Theme 2 Calculations Flashcards
Profit
Total revenue - total cost
Net cash flow
Inflows - outflows
Opening Balance
Previous months closing balance
Closing balance
Net cash flow + opening balance a
Sales volume
Sales revenue / price
Sales revenue
Quantity sold x price
Total costs
Fixed costs + variable cost
Total variable cost per unit
Variable cost x output
Break even
Fixed costs / contribution
Contribution
Selling price - variable costs
Margin of safety
Actual sales level - break even level
Total contribution
Total revenue - total variable cost
Contribution per unit
Selling price - variable cost per unit
Break even output
Fixed costs / contribution per unit
Current ratio
Current assets / current liabilities
Gross profit
Sales revenue - cost of sales
Gross profit margin
Gross profit / sales revenue
X100
Operating profit
Difference between sales revenue, cost of goods sold and other operating costs
Operating profit margin
Operating profit / revenue
X100
Net profit
Operating profit - finance costs
Net profit margin
Net profit / revenue
X100
Acid test ratio
Current assets - inventories / current liabilities
Working capital
Current assets - current liabilities
