Equations

• What is the formula for margin of safety?

  Margin of Safety = Actual Sales - Break-even Sales
• What is the formula for interest (on loans)?


  (total repayments - borrowed amount) / borrowed amount X 100
• What is the formula for revenue?


  Revenue = Price x Quantity Sold
• What is the formula for closing balance?


  Closing balance = opening balance + net cash flow
• What is the formula for opening balance?


  Opening balance is the closing balance from the previous month
• What is the formula for total costs?


  Total costs = fixed costs + variable costs
• What is the formula for break-even?


  Break-even = fixed costs / (sales price - variable costs)
• What is the formula for profit/loss?


  Profits/loss = revenue - costs
• What is the formula for net cash flow?


  Net cash flow = cash inflows - cash outflows