Unit 3 Equations Flashcards
What is the equation for Revenue?
Units sold x Selling price per unit
What is the equation for Gross Profit?
Revenue - Cost of Sales
What is the equation for Net Profit?
Gross profit - Expenditure
What is the equation for Gross Profit Margin?
Gross Profit ÷ Revenue x 100
What is the equation for Net Profit Margin?
Net profit ÷ Revenue x 100
What is the equation for Mark Up?
Gross profit ÷ Cost of sales x 100
What is the equation for Return on Capital Employed (ROCE)?
Net profit (before tax and interest) ÷ Capital employed x 100
What is the equation for Current Ratio?
Current assets ÷ Current liabilities
What is the equation for Liquid Capital Ratio (Quick/Acid Test)?
Current assets - Inventory ÷ Current liabilities
What is the equation for Trade Receivable Days?
Trade receivable ÷ Credit sales x 365
What is the equation for Break Even?
Fixed costs ÷ Contribution per unit
What is the equation for Inventory Turnover?
Average inventory ÷ Cost of sales x 365
What is the equation for Trade Payable Days?
Trade payable ÷ Credit purchases x 365
What is the equation for Contribution Per Unit?
Selling price per unit - Variable cost per unit
What is the equation for Straight Line Depreciation?
Historic price - Residual value ÷ Expected life