Formula revision Flashcards
(22 cards)
Net cash flow
Total cash inflow - total cash outflow
Total costs
fixed costs + total variable costs
Total revenue
selling price x quantity sold
Closing balance
opening balance + net cash flow
Profit
Total revenue - total costs
Total contribution
sales revenue - total variable costs
Contribution per unit
selling price - variable cost per unit
Profit using contribution
contribution per unit x margin of safety
Margin of safety
Actual sales - break even level of output.
Break even output
total fixed costs/ unit contribution
Revenue
Unit price x quantity sold
Gross profit
Sales revenue - costs of goods sold
Profit/loss for the year
Gross profit- expenses + other income
Costs of goods sold
Opening inventory + purchases- closing inventory.
Net book value
Cost - depreciation
Net current assets
Assets-current liabilities
Net assets
non current assets + net current assets- long term liabilities
Capital employed
Opening capital + profit for the year less drawings
Gross profit margin
Gross profit/revenue x100
What is opening balance
The amount of cash the business has at the start of the month
Same as closing balance from last period.
What is closing balance?
The amount of cash the business has at the start of the month
opening balance + net cash flow
What is net cash flow?
The total inflows minus the total outflows
cash inflows - cash outflows
