PAPER 2 FORMULAS

Question 1

Equity:

Answer 1

Equity = Total Assets - Total Liabilities

Question 2

Profit Margin:

Answer 2

Profit Margin = (Net Profit / Sales Revenue) × 100

Question 3

Current Ratio:

Answer 3

Current Ratio = Current Assets / Current Liabilities

Question 4

Contribution per Unit:

Answer 4

Contribution per Unit = Selling Price per Unit - Variable Cost per Unit

Question 5

Total Liabilities:

Answer 5

Total Liabilities = Total Assets - Equity

Question 6

ROCE:

Answer 6

ROCE = (PBIT / Capital Employed) × 100

Question 7

Market Share:

Answer 7

Market Share = (Company’s Sales / Total Market Sales) × 100

Question 8

COS (Cost of Sales):

Answer 8

COS = Opening Stock + Purchases - Closing Stock

Question 9

Capacity Utilization Rate:

Answer 9

Capacity Utilization Rate = (Actual Output / Maximum Possible Output) × 100