FINANCE FORMULAS:
FA
Accounting Cycle:
Asset = Liabilities + Owners E.
Additional paid in Capital + Common Stock Issue= Total Cash Received
Retained earnings= beginning R.E – ending R.E + Net Income –
Dividends declared
Common Stock Issue: Number of shareholders * par value
Common stock issue per share: Additional paid in capital / number of
shares
Calculation for dividends:
Dividends declared: Beginning R.E + Net Income - ending R.E
Dividends paid: Dividends declared + Dividends payable beginning –
D.P ending
Depreciation:
Yearly depreciation = Cost of asset- salvage value / useful life
Book Value= Original cost- Accumulated Depreciation
**To find how many years to use something: Original Cost-Salvage
value / yearly depreciation expense
Gross operating Profit= Net Revenue- Cost of Sales
Accumulated Depreciation: Yearly depreciation * numbers of years
Dep.
Cost of sales :
Periodic:
Beginning of food Inventory
+Food Inventory Purchases
-Ending Inventory Purchases
-Employee and complimentary meals
-Transfer to the bar
+Transfer from the bar
=COST OF FOOD SALES
Perpetual:
Direct purchases
+Storeroom issues
-Employee and complimentary meals
-Transfer to the bar
+Transfer from the bar
=COST OF FOOD SALES
Cost of food purchased/used: cost of food available – Food iventory
Profitability:
Return on Equity: Net income/ Average total equity * 100 %
Average total equity: Begging O.E – Ending O.E / 2
Operating Efficiency: Gros operating profit / Revenue * 100%
Profit Margin= Net income / Revenue * 100%
Liquidity:
Current Ratio: Current Assets/ Current Liabilities
Activity:
Room Occupancy: Room Sold/Rooms Available * 100%
Asset turnover = Total Revenue/ Average Total Assets
Solvency:
Asset to Equity: Total asset/ Total equity
Operating:
ADR= Rooms Revenue/ Rooms Sold
RevPar= Room Revenue / Rooms Available or ADR * occupancy %
RevPac= Total Revenue / Total Customers
Sales Mix %= Items sales/ Total sales,
Cost of Sales% = cost of sales/ Revenue * 100%
Number of Room Sold: Total Room Revenue/ ADR
Total Rooms sold: Room Available * occupancy % * Days Open
MA
High-Low method:
Variable Cost per unit= Change in total cost/ Change in activity level
Fixed cost= Total Cost (High or low) – (Variable cost per unit * Activity
level (High or Low))
Total Variable cost= Variable cost per unit * Room sold
CVP (cost volume profit)
Net Income = S * x – V*x - FC
S:Selling Price
X:Number of units sold
V: Variable cost per unit
Breakeven point:
Rev= Fixed cost (+ Profit if required) /CMR
Monthly Fixed Costs: Breakeven Point * Contribution Margin per Unit
CMR= (S-V) / S or 1-VC%
Units (how many items do I have to sell) = fixed cost/ CM
CM = S-V
Average CM: Revenue-COS / Total Volume
F&B
Standard recipe cost: Quantity of ingredient * Cost Per of ingredients
Standard portion cost: Standard recipe cost/ Number of portion
Quantity of Ingredient: Edible Portion/ Standard Yield %
Cost of ingredient: Quantity to purchase * Cost price per unit
Yield% : Edible portion / Original portion * 100
Total Edible Portion: Number of portions* portion size in kg
Edible portion cost per kg: Approach cost per kg/ Yield %
AP-EP : production loss
Markup method:
Menu item cost/ Cos%
Cos% = cost of sales/ Revenue
Contribution margin method:
Meu item cost+( Average CM/guest)
Average CM= Non food cost + Required profit/ Number of guest
Elasticy:
(Q2-Q1) / Q1 / (P2-P1) / P1
X>1 reduce the rate elastic
X<1 inelastic
Menu Mix: number of items sold / Total numbers of item sold
Item CM: selling price- variable price
Total Menu item cost: Food cost * Quantity
Total Meu Revenue: Selling price * Quantity
Total İtem menu CM: CM per item* Quantity
Fair share 1/ (quantity of items) * 0.70 (Popularity)
Average item CM: Add total item (CM*Quantity) / Number of items
(profitability)
CM CATEGORY MM% CATEGORY
PUZZLE HİGH LOW
STAR HİGH HİGH
PLOW HORSE LOW HİGH
DOG LOW LOW
Standards cost tool that can be used in F&B:
