BTEC Level 3 Business: Unit 3 - Personal & Business Finance ALL formulas!

Net Cash Flow

Total Cash Inflow - Total Cash Outflow

Closing Balance

Opening Balance + Net Cash Flow

Total Revenue

Selling Price X Quantity Sold

Total Costs

Fixed Cost + Total Variable Costs

Profit

Total Revenue - Total Costs

Total Contribution

Sales Revenue - Total Variable Costs

Contribution (Per Unit)

Selling Price - Variable Cost (per unit)

Profit (Using Contribution)

Contribution Per Unit x Margin of Safety

Break-Even Output

Total Fixed Costs / Unit Contribution

Margin of Safety

Actual Sales - Break-Even Level of Output

Revenue

Unit Price X Quantity Sold

Gross Profit

Sales Revenue - Cost of Goods Sold

Cost of Goods Sold

Opening Inventory + Purchases - Closing Inventory

Profit/Loss of the Year

Gross Profit - Expenses + Other Income

Net Book Value

Cost - Depreciation

Net Current Assets

Current Assets - Current Liabilities

Net Assets

Non-Current Assets + Net Current Assets - Long Term Liabilities

Capital Employed

Opening Capital + Profit of the Year less drawings

Balance Sheet

Net Assets = Capital Employed

Gross Profit Margin

Gross Profit / Revenue x 100

Mark-Up

Gross Profit/Cost of Sales x 100

Profit Margin

Profit/Revenue x 100

Return on Capital Employed

Profit/Capital Employed x 100

Current Ratio

Current Assets/ Current Liabilities

Liquid Capital Ratio

Current Assets - Inventory/ Current Liabilities

Trade Receivable Days

Trade Receivables/Credit Sales x 365

Trade Payable Days

Trade Payables/Credit Purchases x 365

Average Inventory Turnover

Average Inventory /Cost of Sales x 365