Page 383 - VIRANSH COACHING CLASSES
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At a Glance of Formulas
I. Comparative Statement
1. Absolute Change = Current Year − Previous Year
Absolute Change
2. % Change = Previous Year × 100
II. Common Size Statement
1. Balance Sheet
Amount of Individual Item
Formula = × 100
Total Fund Available
2. Income Statment
Amount of Individual Item
Formula = × 100
Net Sales
III. Ratio Analysis
1. Balance Sheet Ratios
Current Assets
a) Current Ratio =
Current Liabilities
Quick Assets
b) Quick Ratio =
Quick Liabilities
2. Income Statment Ratios
Gross Profit
a) Gross Profit Ratio = Net Sales × 100
Operating Profit
b) Operating Profit Ratio = Net Sales × 100
Net Profit Before Tax
c) Net Profit Ratio = Net Sales × 100
Net Profit Before Tax
Alternate Formula = Net Sales × 100
Cost of Goods Sold + Operating Expense
d) Operating Ratio = Net Sales × 100
3. Combine Ratios / Mixed Ratios
Net Profit Before Interest and Tax
a) Return on Capital Employed = Net Capital Employed × 100
Net Profit Before Tax
b) Return on Investment = Capital Employed × 100
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