Unit 3 formulae only Flashcards by Anthony Boughton | Brainscape

Q

What is the formula for Contribution per unit

A

Selling Price - Variable Cost

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Q

What is the formula for Total Contribution?

A

SP-VC x the number of units sold

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Q

What is the formula for Break Even?

A

Fixed Cost / contribution per unit

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Q

What is the margin of safety?

A

Expected Output - Break Even value

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Q

What is profit worked out using Total Contribution?

A

Total Contribution - Fixed Costs

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Q

How is Net Cash Flow calculated?

A

Total Inflows - Total Outflows

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Q

How is Cost of Sales calculated?

A

Opening Stock + Stock Purchases - Closing Stock

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Q

How is Gross Profit calculated?

A

Sales Revenue - Cost of Sales

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Q

How is Operating profit calculated?

A

Gross Profit - Operating expenses

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Q

How is profit for the year calculated?

A

Operating profit - finance costs

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Q

How is working capital/net current assets worked out?

A

Current Assets - Current Liabilities

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Q

How is Net Assets Employed Worked out

A

All assets - all liabilities

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Q

What is the formula for current ratio?

A

current assets/current liabilities

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Q

What is the formula for liquid capital ratio?

A

current assets - inventories/current liabilities

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Q

What is the formula for Gross Profit margin?

A

Gross profit/revenue x 100

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Q

What is the formula for Return on Capital Employed?

A

Operating profit/capital Employed (TE+LTL) x100

Q

What is the formula for Mark up?

A

Gross profit/cost of sales x 100

Q

What is total revenue?

A

p x q

Q

What is closing balance?

A

Net cash flow + opening balance

Q

What is total cost?

A

Fixed cost + variable cost

Q

What is profit?

A

TR-TC

Q

What is break even sales value?

A

Break Even X price

Q

What is safety of margin value?

A

Margin of safety x selling price

Q

What is net book value?

A

cost of asset - depreciation

Q

What is straightline depreciation?

A

cost of asset-residual value/expected life

Q

What is reducing balance depreciation?

A

net book value x % depreciation

Q

Trade receiveable days?

A

receivable days/credit sales x 365

Q

Trade payable days?

A

payable days/purchases x 365

Q

Inventory turnover?

A

average inventory/cost of sales