Test your basic knowledge |

Financial Forecasting And Modeling Equations

Instructions:

Answer 21 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Other Current Assets
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales x Current Assets/Sales Ratio
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Liabilities/Sales Ratio

2. Accumlated Depreciation
= --Dividend Payout ratio x profit before tax
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Assets/ Sales Ratio
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

3. Interest earned on cash and other marketable securities
= Debt (y0) -- Debt repayment amount
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= -- sales(yr1) x COGS/Sales Ratio
= Sales (yr1) x Current Liabilities/Sales Ratio

4. Accumulated Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= Stock (y0)
= Total Liabilities and equity -- current assets -- net fixed assets
= -- Profit before tax x Tax Rate

5. Net Fixed Assets
= Profit before tax + taxes
= -- Profit before tax x Tax Rate
= Accumulated Retained Earnings (y0) +Retained Earnings
= Sales (yr1) x Current Assets/ Sales Ratio

6. Current Liabilities
= Net Fixed Assets -- Deprecitation
= Sales x Current Assets/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= Sales (yr1) x Current Liabilities/Sales Ratio

7. Profit Before Tax
= --Dividend Payout ratio x profit before tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Net Fixed Assets -- Deprecitation

8. Cost of Goods Sold
= Accumulated Retained Earnings (y0) +Retained Earnings
= Debt (y0) -- Debt repayment amount
= -- sales(yr1) x COGS/Sales Ratio
= Stock (y0)

9. Retained Earnings
= -- sales(yr1) x COGS/Sales Ratio
= Dividends + Profit After Tax
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

10. Dividends
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= sales( from yr 0) x (1+sales growth)
= Net Fixed Assets -- Deprecitation
= --Dividend Payout ratio x profit before tax

11. Debt
= Debt (y0) -- Debt repayment amount
= Net Fixed Assets -- Deprecitation
= Stock (y0)
= -- sales(yr1) x COGS/Sales Ratio

12. Depreciation
= Net Fixed Assets -- Deprecitation
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

13. Cash (plug figure)
= Accumulated Retained Earnings (y0) +Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2

14. Sales
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Liabilities/Sales Ratio

15. Stock
= Stock (y0)
= Profit before tax + taxes
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= -- sales(yr1) x COGS/Sales Ratio

16. Profit after Tax
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Profit before tax + taxes
= Sales (yr1) x Current Liabilities/Sales Ratio

17. Total Assets
= Net Fixed Assets + Other Current Assets + Cash
= --Dividend Payout ratio x profit before tax
= Sales x Current Assets/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets

18. Taxes
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- Profit before tax x Tax Rate

19. Interest Payments on Debt
= Profit before tax + taxes
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Total Liabilities and equity -- current assets -- net fixed assets
= --Dividend Payout ratio x profit before tax

20. Total Liabilites and Equity
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= -- sales(yr1) x COGS/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Debt (y0) -- Debt repayment amount

21. At Cost
= Profit before tax + taxes
= Net Fixed Assets -- Deprecitation
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2