Category: Bookkeeping

The growing wealth disparity between them and the less privileged is a significant concern for people worldwide. Discover the top 10 richest people in the world today and how they built their fortune. Things get drastically better for those with money and marginally worse for this without it. Huang joins the top 10 richest despite a slight decline in Nvidia shares over the past month. That’s because the fortune of the prior No. 10, Spain’s Amancio Ortega, fell by about $7 billion over the month on weaker Inditex shares. But Ortega is close behind at No. 11, worth just $400 million less than Huang at the start of the new year.

We could see the world’s first trillionaire in the next decade. Here are some of today’s richest 1%

• Seven out of 10 of the world’s largest public companies have either a billionaire CEO or a billionaire as its principal shareholder.
• In 2004 he joined Tesla as an investor and chairman, a year after it was founded; he was later granted the cofounder title.
• Oxfam’s report comes as the world’s wealthiest people, highest powered executives, and ranking politicians meet in Davos, Switzerland, at the World Economic Forum.
• But Ortega is close behind at No. 11, worth just $400 million less than Huang at the start of the new year.
• The big jump in his fortune came after SpaceX agreed to buy back insiders’ shares in a deal valuing the rocket company at $350 billion–a deal first reported by Bloomberg.
• Now the improved GPUs are leading the AI revolution around the globe, propelling the company’s market cap beyond $3 trillion in 2024.

Like his Google cofounder Larry Page, Brin’s fortune also rose in the past month as Alphabet shares rallied. The $14.7 billion rise in his fortune lifted Brin up a notch to No. 7 from No. 8 at that start of December. Page moved up one rank from last month, supported by an 11% rise Google-parent Alphabet’s shares. In late November the Department of Justice said Google should sell its Chrome browser in order to reduce the company’s dominance online. In response, Google said in a statement that such a move would hurt consumers and America’s technological leadership. Musk, who started 2024 worth an estimated $251 billion, has gained extra media attention since Donald Trump won the U.S. presidential election in November.

• The lavish spending continued to the West Coast, where in 2020, Bezos dropped a record $165 million for David Geffen‘s Los Angeles mansion, the Wall Street Journal reported.
• The $14.7 billion rise in his fortune lifted Brin up a notch to No. 7 from No. 8 at that start of December.
• The 38th annual Forbes list of the world’s billionaires found a record 2,781 billionaires with a total net wealth of $14.2 trillion.
• He is also president of the board for Groupe Arnault S.E., which is his family’s holding company and primarily an investment firm.
• “My primary home is literally a ~$50K house in Boca Chica/Starbase that I rent from SpaceX.
• Since 2020, these billionaires’ net worth has skyrocketed 114% to a total of $869 billion, after taking inflation into account, according to Oxfam’s annual inequality report, released Sunday.

The World’s Billionaires

While he no longer serves as CEO of the social media platform, his still holds broad influence — and has faced ample pushback from issues ranging from content moderation and hate speech to alienating advertisers. According to last year’s report by Henley & Partners, Mumbai and Delhi ranked among the top 50 richest cities in the world in 2024, coming in at 24th and 37th place, respectively. While one can argue about the ethics behind owning so much wealth in the world, there’s no denying that billionaires play a supersized role in shaping philanthropy, politics and the global economy. He’s also said to own a house in a French ski resort in the Alps, along with a $13 million villa in St. Tropez, and a 135-acre private retreat in the Bahamas, reportedly purchased for $137 million. The San Francisco Bay Area resident has apparently also had a long-time home in San Francisco‘s Pacific Heights neighborhood.

Net worth: $202.5 billion

The individuals on this list belong to an even more exclusive club and wield still more power. Many are founders of technology giants, with much of their wealth still invested in the companies they started. Some 148 of the world’s largest corporations made nearly $1.8 trillion in profits in the 12 months leading up to June 2023, Oxfam said. Oxfam calls out the oil and gas industry, pharmaceutical companies and the financial industry for reaping higher profits in the last year or two than their average in prior years. In addition to being at the helm of Tesla, Musk is CEO of rocket ship company SpaceX. In 2022, he also purchased Twitter, which is now called X, for $44 billion.

