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WorksheetsBTEC Level 3 Finance Formulas
Total questions: 15
Worksheet time: 11mins
Total revenue formula
Selling price * Quantity sold
Selling price / Quantity sold
Selling price + Quantity sold
Selling price - Quantity sold
Total costs formula
Total Variable costs - Total Fixed costs
Total Variable costs + Total Fixed costs
Cost per unit + Total Fixed costs
Fixed costs * Variable costs
Breakeven even formula
Fixed costs / contribution per unit
How do you calculate contribution per unit?
(a)
Gross profit = profit before final deductions
What is the formula?
Sales revenue - cost per one unit sold
Sales revenue - cost of goods sold
Sales revenue - fixed costs
Sales revenue + other income
How do you calculate the margin of safety
(a)
Cost of goods sold formula
opening inventory + purchases - closing inventory
Opening inventory - closing inventory
Cost of sales + purchases - closing inventory
Gross profit + capital employed - closing inventory
What do you need to do to all formulas when calculating ratios?
E.g. if I was writing current ratio as 25 how would I write it?
(a)
How do you turn profit (Gross and Net) into margin formulas?
(a)
What is the gross profit margin formula?
Gross profit
/cost of sales * 100
/revenue * 100
/capital employed * 100
What is the Net profit margin formula?
Net profit
/cost of sales * 100
/revenue * 100
/capital employed * 100
What is the return on capital employed formula?
/cost of sales * 100
/revenue * 100
/capital employed * 100
Which formula is the correct one for trade receivable days?
trade receivables/credit purchases * 365
trade receivables/credit sales * 365
trade receivables/cost of sales * 365
Which formula is the correct one for trade payable days?
trade payables/credit purchases * 365
trade payables/credit sales * 365
trade payables/cost of sales * 365
Which formula is the correct one for inventory turnover?
Average inventory turnover/credit purchases * 365
Average inventory turnover /credit sales * 365
average inventory turnover / cost of sales * 365
How do you calculate closing capital from a statement of financial position?
Non-current assets + opening capital
non-current assets + add profit for the year - less drawings
Opening capital - less drawings
Opening capital + add profit for the year - less drawings
