equations Flashcards
what are index numbers and their formula?
show changes in data over time, making it easier to compare.
value
————– x100
base year
what is the budget variance formula?
actual figures - budgeted figures
shareholders funds formula?
fixed assets + (current assets - current liabilities) - long term liabilities
what is the working capital and its formula?
money needed in business to pay for daily expenses.
current assets - current liabilities
what is capital employed and its formula?
amount of money used to finance a business in long term, either invested by shareholders or borrowed long term.
shareholders’ funds + long term liabilities
what is depreciation and its formula?
decrease in value of fixed assets overtime.
historical cost - residual value
——————————————-
useful life of asset
what is return on capital employed and its formula?
how effectively capital invested is being used to create profit.
net profit before tax
——————————– x100
capital employed
what is the current ratio and its formula?
business’ ability to meet short term payments
current assets
———————–
current liabilities
expressed as :1
what is acid test ratio and its formula?
excludes stock from current assets as its most difficult to turn to cash
current assets -stock
——————————–
current liabilities
what is gearing ratio and its formula?
ratio of shareholders funds to money borrowed
long term liabilities
—————————— x100
capital employed
what is the decision tree expected value formula?
each probability x each outcome
add together
what is the net gain formula on decision trees?
expected value - initial cost
what is the earliest start time formula?
from left to right
previous EST + previous activity duration
select biggest outcome
what is latest finish time formula?
from right to left
previous LFT - following activity duration
select smallest outcome
what is the FLOAT time formula?
LFT - duration - EST
