Formulae Flashcards

1
Q

F: Net cash flow

A

Total Cash Inflow - Total Cash Outflow

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2
Q

F: Closing balance

A

Opening balance + Net Cash Flow

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3
Q

F: Total revenue

A

Selling price x Quantity Sold

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4
Q

F: Total costs

A

Fixed costs + Total Variable costs

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5
Q

F: Profit

A

Total revenue - Total costs

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6
Q

F: Total contribution

A

Sales revenue - Total Variable Costs

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7
Q

F: Contribution (per unit)

A

Selling price - Variable cost (per unit)

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8
Q

F: Profit (using contribution)

A

Contribution per unit x margin of safety

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9
Q

F: Break-even output

A

Total Fixed Costs ÷ Unit Contribution

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10
Q

F: Margin of Safety

A

Actual Sales - Break even level of output

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11
Q

F: Revenue

A

Unit price x Quantity sold

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12
Q

F: Gross profit

A

Sales Revenue - Cost of Goods Sold

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13
Q

F: Cost of goods sold

A

Opening Inventory + Purchases 0 Closing Inventory

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14
Q

F: Profit/loss for the year

A

Gross Profit - expenses + other income

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15
Q

F: Net book value

A

Cost - Depreciation

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16
Q

F: Net current assets

A

Current Assets - Current Liabilities

17
Q

F: Net assets

A

Non-current assets + Net current assets - Long term liabilities

18
Q

F: Capital employed

A

Opening Capital - Profit for the Year less drawings

19
Q

F: Balance sheet (what needs to balance?)w

A

Net assets = Capital employed

20
Q

F: Gross profit margin

A

Gross Profit ÷ Revenue x 100

21
Q

F: Mark-up

A

Gross Profit ÷ Cost of Sales x 100

22
Q

F: Profit margin

A

Profit ÷ Revenue x 100

23
Q

F: Return on capital employed (ROCE)

A

Profit ÷ Capital Employed x 100

24
Q

F: Current ratio

A

Current Assets ÷ Current Liabilities

25
Q

F: Liquid capital ratio

A

(Current Assets - Inventory) ÷ Current Liabilities

26
Q

F: Trade receivable days

A

Trade Receivables ÷ Credit Sales x 365

27
Q

F: Trade payable days

A

Trade Payables ÷ Credit Purchases x 365

28
Q

F: Inventory turnover

A

Average Inventory ÷ Cost of Sales x 365