Podcast
Questions and Answers
What is the formula to calculate the Net Cash Flow?
What is the formula to calculate the Net Cash Flow?
- Total Cash Inflow - Total Cash Outflow (correct)
- Total Cash Inflow + Total Cash Outflow
- Total Cash Inflow / Total Cash Outflow
- Total Cash Outflow - Total Cash Inflow
How do you calculate the Break-Even Output?
How do you calculate the Break-Even Output?
- Total Fixed Costs / Unit Contribution (correct)
- Total Revenue / Total Costs
- Total Variable Costs / Selling Price
- Selling Price / Quantity Sold
What does the Margin of Safety represent?
What does the Margin of Safety represent?
- Break-Even Output - Actual Sales
- Total Revenue - Total Costs
- Projected Sales - Fixed Costs
- Actual Sales - Break-Even Level of Output (correct)
What is the equation for calculating Gross Profit?
What is the equation for calculating Gross Profit?
How is the Profit/Loss of the Year calculated?
How is the Profit/Loss of the Year calculated?
Flashcards
Net Cash Flow
Net Cash Flow
The difference between total cash inflows and total cash outflows.
Break-Even Output
Break-Even Output
The level of production where total revenue equals total costs, resulting in zero profit or loss.
Contribution Margin per Unit
Contribution Margin per Unit
The amount of money contributed towards covering fixed costs for each item sold.
Cost of Goods Sold (COGS)
Cost of Goods Sold (COGS)
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Gross Profit
Gross Profit
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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.