Oxfam’s report comes as the world’s wealthiest people, highest powered executives, and ranking politicians meet in Davos, Switzerland, at the World Economic Forum. Zuckerberg cofounded Facebook—now called Meta Platforms—when he was a student at Harvard University Law Firm Accounts Receivable Management in 2004. It has grown to be the world’s largest social network, with several billion users globally. The company also owns Instagram and WhatsApp, both of which it acquired and greatly expanded. Zuckerberg, the CEO of Meta, took the company public in 2012 and still owns about 13% of it.

How U.S. online casino trends are influencing Africa’s gaming industry

According to Business Insider, the billionaire’s fortunes rose by more than $67 billion in 2024, putting him ahead of Steve Ballmer and Bill Gates. Most of his wealth comes from acquisitions such as Instagram (bought for $1 Online Accounting billion) and WhatsApp, purchased for $19 billion. Threads, a competitor to ‘X’, is the latest addition to Zuckerberg’s social network portfolio. Explore the top 10 richest people in the world, featuring influential entrepreneurs and business magnates with staggering net worth. After all, the net worth of the top 10 richest people surpasses the GDP of numerous nations. Today, their wealth is primarily concentrated in the technology, finance, and retail industries.

The worst-performing African currencies against the US dollar as of December 31, 2024.

• Musk founded SpaceX in 2002, runs it as the CEO, and owns an estimated 42% stake in the company.
• He owns 39% of OCI, a fertilizer company situated in Geleen, Netherlands, that was established through a demerger from Orascom Construction, his family’s original company.
• Many are founders of technology giants, with much of their wealth still invested in the companies they started.
• In a society and era fueled by ambition and a drive for entrepreneurship, there is a distinguished set of individuals who have achieved unimaginable fortunes.
• Zuckerberg cofounded Facebook—now called Meta Platforms—when he was a student at Harvard University in 2004.
• In 1977, Ellison founded Software Development Laboratories alongside Oates and Miner.
• This article unveils the identities of the top 10 richest people globally, shedding light on their remarkable accomplishments, entrepreneurial aptitude, and profound influence on the global economy.

At the same time unemployment levels were recovering from the surge of layoffs that accompanied the outset of the pandemic, but still saw 7.4 million Americans out of work, according to the Bureau of Labor Statistics. To be in the top 1% of U.S. earners, a household would need to earn about $652,000 a year. Certainly a large amount of money, and one that can virtually guarantee a comfortable life, but hardly the level of wealth enjoyed by the who are the five richest people in the world billionaires Oxfam cites. All five also founded companies which they either run as CEO or control as the largest shareholders. Billionaires themselves are also wealthier, with two-thirds adding to their worth. The top 20 on the list gained the most, adding $700 billion to their combined worth since 2023.

• So far he’s give more than $60 billion of Berkshire Hathaway stock to the Bill & Melinda Gates Foundation and foundations run by his children and one started by his late first wife.
• He is primarly into the luxury-goods business but has a diverse business portfolio.
• He now holds the positions of chairman and Chief Technology Officer (CTO) at the company.
• The land has 2,500 feet of ocean frontage as well as a working organic farm.
• It became a top competitor among the likes of Intel, Microsoft and IBM.
• Additionally, Mumbai has overtaken Beijing as the “billionaire capital of Asia,” making it not only the fastest-growing billionaire hub but also the third-richest city in the world, as reported by Hurun.

The company filed a lawsuit against Musk to force the buyout to go through. Musk countersued the company but then reversed course and declared he was willing to buy it after all. The deal officially closed in Oct. 2022, giving him a 79% stake in the company. US billionaires, many of whom derive their wealth from the equity in the companies they lead, are $1.6 trillion richer. Over the years, Buffett has gained a reputation for his investment success and aggressive business tactics. He runs Berkshire Hathaway, a holding conglomerate that owns dozens of companies across sectors like insurance, manufacturing, utilities, transportation and retail.

