Finance Flashcards
What is the formulae for “net cash flow”?
total cash inflows - total cash outflows.
What is the formulae for “closing balance cash flow”?
opening balance + net cash flow.
What is the formulae for “opening balance cash flow”?
closing balance of the previous month.
What is the formulae for “average rate of return”?
(average annual profit / initial investment) x100
What is the formulae for “break-even”?
fixed costs / (selling price - variable costs).
What is the formulae for “margin of safety”?
actual sales - break-even sales.
What is the formulae for “gross profit”?
revenue - costs of sales.
What is the formulae for “operating profit”?
gross profit - overheads or expenses.
What is the formulae for “net profit”?
operating profit - tax - finance costs.
What is the formulae for “gross profit margin”?
(gross profit / sales revenue) x100.
What is the formulae for “net profit margin”?
(net profit / sales revenue) x100.
What is the formulae for “net current assets”?
total assets - total liabilities.
