Formulas

Question 1

Payback period

Answer 1

Cash flow - cumulative cash flow over cash flow + years after investment

Question 2

Net cash flow =

Answer 2

Cash inflow - cash outflow

Question 3

Net profit =

Answer 3

Gross profit - expenses

Question 4

Total revenue =

Answer 4

Price x quantity sold

Question 5

Profit/Loss =

Answer 5

Total revenue - total cost (Income - expenses)

Question 6

Variable cost

Answer 6

Variable cost per unit x quantity produced

Question 7

Total cost =

Answer 7

Fixed cost + variable cost

Question 8

Break even point

Answer 8

Fixed costs over contribution per unit

Question 9

Contribution per unit

Answer 9

Selling price - variable cost per unit

Question 10

Total contribution

Answer 10

Contribution per unit x output

Question 11

Margin of safety

Answer 11

Current level of output - break even point

Question 12

Predicted profit (?)

Answer 12

(Output x contribution per unit) over fixed costs

Question 13

Cost of goods sold

Answer 13

Opening stock + purchases - closing stock

Question 14

Gross profit

Answer 14

Sales revenue - cost of goods sold

Question 15

Assets

Answer 15

Liabilities + owners’ equity

Question 16

Net current assets

Answer 16

Current assets - current liabilities

Question 17

Owner equity

Answer 17

Assets - liabilities

Question 18

(Straight line method) Amount of depreciation

Answer 18

Purchase price - residual value over estimated useful life

Question 19

Revenue

Answer 19

Quantity x price

Question 20

Working capital

Answer 20

Current assets - current liabilities

Question 21

Closing balance (cash flow forecast)

Answer 21

Opening balance + net cash flow for the month

Question 22

Cumulative net flow (payback period)

Answer 22

Cumulative net flow in previous year + net flow of current year

Question 23

Payback period

Answer 23

Amount left to pay over net cash flow in that year x 12 (or in weeks or days)

Question 24

NPBIT

Answer 24

Gross profit - expenses

Question 24

NPBT

Answer 24

NPBIT - interest

Question 24

NPAIT

Answer 24

NPBT - Tax

Question 25

Variance

Answer 25

Actual income - budgeted income

Question 26

Revenue market share

Answer 26

Sales of the organisation / sales revenue of market

Question 27

(Reducing / declining balance method) Amount of depreciation

Answer 27

Book value of asset x depreciation rate

Question 28

Total assets less current liabilities

Answer 28

Fixed assets + current assets - current liabilities OR fixed assets + net current assets

Question 29

Net assets

Answer 29

Total assets less current liabilities - long term liabilities

Question 30

Equity

Answer 30

Share capital + retained profit

Question 31

Net fixed assets

Answer 31

Fixed assets - accumulated distribution

Question 32

Closing balance

Answer 32

Opening balance + net cash flow for the month

Question 33

Labour turnover

Answer 33

Number of employees leaving during period over average number of employees employed during period x 100

Question 34

Capital utilisation rate

Answer 34

Actual output as a percentage of max output