Calculations

Question 1

Calculation for Current Ratio

Answer 1

Current assets / current liabilities

Question 2

Calculation for Liquid Capital

Answer 2

Current assets - inventory / current liabilities

Question 3

What are the two ways to calculate how much an asset has depreciated

Answer 3

Straight-line method
Reducing-balance method

Question 4

Calculation for Total Inflow

Answer 4

Total Inflows = Sum of all inflows

Question 5

Calculation for Total Outflows

Answer 5

Total Outflows = Sum of all Outflows

Question 6

Calculation for Net Cash Flow

Answer 6

Net Cash Flow = Total Inflows - Total Outflows

Question 7

Calculation for Closing Balance

Answer 7

Closing Balance = Opening Balance + Net Cash Flow

Question 8

Calculation for Opening Balance

Answer 8

Opening Balance = Previous months closing cash flow (Closing Balance - Net Cash Flow)

Question 9

Calculation for Inventory Turnover

Answer 9

Inventory Turnover = Average Inventory / Cost of goods sold x 365

Question 10

Calculation for Average Inventory

Answer 10

Average Inventory = Opening inventory + Closing Inventory / 2

Question 11

Calculation for Closing Inventory

Answer 11

Closing Inventory = Average Inventory - Opening Inventory / 2

Question 12

Calculation for Straight Line Depreciation

Answer 12

Historic Value - Residual Value / Expected Life

Question 13

Calculation for Sales

Answer 13

Quantity Sold x Selling Price

Question 14

Calculation for Sold Goods

Answer 14

Opening Inventories + Purchases - Closing Inventories