Accounting ratios to calculate missing figures Flashcards
1
Q
Mark-up =
A
Gross profit
——————– x 100
Cost of sales
2
Q
(mark-up) Cost of sales =
A
revenue / mark-up
3
Q
(mark-up) revenue =
A
Cost of sales x markup
4
Q
Gross profit margin =
A
Gross profit
—————— x 100
Revenue
5
Q
(GPM) gross profit =
A
revenue x (GPM)
6
Q
(GPM) revenue =
A
gross profit / (GPM)
7
Q
(GPM) revenue =
A
cost of sales / (GPM)
8
Q
Inventory turnover =
A
Cost of sales / Average inventory
9
Q
Average inventory =
A
2
10
Q
Profit in relation to revenue =
A
Profit for the year
————————- x 100
Sales revenue
11
Q
(Profit in relation to revenue) profit for the year =
A
revenue x (Profit in relation to revenue)
12
Q
(Profit in relation to revenue) revenue =
A
profit for the year / (Profit in relation to revenue)
