business calc

• What is the formula for average rate of return?

  Increased yearly profit divided by cost of investment times 100
• How is sale revenue calculated?

  Selling price times number of units sold
• What is the formula for total costs?

  Fixed cost plus total variable costs
• How do you calculate costs per unit?

  Total cost divided by number of units
• What is the formula for market share?

  Business sales divided by total market sales times 100
• How is market growth calculated?

  New market size minus old market size divided by old market size
• What is the calculation for total cash inflow?

  Add up all the inflows
• How do you calculate total cash outflows?

  Add up all of the outflows
• What is the formula for net cash flow?

  Cash inflow minus cash outflow
• How is the opening balance determined?

  It is the closing balance of the previous month
• What is the equation for closing balance?

  Opening balance plus net cash flow
• How do you calculate net current assets?

  Total current assets minus total current liabilities
• What is the formula for net assets?

  Add current assets and non-current assets
• How do you calculate the ratio of current assets to liabilities?

  Current assets divided by current assets plus liabilities and non-current liabilities
• What is the formula for gross profit?

  Revenue minus total cost of sales
• How is operating profit calculated?

  Gross profit minus overheads
• What is the formula for net profit margin?

  Gross profit minus overhead, tax, and interest
• How is revenue calculated?

  Selling price times unit sold
• What does the variable cost calculation involve?

  Cost per item times number of units
• What is the formula for total cost?

  Fixed cost plus variable cost
• How is profit calculated?

  Revenue take away total cost
• What is the formula for percentage change?

  (New take away old) divided by old x 100