FORMULAS

• Revenue=Price X Quantity Sold
• Total costs=Fixed costs + Variable costs
• Variable costs = Cost of one unit X Quantity Produced
• Net Cash Flow = Cash inflows - Cash outflows
• Opening Balance = Closing balance of next period


  Closing Balance = Opening balance + Net cash flow
• Profit/Loss=Total revenue - Total costs
• Break even = Fixed costs/(Sales price - Variable Costs) (IN UNITS)


  Break even = Break even point in units X Sales price (IN COSTS)
• Margin of safety = actual sales - break even sales
• Interest on loans % = (Total repayment - Borrowed amount)/Borrowed amount X100
• Gross profit = Sales revenue - costs of sales
• Gross profit margin = Gross profit/Sales Revenue X100
• Net Profit =Gross profit - other operation expenses and interest
• Net Profit Margin = Net profit/Sales revenue X100
• Average rate of return(ARR) = Average annual profit/Cost of investment X100
• Growth Percentage = Increase in size/Original size X100