Important Formulae Flashcards
How do you calculate sales revenue?
quantity sold x selling price
How do you calculate gross profit?
sales revenue - costs of goods sold
How do you calculate costs of good sold?
open inventories + purchases - closing inventories
How do you calculate straight line depreciation?
Historic value - residual value / expected life
How do you calculate reducing balance depreciation?
Depreciation charge per year = (historic value - residual value) x depreciation factor
Depreciation charge - current historic value
How do you calculate gross profit margin?
sales revenue x 100
How do you calculate net profit margin?
sales revenue x 100
How do you calculate mark up?
cost of goods sold x 100
How do you calculate return on capital employed?
capital employed = opening balance + net profit
Return on capital employed = operating profit /
capital employed x 100
How do you calculate current ratio?
current liabilties
How do you calculate liquid capital ratio?
current liabilities
How do you calculate net cash flow?
Inflow - Outflow
How do you work out variable costs?
cost of one x quantity
How do you work out break even?
Total fixed costs / unit contribution
How do you calculate margin of safety?
Actual output - breakeven output
