasn't "getting it." Glad to know my initial reading wasn't too far off. Thanks guys!

 

[shadowplay]

Anyone else ever get those messages from wikipedia telling you someone at your IP address made a change to an article you've never seen before?

 

[sophie]

I'll be dammed if I pay over $20 for suit cleaning. I think my last bill for the jacket and pants came to $17.

I don't know about stateside but in London you were getting fleeced if you paid more than 12 pound for a full suit.

 

[Flying Pig]

That's about $20, I think, certainly not less than $17

 

[hobbsyoyo]

According to google:
12 British Pound Sterling equals
18.95 US Dollar

 

[sophie]

That's about $20, I think, certainly not less than $17

Hmm. Dunno, I'm much better with pants prices (as that was generally what I was looking for). Shirts usually came in at around 10 pound for 5 and pants for like 2 or 3 a pair?

 

[ELITEOFWARMAN8]

Olive oil .vs. Canola oil? What you guys think?


What happen to Mr.Borachio by the way?