Formulas Flashcards
Fundamental accounting equation
Assets = liabilities + owner’s equity
Profit / net income
Revenue - Expenses
Cost of sales
Beginning food inventory \+ Food inventory purchases = Food available for sales - Ending food inventory = Cost of food consumed - Staff meals = Cost of Sales
Book value
Original cost - accumulated depreciation
Annual Depreciation Expense
Cost - Salvage (scrap value) / useful life
Net working capital
Current assets - Current liabilities
Current ratio
Current assets / Current liabilities
Acid test ratio / Quick ratio
Cash, short-term investment, account receivable, notes receivable / Current liabilities
Solvency ratio
Total assets / Total liabilities
Debt to equity
total liabilities / Total owner’s equity
Paid occupancy
Paid rooms occupied / Available rooms (for a whole year x365)
Return on equity
Net income / Average owner’s equity
Return on assets
Net income / Average total assets
Profit margin
(Net income / Total revenue) x 100
Operating efficiency
(Gross operating profit / Total revenue) x 100
