Business Equations Flashcards
1
Q
Net cash flow
A
Cash inflows - Cash outflows
2
Q
Price Elasticity of Demand
(PED)
A
% change in quantity demanded/% change in price
3
Q
Income Elasticity of Demand
(YED)
A
% change in quantity demanded/% change in income
4
Q
Opening balance
A
Cash balance at the start of the month
5
Q
Closing balance
A
Opening balance + net cash flow
6
Q
Sales revenue
A
selling price X quantity sold
7
Q
Total variable costs
A
variable cost per unit X quantity sold
8
Q
Working Capital
A
Current assets – current liabilities
