formulas

Question 1

Inventory turnover
(April invites callie out skilled)

Answer 1

average inventory ÷ cost of sales x 365

Question 2

Average inventory
(Owen bullies Christina badly)

Answer 2

opening balance ÷ closing balance ÷ 2

Question 3

Contribution per unit
(silently Preston views Christina pretty ugly)

Answer 3

Selling price - variable cost per unit

Question 4

Total costs
(find christina, teddy vaguely calm)

Answer 4

Fixed costs + total variable costs

Question 5

Total revenue
(quizzing Samantha surprisingly perfect

Answer 5

quantity sold x selling price

Question 6

Gross profit margin
(Gavin prefers Ronald)

Answer 6

gross profit ÷ revenue x 100

Question 7

Net profit margin
(nanna prefers Ronald)

Answer 7

net profit ÷ revenue x 100

Question 8

Current ratio
(callie acts childish loudly)

Answer 8

current assets ÷ current liabilities

Question 9

Liquid capital ratio
(callie acts irresponsibly) callie lonely

Answer 9

(current assets - inventory) ÷ current liabilities

Question 10

Break even point
(finn calmly persuades u)

Answer 10

fixed ÷ contribution per unit

Question 11

Closing balance
(owen blackouts next callie fights)

Answer 11

Opening balance ÷ net cash flow

Question 12

Margin of Safety
(april sings break evil prick)

Answer 12

Actual sales - break even point

Question 13

Net cash flow
( into Owen)

Answer 13

Inflows- outflows

Question 14

Gross profit
(shane really calls owen gang signs)

Answer 14

Sales revenue - cost of goods sold

Question 15

Net profit
(george plays eight ball only invite.)

Answer 15

Gross profit - expenses + other income

Question 16

Return on capital employed
(niamh plays cleudo every 100 days)

Answer 16

net profit ÷ capital employed x 100

Question 17

Trade receivable days
(teddy returns Christina safely every 365.

Answer 17

Trade receivables ÷ credit sales x 365

Question 18

Trade payable days
( teddy passes Christina politely * every * 365.

Answer 18

Trade payables ÷ credit purchases x 365