Contribution 𝑪𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕 = 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡– 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 = 𝑇𝑜𝑡𝑎𝑙 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 – 𝑇𝑜𝑡𝑎𝑙 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡𝑠 OR 𝑻𝒐𝒕𝒂𝒍 𝒄𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 = 𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 × 𝑛𝑜. 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠 𝑠𝑜𝑙𝑑 𝑷𝒓𝒐𝒇𝒊𝒕 = 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 – 𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 𝑷𝒓𝒐𝒇𝒊𝒕 = 𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 – 𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡 Break Even 𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 OR 𝑻𝒐𝒕𝒂𝒍 𝒓𝒆𝒗𝒆𝒏𝒖𝒆 = 𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕𝒔 𝑩𝒓𝒆𝒂𝒌 𝒆𝒗𝒆𝒏 𝒒𝒖𝒂𝒏𝒕𝒊𝒕𝒚 = 𝑴𝒂𝒓𝒈𝒊𝒏 𝒐𝒇 𝒔𝒂𝒇𝒆𝒕𝒚 = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑂𝑢𝑡𝑝𝑢𝑡 – 𝐵𝑟𝑒𝑎𝑘 𝐸𝑣𝑒𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑻𝒂𝒓𝒈𝒆𝒕 𝒑𝒓𝒐𝒇𝒊𝒕 𝒐𝒖𝒕𝒑𝒖𝒕 = 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡𝑠 + 𝑇𝑎𝑟𝑔𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑩𝒓𝒆𝒂𝒌 𝒆𝒗𝒆𝒏 𝑹𝒆𝒗𝒆𝒏𝒖𝒆 = 𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠 × 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 Trading Account 𝑮𝒓𝒐𝒔𝒔 𝒑𝒓𝒐𝒇𝒊𝒕 = 𝑆𝑎𝑙𝑒𝑠 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 − 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑆𝑎𝑙𝑒𝑠 𝑪𝒐𝒔𝒕 𝒐𝒇 𝒔𝒂𝒍𝒆𝒔 = 𝑂𝑝𝑒𝑛𝑖𝑛𝑔 𝑆𝑡𝑜𝑐𝑘 + 𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠 − 𝐶𝑙𝑜𝑠𝑖𝑛𝑔 𝑆𝑡𝑜𝑐𝑘 Profit and Loss Account 𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝒃𝒆𝒇𝒐𝒓𝒆 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 & 𝑻𝒂𝒙 = 𝑔𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡 − 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠 𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝒃𝒆𝒇𝒐𝒓𝒆 𝑻𝒂𝒙 = 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑏𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 & 𝑇𝑎𝑥 − 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝒂𝒇𝒕𝒆𝒓 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 & 𝑻𝒂𝒙 = 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑏𝑒𝑓𝑜𝑟𝑒 𝑇𝑎𝑥 − 𝐶𝑜𝑟𝑝. 