formulas Flashcards
gross profit
sales- cost goods sold
net profit
revenue-expenses
gross profit margin
gross profit divide revenue times 100
net profit margin
net profit divde revenue time 100
return on capital employed
net profit divde capital employed times 100
mark up ratio
gross profit divide cost of sales times100
current ratio
current assets divide liabilities
liquid capital ratio
current assets - stock divide liabilities
trade receivables
trade receivables divide credit sales times 365
trade payables
trade payables divide credit purchases times 365
inventory turnover
average inventory divide cost sales times 365
average inventory= opening inventory plus closing inventory divide by two
revenue
selling price times quantity sold
total variable costs
variable cost per unit times output
profit/loss
revenue - total costs
break even
fixed costs divide contribution
Contribution per unit
Selling price minus variable cost
Margin safety
Product sold minus break even point
Total costs
Fixed plus variable
Total contribution
Sales revenue minus total variable costs
Capital
Capital plus retained profit minus drawings
Straight line depreciation
Historic value takeaway residual value divide expected life
Reducing balance depreciation
Find percentage take away cost = net book value then repeat and take away from net book value
Cost goods sold
Open inventory plus purchases minus closing stock
Closing balance
Open balance plus net cash flow
