THEME 4- revision Flashcards
What is the calculation for net cash flow?
NET CASH FLOW= Total inflows- total outflows
How do you work out a closing balance?
CLOSING BALANCE= Opening balance +/- net cash flow
How do you work out a opening balance?
OPENING BALANCE= previous months closing balance
How do you work out sales volume?
SALES VOLUME= sales revenue/price
How do you work out sales revenue?
SALES REVENUE= Quantity sold x price
How do you work out total variable costs?
TOTAL VARIABLE COSTS= variable cost per unit x amount produced
How do you work out total costs?
TOTAL COSTS= fixed costs + total variable costs
How do you work out profit?
PROFIT= total revenue- total costs
How do you work out ‘break even’?
BREAK EVEN= fixed costs/contribution
How do you work out ‘margin of safety’?
MARGIN OF SAFETY= actual sales level- breakeven output
How do you work out a sales revenue budget?
SALES REVENUE BUDGET= Sales volume budget x price
How do you work out a variance?
VARIANCE= difference between budget figures and actual figures
How do you work out gross profit?
GROSS PROFIT= Revenue- cost of sales
How do you work out operating profit?
OPERATING PROFIT= gross profit- operating costs
How do you work out net profit?
NET PROFIT= operating profit - interest (and exceptional costs)
