3.5 Finance Flashcards
(7 cards)
1
Q
Whats gross profit
A
Revenue - Costs of sales
2
Q
whats cash flow inflows and outflows
A
inflows - goes into business eg. loans, sales, grants, savings
Outflows - goes out of business eg. costs, wages, rent, investment, loan payments
3
Q
cash flow problems
A
does not have enough cash to pay liabilities eg. wages, rent
4
Q
causes of cashflow problems
A
low profit, over-investment in capacity, too much stock, late customer payment
5
Q
whats margin of safety
A
point between breakeven
and actual sales
Actual sales - break even sales
6
Q
Operation expensives
A
Rent
wages
utilities
insurance
marketing
equipment
inventory costs
R+D
7
Q
A
