Formulas Flashcards
Total Revenue
Total sales x selling price
Total costs
Fixed costs + total variable costs
Profit
Revenue - total costs
Net cash flow
Inflows - outflows
Closing balance
Opening balance + net cash flow
Opening balance
Closing balance of previous month
Contribution
Price - variable costs
Breakeven point
Fixed costs / contribution
Margin of safety
Actual sales - breakeven point
Gross profit
Revenue - cost of sales
Net profit
Revenue - cost of sales + operating costs & interest
Gross profit margin
Gross profit / revenue x 100
Net profit margin
Net profit / revenue x 100
Market share
Business or product total sales / total market sales x 100
Current ratio
Current assets / current liabilities :1
Acid test ratio
Current assets less inventory / current liabilities
% change
New - old / old x 100
Budget variance
Budgeted amount - actual amount
Profit for the year
Revenue - cost of sales, administrative expenses, net finance costs and taxation
