Theme 2 Formulas 3.5 / 5 based on 3 ratings ? BusinessTheme 2A2/A-levelEdexcel Created by: KitDicksonCreated on: 21-01-18 19:55 What is the formula for Net Cash Flow? Net Cash Flow = Cash Inflows - Cash Outflows 1 of 21 Closing Balance = Opening Balance + Net Cashflow 2 of 21 Sales Volume = Sales Revenue / Price Per Unit 3 of 21 Sales (or Total) Revenue = Price x Quantity 4 of 21 Total Cost = Fixed Cost + Variable Cost 5 of 21 Profit = Total Revenue - Total Cost OR Total Contribution - Fixed Cost 6 of 21 Contribution = Selling Price per Unit - Variable Cost per Unit 7 of 21 Total Contribution = Contribution per unit x Output sold OR Total revenue - Total Variable Cost 8 of 21 Break Even = Fixed Cost / Contribution per Unit 9 of 21 What is the Break-even point? when Total Revenue = Total Cost 10 of 21 Gross Profit = Sales Revenue - Variable Cost 11 of 21 GPM (Gross Profit Margin) = Gross Profit/ Sales Revenue x 100 12 of 21 Operating profit = Sales Revenue - Total Cost 13 of 21 OPM (Operating Profit Margin) = Operating Profit / Sales Revenue x 100 14 of 21 Net Profit or Profit for the year = Sales Revenue - All Cost (Total Cost + Tax + Interest + One off purchases etc.) 15 of 21 NPM (Net Profit Margin) = Net Profit / Sales Revenue x 100 16 of 21 Unit Cost = Total Cost / Output 17 of 21 Working Capital = Current Assets - Current Liabilities 18 of 21 Current Ratio = Current Assets / Current liabilities 1.5:1 - 2:1 19 of 21 Acid Test Ratio = Current Assets - Stock / Current Liabilities Ideal 0.75:1 - 1:1 20 of 21 Capacity Utilisation = Current Output / Maximum Output x 100 21 of 21
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