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
Operating profit formula
Gross profit - expenses
Gross profit margin formula
Gross profit / sales revenue x 100
Mark up formula
Gross profit / cost of sales x 100
Profit margins formula
Profit / sales revenue x 100
ROCE formula
Profit / (Total equity +non current liabilities) x 100
Liquid/current ratio formula
Current assets / current liabilities
Liquid capital ratio
Current asset - inventory / current liabilities
Trade receivable days formula
Trade receivables / credit sales x 365
Trade payable days formula
Trade payables / cost of sales x 365
Average inventory formula
Opening inventory + closing inventory / 2
Inventory turnover formula
Average inventory/cost of sales x 365
