The Arizona Court of Appeals in the case of Union Bank v. Arizona law requires a fair (or “equitable”) distribution of divorcing spouses’ community assets, and, in most cases, this will mean a 50-50 split. It is a court order that divides pension payments between spouses. To. In Van Loan v. Miller in 2009, Mother purchased a phone for the use of their child. QUESTION 33 Inventory turnover is calculated by dividing accounts receivable by net sales. Barron addressed those issues. App. Beneficiary Designations After Divorce in Arizona From Hildebrand Law, PC. Most interestingly, the accounts receivable may be valued without regards to taxes and overhead expenses. Bobrow, 241 Ariz. The. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. For Arizona property division in divorce, the following is but one method of calculating the community property share of the whole pension: Take the number of months the plan participant was married and divide it by the total months of his or her participation in the plan. During the divorce and after the divorce. 💡 By dividing your total credit sales with the number of days in a year, you can determine your daily average credit sales: 100,000 / 365. editor. deferred military retirement in an arizona divorce; division of deferred retirement option plans in an arizona divorce; claims of waste in an arizona divorce;. § 25-318, that allows a judge to order the sale of the property as part of a divorce decree. Accounts receivable B. (Minn. In a divorce, community property is generally divided equitably — roughly, though not necessarily exactly, equal — between the spouses, while each spouse keeps. Lee had to address the issues of equalization payments for the division of a business in a divorce in Arizona and whether a court can modify a business appraisal based upon a change in. Days' sales uncollected is computed by: O dividing net sales by accounts receivable and multiplying by 365. Types of Debt in an Arizona Divorce. 7 days 42. For military members. To calculate days sales uncollected, divide accounts receivable by the net annual credit sales of the business, and then multiply by 365. Bobrow held a spouse who pays community bills during a divorce in Arizona may assets a claim to have the other spouse pay reimbursement for his or her share of those bills. Many doctors are surprised to learn that their practice of medicine may be valued in a divorce even if you work for an employer and do not actually have your own separate medical. Arizona Divorce Rules and Property Division. The Superior Court of Arizona divided the couples’ property declaring: (1) Leisure Lane and 30th Way were Wife’s separate property, (2) Wife’s bank account was. Using the receivable turnover ratio: $750,000 / ( ($50,000 + $60,000) / 2) = 13. 20 terms. A statement about spousal maintenance; A statement regarding the division of property and debts; A statement regarding who should pay attorney fees for the divorce; The court. Calculating a Property Equalization Payment in Arizona. S. C. If you have a question about divorce in Arizona, please call to speak to one of our experienced Arizona divorce attorneys at (480)305-8300. ($2,700/$31,500) x 365 = 31 days. Arizona Divorce Rules and Property Division. Divorcing couples in Arizona must reach an agreeable arrangement on how to divide their assets and debt. This may indicate that: A. After Decedent’s death in 2012, Kroncke requested the IRA proceeds from Schwab. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. c. Stat. Well, the Arizona Court of Appeals in the memorandum decisions of Lamb ert vs. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. This higher ratio signals an adequate ability to collect on your debts. Measures a company's ability to pay its bills on time. You should contact Mr. All of these, A. Tracking accounts receivable turnover ratio shows you how quickly. Conversely, this creates an asset for the seller, which is called accounts receivable. The answer to the question of choosing a date to value assets in an Arizona divorce really depends upon nature of the asset being divided. For example, if a company has $500,000 in accounts receivable and $2,000,000 in net sales, then you could use this equation to. O multiplying accounts receivable by cost of goods sold and multiplying by 365. The superior court deviated from Casalena’s calculation. In our discretion, we decline to award Wife attorney’s fees under A. In all cases, when a credit account is held jointly, you can’t remove yourself from the account. is calculated by dividing accounts receivable by net sales. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. Unfortunately, some people have second thoughts after reaching a rule 69 settlement agreement later and wish to. Operations D. The court also decided the equity from the condo will be used to pay off the loan the husband had obtained. 