1Revenue
Total revenue = Selling Price x Quantity Sold
- the total income generated bu a business from the sale of goods or service oer a period of time before costs are deducted
2Dividens
A payment made by a company to its shareholders usualy out of profits as a return of their investment
3Cost of sales
The direct costs involved in producing the goods/services sold (e.g. materials, direct labour during the period
4Gross Profit
Gross profit = Revenue - Cost of sales
the profit made from tading before overheads/ operating costs
5Distribution costs
The cost incurred in selling and delivering products to customers
- transport, warehousing, marketing -
6Operating Profit
Operating profit = Gross Profit - Operating costs(admin costs + distributin costs)
7Profit Before Tax
PBT = Operating Profit - Finance Costs
8Proft Attributable to Shareholders
PAS = PBT - Tax
9Ballance sheet
Provides a snapshot of the assets and liabilities of a busines at a point of time
10Profit for year
PFY = Operating profit - Intrest paid on loans - Tax
11Margins
same as normal equasions but expressed as a percentage % so x 100
12Non current assets
Assets that youve owned for more than 12 months
- machienery viechles buildings land etc -
tangiable assets
13Non tangiable assets
Intelectual property, Goodwill, Brand (image)
14Income statement
Legealy required document showing profit or loss made usualy over 12 months or latger businesses do it bianually
15Working Capitol or net curreent assets
Working capitol = current assets - current liabilities