formula

Question 1

What is the formula for Revenue?

Answer 1

Revenue = Units Sold x Selling Price Per Unit

Question 2

What is the formula for Gross Profit?

Answer 2

Gross Profit = Revenue - Cost of Sales

Question 3

What is the formula for Net Profit?

Answer 3

Net Profit = Gross Profit - Expenditure

Question 4

What is the formula for Gross Profit Margin?

Answer 4

Gross Profit Margin = (Gross Profit ÷ Revenue) × 100

Question 5

What is the formula for Net Profit Margin?

Answer 5

Net Profit Margin = (Net Profit ÷ Revenue) × 100

Question 6

What is the formula for Mark Up?

Answer 6

Mark Up = (Gross Profit ÷ Cost of Sales) × 100

Question 7

What is the formula for Return on Capital Employed (ROCE)?

Answer 7

ROCE = (Net Profit (before tax and interest) ÷ Capital Employed) × 100

Question 8

What is the formula for the Current Ratio?

Answer 8

Current Assets - Current Liabilities

Question 9

What does the Liquid Capital Ratio (Quick/Acid Test) measure?

Answer 9

Current Assets - Inventory + Current Liabilities

Question 10

formula for trade receivable days ?

Answer 10

Trade receivable / credit sales x 365

Question 11

Formula for trade payable days ?

Answer 11

Trade payable /credit purchases x 365

Question 12

Formula for inventory Turnover ?

Answer 12

Average Inventory / cost of sales x 365

Question 13

Formula for Break even ?

Answer 13

Fixed cost / Contribution per unit

Question 14

Formula for Contribution per unit ?

Answer 14

Selling price - variable cost

Question 15

Formula for Straight line depreciation ?

Answer 15

Historic Price - Residual value / Expected life

Question 16

Formula for Reducing Balance Depreciation ?

Answer 16

Starting value - Set percentage