Formulas Flashcards
Straight line depreciation formula
Value of asset - residual (resell) value / life of the asset
Reducing balance formula
Asset purchase price x percentage of net book value
Profit formula
Total revenue - Total costs
Net current assets formula
Current assets - Current liabilities
Net cash flow formula
Cash inflow - cash outflow
Closing balance formula
Opening balance + net cash flow
Total variable costs formula
AVC/VC x number of units sold
Total costs formula
Fixed costs + variable costs
Fixed costs formula
Total costs - total variable costs
Total revenue/sales revenue formula
Selling price x quantity sold
Contribution per unit formula
Selling price - variable cost per unit
Break even formula
Fixed cost / contribution per unit
Margin of safety
Actual output - break even output
Gross profit formula
Sales revenue - cost of sales
Cost of goods sold formula
Opening inventories + purchases - closing inventories
