Equations Flashcards
1
Q
What is the equation for break even point
A
Fixed costs/(sales price per unit-variable costs per unit)
Break even point=units
2
Q
How to calculate margin of safety
A
Number of sales-break even point
3
Q
How to calculate turnover/revenue
A
Selling price x quantity sold
4
Q
How to work out gross profit
A
Turnover - cost of sales
5
Q
How to work out net profit
A
Gross profit - expenditure
6
Q
How to work out net current assets
A
Current assets - current liabilities
7
Q
How to work out net cash flow
A
Total inflows - total outflows
8
Q
How to work out closing balance
A
Net cash flow + opening balance
9
Q
How to calculate net assets
A
Fixed assets+ working capital
