Paper 2 Calculations Flashcards
Revenue/turnover
Quantity sold x price
Gross profit
Revenue - cost of sales
Cost of sales
Opening stock + purchases - closing stock
Operating profit
Revenue - cost of sales and expenses
Net profit
Revenue - cost of sales and expenses and taxes and interest and dividends
Gross profit margin
Gross profit / revenue x 100
Net profit margin
Net profit / revenue x 100
Operating profit margin
Operating profit / revenue x 100
Current ratio
Current assets / current liabilities = : 1
Acid test ratio
Current assets - stock / current liabilities = :1
Working capital
Current assets - current liabilities
Net assets
Total assets - total liabilities
Contribution per unit
Selling price per unit - variable cost per unit
Break even point
Fixed costs / selling price per unit - variable costs per unit
Break even revenue
Break even output x selling price
Margin of safety
Actual or budgeted sales - break even sales
Variance
Budget figures - actual figures
Net cash flow
Total inflows - total outflows
Closing balance
Opening balance + net cash flow
Percentage change
Change in value / original value x 100
Capacity utilisation
Current output / maximum possible output x 100
Labour productivity
Total output / number of workers
Converting to a foreign currency
£ x exchange rate
Converting back to £
Foreign currency / exchange rate