𝑇𝑎𝑥 Appropriation Account 𝑹𝒆𝒕𝒂𝒊𝒏𝒆𝒅 𝑷𝒓𝒐𝒇𝒊𝒕 = 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 & 𝑇𝑎𝑥 − 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 Balance Sheet 𝑾𝒐𝒓𝒌𝒊𝒏𝒈 𝑪𝒂𝒑𝒊𝒕𝒂𝒍 = 𝑇𝑜𝑡𝑎𝑙 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝑇𝑜𝑡𝑎𝑙 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑡𝑙𝑖𝑒𝑠 𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔 𝒍𝒆𝒔𝒔 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔 = (𝐹𝑖𝑥𝑒𝑑 + 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 )– 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑡𝑙𝑖𝑒𝑠 𝑵𝒆𝒕 𝑨𝒔𝒔𝒆𝒕𝒔 = (𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 𝑙𝑒𝑠𝑠 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠) − 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐿𝑖𝑎𝑏𝑙𝑖𝑡𝑖𝑦 𝑵𝒆𝒕 𝑨𝒔𝒔𝒆𝒕𝒔 = 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑒𝑠 𝑬𝒒𝒖𝒊𝒕𝒚 = 𝑆ℎ𝑎𝑟𝑒 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 + 𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝑃𝑟𝑜𝑓𝑖𝑡 𝑵𝒆𝒕 𝑨𝒔𝒔𝒆𝒕𝒔 = 𝐸𝑞𝑢𝑖𝑡𝑦 Depreciation 𝑨𝒏𝒏𝒖𝒂𝒍 𝑫𝒆𝒑𝒓𝒆𝒄𝒊𝒂𝒕𝒊𝒐𝒏 = 𝑫𝒆𝒑𝒓𝒆𝒄𝒊𝒂𝒕𝒊𝒐𝒏 = 1 − 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝐶𝑜𝑠𝑡 − 𝑅𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑈𝑠𝑒𝑓𝑢𝑙 𝐿𝑖𝑓𝑒 𝑜𝑓 𝐴𝑠𝑠𝑒𝑡 𝑛√𝑅𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 𝐶𝑜𝑠𝑡𝑠 𝑜𝑓 𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 Ratios 𝑮𝑷𝑴 = 𝐺𝑟𝑜𝑠𝑠 𝑃𝑜𝑓𝑖𝑡 × 100 𝑆𝑎𝑙𝑒𝑠 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑏𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥 × 100 𝑆𝑎𝑙𝑒𝑠 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑵𝑷𝑴 = 𝑪𝒂𝒑𝒊𝒕𝒂𝒍 𝑬𝒎𝒑𝒍𝒐𝒚𝒆𝒅 = 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 + 𝑆ℎ𝑎𝑟𝑒 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 + 𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝑃𝑟𝑜𝑓𝑖𝑡 𝑂𝑅 = 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑹𝑶𝑪𝑬 = 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑏𝑒𝑓𝑜𝑟𝑒 𝑇𝑎𝑥 𝑎𝑛𝑑 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 × 100 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑹𝒂𝒕𝒊𝒐 = 𝑨𝒄𝒊𝒅 𝑻𝒆𝒔𝒕 𝑹𝒂𝒕𝒊𝒐 = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝑆𝑡𝑜𝑐𝑘 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑺𝒕𝒐𝒄𝒌 𝑻𝒖𝒓𝒐𝒏𝒗𝒆𝒓 𝑹𝒂𝒕𝒊𝒐 (𝑵𝒐. 𝒐𝒇 𝑻𝒊𝒎𝒆𝒔) = 𝑺𝒕𝒐𝒄𝒌 𝑻𝒖𝒓𝒐𝒏𝒗𝒆𝒓 𝑹𝒂𝒕𝒊𝒐 (𝑵𝒐. 𝒐𝒇 𝑫𝒂𝒚𝒔) = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑆𝑡𝑜𝑐𝑘 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑆𝑡𝑜𝑐𝑘 × 365 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑 𝑂𝑝𝑒𝑛𝑖𝑛𝑔 𝑆𝑡𝑜𝑐𝑘 + 𝐶𝑙𝑜𝑠𝑖𝑛𝑔 𝑆𝑡𝑜𝑐𝑘 2 𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑫𝒆𝒃𝒕𝒐𝒓 𝑫𝒂𝒚𝒔 𝑹𝒂𝒕𝒊𝒐 (𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑫𝒂𝒚𝒔) = × 365 𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑺𝒕𝒐𝒄𝒌 = 𝑪𝒓𝒆𝒅𝒊𝒕𝒐𝒓 𝑫𝒂𝒚𝒔 𝑹𝒂𝒕𝒐 (𝑵𝒐. 𝒐𝒇 𝑫𝒂𝒚𝒔) = 𝑮𝒆𝒂𝒓𝒊𝒏𝒈 𝑹𝒂𝒕𝒊𝒐 = 𝐶𝑟𝑒𝑑𝑖𝑡𝑜𝑟𝑠 × 365 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑 𝐿𝑜𝑎𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 × 100 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