1)Dividing net credit sales, or net sales, by average net accounts receivable yields: Select one: a. Money earned during a marriage by either of them – and property purchased with it -- is termed. Let us provide you with the personalized legal representation that you need during this difficult time. Current ratio. Dep’t of Agriculture (Lawyers Weekly No. / / 5 FAQs About Dividing Retirement Accounts in an Illinois Divorce. For these reasons, if you are looking into dividing your retirement benefits, do not wait any longer. Accounting questions and answers. Average accounts receivable are $10,000. During a divorce, retirement accounts and pensions can be a big issue. Accounts payable works the other way around. 1. Some people want to know if they should clear out all of the money in the bank accounts before the other spouse does it. Czarnecki in 1973. Accounting questions and answers. Once you can see the complete financial picture, you can also avoid the related mistake of arguing over one asset at a time. Accounts payable. 4. Processing accounts receivable is fairly straightforward. Table of Contents. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. The first step toward dividing your debts in your divorce is determining which of your debts are marital and separate. 2d 214, 116 Ariz. Study with Quizlet and memorize flashcards containing terms like Accounts receivable turnover is calculated using the following formula: Multiple choice question. Measures a company's debt to income. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. Equitable distribution is a method of dividing property at the time of divorce. Having an experienced family law attorney on your side will ensure the process runs smoothly as well as the court awards you all that you deserve. Example: ($50,000 ÷ $800,000) x 365 = 22. State laws require that you wait 60 days from the date of service before you can proceed with a divorce. The law says that community property and debt should be divided "just and right" when you get divorced. Some people want to know if they should clear out all of the money in the bank accounts before the other spouse does it. Multiply that result by 365 to find the average amount of days it takes the company to collect receivables. Holding: In PETA’s suit challenging the. If annual credit sales are $8. One example is making a new spouse an account holder on your prior bank account, which turns it into a joint bank account. In the second formula, we need to find out the average accounts receivable per day (meaning average accounts receivable divided by 365) and the average credit sales per day (meaning average credit sales divided by 365). 1. Pfeffer held that a creditor might come after community assets but usually cannot come after the separate property of a spouse to pay a community debt. 00. How much each customer has purchased on credit. Jimenez had to address the issue, among others, of whether an Arizona divorce court has the legal authority to join a third party in a divorce case for the purpose of allowing a spouse to bring a fraudulent conveyance claim in an Arizona divorce to recover monies a wife alleged her husband had. Again, as customer acquisition and retention fluctuates, it’s best to calculate AR turnover per month versus multiplying it by 12. By either paying off the joint cards together or dividing up the debt. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. Updated: Jan 3, 2023, 10:55am. These estimates include the following divorce expenses: Cost of paying an attorney to draft the initial Petition for Dissolution of Marriage; Divorce court filing fees;Current assets is a balance sheet account that represents the value of all assets that can reasonably expect to be converted into cash within one year. Failure to consider tax consequences when dividing community property in Arizona can result in an unfair and inequitable. C. Property settlements are just one issue that has to be resolved in the divorce process. They can be the most valuable thing that married couples own. 10. (a) “ Account ” means a right to a payment of a monetary obligation. c. If you have questions about sharing a personal injury settlement in an Arizona divorce. To discuss your divorce or marital debt needs, contact our team. After the 60 days from the date of service passes, the steps necessary to. Make an adjustment so that the ending amount in the balance sheet account is. It provides some indication of the quality of. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. Average Collection Period: The average collection period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable . With an estimated 35% to 50% of marriages in the U. ) In a divorce you must determine whether assets are marital and nonmarital. S. 7. Measures a company's ability to pay its bills on time. The Divorce Process: A Step By Step Guide. c. Taxes and Child Support in Arizona. The parties were going through a divorce in Arizona. The laws are different in every state, so it is advisable to consult a divorce attorney when dividing your retirement accounts, and you should also consult federal tax laws relating to the division of a retirement account. Accounting. a. Things to Consider When Dividing Debts in a Divorce in Arizona. Foster, the husband filed an appeal of the trial court’s division of guns in an Arizona divorce. Question Completion Status! QUESTION 1 How long a company holds inventory before selling it can be measured by dividing cost of goods sold by the average inventory balance to determine the Days' sales uncollected