BTEC Business Formulas (All solved)

Net Cash Flow correct answers Total inflows - total outflows Closing balance correct answers Opening balance + net cash flow Sales revenue correct answers price x quantity sold Variable costs correct answers cost per unit x quantity made Total costs correct answers fixed costs + variable costs Profit correct answers sales revenue - total costs Break even point correct answers Fixed costs / contribution per unit Contribution per unit correct answers Selling price - variable cost per unit Total contribution correct answers Sales revenue - total variable costs Margin of Safety correct answers Actual sales - break even level of output Costs of goods sold correct answers Opening inventory + purchases - closing inventory Gross profit correct answers sales turnover - cost of goods sold Net profit correct answers gross profit - expenses + other revenue income straight line depreciation correct answers historic value - residual value / expected life Working Capital correct answers current assets - current liabilities Net assets correct answers fixed assets + current assets - (current liabilities + long term liabilities) Capital employed correct answers owners/shareholders capital + retained profit - drawings Gross profit margin correct answers Gross profit/sales revenue x 100 Mark-up correct answers Gross profit / cost of sales x 100 Net profit margin correct answers net profit/revenue x 100 return on capital employed correct answers Net profit / capital employed x 100 Current ratio correct answers current assets / current liabilities