Podcast
Questions and Answers
What is the formula to calculate the Net Cash Flow?
What is the formula to calculate the Net Cash Flow?
How do you calculate the Break-Even Output?
How do you calculate the Break-Even Output?
What does the Margin of Safety represent?
What does the Margin of Safety represent?
What is the equation for calculating Gross Profit?
What is the equation for calculating Gross Profit?
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How is the Profit/Loss of the Year calculated?
How is the Profit/Loss of the Year calculated?
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Study Notes
Cash Flow Forecasts
- Net Cash Flow formula: Total Cash Inflow - Total cash outflow
- Closing Balance formula: Opening Balance + Net cash Flow
Break-Even Analysis
- Total Revenue formula: Selling Price X Quantity Sold
- Total Costs formula: Fixed Cost + Total Variable Costs
- Total Contribution formula: Sales Revenue - Total Variable Costs
- Contribution (Per Unit) formula: Selling Price - Variable Costs
- Profit (Using Contribution) formula: Contribution Per Unit X Margin Of Safety
- Break-Even Output formula: Total Fixed Costs/Unit Contribution
- Margin Of Safety formula: Actual Sales - Break-Even Level Of Output
- Profit formula: Total Revenue - Total Costs
Statement of Comprehensive Income
- Revenue formula: Unit Price x Quantity Sold
- Gross Profit formula: Sales Revenue - Cost of Goods Sold
- Cost of Goods Sold formula: Opening Inventory + Purchases - Closing Inventory
- Profit/Loss of the Year formula: Gross Profit - Expenses + Other Income
- Net Book Value formula: Cost - Depreciation
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Description
This quiz covers essential financial analysis concepts including cash flow forecasts, break-even analysis, and comprehensive income statements. Test your knowledge of various financial formulas and their applications in real-world scenarios.