Net Cash Flow (Cash Flow Forecast)
= Total Income (inflows) - Total Expenses (Outflows)
Closing Balance (Cash Flow Forecast)
= Opening Balance +
... [Show More] Net Cash Flow
Total Cost
= Fixed Costs + Variable Costs
Cost per Unit (Average Total Cost)
= Total Cost / Output
Variable Cost per Unit
= Total Variable Cost / Output
Total Variable Cost
= Variable Cost per Unit x Output
Revenue
= Price x Quantity Sold
Contribution per Unit
= Price - Variable Cost per Unit
Total Contribution
= Revenue - Total Variable Cost
Break-even Output
= Fixed Cost / Contribution per Unit
Margin of Safety (Units)
= Current Sales in Units - Break Even in Units
Margin of Safety (Value)
= Current Revenue - Revenue at Break-even
Profit
= Revenue - Total Cost
Profit (Contribution Method)
= [(Price - VC per unit) x Quantity Sold] - Fixed Costs
Cost of Goods Sold (Cost of Sales)
= Opening Inventories + Purchases - Closing Inventories
Gross Profit (Statement of Comprehensive Income)
= Revenue - Cost of Goods Sold
Net Profit (Statement of Comprehensive Income)
= Gross Profit - Expenses
Profit for the Year (Statement of Comprehensive Income)
= Gross Profit - Expenses + Other Income
Straight-Line Depreciation Method
= (Asset Purchase Price - Estimated Resale Value) / Expected Useful Life of Asset in Years
Declining Balance Depreciation Method
= Asset Value x % for Depreciation
e.g. if 15% = Asset Value x 0.15
Depreciation: Carrying Amount
= Cost (Book Value) of Asset - Annual Depreciation
Net Current Assets (Statement of Financial Position)
= Current Assets - Current Liabilities
Current Assets (Statement of Financial Position)
= Cash + Receivables + Inventories + Prepayments
Current Liabilities (Statement of Financial Position)
= Trade Payables + Overdraft + Accruals
Net Assets (Statement of Financial Position)
= Non-Current Assets + Net Current Assets - Long-term Liabilities
Closing Capital or Capital Employed (Statement of Financial Position)
= Opening Capital + Retained Profit (or Profit for the Year) - Drawings
Gross Profit Margin (Profitability Ratio)
(Gross Profit / Revenue) x 100%
Profit Margin (Profitability Ratio
(Profit / Revenue) x 100%
Return on Capital Employed or ROCE (Profitability Ratio)
= (Profit / Capital Employed) x 100%
Mark-up (Profitability Ratio)
= (Revenue / Cost of Sales) x 100%
Current Ratio (Liquidity Ratio)
= Current Assets / Current Liabilities
Liquid Asset or Acid Test Ratio (Liquidity Ratio)
= (Current Assets - Inventory) / Current Liabilities
Trade Receivable Days (Efficiency Ratio)
= (Trade Receivables / Credit Sales) x 365 days
Trade Payable Days (Efficiency Ratio)
= (Trade Payables / Credit Purchases) x 365 days
Inventory Turnover (Efficiency Ratio)
= (Average Inventory / Cost of Sales x 365 days
Average Inventory
= (Opening Inventory + Closing Inventory) / 2 [Show Less]