formulas Flashcards
net cash flow
total income - total expenditure
total revenue
selling price per unit x output
total cost
fixed costs + variable costs
total contribution
revenue - variable costs
contribution per unit
selling price per unit - variable cost per unit
break even (sales value)*
break even (units) x selling price per unit
break even (units) *
fixed costs / contribution per unit
margin of safety (units)
amount of units sold - break even point (units)
margin of safety (value) *
margin of safety (unit) x selling price per unit
sales revenue
output x selling price per unit
cost of goods sold
(opening inventories + purchases) - closing inventories
gross profit
sales revenue - cost of goods sold
profit/loss for the year
(gross profit - expenses) + other income
net current assets
current assets - current liabilities
net assets
total assets - current liabilities
capital employed
opening capital + retained profit - drawings
straight line depreciation
(historical cost - residual value) / expected life
reducing balance depreciation
historic value x percentage of depreciation (repeat each year)
total equity
share capital + reserves
expected netbook value
original cost - depreciation
gross profit margin %
gross profit / sales revenue x100
net profit margin %
net profit for year / sales revenue x100
mark up %
gross profit / cost of goods sold x100
return on capital employed %
operating profit / capital employed x100
profit margin %
operating profit / sales revenue x100
current ratio
current assets / current liabilities
liquid capital ratio
current assets - inventory / current liabilities
trade receivable (days)
trade receivables / credit sales x365
trade payable (days)
trade payables / credit purchases x365
inventory turnover
average inventory / cost of sales x365
average inventory
opening inventory + closing inventory / 2
closing balance
opening balance + net cash flow
profit (using contribution)
contribution per unit x margin of safety