Current ratio Inventory turnover. ($40,000 + $60,000) ÷ 2 = $50,000. "We hold that the trial court properly excluded from the marital estate the value of the three properties at issue. Annulment of Marriage in Arizona Does Not Affect Community Property Rights. Scottsdale, Arizona 85260. a company sells $900,000 of accounts receivable to factor for cash less a 2% service charge. Although the Superior Court has a facility in each Arizona county, a court case to end a marriage must be started in the county where Questions & Answers A. Net income divided by average total assets is. This can include behavior like gambling away all the. This guarantee serves as a safeguard for businesses, ensuring the recovery of outstanding receivables in case the original debtor fails to. AZ law gives family courts authority to divide community property equitably between divorcing spouses. 9 days. The goods and services have been provided but not yet paid for. Current assets include cash and cash. d. Hiding assets during a divorce is illegal in Arizona and can lead to severe legal consequences. Ann. This is true, regardless of the spouses’ respective financial contributions. Retirement accounts, investment accounts, real property, precious metals, artwork, and a medical practice must all be valued and divided in a divorce in Arizona. a. B. Correspondingly, any debts owed by either spouse before marriage will remain each spouse’s sole and separate debt. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. e. The division of assets upon termination of the marriage (either by divorce or at death) is another important part of a prenuptial agreement. The most important opinions from North Carolina Lawyers Weekly for the 3Q of 2017 Administrative Court Upholds AWA License Renewal Rules PETA v. If you have questions about debts not included in a divorce decree in. 00 if the money used to pay the separate debt was still in the parties’ bank account, as opposed to being used to pay a spouse’s separate debt in a divorce. The assignor conveys all interest in the accounts listed on the Attachment included in the form. Accounts receivable services is a debt collection service located at 6160 Summit Drive, Suite 400, Minneapolis, MN 55430. If cash sales are unknown, use net sales. 8 days average collection period. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. In Arizona, the decision of the court regarding the division of marital assets is based upon state law. The exception to this general rule would occur if both spouses signed, for example, a. Though specific terms vary, an account receivable is typically set to. With a traditional 401 (k) account, a judge would order these funds, which were accrued during marriage, to be split through what’s called a Qualified Domestic Relations Order. A. Call us today at (480)305-8300 or complete our new client form to learn how much you or your spouse will receive from a pension in a divorce in Arizona. The simplest way to explain it is by using a community property bank account with an initial balance of $20,000 as an example. The first equation multiplies 365 days by your accounts receivable balance divided by total net sales. To calculate the accounts receivable turnover ratio, you divide the net credit sales by the average accounts. If you and your spouse divorce, your 401 (k) could be divided up as part of the financial settlement. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. However, unlike stock options, the employee does not own the stock when the Restricted Stock Units vest. Divide net credit sales by average accounts receivable. The average. ) In a divorce you must determine whether assets are marital and nonmarital. The accounts receivable turnover ratio is an efficiency ratio that measures the number of times over a year (or another time period) that a company collects its average accounts receivable. After Decedent’s death in 2012, Kroncke requested the IRA proceeds from Schwab. ) No. return on total assets. When goods or services are sold to a customer, and the customer is allowed to pay at a later date, this is known as selling on credit, and creates a liability for the customer to pay the seller. R. AR are considered a current asset since they will be cash within one year or less. Transfer of accounts receivable in a non-recourse transaction. You’ll divide your net credit sales by your average accounts receivable to calculate your accounts receivable turnover ratio, or rate. property that the spouses have agreed (in writing) is separate, usually through a legally valid prenuptial or postnuptial agreement, and. § 518. There are 2 steps to. A judge will divide a divorcing couple's property and debts, unless the couple is able to reach a settlement agreement. Just like your assets, it is critical to ensure. 4. 1984), the Arizona Court of Appeals discussed whether legal contingency fees (that is, legal fees that are a percentage-of-recovery) earned by an attorney/spouse after his marriage ended are his alone or community property, when much of the work on the case was accomplished during the. Measures how efficiently a company assets are being used to generate sales: Total Asset Turnover. This is true, regardless of the spouses’ respective financial contributions. Unum long-term care insurance Website. An Equal Distribution of Community Assets is Required in Most Cases. