Formulas

Question 1

Working capital

Answer 1

Current assets - current liabilities

Question 2

Capita employed, formula booklet gives :
capital employed = non-current liabilities + equity

, state other 2

Answer 2

(or Non-current liabilities + Share Capital + Retained Earnings)
OR capital employed = total assets - current liabilities.
OR Non-current assets + (current assets - current liabilities) ***thing in bracket also = working capital

Question 3

Market share formula

Answer 3

(Sales of a business / market size)
x 100

Question 4

Market growth

Answer 4

(This years market sales - last years market sales) / last yearn market sales
X 100

Question 5

Price elasticity of demand

Answer 5

% change in quantity demanded / % change in price

PED greater then 1 = elastic and between 0 & 1 = inelastic

Question 6

Straight line depreciation

Answer 6

(Original Cost – Residual Value) ÷ Useful Life

Question 7

Units of production depreciation

Answer 7

Depreciation per unit × Units produced

(to find depreciation per unit= (purchase cost - residual value) ÷units r useful life