Formula's Flashcards

1
Q

Net cash flow

A

total cash inflow - total cash outflow

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2
Q

Closing balance

A

opening balance + net cash flow

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3
Q

Total Revenue

A

selling price x quantity sold

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4
Q

Total costs

A

Fixed costs + Total variable costs

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5
Q

Profit

A

Total revenue - Total costs

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6
Q

Total Contribution

A

Sales Revenue - Total variable costs

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7
Q

Contribution (per unit)

A

Selling price - variable costs (per unit)

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8
Q

Profit (using contribution)

A

contribution per unit x margin of safety

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9
Q

Break even output

A

total fixed costs / Unit contribution

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10
Q

Margin of safety

A

actual sales - break even level of output

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11
Q

Revenue

A

unit price x quantity sold

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12
Q

gross profit

A

sales revenue - cost of goods sold

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13
Q

cost of goods sold

A

opening inventory + purchases - closing inventory

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14
Q

profit/loss for the year

A

gross profit - expenses + other income

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15
Q

Net book value

A

cost - depreciation

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16
Q

net current assets

A

current assets - current liabilities

17
Q

net assets

A

non current assets + net current assets - long term liabilities

18
Q

capital employed

A

opening capital + profit for the year less drawings

19
Q

balance sheet

A

net assets = capital employed

20
Q

gross profit margin

A

gross profit / revenue x 100

21
Q

mark up

A

gross profit / cost of sales x 100

22
Q

profit margin

A

profit / revenue x 100

23
Q

return on capital employed

A

profit / capital employed x 100

24
Q

current ratio

A

current assets / current liabilities

25
Q

liquid capital ratio

A

current assets - inventory / current liabilities

26
Q

trade receivable days

A

trade receivable / credit sales x 365

27
Q

trade payable days

A

trade receivables / credit sales x 365

28
Q

inventory turnover

A

average inventory / cost of sales x 365