ESB Quiz 1

What is the formula for sales price?

(Cost x ___ ) + Cost = Sales price

What is the correct formula to calculate Equity?

______ - Liabilities = Equity

You own a business that sells custom cakes.

To produce a single cake it costs you $22 in labor and $12 in materials.

You want to make a 40% profit.

What is the selling price of each cake ?

• $40

• $47.60

• $32

• $34

Which of these are assets?

• Inventory

• Accounts Payable

• Cash

• Accounts Receivable

Janet owns a small clothing boutique. She has $9,000 in cash and $6,000 in inventory. Janet also has $4,500 credit card balance and $5,500 in long term debt.

What is Janet's equity?

• $5,000

• $10,000

• $2,500

• $1,500

What is the formula for Burn Rate?

Starting balance - ______= Burn Rate

You own recently started a custom sneaker company. You started out with $12,000 in your bank account. After 4 months you have $8,000 left. What is your monthly Burn Rate and Runway?

• $1,000 and 8 months

• $2,250 and 3 months

• $2,250 and 4 months

• $4,000 and 3 months

What is the correct formula for ROI?

____ / start up cost x 100

• Net Profit

• Gross sales

• Total expenses

• Income tax

Calculate the Net Profit

hint* Gross Sales - Total Expenses - Income tax

• $42,500

• $100,670

• $28,500

• $30,930

What is the ROI?

• 56%

• 51%

• 40%