aim e and f Flashcards
gross profit f SOCI
revenue- cost of sales
net profit F SOCI
gross profit (revenue- cost of sales) - expenses
costs of goods sold F SOCI
opening inventory + purchases- closing inventory
profit or loss F SOCI
gross profit - expenses + other income
net book value F SOCI
cost- depreciation
net current assets F SOFP
current assets - current liabilities
net assets F SOFP
NCA + net current assets - long term liabilities
capital employed F SOFP
opening capital+ profit for the year
what needs to balance on a balance sheet
F SOFP
net assets= capital employed
gross profit margin F measuring profitability
gross profit/ revenue x 100
mark up F MP
gross profit/ cost of sales x100
Net profit margin F MP
Net profit/revenue x100
return on capital employed F MP
profit/capital employed x 100
current ratio F Measuring liquidity
current assets/ current liabilities
liquid capital ratio F ML
current assets - inventory/ current liabilities
trade receivable days F ML
trade receivables/ credit sales x 365
trade payable days F ML
trade payables/ credit purchases x365
inventory turn over F ME
average inventory/cost of sales
Ne t cash flow E1 CF
Total cash inflows- total cash out flows
closing balance E1 CF
opening balance + net cash flow
Total revenue E2 BE
selling price x quantity sold
Total costs E2 BE
fixed cost + variable cost
profit E2 BE
total revenue - total costs
total contribution E2 BE
sales revenue - total variable cost
contribution per unit E2 BE
SELLING PRICE - VARIABLE COSTS
profit using contribution E2 BE
contribution per unit x margin of safety
break even E2 BE
fixed cost/ selling price - variable cost (contribution)
margin of safety E2 BE
Actual sales - break even sales
