Finance

Question 1

Formula for Assets

Answer 1

A=L+OE

Question 2

Formula for Equity

Answer 2

E=A-L

Question 3

Formula for Return on Capital Percentage

Answer 3

Return on Capital Percentage =I/Average total Assets

Question 4

Formula for
Net Profit Margin

Answer 4

Net profit margin =practice/ practice revenue

Question 5

Formula for
Gross profit margin

Answer 5

Gross profit margin =gross profit/revenue

Question 6

Formula for
Average transaction

Answer 6

Average Transaction=Practice /Revenue

Question 7

Formula
Revenue per Fulltime DVM

Answer 7

Revenue per FT DVM=practice revenue/# of FT DVMs

Question 8

Formula for
Accounts Receivable Turnover

Answer 8

ART=credit sales/average accounts receivable

Question 9

Formula for
Average Accounts Receivable

Answer 9

Avg AR=(beginning AR + Ending AR) / 2

Question 10

Formula for
Days in Accounts Receivable

Answer 10

Days in AR=Number if days in a period/AR Turnover

Question 11

Formula for Profit

Answer 11

P=Revenue-Expenses

Question 12

Formula for
Cost per Client

Answer 12

Cost per Client=(gross revenue/ # of clients) X % of cost (i.e. % of expense)

Question 13

Formula for
Revenue per FTE DVM

Answer 13

Rev per FT DVM=avg client spend per year X # of clients