Equations Flashcards
Sales Revenue
Price x Quantity Sold
Cost of Goods Sold
Opening stock + Purchases - Closing stock
Gross Profit
Sales Revenue - Cost of Sale
Net Profit
Gross Profit - Expenses
Straight Line Depreciation
Cost - Residual Value / Life Expectancy
Net Book Value
Historic cost - depreciation
Net Current Assets/Liabilities
Current assets - Current liabilities
Net assets
Non-current assets + current assets - current liabilities - non-current liabilities
Capital employed
Opening capital + retained profit - drawings
Gross Profit Margin
Gross Profit / Sales Revenue x 100
Net Profit Margin
Net Profit / Sales Revenue x 100
ROCE (Return on Capital Employed)
Net Profit / Capital Employed x 100
Mark-up
Gross Profit / Cost of Goods Sold x 100
Current Ratio
(Current assets - inventory) / Current liabilities : 1
Liquid Capital Ratio
Current assets / Current liabilities : 1
Trade Receivable Days
Trade Receivables / Credit Sales x 365
Trade Payable Days
Trade Payables / Credit Purchases x 365
Inventory Turnover
Average Stock / Cost of Goods Sold x 365
Break Even
Fixed costs / Contribution
Contribution per unit
Selling Price - Variable cost per unit
Total Contribution
Sales Revenue - Total Variable Costs
OR
Contribution per unit x quantity sold
Margin of Safety
Actual Sales - Break Even level of output
Net Cash Flow
Total Inflows - Total Outflows
Opening Balance
Closing Balance from previous month
Closing Balance
Net Cash Flow + Opening Balance
