All formulas

Question 1

Give the formula for Revenue.

Answer 1

Revenue = number of sales x price per unit

Question 2

Give the formula for Total costs.

Answer 2

Total costs = fixed costs + variable costs

Question 3

Give the formula for Profit.

Answer 3

Profit = Total Revenue – Total Costs

Question 4

Give the formula for Turnover.

Answer 4

Turnover = price x quantity sold

Question 5

Give the formula for Gross Profit.

Answer 5

Gross Profit = Turnover – cost of sales

Question 6

Give formula for Net Profit.

Answer 6

Net Profit = gross profit – expenditure

Question 7

Give the formula for Cash balance.

Answer 7

Cash balance = cash inflow – cash outflow

Question 8

Give the formula for Gross Profit Margin (%).

Answer 8

Gross Profit Margin (%) = (Gross Profit / Sales Revenue) x 100

Question 9

Give the formula for Net Profit Margin (%)

Answer 9

Net Profit Margin (%) = (Net Profit / Sales Revenue) x 100

Question 10

Give the formula for Net current assets.

Answer 10

Net current assets = current assets – current liabilities

Question 11

Give the formula for Net assets.

Answer 11

Net assets = fixed assets + net current assets

Question 12

Give the formula for Net Cash Flow.

Answer 12

Net Cash Flow = Cash inflows – cash outflows

Question 13

Give the formula for Closing balance.

Answer 13

Closing Balance = Opening Balance + Net Cash
Flow

Question 14

Give the formula for Opening balance.

Answer 14

Opening Balance = Closing balance from the
previous month

Question 15

Give the formula for Margin of Safety.

Answer 15

Margin of Safety = Number of sales – break-even point