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Financial statements provide a starting point for understanding a company. Ratio analysis is another tool to monitor a company's condition. It involves the methods of calculating and interpreting financial ratios to assess the company's performance and status. Each industry has its own different acceptable levels for its ratios. It is hard to interpret ratios properly without using industry averages.

Financial statement ratios are generally separated into 4 categories: Liquidity, profitability, efficiency and market ratios. The liquidity ratios measure the cash available to cover current and long term expenses. The current ratio measures the ability to meet short term debt and consists of current assets divided by current liabilities. The quick (acid test) ratio is similar to the current ratio, but it excludes inventory.

Under the current needs analysis methodology approved by the U.S. Congress, the value of your retirement plans (401K, IRA's etc.) is not considered an asset and not reportable. Money you save in your child's name is counted as an asset and reduces your eligibility for financial aid.

Named after IRS Code Section 529, it is a qualified state tuition plan.
A contribution to a qualified plan is treated as a completed gift passed from a contributor to a beneficiary. Contributions are eligible for the annual gift tax exemption of $13,000. Married couples can gift up to $26,000 a year.
Investment earnings within college savings programs grow federal income tax deferred.
The investment earnings are taxed at the student's rate when withdrawn for college tuition and room and board. You can use the College Savings Program assets to pay any type of qualified higher education expenses such as tuition, fees, room and board, books and supplies.
College Savings Program funds can be used at any accredited post-secondary public or private school eligible to participate in federal student financial assistance programs anywhere in the U.S. This includes any 2 and 4 year undergraduate programs, technical schools plus graduate and professional schools.
Funds can be withdrawn without penalty if the beneficiary receives a scholarship (withdrawals can be made up to the scholarship amount) or in the event of the death or disability of the beneficiary. Ordinary income taxes will be owed on any investment earnings.
State tax treatment of contributions may vary. You can take money out of a 529 plan at any time. Your investment earnings are subject to income taxes at the account owner's tax rate plus a 10% federal tax penalty. State income tax treatments on 529 Plan's nonqualified withdrawals vary by state.
There are pros and cons to this tax strategy. These accounts may be considered the child's asset when determining financial aid.

The federal FAFSA financial aid analysis no longer counts the equity in your primary residence as an asset. However, many independent, private schools ask this information when making their own financial aid determinations.

The total costs will vary substantially from school to school. As a general overview, the net cost to you each year will be the gross costs of tuition, room and board, fees, books, supplies, transportation, extra spending money, minus federal and/or state financial aid, scholarships, grants, awards and loans. Generally, financial aid and loans are paid back 6 months after the student graduates or leaves school. Generally, scholarships, grants and awards are monies given that are not required to be paid back. Generally, the better the student's grades, SAT's and/or ACT's and outside activities are, the higher the scholarships, grants and awards that may be offered. The sticker price of studying and living on campus at the average public university rose 5.4% for in-state students, or about $1,100, to $21,447 this fall, the College Board estimated. The chief cause of that increase was a dramatic spike in tuition and fees at hundreds of public universities. Tuition at the average public university jumped 8.3% to $8,244. Fewer than half of all public university students pay the full sticker price to attend. Federal surveys show at least 52% of all students at public four-year universities receive scholarships or grants. Aid, not counting loans or campus jobs, brought the net tuition paid by the average student at a typical public university to about $2,500, the College Board estimates. That brings the total average net cost of a year on campus (including dorm, books, travel and living expenses) to $11,400

The Financial Aid Form (FAF)is a form that asks for more information than the FAFSA form. Some private colleges and universities require the completion of this form.

There are many factors to clarify before you claim your child as a dependent. Generally a special rule favoring the custodial parent applies where divorced or separated parents together, provide more than half the child's support.
The custodial parent will meet the dependency support test even if she did not pay half the child's support.
The parents may arrange for the non-custodial parent to claim the child if IRS Form 8332 is signed by the custodial parent and supplied with the non-custodial parents tax return. Form 8332 is a waiver of claiming the exemption and the exemption waiver can be used for that year only, or for future years as well. Speak to your local CPA about the other criteria in claiming the child and about Form 8332.

No.The filing of joint or separate estimated payments does not mean that you are committed to filing that way. However, you will need to advise the IRS as to how to allocate the estimated payment. Often this can be an area of difficulty when individuals are going through a divorce and have decided to file separately after making joint estimated tax payments.

Nine states are "Community Property" states. They are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas,Washington and Wisconsin.