Paper 2 Equations Flashcards
(16 cards)
Net Cash flow
total cash inflows - total cash outflows in a given period
Opening balance
Closing balance of previous period
Closing balance
Opening balance + net cash flow
Break even point from a chart
When total revenue = total costs
average rate of return %
average annual profit (total profit/number of years) / cost of investment X 100
Gross profit
Sales revenue - cost of sales
Margin of safety
actual or budgeted output - break even point
Gross profit margin %
Gross profit/sales revenue X 100
Operating profit
Gross profit - overheads
net profit
Gross profit - overheads, taxes and interest
Net profit Margin %
Net profit/Sales revenue X 100
Net current assets
Total current assets - total current liabilities
net assets
Non current assets + net current assets - non current liabilities
Total equity
value of net assets
market share
Sales of one product or business or brand / total sales of market as a whole X 100
Market size
Total volume or value of sales of a product
