Formulas Flashcards
1
Q
Net cash flow?
A
Cash inflows - cash outflows
2
Q
Opening balance?
A
Last months closing balance
3
Q
Closing balance?
A
Opening balance +/- new cash flow
(If the new cabs flow is positive then you add but if it’s negative you subtract)
4
Q
Average cost
A
Total cost/quantity produced
5
Q
Total revenue
A
Quantity sold x price of the product
6
Q
Break-even point
A
Fixed cost/(selling price - variable)
7
Q
Gross profit?
A
Revenue - cost of sales
8
Q
Operating profit
A
Gross profit - expenses
9
Q
Profit for the year?
A
Operating profit - (interest + exceptional costs)
10
Q
Profit for the year after tax?
A
Profit for the year - tax
11
Q
Margin of safety?
A
Current output - BE point
