Unit 3 equations Flashcards
net cash flow
total cash inflow-total cash outflow
closing balance
opening balance+ net cash flow
total revenue
selling price x quantity sold
total costs
fixed costs + total variable costs
profit
total revenue-total costs
contribution(per unit)
selling price -variable cost(per unit)
total contribution
sales revenue-total variable costs
profit(using contribution)
contribution per unit x margin of safety
break-even output
total fixed cost / contribution per unit
margin of safety
actual sales - break even level of output
Revenue
unit price x quantity sold
gross profit
sales revenue - costs of good sold
cost of good sold
opening inventory + purchases - closing inventory
profit/loss for the year
gross profit - expenses + other income
net book value
cost - depreciation
net current assets
current assets - current liabilities
net assets
non current assets + net current assets - long term liabilities
capital employed
opening capital + profit for the year less drawings
balance sheet (what needs to balance )
net assets = capital employed
gross profit margin
gross profit / revenue x 100
mark-up
gross profit / cost of sales x 100
profit margin
profit / revenue x 100
return on capital employed
profit /capital employed x 100
current ratio
current assets / current liabilities
liquid capital ratio
current assets - inventory / current liabilities
trade receivable days
trade receivable / credit sales x 365
trade payable days
trade payables / credit purchases x 365
inventory turn over
average inventory / cost of sales x 365?