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. E. Some of the most common types of household debts include: An Equal Distribution of Community Assets is Required in Most Cases. The amount of time that takes to get a dissolution or divorce can vary from case to case. equals total assets minus current assets divided by average inventory. You can open all your accounts here. Terms in this set (30) Early stage financing is typically:. The accounts receivable turnover ratio for 2017 is 5 × ($400,000/$80,000). "Quick" assets are cash, stocks and bonds, and accounts receivable (i. d. This means that cash receipts from customers are delayed until accounts receivable are collected. Its accounts receivable balance averaged $2 million. 592, 598–99 (App. It’s the money your business owes and is described as a liability account in your. Divorce is the final, legal ending of a marriage by court order. A. But generally speaking, if your spouse hides assets, they may be required to pay a fine, return the hidden. Order a free credit report. Secured. c. 1. A company's sales in 2016 were $300,000 and in 2017 $351,000. The experienced Arizona divorce attorneys at Hildebrand Law, PC have over 100 years of combined experience calculating the division of pension benefits in a divorce in Arizona. Arizona Revised Statutes: The Arizona divorce process begins with the filing of the Petition for Dissolution. accounting. date of service (DOS) the calendar date a service begins or is provided. , all current assets on the balance sheet. For example, a divorce is a rare time that allows you early access to your 401(k) or IRA without a tax penalty if your spouse is awarded part of your account. Customer account written off as uncollectible during 2014 24,000. gifts or inheritances that one spouse received, either before or during the marriage. The terms “fair” and “equitable” has been defined to mean substantially equal. The Rule on Omitted Assets in an Arizona Divorce Decree. If one. D. Contact an experienced family law attorney today by calling the law offices of DeShon Laraye Pullen PLC at 602-252-1968. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. 58 (4). spent or used, as with money or energy. As Arizona is one of nine community property states in the United States, anything earned (or debt incurred) during the marriage is community property and, thus, subject to “equitable” distribution in a divorce. We help clients navigate complicated family law and divorce issues such as unmarried step-parent rights. The assignor conveys all interest in the accounts listed on the Attachment included in the form. average earnings per share b. The divorce judge in the Carroll case assigned a large portion of the community debt to the husband. A measure of the liquidity of receivables calculated by taking the balance of receivables and dividing by the credit (or net) sales over the year just completed, and then. C. The Arizona Court of Appeals in the case of Bell-Kilbourn vs. Average accounts receivable is calculated. Keeping your money in separate bank accounts may help you reduce disagreements with your spouse over what you choose to spend money on, but it offers little legal protection if you decide to divorce. Barron addressed those issues. In some cases, a simple file systeor the equivalentm, , may be adequate if it substantiates the general ledger account balance. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. Problems can arise when a spouse uses sole and separate funds to buy a house in Arizona. To follow are answers to the top five. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. Net sales efficiency accounts for new customer acquisition and churn by looking at sales and marketing spend alongside new. Net receivables is often expressed as a percentage, and a higher. The days’ sales uncollected is an essential ratio for the company’s investors and creditors. But difficulties can also arise over tangible objects, such as collections or collectibles, that belong together and lose significant value if scattered during a divorce. Mr. Measures a company's debt to income. Accounts receivable is a phrase referring to a company’s invoices that are not yet paid at the time of reporting. An Arizona divorce case that settled quickly will typically cost $2,500. Arizona’s property laws provide the rules about how spouses divide up property when they divorce or separate. Is one of the parties a service member stationed at Luke AFB, Davis-Monthan. As part of the process, a court must determine which debts belong to each individual spouse. If you are reading this article, you probably know that CSRC refers to Combat-Related Special Compensation pay. e. Credit card companies aren’t bound by divorce decrees, so they can go after you for jointly incurred debt if your former spouse doesn’t pay. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. compares current assets to current liabilities. John Howell and Sandra Howell divorced in 1991. 