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BTEC Level 3 Business: Unit 3 - Personal And Business Finance > Formulas > Flashcards

Formulas Flashcards

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1
Q

What is the formula for retained profit?

A

Sales revenue - total costs

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2
Q

What is the formula for net current assets?

A

Current assets - current liabilities

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3
Q

What is the formula for break-even analysis?

A

Fixed costs/selling price - variable costs

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4
Q

What is the formula for contribution per unit?

A

Selling price - variable cost per unit

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5
Q

What is the formula for total contribution?

A

Sales revenue - total variable costs

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6
Q

What is the formula for margin of safety?

A

Sales - break-even

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7
Q

What are the 2 formulas for net profit?

A

Total revenue - total costs

Contribution per unit X margin of safety

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8
Q

What is the formula for net cash flow?

A

Total cash inflows - total cash outflows

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9
Q

What is the formula for gross profit?

A

Sales revenue - costs of goods

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10
Q

What is the formula for costs of goods sold?

A

Opening inventory + purchases - closing inventory

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11
Q

What is the formula for profit/loss of the year?

A

Gross profit - expenses + other income

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12
Q

What is the formula for net current assets/liabilities?

A

Current assets - current liabilities

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13
Q

What is the formula for net assets?

A

Net current assets/liabilities - non-current liabilities

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14
Q

What is the formula for capital employed?

A

Owner/shareholder capital + Retained profit - drawings

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15
Q

What is the formula for straight-line depreciation?

A

Historical value - residual value / expected life

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16
Q

What is the formula for gross profit margin?

A

Gross profit / revenue X 100

17
Q

What is the formula for a mark-up ratio?

A

Gross profit / cost of sales X 100

18
Q

What is the formula for net profit margin?

A

Net profit / revenue X 100

19
Q

What is the formula for return on capital employed (ROCE)?

A

Net profit (before tax/interest) / capital employed X 100

20
Q

What is the formula for current ratio?

A

Current assets / current liabilities

21
Q

What is the formula for liquid capital ratio?

A

Current assets - inventory / current liabilities

22
Q

What is the formula for trade receivable days?

A

Trade receivables / credit sales X 365

23
Q

What is the formula for trade payable days?

A

Trade payables / credit purchases X 365

24
Q

What is the formula for inventory turnover?

A

Average inventory / cost of sales X 365

25
Q

What is the formula for average inventory?

A

Opening balance + closing balance / 2

BTEC Level 3 Business: Unit 3 - Personal And Business Finance (16 decks)

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