Unit 3 Calculations Flashcards
Price Elasticity of Demand
Percentage change in Quantity Demanded
Percentage change in Price
Income Elasticity of Demand
Percentage change in Quantity Demanded
Percentage change in Income
Budget Variances
Budget - actual figure
Index Numbers
Value in Year x 100
Value in Base Year
Working Capital
Current Assets – Current Liabilities
Capital Employed
Long-term liabilities + Shareholders Capital
Depreciation
(Purchase Value – Residual Value)
Number of Years
Return on Capital Employed (ROCE)
Net Profit x 100
Capital Employed
OR
Net Profit x 100
(Long-term liabilities + Shareholders Capital)
Current Ratio
Current Assets
Current Liabilities
Acid test
(Current Assets – Stock)
Current Liabilities
Gearing Ratio
Long-term liabilities x 100
(Total shareholder funds + Long term liabilities)
Gross Profit Margin
Gross Profit x 100
Revenue
Net Profit Margin
Net Profit x 100
Revenue
How to calculate a percentage change
Difference between the two numbers
The original number X 100
How to calculate gross profit
Revenue - cost of sales
