MATHS

Question 1

Gross profit ratio/margin

Answer 1

gross profit / total revenue

x 100

Question 2

Operatin profit ratio

Answer 2

operating profit / total revnue

x 100

Question 3

Return on capital employed

Answer 3

Operating profit / capital employed

x 100

capital employed: equity & Non-cuurent liablilities

Question 4

Current ratio

Answer 4

Current assets / current liabilities

current asstes –> trade recivables, bank cash, inventory
Current liablities –> trade payables, overdrafts

Question 5

Acid Test ratio

Answer 5

Curent asstes - inventory / current liablities

Question 6

trade recivables period

Answer 6

trade recivables / sales

x 365

Question 7

Trade payables period

Answer 7

trade payables / purchases

x 365

Question 8

Inventory turnover

Answer 8

direct costs / avarage inventory

direct costs = Cost of goods sold

Question 9

Gearing ratio

Answer 9

debt capital / total capital employed

x 100

debt capital = non-current liablities

Question 10

Earning per share

Answer 10

profit / num. of shares

num. of shares = share capital

Question 11

Price earning ratio

Answer 11

share price / earning per share

Question 12

Dividend per share

Answer 12

proposed dividend / num. of shares

Question 13

Dividend yield

Answer 13

dividend per share / share price

x 100

Question 14

Dividednd cover

Answer 14

Profit after tax / proposed dividend

Question 15

Anual depreciation Provision

Answer 15

(Historical cost - scrap value) / Useful life of asset

Question 16

Labour productivity

Answer 16

Output / No. of workers

Question 17

Labour turnover

Answer 17

No. of workers that left / Total no. of workers

Question 18

Absenteeism rate

Answer 18

No. of absent days by employees / No. of employee days

Question 19

Promotional elasticity of demand(POED)

Answer 19

% change in demand / % change in promotional spending

Question 20

Income elasticy of demand(YED)

Answer 20

% change in demand / % change in level of income

Question 21

Cross elasticity of demand(CED)

Answer 21

% change in demand/
% change in price of another product

Question 22

Price elasticity of demand(PED)

Answer 22

% Change in demand / % change in price

Question 23

Total float time

Answer 23

Latest finishing time - Duration - Earliest starting time

Question 24

Free float time

Answer 24

EST next activity - Duration - EST of this activity

Question 25

Payback period

Answer 25

additional netcash flow needed
——————————————- x 12
Net cash flow for the year

Question 26

Accounting/Avarage rate of return

Answer 26

Annual avarage profit
—————————— x 100
Initial investment

Question 27

Annual avarage profit

Answer 27

(Total net cashflows - initial investment) /
No. of years of investment