Calculations analysis Flashcards
What is the formula for APR
( average yearly profit / initial investment ) x 100
what is break even
when total cost = total revenue
what is margin of safety
actual sales − break-even sales
- the amount of sales it would take for the business to make no profit
what is gross profit
revenue - cost of sales
operating profit
gross profit - expenses
net profit
operating profit - taxes
gross profit margin
(gross profit / revenue) x100
amount of profit made on every pound of sale after cost of sale
net profit margin
( net profit / revenue ) x 100
net current assets
current assets - liabilities
Net current assets is the money available for the day-to-day
net assets
fixed assets + net current assets
total value of business
What are the components of an income statement
revenue
cost of sales
gross profit
expenses
total expense
operating profit / net profit
what are the components of statement of financial position
fixed assets
current assets
liabilities
net current assets
net assets
equity / shareholder funds
long term liabilities
capital employed
capital employed = net assets
