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The Solomon four-group design:
Sales Revenues
The total amount generated from selling goods or services before any expenses are subtracted.
Cash Operating Costs
The expenses a company incurs during its normal business operations that require cash payments, such as rent, utilities, and payroll.
Annual Depreciation
The portion of the cost of a fixed asset that is allocated as an expense in each accounting period during its useful life.
Simple Rate of Return
A financial metric used to evaluate the profitability of an investment, calculated as the annual incremental net operating income divided by the initial investment cost.
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