42 days. We have many attorney offices with family and divorce lawyer in Phoenix and surrounding areas. A. issued a 10% share dividend on December 1, the following data were collected Not yet answered Marked out of 1. There is no simple answer to whether you should remove money from your joint bank accounts prior to filing a divorce. The Arizona Court of Appeals in the case of Schickner v. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. McClennen’s capital account was valued at $11,428. This form is an Assignment of Accounts Receivable. They may only divide the parts considered as marital property. Property that is gained by a spouse through inheritance or gift will be that spouse’s sole and separate property, regardless if received before, during, or after a divorce or. First, the same marital property division laws in Arizona that determine “who gets the house and who gets the condo” generally apply to sole proprietorships, corporations,. Operations Management questions and answers. Asset Division in Your Divorce. Money earned during a marriage by either of them – and property purchased with it -- is termed. b. Accounts receivable and notes receivable from SALES TRANSACTIONS. C. In addition, don’t forget about the potential tax impacts down the road. , Net sales for a company are $250,000. AR is listed as a current asset on the balance sheet. Is calculated by dividing sales by accounts receivable. Under Arizona law, both spouses have an ownership interest in the amounts. Is calculated by dividing accounts receivable by safes. choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona; effect of a disclaimer deed or quit claim deed in a divorce in arizona; bank accounts and divorce in arizona; dividing paid time off in a divorce in. U. Here is the accounts. 001-141-17, 19 pp. Mrs. Phone Toll free: 800-227-4165 PERS Board. The answer to the question can a business owners accounts receivable be divided in a divorce in Arizona is a big fat “maybe”. This means upon the death of one party, the other party owns the entirety of the account. Accounting questions and answers. b. Kratz at (520)577-5155 if you have questions about how to properly divide retirement accounts in an Arizona divorce. Usually the credit period is short ranging from few days to months or in some cases maybe a year. Once you have ensured that the QDRO meets the requirements of the 401 (k) plan. Bank accounts, clothing, automobiles, retirement interests (401(k) or pension plans), jewelry, furniture—these are all examples of personal property. A divorce decree in Arizona is intended to divide all community property between the spouses. It may be more difficult for either party to get one after the divorce. Arizona Divorce Rules and Property Division. If my spouse and I agree on how we should divide our property, do we have to rely on. In order to be eligible to divorce in Arizona, you or your spouse must have lived in the state for a minimum of 90 days prior to filing court forms to dissolve your marriage. In that case, the account holder may have to transfer some of the funds to the other spouse. Kroncke was the administrator of his father’s estate (the “Estate”) and requested the. Arizona Divorce Rules and Property Division. In Arizona, a divorce court must divide a home that is marital property equitably, which means equally absent other factors. A process of classifying accounts receivable in terms of how long they have been outstanding for the purpose of estimating the amount of uncollectible accounts. The division of assets upon termination of the marriage (either by divorce or at death) is another important part of a prenuptial agreement. A Qualified Domestic Relations Order (QDRO) must be signed by. It is calculated by dividing net income earned during the year by the total assets at the end of. 2. In Van Loan v. Open a credit card in your name alone. If you need assistance filing for divorce, have been served with divorce papers, or have any other questions, our Arizona divorce attorneys at Cohen Family Law can help you. A rule 69 agreement in an Arizona divorce is created when the parties reach a settlement and either place the terms of that settlement in a written document or recite the terms of the parties’ agreement on the record in open court. prior to 2008 that has a death benefit significantly higher than the account value. claims of waste in an arizona divorce; dividing accounts receivable in a divorce in arizona; the importance of title searches on the marital home during a divorce;. Accounts receivable services are just collection agencies. Step 3: Divide. Open a credit card in your name alone. Under Arizona's community property laws, all assets and debts a couple acquires during marriage belong equally to both spouses. D. is used to evaluate the liquidity of receivables Question 28 Just before Arugone Funeral Homes Inc. Ct. 9364 E Raintree Drive, Suite 107. Finally, the court decided the remaining money will be divided equally between the husband and the wife. Your financial future will depend (at least partially) on getting your fair share of the value of all the marital assets, minus the debts. maximize the value of a firm to its owners. Measuring the number of times that accounts receivables are turned into cash during a given period, the ratio is essentially a lens.