Businesses always need to know how much inventory is left and what is its worth. This is especially applicable to eCommerce firms. It is therefore of prime importance to calculate the inventory with the right inventory tracking method to manage the eCommerce demands and earn profits from them.There are many variables in the calculation of inventory and hence keeping track of it may look gruesome. Fortunately, there are ample inventory tracking solutions to help businesses in continuing their operations. The "weighted average cost" is one of them.What is Weighted Average Cost (WAC)?"Inventory weighted average" or the "weighted average cost" is ... Read More
The payback method is a non-DCF method for investment evaluation. However, it is quite popular among economists and financial managers due to some virtues mentioned below −SimplicityAs the time value of money and discounted cash flow are not considered, payback is a simple standalone tool for the evaluation of investments. Also, payback is quite easy to calculate and understand which is why it can be used by non-financial managers too. Simplicity in calculation and use is probably the most notable virtue for the popularity of the payback method.Cost-effectivenessThe payback method is not only simple but is also quite cost-effective to ... Read More
Both "cash flow" and "profit" are vitally important for businesses and there are distinctions and notable differences between the two. As a business owner, taking cash flow for profit can be a serious mistake. While a company can be highly profitable with a little cash flow, some companies may have high cash flows yet are less profitable.Cash FlowCash flow in brief is the amount of money that comes into, through and out of the businesses over a set period. Credit from suppliers, money owed to debtors, and cash in bank are not included in cash flow. It is completely concerned ... Read More
What is Preferred Stock?Preferred stock is used to fund expansion projects or improvements that firms seek to engage in. Like all other equity capital forms, selling preferred stock helps companies to raise funds.Preferred stock does not dilute the ownership stake of common shareholders, as preferred shares don’t hold the same voting rights that common shares do.What is the cost of preferred stock?The price of the preferred stock is the price the company pays in return for the income it gets from the issuance and sale of shares. It is the money a company pays in a year divided by the ... Read More
To create a time series plot in R without time vector, we can use ts.plot function.For Example, if we have a vector called X then we can create the time series plot of X by using the command ts.plot(X), the Output of this command will have a time axis in place of X-axis. Check out the below Examples to understand how it works.Example 1Consider the following vector −x
To create vertical line in xyplot, we can use abline function.For Example, if we have a data frame called df that contains two columns say X and Y and we want to create a scatterplot between X and Y using xyplot with a vertical line at X = 2 then we can use the below command −xyplot(y~x,df,abline=c(v=2))ExampleConsider the data frame given below −x
To combine values of two columns separated with hyphen in an R data frame, we can use apply function.For Example, if we have a data frame called df that contains only two columns say X and Y then we can combine the values in X and Y by using the below command given below −df$X_Y
To find the class of columns of an R data frame, we can use class function along with sapply and as.data.frame function.For Example, if we have a data frame called DF then we can find the class of columns in DF by using the command as follows −data.frame(sapply(DF, class))Example 1Consider the below data frame −head(mtcars, 20) The following dataframe is created mpg cyl disp hp drat wt qsec vs am gear carb Mazda RX4 21.0 6 160.0 110 3.90 ... Read More
A list in R can have large number of elements and also of different types. If we have a list that contain vectors and we want to check which list element contains a particular value then we can use which function along with sapply function.For Example, if we have a list called LIST then we can find which element of LIST contains 5 then we can use the command given below −which(sapply(LIST, FUN=function(X) 5 %in% X))Example 1Consider the List given below −List1
To convert strings in R data frame to unique integers, we first need to extract the unique strings in the data frame and then read them inside data.frame function with as.numeric along with factor function.Check out the below Examples to understand how it works.Example 1Consider the below data frame −x1
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