Formulae

Question 1

Mark-up % achieved
Or
Gross Profit as a % of Cost of Sales

Answer 1

Gross Profit x 100
———
CoS

Question 2

Gross Profit on Turnover

Answer 2

Gross Profit x 100
——————
Turnover

Question 3

Expenses on Turnover

Answer 3

Expenses x 100
————
Turniver

Question 4

Net Profit on Turnover

Answer 4

Net Profit x 100
———
Turnover

Question 5

Operating Profit on Turnover

Answer 5

Operating Profit x 100
————
Turnover

Question 6

Average owners equity

Answer 6

Average owners equity = (Ewuity at begin + Equity at end)/2

Question 7

Percentage Return

Answer 7

Net Profit x 100
—————
Average OE

Question 8

Current Ratio

Answer 8

Current Assets : Current Liabilities

Stock + Debtors + Cash : Creditors

Question 9

Acid Test Ratio

Answer 9

(Current assets - Trading Stock) : Current Liabilities

= Debtors + Cash : Current Liabilities

Question 10

Period stock on hand

Answer 10

Trading stock at year end x 365 (or 12 for months)
———
Cost of Sales

Question 11

Rate of stock turnover

Answer 11

Cost of sale = ___ times
——————
Average stock

Question 12

Time taken by debtors

Answer 12

Average debtors x 365
————
Credit Sales (if not known use total sales)
= ___ days

Or
X 12 = ___ months

Question 13

Time taken to pay creditors

Answer 13

Average creditors
______
Credit purchases (if not known use cost of sales)

x365 = \_\_ days
x12 = \_\_ months

Question 14

Solvency

Answer 14

Total Assets : Total Liabilities

= Non Current Assets (Tangible + Financial) + Current : Non Current Liabilities (Loans) + Current

Question 15

Debt to equity ratio

Answer 15

Debt : Equity

Question 16

Return on Capital Employed

Answer 16

Net Income + Interest on loans x 100
______
Average Capital employed

Question 17

Average Capital Employed

Answer 17

[Capital Employed (beginning) + Capital Employed (end) ]/2

Question 18

Capital Employed

Answer 18

Equity + Non Current Liabilities