FINANACE FORMULAS Flashcards
1
Q
NET CASH FLOW
A
CASH INFLOWS - CASH OUTFLOWS
2
Q
TOTAL COSTS
A
FIXED COSTS + VARIABLE COSTS
3
Q
AVERAGE COSTS
A
TOTAL COST / QUANTITY PRODUCED
4
Q
TOTAL REVENUE
A
PRICE X QUANTITY
5
Q
PROFIT
A
TOTAL REVENUE - TOTAL COST
6
Q
BREAK - EVEN POINT
A
FIX COST / SELLING PRICE - VARIABLE COST PER UNIT
7
Q
GROSS PROFIT
A
REVENUE - COST OF SALES
8
Q
OPERATING PROFIT
A
GROSS PROFIT - EXPENSES
9
Q
NET CURRENT ASSETS IS THE SAME AS…
A
WORKING CAPITAL
10
Q
NET ASSETS
A
NET CURRENT ASSETS + NONCURRENT ASSETS - NONCURRENT LIABILITIES
11
Q
GROSS PROFIT MARGIN
A
GROSS PROFIT / REVENUE X 100
12
Q
OPERATING PROFIT MARGINS
A
OPERATING PROFIT / REVENUE X 100
13
Q
MARK - UP
A
PROFIT PER ITEM / COST PER ITEM X 100
14
Q
CURRENT RATIO
A
CURRENT ASSETS / CURRENT LIABILITIES
15
Q
ACID TEST RATIO
A
CURRENT ASSETS - INVENTORY / CURRENT LIABILITIES