After all of the sources are listed, the total cash payments are then subtracted from the cash receipts to compute the net cash flow from operating activities. Then the investing and financing activities added to arrive at the net cash increase or decrease. The cash flow statement direct method refers to presenting the cash flow statement centered on the actual cash transactions happening inside the core operations of a company.

When you pay off cash flow statement direct method solved examples part of your loan or line of credit, money leaves your bank accounts. When you tap your line of credit, get a loan, or bring on a new investor, you receive cash in your accounts. Increase in Inventory is recorded as a $30,000 growth in inventory on the balance sheet. Using the direct method, you keep a record of cash as it enters and leaves your business, then use that information at the end of the month to prepare a statement of cash flow. A balance sheet shows you your business’s assets, liabilities, and owner’s equity at a specific moment in time—typically at the end of a quarter or a year.

However, companies record thousands of transactions every year and many of them do not involve cash. Also, providing disclosures about sensitive information, such as cash receipts from customers and cash payments to suppliers, is not in the best interest of the company. For these reasons, many companies prefer not to use the direct method. Instead, the indirect method may be easier to prepare because it collects much of its data directly from the existing income statement and balance sheet.

Learn the essential steps, from ideation to scaling, and build a successful software-as-a-service business. Head on over to the next lesson where you’ll learn all about other accounting reports you may come across, such as an asset register, a debtor’s analysis, and more. Similarly, drawings (or dividends for a corporation) may also be placed under this section, although it can also be placed under the operating activities section if the business so chooses. So yes, cash really is king – in the business world and even in accounting. The Total of these give the net cash provided (used) in operating activities.

• The reconciliation itself is very similar to the indirect method of reporting operating activities.
• The cash flow statement can be generated using the direct method or the indirect method.
• As a result, International Accounting Standard (IAS 7) is specifically designed to deal with providing guidelines for preparing the CFS.
• Since the direct method cash flow statement only records cash transactions that actually occur, it’s easier to understand, especially for those of you just starting your business journey.
• You can immediately see if your company is spending too much or has enough cash to support operations.

Accounting made for beginners

If you’re running a business, the last thing you want is to become part of that statistic. The Direct Method breaks down operating activities into several categories, including cost of revenue, SG&A, R&D, and other operating expenses. These categories cover costs that are used and exhausted in facilitating a sale, such as the cost of goods sold or cost of service. The sum of the above groups provides the total cash utilized in various operating activities. ✅ How to prepare a cash flow statement using both the Direct Method and the Indirect Method through a detailed numerical example.

Where do cash flow statements come from?

The cash flow statement direct method is an accounting method utilized to prepare the cash flow statement showing the accurate receipts and payments by a firm during a specified period. It has significant advantages over other methods as it calculates cash flow derived from operating activities after adjusting net income for the impacts of non-cash transactions. It allows enhanced comparative evaluation with rivals inside the same sector and simplified cash flow management. The direct method, used for cash flow statements, lists actual cash receipts and payments, showing clear cash inflows and outflows. It also simplifies the process of adjusting net income to reflect real cash movements, reducing dependence on complex accrual accounting methods. Unlike the indirect method, payment from the customer and payment to the supplier is recorded when these actually happen.

What is the difference between the indirect and direct cash flow statement method?

Since most businesses are already up and running for many years, there would usually be an opening cash balance. The answer is that one could show the most fantastic performance according to the income statement, with huge profits, and yet have nothing remaining in the bank. The answer depends on how much effort you want to put into tracking your cash moves, your financial goals, and your company’s financial health. The direct method requires businesses to track each transaction, making it accurate but more labor-intensive. If a business has a high volume of transactions, maintaining this level of detail can be challenging.

How to calculate cash flow from operating activities using the direct method?

