BTEC Business - Formulas 0.0 / 5 ? BusinessFinanceBTEC NationalEdexcel Created by: Kaicee05Created on: 14-05-23 22:04 E1 - Cash Flow Rules 1. cash in - cash out = net cash flow 2. opening balance + net cash flow = closing balance 3. WATCH OUT FOR NEGATIVES 4. closing balance becomes next months opening balance 1 of 24 E2 - Variable Costs variable costs = quantity sold x cost per unit 2 of 24 E2 - Total Fixed Costs total fixed costs = all fixed costs added together 3 of 24 E2 - Total Costs total cost = total variable cost + total fixed cost 4 of 24 E2 - Revenue revenue = quantity sold x selling price 5 of 24 E2 - Break Even break even = fixed costs / contribution 6 of 24 E2 - Profit profit = total revenue - total cost 7 of 24 E2 - Margin of Safety margin of safety = actual level of output - break even level of output 8 of 24 E2 - Contribution contribution = selling price - variable costs 9 of 24 F1 - Cost of Goods Sold cost of goods sold = opening balance + inventory - closing inventory 10 of 24 F1 - Straight Line Depreciation straight line depreciation = historic value - residual value / expected life 11 of 24 F1 - Profit or Loss of the Year profit or loss of the year = gross profit - expenses + other income 12 of 24 F1 - Gross Profit gross profit = sales revenue - cost of goods sold 13 of 24 F2 - Net Assets net assets = (non current assets + current assets) - (non current liabilities + current liabilities) 14 of 24 F3 - Gross Profit Margin gross profit margin = gross profit / revenue x 100 15 of 24 F3 - Net Profit Margin net profit margin = profit / revenue x 100 16 of 24 F3 - Mark Up mark up = gross profit / cost of sales x 100 17 of 24 F3 - Return on Capital Employed return on capital employed = profit / capital employed x 100 18 of 24 F4 - Current Ratio current ratio = current assets / current liabilities 19 of 24 F4 - Liquid Capital Ratio liquid capital ratio = current assets - inventory / current liabilities 20 of 24 F5 - Trade Receivable Days trade receivable days = trade receivables / credit sales x 365 21 of 24 F5 - Trade Payable Days trade payable days = trade payables / credit purchases x 365 22 of 24 F5 - Inventory Turnover inventory turnover = avergage inventory / cost of sales x 365 23 of 24 F5 - Average Inventory average inventory = (opening inventory + closing inventory) / 2 24 of 24
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