equations Flashcards
Opening balance
opening balance + net cash flow
net cash flow
total cash inflow - total cash outflow
revenue
price x quantity sold
gross profit
sales revenue - cost of goods sold
cost of goods sold
(opening inventory + purchases) - closing inventory
profit/loss for the year
(gross profit - expenses) + other income
net book value
cost - depreciation
net current assets
current assets - current liabilities
net assets
(non-current assets + net current assets) - non-current liabilities
capital employed
opening capital + profit for the year (less drawings)
balance sheet
net assets = capital employed
gross profit margin
gross profit margin / revenue x 100
mark up
gross profit / cost of sales x 100
return on capital employed
profit / capital employed x 100
profit margin
profit / revenue x 100