Leveraging our solutions, businesses can automate critical cash flow processes, improve efficiency, and gain better visibility into their daily cash positions. By streamlining cash-related activities and utilizing advanced features, businesses are able to accelerate cash inflows, enhance cash management productivity and optimize cash utilization. Purchase of Equipment is recorded as a new $5,000 asset on our income statement. It’s an asset, not cash—so, with ($5,000) on the cash flow statement, we deduct $5,000 from cash on hand. What it doesn’t show is revenue or expenses, or any of the business’s other cash activities that impact your company’s day-to-day health. While income statements are excellent for showing you how much money you’ve spent and earned, they don’t necessarily tell you how much cash you have on hand for a specific period of time.

The most commonly used periods are monthly, quarterly, and annual cash flow statements. You can create additional columns each time period you’re interested in looking at. By using the direct method, you’ll start with your company’s net income from the income statement and add back any non-cash items, such as depreciation and amortization. However, showing the uses and sources of cash streams enhances transparency, aiding the investors in well-informed decision-making. Further, it has encouraged accountability and transparency in the company’s financial statements and impacted financial reporting standards. Nevertheless, companies rarely use it as their requirement for restructuring chart-of-accounts, which is complex.

• Thus the repayment of a loan (in part or in full) falls under financing activities (as a cash outflow), as the loan served as finance for the business originally.
• Keep in mind, positive cash flow isn’t always a good thing in the long term.
• A cash flow statement is a regular financial statement telling you how much cash you have on hand for a specific period.
• The direct approach is commonly utilized in preparing the cash flow statement to offer a more thorough breakdown of cash inflows and outflows related to operational activities.
• When your cash flow statement shows a negative number at the bottom, that means you lost cash during the accounting period—you have negative cash flow.

Step 1: Determine the Change in

The indirect method, on the other hand, computes the operating cash flows by adjusting the current year’s net income for changes in balance sheet accounts. Both direct and indirect methods calculate net cash generated from operating activities, but they differ in their starting points and how cash moves are recorded. The indirect method begins with net income and adjusts for non-cash transactions, such as depreciation and changes in accounts payable. You use information from your income statement and your balance sheet to create your cash flow statement. The cash flow statement direct method shows all the cash transactions a business completes. This method shows a company’s total operating, financing, and investing cash flow over a set period.

Be sure to test yourself on how to compile a cash flow statement by trying the Cash Flow Statement Practice Example below as well as the Cash Flow Statement Mini Quiz at the end of the lesson. And right at the bottom of the page, you can find plenty more questions on the topic submitted by fellow students, including a full cash flow statement exercise with detailed solutions. It does so by GROUPING Cash Transactions into major classes of cash receipts and cash payments. As you can see, all of the operating activities are clearly listed by their sources.

You’ll need to work through each line of the operating activities section, which can be found on your income statement. This means only including transactions where a bank account, credit card, or cash on hand is being credited or debited. Now that there is a cash inflow, list all the cash outflows from operating activities. Cash outflows could involve providing payments to suppliers and employees and covering operating expenses such as rent, utilities, and advertising with cash. Managing your company’s cash flow can indeed be a challenge, especially when the process is complicated and time-consuming.

This includes cash received from customers, interest received, interest paid, and cash payments for operating expenses. Yes, the direct and indirect methods ultimately give the same net cash flow from operating activities. The cash flow direct method involves detailing the specific cash inflows and outflows from operating activities when preparing the cash flow statement. This method provides a transparent and easily understandable view of the cash movements within a set timeframe.

Select the checkboxes that correspond to your student loan plan(s). Choose from Plan 1, Plan 2, Plan 4, Plan 5, or Postgraduate Loan. This ensures accurate deductions based on your student loan repayment plan. This field requires you to enter your total annual income before any deductions. Choose the number of dependents you have, excluding yourself and your spouse, who are already included in the default standard deduction.

US Salary Tax Calculation for 2025 Tax Year based on annual salary of $ 27,500.00

Apart from tax, you’ll also need to pay National Insurance on your £27,500 income. The information provided on this site is intended for informational purposes only.Please consult a qualified specialist such as an accountant or tax advisor for any major financial decisions. 1 A negative figure indicates that you have overpaid tax and that you are due a tax rebate.

