Calculations Flashcards
Gross profit calculation
Sales revenue - direct cost of product
Net profit calculation
Gross profit - expenses
Revenue calculation
Number of sales x price per unit
net cash flow calculation
total cash inflow - total cash outflow
closing balance calculation
opening balance + net cash flow
cost of goods sold calculation
opening inventory + purchases - closing inventory
profit/loss for the year calculation
gross profit - expenses + other income
net book value calculation
cost - depreciation
net current assets (working capital) calculation
current assets - current liabilities
net assets calculation
total assets - total liabilities
capital employed calculation
total assets - current liabilities
total costs calculation
fixed costs + total variable costs
profit calculation
revenue - total costs
total contribution calculation
sales revenue - total variable costs
contribution (per unit) calculation
selling price - variable cost per unit
break even output calculation
total fixed costs/contribution per unit
margin of safety calculation
actual sales - break even sales
(gross) profit margin calculation
gross profit/revenue x100
mark-up calculation
gross profit/cost of sales x100
return on capital employed calculation
profit/ capital employed x100
current ratio calculation
current assets/current liabilities
liquid capital ratio calculation
current assets - inventory
/ current liabilities
trade receivable days calculation
trade receivables/ credit x 365
trade payable days calculation
trade payables/credit x365
inventory turnover calculation
average inventory turnover/ cost of sales x365
average inventory calculation
opening inventory + closing inventory /2
Straight line depreciation calculation
Historic value - Residual value / Expected life
Net profit margin calculation
profit/ Capital employed x100
