Unit 3 Equations Flashcards

1
Q

What is the equation for Revenue?

A

Units sold x Selling price per unit

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2
Q

What is the equation for Gross Profit?

A

Revenue - Cost of Sales

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3
Q

What is the equation for Net Profit?

A

Gross profit - Expenditure

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4
Q

What is the equation for Gross Profit Margin?

A

Gross Profit ÷ Revenue x 100

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5
Q

What is the equation for Net Profit Margin?

A

Net profit ÷ Revenue x 100

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6
Q

What is the equation for Mark Up?

A

Gross profit ÷ Cost of sales x 100

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7
Q

What is the equation for Return on Capital Employed (ROCE)?

A

Net profit (before tax and interest) ÷ Capital employed x 100

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8
Q

What is the equation for Current Ratio?

A

Current assets ÷ Current liabilities

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8
Q

What is the equation for Liquid Capital Ratio (Quick/Acid Test)?

A

Current assets - Inventory ÷ Current liabilities

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9
Q

What is the equation for Trade Receivable Days?

A

Trade receivable ÷ Credit sales x 365

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10
Q

What is the equation for Break Even?

A

Fixed costs ÷ Contribution per unit

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11
Q

What is the equation for Inventory Turnover?

A

Average inventory ÷ Cost of sales x 365

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11
Q

What is the equation for Trade Payable Days?

A

Trade payable ÷ Credit purchases x 365

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12
Q

What is the equation for Contribution Per Unit?

A

Selling price per unit - Variable cost per unit

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13
Q

What is the equation for Straight Line Depreciation?

A

Historic price - Residual value ÷ Expected life

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14
Q

What is the equation for Reducing Balance Depreciation?

A

Starting value - Set percentage