Personal and Business finance equations 0.0 / 5 ? BusinessUnit 3 Personal and Business finance equationsBTEC NationalEdexcel Created by: Homer180Created on: 13-07-18 12:09 Net Cash Flow Total cash inflows - Total cash outflow 1 of 30 Closing balance (Opening balance + Inflows) - Outflows 2 of 30 Total revenue Price * Quantity 3 of 30 Total costs Fixed costs + variable costs 4 of 30 Profit Total revenue - total costs 5 of 30 Total contribution Sales revenue - total variable costs 6 of 30 Unit contribution Selling price per unit - variable cost per unit. 7 of 30 Profit (using contribution) Selling price * margin of safety. 8 of 30 Break Even Total revenue = Total costs 9 of 30 Revenue Unit price * Quantity sold 10 of 30 Gross Profit Revenue - cost of goods sold (Cost of sales) 11 of 30 Cost of goods sold (cost of sales) (Opening inventory(stock) + Purchases)- closing stock 12 of 30 Profit/Loss Gross profit - expenses (+other income) 13 of 30 Net book value cost - depreciation 14 of 30 Net Current Assets Current Assets - Current Liabilities 15 of 30 Net Assets non current assets + net current assets - long term liabilities 16 of 30 Capital employed opening capital + Profit for the year. 17 of 30 Balance sheet Nets Assets = Capital emplyed 18 of 30 Gross profit margin Gross profit / Revenue *100 19 of 30 Mark up Gross Profit / Cost of Sales *100 20 of 30 Straight Line depreciation (historic value - residual value) / expected life 21 of 30 Net profit margin Profit / Revenue *100 22 of 30 Return on Capital employed Profit / Capital employed *100 23 of 30 Current ratio Current Assets/Current liabilities 24 of 30 Liquid Capital ratio (acid test ratio) (Current assets - Inventory) / Current liabilities. 25 of 30 Trade receivable days Trade receivables / credit sales *365 26 of 30 Inventory turnover Average inventories/cost of sales * 365 27 of 30 Average inventory Opening inventory+closing inventory /2 28 of 30 Trade payables trade payables/credit purchases *365 29 of 30 Reducing line depreciation net book value * depreciation level 30 of 30
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