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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. Dividends
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Assets/ Sales Ratio
= Stock (y0)
= --Interest rate on debt x [Debt (yr0+1) ] /2

2. Cost of Goods Sold
= Dividends + Profit After Tax
= Accumulated Retained Earnings (y0) +Retained Earnings
= Profit before tax + taxes
= -- sales(yr1) x COGS/Sales Ratio

3. Sales
= Sales x Current Assets/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= sales( from yr 0) x (1+sales growth)
= Profit before tax + taxes

4. Depreciation
= -- sales(yr1) x COGS/Sales Ratio
= Stock (y0)
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Debt (y0) -- Debt repayment amount

5. Current Liabilities
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- Profit before tax x Tax Rate
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales (yr1) x Current Assets/ Sales Ratio

6. Interest Payments on Debt
= Net Fixed Assets -- Deprecitation
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Stock (y0)
= Debt (y0) -- Debt repayment amount

7. Total Assets
= Net Fixed Assets + Other Current Assets + Cash
= Total Liabilities and equity -- current assets -- net fixed assets
= -- Profit before tax x Tax Rate
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

8. At Cost
= Net Fixed Assets -- Deprecitation
= --Dividend Payout ratio x profit before tax
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Profit before tax + taxes

9. Taxes
= Net Fixed Assets + Other Current Assets + Cash
= --Dividend Payout ratio x profit before tax
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= -- Profit before tax x Tax Rate

10. Cash (plug figure)
= Total Liabilities and equity -- current assets -- net fixed assets
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- Profit before tax x Tax Rate

11. Accumlated Depreciation
= Debt (y0) -- Debt repayment amount
= sales( from yr 0) x (1+sales growth)
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

12. Retained Earnings
= Dividends + Profit After Tax
= Total Liabilities and equity -- current assets -- net fixed assets
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Assets/ Sales Ratio

13. Interest earned on cash and other marketable securities
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Debt (y0) -- Debt repayment amount

14. Net Fixed Assets
= Sales (yr1) x Current Assets/ Sales Ratio
= Dividends + Profit After Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

15. Stock
= Accumulated Retained Earnings (y0) +Retained Earnings
= Stock (y0)
= Dividends + Profit After Tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

16. Total Liabilites and Equity
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Profit before tax + taxes
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= -- sales(yr1) x COGS/Sales Ratio

17. Other Current Assets
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales x Current Assets/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= -- Profit before tax x Tax Rate

18. Profit Before Tax
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales x Current Assets/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash

19. Debt
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales (yr1) x Current Liabilities/Sales Ratio
= Stock (y0)
= Debt (y0) -- Debt repayment amount

20. Profit after Tax
= Sales x Current Assets/Sales Ratio
= Sales (yr1) x Current Liabilities/Sales Ratio
= Accumulated Retained Earnings (y0) +Retained Earnings
= Profit before tax + taxes

21. Accumulated Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= Net Fixed Assets -- Deprecitation
= -- sales(yr1) x COGS/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2