business equations Flashcards
1
Q
revenue
A
price x quantity
2
Q
profit/loss
A
sales revenue-total costs
3
Q
variable costs
A
cost per unit x quantity
4
Q
net cash flow
A
total inflow-total outflow
5
Q
closing balance
A
opening balance + net cash flow
6
Q
total costs
A
fixed costs + variable costs
7
Q
gross profit
A
sales revenue - cost of sales
8
Q
net profit
A
gross profit - expenses
9
Q
gross profit margin
A
gross profit/revenue x 100
10
Q
net profit margin
A
net profit/revenue x 100
11
Q
ARR
A
average yearly profit/ investment x 100