Finance Equations
The equation for Profit
P = R - C
Profit definition
the money left over after a business pays all its expenses
A Shortage
This Microsoft software can be used to track finances
Excel
Mr. Boucher's Wife's name
Tori
The equation for Cost
C = Fixed + Variable
Cost Definition
the expenses a business incurs to produce and sell its products or services
The 4 Concepts of Financial Management
Revenue, Cost, Profit, and Supply & Demand
A day known for significant discounts and sales
Black Friday
Mr. Boucher's Wife's job
Nurse
Profit Margin % equation
PM% = P / R x 100
Revenue Definition
the total amount of money a business earns from selling its products or services
When there is a greater supply of a product than the demand for a product, what happens?
A Surplus
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Mr. Boucher's favorite video game to play
LEAGUE OF LEGENDS!!!!!!!!!
Revenue Growth % equation
RM% = (New R - Old R)/Old R x 100
Budget Definition
A financial plan that estimates income and expenses for a specific time period
OR
A roadmap for business finances for a specific period of time
State the Laws of Supply and Demand
Law of Demand:
As price goes down, demand goes up
As price goes up, demand goes down
Law of Supply:
As price goes up, supply goes up
As price goes down, supply goes down
The reason Black Friday is named Black Friday
Prices of products are lowered into the black, which helps businesses move from the red (losing money) into the black (Breaking even/very small profit), or black into the green (making a large profit).
Mr. Boucher's favorite football player
Brett Favre
The Forecasting Equation
F = New # * (1 + Growth Percentage)
Time series analysis definition
The use of historical data to predict future trends
DAILY DOUBLE
Name 5 factors that changed our decisions in Lemonade Stand
Weather, Temperature, prices of materials, customer feed back, amount of customers, amount of left over materials, etc.
20%
Mr. Boucher's favorite basketball player
Steve Nash