Business Studies Formulas? (1 Viewer)

[Hoe]

Just as the title says - what are all the formulas generally used for calculations in Business Studies e.g. A = L + OE

Thanks!

 

[swagmeister]

Just as the title says - what are all the formulas generally used for calculations in Business Studies e.g. A = L + OE

Thanks!

that's the only one that won't be given to us in the HSC I think

 

[Crisium]

You should also know the formula for gross profit and net profit (They may give you the ratio formulas but not the formulas for these individually)

Gross Profit = Sales - COGS

COGS = (Opening Stock + Purchases) - Closing Stock

Net Profit = Gross Profit - Expenses

Working Capital = Current Assets + Current Liabilities

I'm a bit rusty haha so someone correct me if I'm wrong

 

[swagmeister]

You should also know the formula for gross profit and net profit (They may give you the ratio formulas but not the formulas for these individually)

Gross Profit = Sales - COGS

COGS = (Opening Stock + Purchases) - Closing Stock

Net Profit = Gross Profit - Expenses

Working Capital = Current Assets + Current Liabilities

I'm a bit rusty haha so someone correct me if I'm wrong

Working Capital = Current Assets - Current liabilities

Otherwise some good suggestions, I didn't really think about the profit ones. Plus that COGS one often tricks some people

 

[Crisium]

Working Capital = Current Assets - Current liabilities

Otherwise some good suggestions, I didn't really think about the profit ones. Plus that COGS one often tricks some people

Woops thanks for the heads up though, I had a feeling that one was a bit dodgy

Yeah they sometimes don't add these values up for you so it's important to know them despite being given the ratio

 

[swagmeister]

Woops thanks for the heads up though, I had a feeling that one was a bit dodgy

Yeah they sometimes don't add these values up for you so it's important to know them despite being given the ratio

Yeah definitely!

Speaking of adding up values and stuff, do you know whether you include net profit as part of owners equity when calculating return on owners equity?

E.g. Does it become (net profit / capital + rights issue + net profit), or do you not include net profit in the owners equity side?

 

[Crisium]

I haven't done a calculation involving return on owner's equity in a while

I just checked the Business Studies in Action Textbook and it seems like they have included it