Working Capital = Current assets – Current Liabilities

Capital = Assets – Liabilities

Gross Prrofit = Sales – COGS

COGS = Opening inventory + Purchases – Closing inventory

Net profit = Additional income + gross profit – expenses

Return on Cpaital employed = Net profit/Capital Employed X 100

Capital employed = Fixed assets + working capital

Gross Profit margin = Gross Profit/Sales X 100

Net Profit Margin = Net Profit/Sales X 100

Mark up = Gross/COGS X 100

Current ratio = Current assets/Current liabilities

Acid test ratio = Current assets – Stock/Current liabilities

Earnings Per share = Net profit after interest + tax + preference dividends/ Number of ordinary
shares issued

Dividend Yield = Gross dividend per share/Market price per share X 100

Debtor Day ratio = Debtors/Credit Sales X 365

Stock turnover = COGS/AVERAGE STOCK

Average stock = Opening Inventory + Closing inventory/2

Gearing Ratio = Debt X 100/Capital employed

Payback period = Amount required/Net cash flow per year X 12

Average Rate of Return = Average return (profit) per annum/Initial investment X 100

Net present Value = Cash inflows X Discount Factor + (Discounted cash inflows - Initial
investment cost)
Income statement format:

Balance sheet format:

The prdouction busget format:
The material budget format:

The sales budget format:

The cash budget format:

The cashflow statement format: