equations Flashcards
1
Q
total costs =
A
total costs = fixed costs + variable costs
2
Q
revenue =
A
revenue = sales quantity x sales price
3
Q
gross profit =
A
gross profit = turnover - cost of sales
4
Q
net current assets =
A
net current assets = current assets - current liabilities
5
Q
gross profit margin (GPM) =
A
(gross profit/revenue) x 100
6
Q
net profit margin (NPM) =
A
(net profit/revenue) x 100
7
Q
net cash flow =
A
net cash flow = total inflows - total outflows
8
Q
closing balance =
A
closing balance = opening balance +/- net cash flow
9
Q
break even point =
A
break even point = fixed/(selling price - variable cost)
10
Q
margin of safety =
A
margin of safety = actual sales - break-even output
