Accounting formula/calculations Flashcards
Net cash flow
total cash inflow - total cash outflow
closing balance
opening balance +- net cash flow
total costs
Fixed costs + variable costs
contribution per unit
selling price per unit - variable cost per unit
Break even
Total fixed costs / (sales price - variable cost per unit)
sales revenue
quantity sold X selling price
Cost of goods sold
(opening inventories + purchases) - closing inventories
gross profit
sales (revenue) - cost of goods sold
gross profit margin
( gross profit / sales revenue ) X100
Mark-up
( Gross profit / cost of sales ) X 100
Profit margin
( Net profit / sales revenue ) X100
return on capital employed
( Net profit / capital employed ) X 100
current ratio
Current assets / current liabilities
liquid capital ratio
Current assets - inventory / current liabilities
trade receivable days
( trade receivables / credit purchase ) X 365
trade payables days
(trade payables / credit purchases ) X 365
Net current assets
Current Assets - Current Liabilities
Depreciation (straight line)
(Historical cost - residual value) / expected life
Expected Net Book Value (depreciation)
NBV year 1 - Depreciation for year 2
Net Assets
Non current Assets + Net current Assets - Non Current Liabilities
Capital Employed
Opening Capital + Retained profit - Drawings
