Formula

Question 1

Accounts Payable

Answer 1

Opening balance
+ credit purchases of inventory (inc. GST)
- Purchase returns (inc GST)
- Payments to Accounts Payable
- Discount revenue
Closing balance

Question 2

Accounts Receivable

Answer 2

Opening balance
+ credit sales (inc. GST)
- Sales return (inc GST)
- Receipts from Accounts receivable
- Discount expense
- Bad debts (inc GST)
Closing balance

Question 3

Accounts Payable Turnover (APTO)

Answer 3

APTO= Avg. Acc. Pay./ Net Credit purchases (+GST) x 365

=Avg. No. Of days

Question 4

Accounts Receivable Turnover (ARTO)

Answer 4

ARTO= Avg. Acc. Rec./ net credit sales (+GST) x 365

=Avg. No. Of days

Question 5

Carrying Value

Answer 5

Historical cost - accumulated depreciation

Question 6

Reducing balance depreciation

Answer 6

Depreciation expense = Depreciation x Carrying value = $ for the yr

Question 7

Asset Turnover (ATO)

Answer 7

ATO= Net sales/ Avg. Total assets

Question 8

Return on Assets (ROA)

Answer 8

ROA= Net Profit/ Avg. Total assets x 100

Question 9

Average total assets

Answer 9

Avg. Total assets= total assets @start + @end/2

Question 10

Working Capital Ratio (WCR)

Answer 10

WCR= CA/CL = no. Of times :1

Question 11

Debt Ratio

Answer 11

Debt Ratio= Total liabilities/ Total assets x 100

Question 12

GST formula

Answer 12

GST opening balance
+ GST on cash sales
+ GST on credit sales
- GST on sales return
- GST on cash purchases
- GST on credit purchases
+ GST on purchase returns
- GST on bad debts
+/- GST settlement/Refund

Question 13

Net Profit Margin (NPM)

Answer 13

NPM= Net profit/Net sales x100

Question 14

Straight line depreciation

Answer 14

Depreciation expense ($ PA) = HC-RV/ Life

Question 15

Mark up

Answer 15

Mark up = Cost Price x (1 + Mark Up) = Selling Price (mark up expressed as a %)

For example: Inventory purchased by a business for $100 is marked up 50% to determine selling price.
$100 x (1 + 0.5) = $100 x1.5 = $150