Finance Calculations

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  • Created by: Leah
  • Created on: 01-10-12 16:38
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Leah Powell
Finance Calculations
Cash Flow Forecasts
Receipts ­ Payments = Net Cash
Flow
Net Cash flow + Opening Balance =
Closing Balance
CLOSING BALANCE IS THEN
NEXT MONTHS OPENING
BALANCE
Break Even Chart
Total Variable cost = Fixed
Cost
Total ­ Fixed cost =
Variable cost
Fixed + Variable = Total
Price charged x Quantity
sold = Total Revenue
Fixed cost ÷ (Price ­
Variable cost/unit) = Break
even
Total sales ­ Breakeven =
Margin of Safety
Variable cost per unit x
output = Variable cost

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Leah Powell
Profit and Loss accounts
Sales ­ Cost of
goods sold(cost
of sales) =
Gross profit
All expenses =
Total expenses
Gross Profit ­
Expenses = Net
profit
Trading account
Salescost of sales=Gross profit
(Opening stock + purchases) ­
Closing stock = Cost of sales
Balance Sheet
Current assets ­ current liabilities
= Net current asset/working
capital
Fixed cost + (current asset ­
current liabilities) = Net assets
All shareholders funds e.g.…read more

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Leah Powell
(Net profit ÷ sales) x 100 = Net Profit Percentage
Cost of goods sold ÷ average stock = Stock Turnover Rate
(Net profit ÷ capital employed) x 100 = Return of Capital Employed (ROCE)
(Current assets ÷ current liabilities) : 1 = Working Capital Ratio
(Gross profit ÷ Sales) X 100 = Gross Profit Percentage
(Current Assets ­ Value of stock) ÷ Current liabilities : 1 = Acid test ratio…read more

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