Business Flashcards
What are short term sources of funding
Trade credit
Overdraft
Debt factoring
Credit card
What are long term sources of funding
Business angles
Bank loan
Grants
Loans from family and friends
Share capital
Mortgage leasing
What are current assents
Something that you can turn into money and if u sell won’t hinder your operations
How do you calculate total revenue
Quantity x selling price
What is gross profit
Revenue - costs
What is net profit
Gross profit - expenses
Break even equation
Fixed costs/(selling price- variable costs)
Margin of safety equation
Actual output -break even
Contribution
Selling price - variable costs
Total costs
Variable + fixed costs
Net cash flow
Total cash inflow- total cash outflow
What’s the closing balance
Opening balance + net cash flow
Net profit margin
Net profit/ sales revenue x 100
Working capital
Current assets - current liabilities