Statistics and Analysis Calculators

Use our California State Tax Calculator to be given an accurate breakdown of your tax payments for the current tax year. Your personal salary and tax calculations, see the table below for a full breakdown and analysis of your salary and tax commitments for 2025. The tax calculation provides an overview of Federal and State Tax payments for an individual with no children and no special circumstances. Below is a 27500 after tax breakdown of £27,500 after tax and national insurance contributions. The Reed.co.uk Tax Calculator estimates PAYE and NI tax deductions from your pay each week, month, and year. Enter your salary below to check tax deductions and calculate your monthly take home income.

State Tax Calculations

On a £27,500 salary, your take home pay will be £23,021 after tax and National Insurance. If you work 5 days per week, this is £88.54 per day, or £11.07 per hour at 40 hours per week. The Tax Calculator uses tax information from the tax year 2023 to show you take-home pay. See where that hard-earned money goes – with Federal Income Tax, Social Security, and other deductions. More information about the calculations performed is available on the about page. If you do any overtime, enter the number of hours you do each month and the rate you get paid at – for example, if you did 10 extra hours each month at time-and-a-half, you would enter “10 @ 1.5”.

Using The Tax Calculator

In the tax overview above, we show the illustration for a monthly take home pay as a straight 1/12th of your annual income. While there are many deductions made to your salary, there are often deductions made from your taxable amount based on certain living circumstances or health concerns. After entering all of the necessary information, including your salary amount and filing status, simply click on the ‘Calculate’ button. Once you have clicked on the calculate button, a detailed breakdown of your annual tax payments will be shown, along with a graph detailing these payments.

Retirement Calculators

However, all calculations provided are estimates based upon information you provide. We do not accept liability for any errors or omissions, please read our disclaimer and terms and conditions of use. The Blind Person’s Allowance is a tax relief, and checking this box considers this allowance in the calculations.

• The Reed.co.uk Tax Calculator estimates PAYE and NI tax deductions from your pay each week, month, and year.
• Although this is the case, keep in mind that there are deductions in place and you may be subject to additional deductions, lowering the amount you will be paying in taxes.
• The ROTH and IRA Retirement saving calculator (Pension Contributions Comparison Calculator) allows you to compare how your money will work for you when using either of the pension schemes.
• Click the ‘edit tax calculation’ button above or click here to change the gross income and/or add your options to tailor the calculation precisely.
• If you have any other deductions (such as contributions to a retirement plan) enter the monthly amount into the deductions field.
• If you receive an annual bonus, enter the bonus amount in this field.
• Scotland has its own tax bands, and checking this box ensures the calculator adjusts the calculations accordingly.

Calculation details

• In the tax overview above, we show the illustration for a monthly take home pay as a straight 1/12th of your annual income.
• This means that after tax you will take home £1,894 every month, or £437 per week, £87.40 per day, and your hourly rate will be £13.23 if you’re working 40 hours/week.
• Tax laws change, so choosing the correct year ensures accurate calculations based on the current regulations.
• After entering it into the calculator, it will perform the following calculations.
• The Tax Calculator uses tax information from the tax year 2023 to show you take-home pay.
• The Tax and Take home example below for an annual salary of $ 27,500.00 is basically like a line by line payslip example.

The calculations illustrate the standard Federal Tax, State Tax, Social Security and Medicare paid during the year (assuming no changes to salary or circumstance). This income tax calculation for an individual earning a 27,500.00 salary per year. If your employer calculates you monthly salary in this way, the below calculator illustrates the amounts you should expect to pay in Federal Tax, State Tax, Medicare, Social Security and so on. The Tax and Take home example below for an annual salary of $ 275,000.00 is basically like a line by line payslip example. The Tax and Take home example below for an annual salary of $ 27,500.00 is basically like a line by line payslip example.