Business Formulae COPY Flashcards
TC
TC = TFC + TVC
Sales Revenue
Sales revenue = Price x Quantity Sold
Gross Profit
Gross profit = Sales Revenue - Cost of goods sold
COGS
COGS = Opening Stock + Purchases - Closing Stock
Net Profit
Net Profit = Gross Profit - Expenses (Indirect or Fixed costs)
Net Assets
Net Assets = (Noncurrent Assets + Current Assets) - (Noncurrent Liabilities + Current Liabilities)
Annual Depreciation
Annual depreciation = (Purchase cost - Scrap value) / Lifespan
Depreciation per unit
Depreciation per unit = (Purchase Cost - Scrap Value) / Expected Number of units over lifetime
Depreciation expense
Depreciation expense = Depreciation per unit * Number of units produced (so far)
Working captial
Working Capital = Current Assets - Current Liabilities
payback period
Payback Period = Initial Investment / Contribution per month (time period)
Profit per year
Profit per year = Total Profit / Number of Years
Condition for attraction
Condition for attraction ARR > Interest Rates AND Payback Period < Profitable Lifetime
Discount factor
Discount factor = 1 / (Rate of Interest)^Time Period
Variance
Variance = Actual Outcome - Budgeted Outcome
