BTEC Business Formulas
Net Cash Flow - answerTotal inflows - total outflows
Closing balance - answerOpening balance + net cash flow
Sales revenue - answerprice x quantity sold
Variable costs - answercost per unit x quantity made
Total costs - answerfixed costs + variable costs
Profit - answersales revenue - total costs
Break even point - answerFixed costs / contribution per unit
Contribution per unit - answerSelling price - variable cost per unit
Total contribution - answerSales revenue - total variable costs
Margin of Safety - answerActual sales - break even level of output
Costs of goods sold - answerOpening inventory + purchases - closing inventory
Gross profit - answersales turnover - cost of goods sold
Net profit - answergross profit - expenses + other revenue income
straight line depreciation - answerhistoric value - residual value / expected life
Working Capital - answercurrent assets - current liabilities
Net assets - answerfixed assets + current assets - (current liabilities + long term
liabilities)
Capital employed - answerowners/shareholders capital + retained profit - drawings
Gross profit margin - answerGross profit/sales revenue x 100
Mark-up - answerGross profit / cost of sales x 100
Net profit margin - answernet profit/revenue x 100
return on capital employed - answerNet profit / capital employed x 100
Net Cash Flow - answerTotal inflows - total outflows
Closing balance - answerOpening balance + net cash flow
Sales revenue - answerprice x quantity sold
Variable costs - answercost per unit x quantity made
Total costs - answerfixed costs + variable costs
Profit - answersales revenue - total costs
Break even point - answerFixed costs / contribution per unit
Contribution per unit - answerSelling price - variable cost per unit
Total contribution - answerSales revenue - total variable costs
Margin of Safety - answerActual sales - break even level of output
Costs of goods sold - answerOpening inventory + purchases - closing inventory
Gross profit - answersales turnover - cost of goods sold
Net profit - answergross profit - expenses + other revenue income
straight line depreciation - answerhistoric value - residual value / expected life
Working Capital - answercurrent assets - current liabilities
Net assets - answerfixed assets + current assets - (current liabilities + long term
liabilities)
Capital employed - answerowners/shareholders capital + retained profit - drawings
Gross profit margin - answerGross profit/sales revenue x 100
Mark-up - answerGross profit / cost of sales x 100
Net profit margin - answernet profit/revenue x 100
return on capital employed - answerNet profit / capital employed x 100
