Unit 3 formulae only Flashcards
What is the formula for Contribution per unit
Selling Price - Variable Cost
What is the formula for Total Contribution?
SP-VC x the number of units sold
What is the formula for Break Even?
Fixed Cost / contribution per unit
What is the margin of safety?
Expected Output - Break Even value
What is profit worked out using Total Contribution?
Total Contribution - Fixed Costs
How is Net Cash Flow calculated?
Total Inflows - Total Outflows
How is Cost of Sales calculated?
Opening Stock + Stock Purchases - Closing Stock
How is Gross Profit calculated?
Sales Revenue - Cost of Sales
How is Operating profit calculated?
Gross Profit - Operating expenses
How is profit for the year calculated?
Operating profit - finance costs
How is working capital/net current assets worked out?
Current Assets - Current Liabilities
How is Net Assets Employed Worked out
All assets - all liabilities
What is the formula for current ratio?
current assets/current liabilities
What is the formula for liquid capital ratio?
current assets - inventories/current liabilities
What is the formula for Gross Profit margin?
Gross profit/revenue x 100
What is the formula for Return on Capital Employed?
Operating profit/capital Employed (TE+LTL) x100
What is the formula for Mark up?
Gross profit/cost of sales x 100
What is total revenue?
p x q
What is closing balance?
Net cash flow + opening balance
What is total cost?
Fixed cost + variable cost
What is profit?
TR-TC
What is break even sales value?
Break Even X price
What is safety of margin value?
Margin of safety x selling price
What is net book value?
cost of asset - depreciation
What is straightline depreciation?
cost of asset-residual value/expected life
What is reducing balance depreciation?
net book value x % depreciation
Trade receiveable days?
receivable days/credit sales x 365
Trade payable days?
payable days/purchases x 365
Inventory turnover?
average inventory/cost of sales
