U3 Calculations Flashcards
Total sales revenue
Selling price x number sold
Variable cost per unit
All variable costs added together per unit
Total variable costs
Variable cost per unit x number sold
Total fixed costs
All fixed costs added together
Total costs
Total fixed costs + total variable costs
Profit
Total sales revenue - total costs
Contribution per unit
selling price per unit - variable cost per unit
Total contribution
Contribution per unit x number sold
Break even
Fixed costs/contribution
Margin of safety
Actual sales - break even point sales
Cost of sales per unit
All variable costs added together per unit
Total cost of sales
Variable costs per unit x number sold
Gross profit
total revenue - total cost of sales
Total expenses
All expenses (fixed costs) added together
Net profit before tax
Gross profit - total expenses
Net profit after tax and expenses
Net profit before tax - tax + additional income
Straight line method
(Original cost of asset - expected residual value) / expected useful life of asset (years)
Reducing balance method
Calculate percentage decrease - current value
Total fixed assets (non current assets)
All fixed assets added together
Total current assets
All current assets added together
Total current liabilities
All current liabilities added together
Working capital
current assets - current liabilities
Net current assets
Total fixed assets + working capital
Long term liabilities
All long term liabilities added together
Net assets
Net current assets - long term liabilities
Equity
Share capital + reserves + retained profit
Gross profit margin
Gross profit / total revenue x 100
Net profit margin
Net profit / total revenue x 100
Mark up
Gross profit / cost of sales x 100
Profit margin
Profit / total revenue x 100
Return on capital employed (ROCE)
Profit / capital employed x 100
Profit for year
Total revenue - total cost of sales - total expenses
Capital employed
Total assets - current liabilities or non-current liabilities + total equity
Current ratio
Current assets / current liabilities
Liquid capital ratio
(Current assets - inventory) / current liabilities
Trade receivable days
Trade receivables / credit sales x 365
Trade payable days
Trade payables / credit purchases x 365
Inventory turnover
Average inventory / cost of sales x 365
