Formula for exams Flashcards
Total Revenue
Selling Price x Number Sold
Total Fixed Cost
All fixed costs added together
Total Variable Cost
Variable cost per unit x Number sold
Total Cost
Total Fixed Cost + Total Variable Cost
Profit
Total Revenue – Total Cost
Unit Costs
Total Cost ÷ Output
Contribution per unit
Selling Price – Variable cost per unit
Break Even Point
Fixed Cost ÷ Contribution per unit
Margin of Safety
Actual Output – Break Even output
Total contribution
Total revenue – total variable costs
Total Inflows/ Total Income
All inflows/ income added together for that month
Total Outflows/ Total Expenditure
All outflows/ expenditure added together for that month
Net Cash Flow
Total inflows/income – Total outflows/expenditure
Opening Balance
Last month’s closing balance
Closing Balance
Opening Balance + Net Cash Flow
% Change
(new value – original value) / original value x 100
Mark-up %
(Gross profit / cost of sales) x 100
Total revenue/turnover
Selling price x quantity sold
Cost of Sales
Total variable costs of quantity sold
Gross Profit
Total Revenue – Cost of Sales
Gross Profit Margin %
Gross Profit ÷ Revenue x 100
Operating Profit
Gross Profit – Expenses
Operating Profit Margin %
Operating Profit ÷ Revenue x 100
Profit for the Year/ Net Profit
Operating Profit – Interest – Exceptional Items
Profit for the Year Margin/ Net Profit Margin %
Net Profit ÷ Revenue x 100
Straight line depreciation
(historic value – residual value)/expected life
Reducing balance depreciation
Yr 1 net book value = historic cost - (historic cost x depreciation %)
Yr 2 net book value = yr 1 net book value – (yr 1 net book value x depreciation %)
And so on…..
Net assets
Non-current assets + current assets – current liabilities – non- current liabilities
Total equity
Share capital + retained profit
Current Ratio
Current Assets ÷ Current Liabilities
liquid capital ratio
(Current Assets – Inventories/stock) ÷ Current Liabilities
Capital employed
Non-current liabilities + total equity
Gearing
Non-Current Liabilities ÷ Capital Employed X 100
Return on Capital Employed (ROCE)
Operating Profit ÷ Capital Employed X 100
Working Capital
Current Assets – Current Liabilities
Trade receivables days
(trade receivables / credit sales) x 365
Trade payable days
(trade payables / credit purchases) x 365
Average inventory
(opening inventory + closing inventory) / 2
Inventory turnover days
(average inventory / cost of sales ) x 365
