calculations

Question 1

breakeven

Answer 1

fixed costs / selling price - variable cost (contribution)

Question 2

margin of safety

Answer 2

actual sales - breakeven sales

Question 3

interest in %

Answer 3

total repayment - borrowed amount / borrowed amount x100

Question 4

net cash flow

Answer 4

cash inflows - cash outflows

Question 5

closing balance

Answer 5

opening balance + net cash flow

Question 6

gross profit

Answer 6

revenue - variable costs

Question 7

net profit

Answer 7

revenue - total costs

Question 8

gross profit margin

Answer 8

gross profit / revenue x100

Question 9

net profit margin

Answer 9

net profit / revenue. x100

Question 10

current ratio

Answer 10

current assets / current liabilities

Question 11

acid test ratio

Answer 11

current assets without stock / current liabilities

Question 12

working capital

Answer 12

current assets - current liabilities

Question 13

capital employed

Answer 13

assets - current liabilities or
non-current liabilities + owners equity

Question 14

return on capital employed (roce)

Answer 14

net profit / capital employed. x100

Question 15

gearing ratio

Answer 15

non-current liabilities / capital employed. x100

Question 16

stock turnover

Answer 16

cost of sales / average stock held

Question 17

creditor days

Answer 17

trade payables / cost of sales. x365