EQUATIONS

Question 1

What is the equation for Net Cash Flow?

Answer 1

Cash Inflows - Cash Outflows in a given period

Question 2

What is the equation for loan interest?

Answer 2

Total Repayment -BorrowedAmount
———————————————— X100
Borrowed Amount

Question 3

What is the equation for Net Profit

Answer 3

Gross Profit - Other Operating Expenses and interest

Question 4

Total Cost

Answer 4

Total Fixed Cost + Total Variable Cost

Question 5

Revenue

Answer 5

Price x Quantity

Question 6

Break even point in units

Answer 6

Fixed Cost / Sales Price - Variable Cost

Question 7

Break Even Point in Revenue

Answer 7

Break Even Point in Units x Sales Price

Question 8

Margin Of Safety

Answer 8

Actual or Budgeted Sales - Break Even Sales

Question 9

Gross Profit

Answer 9

Sales Revenue - Cost of Sales

Question 10

Gross Profit Margin

Answer 10

(Gross Profit / Sales Revenue ) x100

Question 11

Net Profit Margin

Answer 11

(Net Profit / Sales Revenue) x 100

Question 12

Average Rate of Return

Answer 12

(Average annual Profit/ Cost of Investment ) x100