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business > Business Calculations > Flashcards

Business Calculations Flashcards

1
Q

How do you calculate acid test ratio

A

Current assets - inventory
/
Current liabilities

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2
Q

How do you calculate total equity

A

Equity = retained profits + share capital

Total equity = net assets

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3
Q

How do you calculate income elasticity of demand ? (YED)

A

% change in quantity demanded
/
% change in income (Y)

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4
Q

What are non current liabilities?

A

Non current liabilities measures the value of expenses to be paid by a business over a period of time longer than 12 months (1year) eg. A mortgage or long term loan

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5
Q

How do you calculate gross profit?

A

Gross profit= total revenue - cost of sales

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6
Q

How do you calculate profit for the year(net profit)

A

Net profit = operating profit - interest

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7
Q

How do you calculate Total contribution?

A

Total contribution = cont per unit X no. Of units

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8
Q

How do you calculate net cash flow?

A

Net cash flow = total cash inflows - total cash outflows

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9
Q

How to calculate gross profit margin ?

A

GPM (%) = gross profit
/ X100
Total revenue

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10
Q

How to calculate total costs

A

Total costs = total fixed costs + TVC

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11
Q

Where do you find the break even point

A

Break even point, revenue = total costs

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12
Q

How do you calculate TVC?

A

TVC = VCPU X no. Of units

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13
Q

how to calculate VCPU ?

A

VCPU = TVC % no. Of units

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14
Q

How to calculate net cash flow ?

A

Net cash flow = cash inflows - cash outflows

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15
Q

How to calculate the closing balance?

A

Closing balance= opening balance + net cash flow

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16
Q

How to calculate operating profit ?

A

Operating profit = gross profit - operating costs( overheads)

17
Q

% change

A

% change = new-old
/ X100
Old

18
Q

How to calculate the MOS (margin of safety)

A

MOS = actual output level - break even output level

19
Q

How to calculate market share ? (%)

A

Market share = total value of sales of a business / total value of sales of the market X100

20
Q

What are non current assets?

A

Non- current assets measure the value of assets which business is expected to have for longer than a period of 12 months (1 year ) eg. Land, property and equipment

21
Q

How to calculate selling price per unit?

A

Selling price per unit= revenue / no. Of units

22
Q

What are current liabilities?

A

Current liabilities measures the value of expenses which need to be paid by a business within a period of 12 months (1year) eg. Rent, electricity

23
Q

How to calculate operating profit margin (%)?

A

OPM = operating profit / revenue X100

24
Q

Net profit/ profit for the year margin

A

NPM = NP/revenue X100

25
Q

How do you calculate capacity utilisation (%)?

A

Capacity utilisation = current output level / maximum possible output level X100

26
Q

How do you calculate profit variance ?

A

Profit variance = actual profit figures - budgeted profit figures

27
Q

How to calculate break even?

A

Break even = total fixed costs/ contribution per unit

28
Q

what are non-current assets?

A

non-current assets otherwise known as fixed assets measures the value of assets which a business has purchased and is expected to have possession of/use for over a year (a period of 12 months) eg. land,property and equiptment are examples of non-current assets

29
Q

what are current liabilities?

A

current liabilities measures the value of expenses to be paid by a business within a period of 12 months(1 year) eg. rent,electricity,or telephone bills

30
Q

how do you calculate profit for the year (net profit margin)?

A

NPM= net profit/ revenue X100

31
Q

how do you calculate profit variance?

A

profit variance= actual profit figure - budegetted profit figure

32
Q

how do you calculate total equity/ net assets ?

A

net assets = current and non- current assets - current and non-current liabilities

33
Q

what are current assets ?

A

current assets measures the value of assets which will take a business 12 months (1 year) to turn into cash in the bank eg. inventory,stock and recievables are examples of current assets

34
Q

how do you calculate contribution per unit?

A

contribution per unit = selling price per unit - VCPU

35
Q

how do you calculate PED (price elasticity of demand)?

A

PED = % change in qty demanded/ % change in price

36
Q

how do you calculate revenue?

A

revenue = price X quantity

37
Q

current ratio formula

A

current ratio = current assets/current liabilities
eg. 1:1.5

38
Q

formula for calculating profit or loss

A

profit/loss = revenue - total costs

39
Q

what is the formula for working capital/net current assets?

A

working capital
/ net current = current assets-current
assets liabilities

business (3 decks)

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