BTEC L3 Financial calculations

What is the formula for calculating total revenue in break-even analysis?

• Fixed costs + total variable costs

• Selling price x quantity sold

How is profit calculated in break-even analysis?

• Total revenue - total costs

• Total fixed costs / unit contribution

What is the equation for calculating the current ratio in measuring liquidity?

• Current assets / current liabilities

• Trade receivable / credit sales x 365

Which formula is used to calculate gross profit margin?

• Gross profit / revenue x 100

• Profit / revenue x 100

What is the formula for calculating net current assets?

• Current assets - current liabilities

• Net assets = capital employed

How is net cash flow calculated in break-even analysis?

• Total cash inflow - total cash outflow

• Sales revenue - total variable costs

What is the equation for calculating trade payable days?

• Trade payables / credit purchase x 365

• Current assets / current liabilities

Which formula is used to calculate mark up?

• Gross profit / cost of sales x 100

• Profit / revenue x 100

How is the cost of goods sold calculated in the statement of comprehensive income?

• Sales revenue - cost of goods sold

• Opening inventory + purchases - closing inventory

What is the formula for calculating return on capital?

• Profit / capital employed x 100

• Gross profit / cost of sales x 100