2.4.1 Business Calculations Flashcards
1
Q
Calculation for Gross Profit
A
Revenue - Cost of Sales
2
Q
Calculation for Net Profit
A
Gross Profit - Other Expenses
3
Q
What is an Income Statement
A
AN income statement calculates the profit/loss made by a business in the last 12 months.
4
Q
Gross Profit Margin Formula
A
Gross Profit / Revenue x 100
5
Q
Net Profit Margin Formula
A
Net Proft / Revenue x 100
6
Q
Average Rate of Revenue Formula
A
Average Annual Profit / Initial cost of investment x 100
