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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. Profit Before Tax
= Dividends + Profit After Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Debt (y0) -- Debt repayment amount
= -- Profit before tax x Tax Rate

2. Current Liabilities
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Sales (yr1) x Current Liabilities/Sales Ratio
= Net Fixed Assets -- Deprecitation
= Sales (yr1) x Current Assets/ Sales Ratio

3. Interest Payments on Debt
= Sales x Current Assets/Sales Ratio
= Net Fixed Assets -- Deprecitation
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

4. At Cost
= sales( from yr 0) x (1+sales growth)
= Net Fixed Assets -- Deprecitation
= Sales (yr1) x Current Liabilities/Sales Ratio
= Profit before tax + taxes

5. Depreciation
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales x Current Assets/Sales Ratio
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

6. Taxes
= -- Profit before tax x Tax Rate
= Total Liabilities and equity -- current assets -- net fixed assets
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= -- sales(yr1) x COGS/Sales Ratio

7. Debt
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Debt (y0) -- Debt repayment amount
= sales( from yr 0) x (1+sales growth)
= Dividends + Profit After Tax

8. Cost of Goods Sold
= -- sales(yr1) x COGS/Sales Ratio
= --Dividend Payout ratio x profit before tax
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Dividends + Profit After Tax

9. Cash (plug figure)
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Total Liabilities and equity -- current assets -- net fixed assets
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Liabilities/Sales Ratio

10. Stock
= 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
= Stock (y0)

11. Sales
= Sales x Current Assets/Sales Ratio
= Dividends + Profit After Tax
= sales( from yr 0) x (1+sales growth)
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

12. Accumulated Retained Earnings
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= -- Profit before tax x Tax Rate
= Net Fixed Assets -- Deprecitation
= Accumulated Retained Earnings (y0) +Retained Earnings

13. Total Assets
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales (yr1) x Current Liabilities/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Net Fixed Assets + Other Current Assets + Cash

14. Profit after Tax
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Profit before tax + taxes
= Dividends + Profit After Tax
= Net Fixed Assets -- Deprecitation

15. Dividends
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Debt (y0) -- Debt repayment amount

16. Accumlated Depreciation
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= -- Profit before tax x Tax Rate
= Dividends + Profit After Tax

17. Net Fixed Assets
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Assets/ Sales Ratio
= Stock (y0)
= Dividends + Profit After Tax

18. Interest earned on cash and other marketable securities
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Dividends + Profit After Tax
= --Dividend Payout ratio x profit before tax
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

19. Retained Earnings
= Net Fixed Assets + Other Current Assets + Cash
= Dividends + Profit After Tax
= Total Liabilities and equity -- current assets -- net fixed assets
= Profit before tax + taxes

20. Total Liabilites and Equity
= -- sales(yr1) x COGS/Sales Ratio
= -- Profit before tax x Tax Rate
= sales( from yr 0) x (1+sales growth)
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

21. Other Current Assets
= Total Liabilities and equity -- current assets -- net fixed assets
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Sales x Current Assets/Sales Ratio