finance formula 0.0 / 5 ? BusinessFinanceBTEC NationalAQA Created by: nadyaahmed12Created on: 05-12-19 14:26 CASH FLOW FORECAST CASH FLOW FORECAST 1 of 40 Total inflows Total inflows=add together of all the individual inflows 2 of 40 Total outflows Total outflows=add together all the individual out flows 3 of 40 Net cash flows Net cash flows=Inflows-outflows 4 of 40 Closing bank balance Closing bank balance=opening bank balance + net cash flow 5 of 40 Opening bank balance Opening bank balance= same as the closing balance for the previous month 6 of 40 BREAK EVEN ANALYSIS BREAK EVEN ANALYSIS 7 of 40 Break Even point Break Even point= where total revenue and total cost lines cross 8 of 40 Contribution per unit Contribution per unit= selling price- variable cost per unit 9 of 40 Total Contribution Total Contribution= contribution per unit X number of units sold 10 of 40 Margin of safety Margin of safety= actual sales- Break Even 11 of 40 Left of the break even triangle shows loss 12 of 40 Right of the break even triangle shows profit 13 of 40 when the selling price increases break even decreases :) the margin of safety increases :) 14 of 40 when the selling price decrease break even increases :( The margin of safety decreases:( 15 of 40 when costs (fixed or variable) increases, Break even increases :( the margin of safety decreases :( 16 of 40 when costs (fixed or variable) decrease break even decreases :) the margin of safety increases:) 17 of 40 STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF COMPREHENSIVE INCOME 18 of 40 Revenue Revenue= quantity sold X selling price 19 of 40 Cost of goods sold Cost of goods sold= open inventory+ purchases - closing inventory 20 of 40 Gross profit Gross profit= revenue - costs of goods sold 21 of 40 Net profit Net profit= gross profit-expenses/ indirect cost 22 of 40 Net book value Net book value= cost of assets - depreciation 23 of 40 STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION 24 of 40 Net current assets also known as working capital figure Net current asset= current assets- current liabilities 25 of 40 Net assets Net assets= non current assets + net current assets - non current liabilities 26 of 40 MEASURING PROFITABILITY MEASURING PROFITABILITY 27 of 40 Gross profit margin Gross profit margin= gross profit/revenue X 100 28 of 40 Mark Up Mark Up= gross profit/cost sales X 100 29 of 40 net profit : profit margin Net profit = net profit / revenue X 100 30 of 40 Return on capital Employed return on capital employed = profit or net profit / capital employed X 100 31 of 40 YOU WANT MARGIN TO BE HIGH AS POSSIBLE YOU WANT MARGIN TO BE HIGH AS POSSIBLE 32 of 40 MEASURING LIQUIDTY MEASURING LIQUIDITY 33 of 40 Current ratio Current ratio= current assets / current liabilities 34 of 40 Liquid capital ratio Liqiud capital ratio =current assets - inventory / current liabilities 35 of 40 Trade receivables days Trade receivables days= trade receivables / credit sales X 365 36 of 40 Trade payable days Trade payable days = trade payable/ credit purchase X 365 37 of 40 MEASURING EFFICIENCY MEASURING EFFICIENCY 38 of 40 Inventory turnover Inventory turnover= average inventory held / cost of sales X 365 39 of 40 Average inventory held Average inventory held = opening + opening / 2 40 of 40
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