formulas

• What is the formula for Net Cash Flow?

  Total Cash Inflow - Total Cash Outflow
• What is the formula for Closing Balance?

  Opening balance + Net Cash Flow
• What is the formula for Total Revenue?

  Selling Price x Quantity Sold
• What is the formula for Total Costs?

  Fixed costs + Total Variable costs
• What is the formula for Profit?

  Total revenue - Total costs
• What is the formula for Total Contribution?

  Sales Revenue - Total Variable Costs
• What is the formula for Contribution per unit?

  Selling Price - Variable Cost per unit
• What is the formula for Profit using contribution?

  Contribution per unit x margin of safety
• What is the formula for Break-even output?

  Total Fixed Costs / Unit Contribution
• What is the formula for Margin of Safety?

  Actual Sales - Break-even level of output
• What is the formula for Revenue?

  Unit price x Quantity sold
• What is the formula for Gross Profit?

  Sales Revenue - Cost of Goods Sold
• What is the formula for Cost of Goods Sold?

  Opening Inventory + Purchases - Closing Inventory
• What is the formula for Profit/Loss for the year?

  Gross Profit - expenses + other income
• What is the formula for Net Book Value?

  Cost - Depreciation
• What is the formula for Net Current Assets?

  Current Assets - Current Liabilities
• What is the formula for Net Assets?

  Non-current assets + Net current assets - Long term liabilities
• What is the formula for Capital Employed?

  Opening Capital + Profit for the Year - drawings
• What needs to balance in a Balance Sheet?

  Net Assets and Capital Employed
• What is the formula for Gross Profit Margin?

  Gross Profit / Revenue x 100
• What is the formula for Mark-up?

  Gross Profit / Cost of Sales x 100
• What is the formula for Profit Margin?

  Profit / Revenue x 100
• What is the formula for Return on Capital Employed?

  Profit / Capital Employed x 100
• What is the formula for Current Ratio?

  Current Assets / Current Liabilities
• What is the formula for Liquid Capital Ratio?

  Current Assets - Inventory / Current Liabilities
• What is the formula for Trade Receivable Days?

  Trade Receivables / Credit Sales x 365
• What is the formula for Trade Payable Days?

  Trade Payables / Credit Purchases x 365
• What is the formula for Inventory Turnover?

  Average Inventory / Cost of Sales x 365
• What are the key components of a Balance Sheet?

  • Net Assets
  • Capital Employed
  • Non-current assets
  • Net current assets
  • Long term liabilities
• What are the key financial ratios used to assess business performance?

  • Gross Profit Margin
  • Mark-up
  • Profit Margin
  • Return on Capital Employed
  • Current Ratio
  • Liquid Capital Ratio
  • Trade Receivable Days
  • Trade Payable Days
  • Inventory Turnover
• What are the key formulas for calculating profit and contribution?

  • Profit: Total revenue - Total costs
  • Total Contribution: Sales Revenue - Total Variable Costs
  • Contribution per unit: Selling Price - Variable Cost per unit
  • Profit using contribution: Contribution per unit x margin of safety
• What are the key formulas for calculating cash flow and balance?

  • Net Cash Flow: Total Cash Inflow - Total Cash Outflow
  • Closing Balance: Opening balance + Net Cash Flow
• What are the key formulas for calculating revenue and costs?

  • Total Revenue: Selling Price x Quantity Sold
  • Total Costs: Fixed costs + Total Variable costs
  • Cost of Goods Sold: Opening Inventory + Purchases - Closing Inventory
• What are the key formulas for calculating financial performance ratios?

  • 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 Receivables / Credit Sales x 365
  • Trade Payable Days: Trade Payables / Credit Purchases x 365
  • Inventory Turnover: Average Inventory / Cost of Sales x 365
• What are the key formulas for calculating break-even and margin of safety?

  • Break-even output: Total Fixed Costs / Unit Contribution
  • Margin of Safety: Actual Sales - Break-even level of output
• What are the key formulas for calculating net assets and capital employed?

  • Net Assets: Non-current assets + Net current assets - Long term liabilities
  • Capital Employed: Opening Capital + Profit for the Year - drawings
• What are the key formulas for calculating net book value and net current assets?

  • Net Book Value: Cost - Depreciation
  • Net Current Assets: Current Assets - Current Liabilities
• What are the key formulas for calculating profit/loss for the year and gross profit?

  • Profit/Loss for the year: Gross Profit - expenses + other income
  • Gross Profit: Sales Revenue - Cost of Goods Sold
• What are the key formulas for calculating total contribution and contribution per unit?

  • Total Contribution: Sales Revenue - Total Variable Costs
  • Contribution per unit: Selling Price - Variable Cost per unit
• What are the key formulas for calculating profit using contribution and break-even output?

  • Profit using contribution: Contribution per unit x margin of safety
  • Break-even output: Total Fixed Costs / Unit Contribution