1. What does the "Growth Rate" tell you?
How much profit you made this month.
How fast a number (like sales) is growing or shrinking.
The total amount of sales for the year.
How much cash you have in the bank.
2. What is the correct formula for Growth Rate?
(Current Period / Previous Period) x 100
(Current Period - Previous Period) / Previous Period x 100
(Current Period - Previous Period) / Current Period x 100
(Previous Period / Current Period) - 100
3. Last month, sales were \$10,000. This month, sales are \$12,000. What is the growth rate?
20%
16.7%
2%
\$2,000
4. Last month, a store had 500 customers. This month, it had 400. What is the growth rate?
25%
-20%
-25%
80%
5. After finding the "Amount of Change", what is the next step in calculating Growth Rate?
Multiply by 100.
Divide the change by the *Current* Period number.
Divide the change by the *Previous* Period number.
Subtract the change from the Current Period number.
6. What is the main purpose of calculating an "Average"?
To find the highest performing month.
To smooth out "lumpy" months and show what a "typical" month looks like.
To predict future sales with 100% accuracy.
To see how fast the company is growing.
7. What is the formula for finding *average monthly sales* from a *total annual sales* figure?
Total Annual Sales / 4
Total Annual Sales x 12
Total Annual Sales / 12
Total Annual Sales - 12
8. A shop had total annual sales of \$360,000. What were its average monthly sales?
\$30,000
\$90,000
\$36,000
\$12,000
9. A team's sales for the 4 quarters of the year were: \$10,000, \$20,000, \$15,000, and \$35,000. What was the average quarterly sale?
\$80,000
\$25,000
\$20,000
\$40,000
10. What does a "15% Profit Margin" mean?
You keep 15 cents of profit for every \$1.00 of sales.
Your sales grew by 15% this month.
You keep 85 cents of profit for every \$1.00 of sales.
Your costs are 15% of your profit.
11. What is the correct formula for Profit Margin?
(Sales / Profit) x 100
(Profit / Sales) x 100
(Sales - Profit) / 100
(Profit / Costs) x 100
12. A restaurant had \$50,000 in sales and \$5,000 in profit. What is its profit margin?
5%
10%
15%
20%
13. A shop's total sales were \$8,000. Its profit was \$2,000. What was the profit margin?
20%
25%
40%
4%
14. If your sales are \$100,000 and your profit margin is 12%, what is your profit in dollars?
\$1,200
\$12,000
\$88,000
Cannot be determined
15. What is the primary purpose of a Cash Flow Projection?
To calculate the total profit for the year.
To predict how much actual cash you'll have in the bank.
To determine your sales growth rate.
To see if you paid your taxes.
16. What is the key difference between Cash Flow and Profit?
There is no difference; they are the same.
Profit is cash in, Cash Flow is cash out.
A company can be "profitable" but still run out of cash.
Cash flow is only used for annual reports, profit is for monthly.
17. What is the simple formula for calculating Ending Cash?
Beginning Cash + Expected Cash In - Expected Cash Out
Beginning Cash - Expected Cash In + Expected Cash Out
Expected Cash In - Expected Cash Out
Total Sales - Total Costs
18. You start with \$5,000. You expect \$10,000 in cash sales and have to pay \$8,000 in rent. What is your Ending Cash?
\$2,000
\$7,000
\$23,000
\$3,000
19. You start with \$20,000. You expect \$15,000 in cash in and must pay \$25,000 for payroll. What is your Ending Cash?
\$10,000
\$60,000
-\$10,000
\$20,000
20. A cafe had \$600,000 in total annual sales. What were the average monthly sales?
\$60,000
\$50,000
\$150,000
\$12,000