BTEC Business - Formulas

?
  • Created by: Kaicee05
  • Created 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

Comments

No comments have yet been made

Similar Business resources:

See all Business resources »See all Finance resources »