Business calculations

Created by

Maddy

Cards (21)

State the equation of calculating gross profit:
Gross profit = Sales revenue - Cost of sales
State the equation of calculating net profit
Net profit = Gross profit - operating expenses and taxes
State the equation of calculating the gross profit margin
GPM = Gross profit/Sales revenue x 100
Define gross profit margin
The percentage of sales revenue that is left once the cost of sales has been paid.
State the equation of calculating the net profit margin
NPM= Net profit/Sales revenue x 100
State the equation of calculating the average rate of return
Total profit/Number of years / Cost of investment x 100
State the equation of calculating total costs
Total costs = Total fixed costs + Total variable costs
State the equation for calculating total fixed costs
Total costs - Total variable costs
State the equation(s) for calculating revenue
Revenue = Sales price per unit x quantity sold
Revenue= gross profit + cost of sales
Revenue = profit + cost of sales
State the equation for calculating profit/profit loss
Revenue - total costs
State the equation for calculating interest on loans:
Total repayment - borrowed amount/borrowed amount x 100
State the equation for calculating net cash flow:
Total cash inflows - total cash outflows
State the equation of calculating the closing balance
Opening balance + net cash flow
State the equation for calculating the total inflows in a cash flow forecast
Total inflows = Net cash flows + Total outflow
State the equation for calculating total outflow in a cash flow forecast
Total inflows - net cash flow
State the equation for calculating the break even point:
Fixed costs/sales price per unit - variable cost per unit
State the equation for calculating margin of safety:
Actual/budgeted output - break even point
State the equation of calculating average annual profit
Total profit of investment/number of years
State the equation for calculating cost of sales
Sales revenue- gross profit
State the equation for calculating other operating expenses and interest
Gross profit - net profit
State the equation for calculating market share
Sales of business/product / total sales of market x 100