Formulas Flashcards
1
Q
Current asset
A
Cash + stock + debtors
2
Q
Working capital
A
Current assets - current liabilities
3
Q
Profit
A
Revenue - cost
4
Q
Acronym for economies of scale
A
Pmfmt
5
Q
Total assets
A
Current assets + non-current assets
6
Q
Total liabilities
A
Non current +current liabilities
7
Q
Shareholders funds
A
Share capital + retained profit
= total assets - total liabilities
8
Q
Working capital (money available for daily running of business)
A
Current assets - short term liabilities
9
Q
Sales turnover
A
Sales revenue
10
Q
Cost of sales
A
Cost of producing goods
11
Q
Capital employed
A
Total assets - Current Liabilities
= non current liabilities + shareholders funds
12
Q
Gross profit
A
revenue - cost of sales
