Equations Flashcards
Net cash flow
Total inflow - Total outflow
Closing balance
Net cash flow + opening balance
Total revenue
Selling price x quantity
Total costs
Fixed costs + Variable costs
Profit
Total revenue - Total costs
Total contribution
Sales revenue - Total variable costs
Contribution per unit
Selling price per unit - variable cost per unit
Profit (using contribution)
Total contribution - fixed costs
Break even (units)
Fixed costs/ (selling price-variable costs)
Break even (sales value)
Break even output x selling price
Margin of safety (units)
Total output - break even output
Margin of safety (value)
Margin of safety output x selling price
Sales revenue
Selling price x quantity
Cost of goods sold
(Opening inventory + purchases) - closing inventory
Gross profit
Sales revenue - cost of goods sold
Net profit/loss
(Gross profit-expenses) + revenue income
Net current assets
Current assets - current liabilities
Net assets
(Non current assets + current assets) - (current liabilities + long term liabilities)
Capital employed
(Owners capital + retained profit) - drawings
Net book value
Historic value - depreciation
Straight line depreciation
Historic value - residual value/ expected life
Reducing balance depreciation
Historic value - % depreciation (applied year on year)
Gross profit margin
Gross profit/sales revenue x 100
Net profit margin
Net profit/sales revenue x 100
