Equations

Question 1

EQUATION FOR:

Percentage Change

Answer 1

Difference/original x 100

Question 2

EQUATION FOR:

Revenue

Answer 2

Sales x price

Question 3

EQUATION FOR:

Total costs

Answer 3

Fixed costs + variable costs

Question 4

EQUATION FOR:

Average unit costs

Answer 4

Total cost/output

Question 5

EQUATION FOR:

Profit

Answer 5

Revenue - cost

Question 6

EQUATION FOR:

Market share

Answer 6

Sale value of your business / original sales value x 100

Question 7

EQUATION FOR:

Market growth

Answer 7

Change in sales value / original sales value x 100

Question 8

EQUATION FOR:

Average rate of return

Answer 8

Average annual profit / cost of investment x 100

Question 9

EQUATION FOR:

Break even output

Answer 9

Total costs = total revenue

Question 10

EQUATION FOR:

Margin of safety

Answer 10

Current output level - break even output level

Question 11

EQUATION FOR:

Net cash flow

Answer 11

Total inflaws - total outflows

Question 12

EQUATION FOR:

Closing balance cash flow

Answer 12

Opening balance + net cash flow

Or

Opening balance + inflows - outflows

Question 13

EQUATION FOR:

Opening balance cash flow

Answer 13

Closing balance of the precious month

Question 14

EQUATION FOR:

Gross profit

Answer 14

Revenue - cost of sales

Question 15

EQUATION FOR:

Operating profit

Answer 15

Gross profit - expenses

Question 16

EQUATION FOR:

Net profit

Answer 16

Operating - tax - finance costs

Question 17

EQUATION FOR:

Gross profit margin

Answer 17

Gross profit / sales revenue x 100

Question 18

EQUATION FOR:

Net profit margin

Answer 18

Net profit / sales revenue x 100

Question 19

EQUATION FOR:

Net current assets

Answer 19

Current assets - current liabilities

Question 20

EQUATION FOR:

Net assets

Answer 20

Non current assets + net current assets - non current liabilities

Question 21

EQUATION FOR:

Total equity

Answer 21

Share capital + retained profits