CA Vishwakarma Bhagat’s Post

Useful Formulas 📩 1. Gross Profit = Sales - Cost of Good Sold 2. Gross Profit Margin= (Gross Profit /sales) *100 3. Operating Profit= Gross Profit- operating expenses 4. Operating Profit Margin=(operating profit/sales)*100 5. Net Profit Operating profit - tax and interest 6. Net Profit Margin=(Net profit/sales)*100 7. Return on investment (ROI) = (Gain/Cost)*100 8. Return on equity= (Net profit/shareholder equity) *100 9. Asset Turnover = sales/Total asset 10. COGS = opening stock + Net purchasing stock + Direct expenses -closing stock 11. Revenue = sales + Other income or (Price x Quantity) + Other income 12. EBITDA Margin =(EBITDA/Sales)*100 13. Profit = Revenue - Cost 14. Cost of Goods Sold = Variable Cost per Unit x Number of Units Sold 15. Gross Margin = (Revenue - Cost of Goods Sold) / Revenue 16. Break-Even Point = Fixed Costs / (Price - Variable Costs) 17. Return on Investment = (Net Profit / Investment Cost) x 100 18. Profit Margin = (Revenue - Cost) / Revenue Current Ratio = Current Assets / Current Liabilities 19. Accounting Equation = Assets = Liabilities + Equity #business

🌟✨Tally helps manage business expenses with cost categories and tracking. Group expenses (rent, salaries) in categories for easy analysis. Cost tracking💼 monitors fluctuating prices for specific inventory items, ensuring accurate product costing. These features, along with reports🧾, provide valuable insights to optimize spending, pricing, and boost profitability🚀.   #tally #costmanagement #expenseanalysis #inventorycontrol #businessefficiency #profitability

Best Accounting Formulas 1. Gross Profit = Sales - Cost of Good Sold 2. Gross Profit Margin= (Gross Profit /sales) *100 3. Operating Profit= Gross Profit- operating expenses 4. Operating Profit Margin=(operating profit/sales)*100 5. Net Profit=Operating profit - tax and interest 6. Net Profit Margin=( Net profit/sales)*100 7. Return on investment(ROI) = (Gain/Cost)*100 8. Return on equity= (Net profit/shareholder equity) *100 9. Asset Turnover = sales/Total asset 10. COGS = opening stock + Net purchasing stock + Direct expenses -closing stock 11. Revenue = sales + Other income 12. EBITDA Margin =( EBITDA/Sales)*100.

Accounting Formulas 1. Gross Profit (GP) = Sales - Cost of Good Sold (COGS) 2. GP Margin= (GP /sales) *100 3. Operating Profit= GP- operating expenses 4. Operating Profit Margin=(operating profit/ sales)*100 5. Net Profit (NP)=Operating profit - tax and interest 6. NP Margin=(Net profit/sales)*100 7. Return on investment (ROI) = (Gain/Cost)*100 8. Return on equity= (Net profit/shareholder equity) *100 9. Asset Turnover = sales/Total asset 10. COGS = opening stock + Net purchasing stock + Direct expenses -closing stock 11. Revenue = sales + Other income 12. EBITDA = Revenue – COGS – Operating Expenses + Depreciation & Amortization Expense 13. EBITDA Margin =(EBITDA/Net Sales)*100.

All of the following statements concerning standard costs are correct except that A. time and motion studies are often used to determine standard costs.  B. standard costs are usually set for one year. C. standard costs can be used in costing inventory accounts. D. standard costs are usually stated in total, while budgeted costs are usually stated on a per-unit basis.

Accounting Formulas: 1. Gross Profit = Sales - Cost of Goods Sold 2. Gross Profit Margin = (Gross Profit / Sales) x 100 3. Operating Profit = Gross Profit - Operating Expenses 4. Operating Profit Margin = (Operating Profit / Sales) x 100 5. Net Profit = Operating Profit - Taxes and Interest 6. Net Profit Margin = (Net Profit / Sales) x 100 7. Return on Investment (ROI) = (Gain / Cost) x 100 8. Return on Equity (ROE) = (Net Profit / Shareholder Equity) x 100 9. Asset Turnover = Sales / Total Assets 10. Inventory Turnover = Cost of Goods Sold / Average Inventory #Accounting #Accountingformulas

Accounting Formulas 1. Gross Profit = Sales - Cost of Goods Sold 2. Gross Profit Margin= (Gross Profit /sales) *100 3. Operating Profit= Gross Profit- operating expenses 4. Operating Profit Margin=(operating profit/sales)*100 5. Net Profit=Operating profit - tax and interest 6. Net Profit Margin=( Net profit/sales)*100 7. Return on investment(ROI) = (Gain/Cost)*100 8. Return on equity= (Net profit/shareholder equity) *100 9. Asset Turnover = sales/Total asset 10. COGS = opening stock + Net purchasing stock + Direct expenses -closing stock 11. Revenue = sales + Other income 12. EBITDA Margin =( EBITDA/Sales)*100

Quick Tip: A company using a periodic inventory system must estimate inventory and cost of goods sold in interim financial statements because periodic systems do not continuously update inventory amounts throughout the year. The gross profit method is a way to estimate values under a periodic system using gross profit percentages from previous reporting periods and applying that percentage to current period sales revenue

🔻The statement of cost of goods manufactured supports the cost of goods sold figure on the income statement. The two most important numbers on this statement are the total manufacturing cost and the cost of goods manufactured. Be careful not to confuse the terms total manufacturing cost and cost of goods manufactured with each other or with the cost of goods sold. 🔻Total Manufacturing Cost includes the costs of all resources put into production during the period (meaning, the direct materials, direct labor and overhead applied). Cost of goods manufactured consists of the cost of all goods completed during the period. It includes total manufacturing costs plus the beginning work in process inventory minus the ending work in process inventory. 🔻Cost of goods sold are the costs of all goods SOLD during the period and includes the cost of goods manufactured plus the beginning finished goods inventory minus the ending finished goods inventory. 🔻Cost of goods sold is reported as an expense on the income statements and is the only time product costs are expensed. This chart will summarize the formulas you will need: 👇

Improving EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) requires a strategic focus on both revenue growth and cost management. Start by identifying opportunities to increase sales through upselling, cross-selling, or entering new markets. At the same time, streamline operations by cutting unnecessary expenses, optimizing procurement, and renegotiating supplier contracts. Improving pricing strategies, reducing overhead, and automating processes can also boost efficiency. Regularly reviewing financial statements ensures that you can quickly address underperforming areas and stay aligned with profitability goals. #financeinsights 71-888282