Formulas

Question 1

Gross Profit Margin

Answer 1

[Gross Profit÷Net Sales Revenue] x 100

Expressed as a percentage

Question 2

Mark Up on Cost

Answer 2

[Gross Profit÷Cost of sales] x 100

Expressed as a percentage

Question 3

Profit Margin

Answer 3

[PFTY÷Net Sale Revenue] x 100

Expressed as a percentage

Question 4

Return on Equity

Answer 4

[PFTY÷Average Equity] x 100

Expressed as a percentage

Average Equity = [Equity at beginning + Equity at end] / 2

Question 5

Working Capital

Answer 5

Total Current Assets ÷ Total Current Liabilities

Question 6

Current Ratio

Answer 6

Total Current Assets ÷ Total Current Liabilities

Expressed as A:1

Question 7

Quick Ratio

Answer 7

[TCA - Inv - Prepayments] ÷ CL

Expressed as B:1

Question 8

Rate of Inventory Turnover

Answer 8

Cost of Sales÷Average Inventory

Expressed as number of times

Average Inv = [Inv at beginning + Inv at end] / 2

Question 9

Days Sale In Inventory

Answer 9

[Average Inv÷COS] x 365

Expressed in Days

Question 10

Rate of trade Receivables turnover

Answer 10

[Net Credit Sales Rev OR Service Fees]÷[Avg Net TR]

Expressed as number of times

Avg Net TR = (Net TR at end + Net TR at Start) ÷ 2

Question 11

Trade Receivable Collection Period

Answer 11

365 ÷ Rate of TR Turnover

Expressed in Days

Question 12

Rate of Depn For Straight Line

Answer 12

([Yearly Depn] ÷ [Og Cost - Scrap Value]) x 100

Question 13

Owner’s Equity

Answer 13

Total Assets - Total Liabilities

Question 14

Net Sale Revenue for Trading

Answer 14

Sales Rev - Sales Ret

Question 15

Cost of Purchase

Answer 15

Purchase Price - Returns + Expenses on Purchase