Flashcards in Book 2 Deck (20):

1

## How to calculate current assets from balance sheets

### Inventories + receivable + cash and other cash equivalents

2

## What is the balance sheet formula for working capital (net current assets)

### Current assets - current liabilities

3

## What is the formula for net assets in balance sheets

### Non-current assets + current assets - current liabilities - non current liabilities

4

## Formula for net worth in balance sheets

### Non-current assets + working capital (net current assets) - non current liabilities

5

## Formula for assets employed

### Net current assets + non current assets

6

## Formula for total equity

### Share capital + reserves

7

## Calculation for capital employed

### Total equity + non-current liabilities

8

## Calculate assets employed

### Capital employed

9

## What is the formula for assets

### Liabilities + equity

10

## Formula for operating profit

### Gross profit - expense +/- exceptional items

11

## Calculation for profit before tax

### Operating profit + finance income - finance costs

12

## Formula for profit for the year

### Profit before tax - taxation

13

##
What is the formula for ROCE

RETURN OF CAPITAL EMPLOYED (%)

###
Operating profit or profit before tax

-------------------------- total equity + non current liabilities

X100

14

## How is current ration calculated?

### Current assets:current liabilities

15

## What is the formula for gearing ratio?

###
Non-current liabilities

--------------------------

Total equity + non current liabilities

X100

16

## How do you calculate payable days?

###
Payables

-------------------------

Costs of sales

X365

17

## What formula calculates receivable days

###
Receivables

--------------------------

Revenue (annual sales)

X365

18

## How do you calculate inventory turnover?

###
Cost of goods sold

--------------------------

Average inventories held

19

## What is the formula for the average rate of return? (ARR%)

###
Total net return or surplus from a project/no. Of years

---------------------------

Initial cost

X100

20