Key Equations Flashcards by Vnxcent O

Q

Gross Profit Margin

A

Gross Profit ÷ Revenue X 100

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Q

Mark Up

A

Gross Profit ÷ Cost Of Sales X 100

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Q

Gross Profit

A

Revenue - Cost of Sales

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Q

Operating Profit Margin

A

Profit ÷ Revenue x 100

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Q

Capital Employed

A

Total Equity + Non current liabilities

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Q

Net Cash Flow

A

Inflow - Outflow

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Q

Closing Balance

A

Opening Balance + Net Cash Flow

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Q

Total Revenue

A

Selling Price x Quantity sold

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Q

Total Costs

A

Fixed + Variable

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Q

Current Ratio

A

Current Assets ÷ Current Liabilities

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Q

Break Even output

A

Total Fixed costs ÷ UNIT CONTRIBUTION

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Q

Net Book Value

A

COST - DEPRECIATION

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Q

Captial Employed

A

Opening Capital + Profit ofnthe Year less drawings

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Q

Trade recieveable days

A

Trade Recieveables ÷ Credit Sales x 365

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Q

Trade payable days

A

Trade payables ÷ Cost of sales x 365

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Q

Margin Of Saftey

A

Actual Sales - Break Even Level Of Output

Q

Total Contribution

A

Sales Revenue - Total Variable Sales