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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. Cash (plug figure)
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales (yr1) x Current Liabilities/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets + Other Current Assets + Cash

2. Depreciation
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Assets/ Sales Ratio
= Debt (y0) -- Debt repayment amount

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

4. Interest earned on cash and other marketable securities
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

5. Debt
= -- Profit before tax x Tax Rate
= Profit before tax + taxes
= Debt (y0) -- Debt repayment amount
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

6. Profit after Tax
= Stock (y0)
= Profit before tax + taxes
= -- Profit before tax x Tax Rate
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

7. Taxes
= -- Profit before tax x Tax Rate
= Sales x Current Assets/Sales Ratio
= Net Fixed Assets -- Deprecitation
= Net Fixed Assets + Other Current Assets + Cash

8. Total Liabilites and Equity
= Accumulated Retained Earnings (y0) +Retained Earnings
= --Dividend Payout ratio x profit before tax
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets

9. Stock
= --Dividend Payout ratio x profit before tax
= Stock (y0)
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

10. Total Assets
= Net Fixed Assets + Other Current Assets + Cash
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Sales (yr1) x Current Liabilities/Sales Ratio

11. Dividends
= Sales (yr1) x Current Liabilities/Sales Ratio
= --Dividend Payout ratio x profit before tax
= sales( from yr 0) x (1+sales growth)
= Net Fixed Assets + Other Current Assets + Cash

12. Current Liabilities
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= Stock (y0)

13. Other Current Assets
= Dividends + Profit After Tax
= Net Fixed Assets + Other Current Assets + Cash
= Sales x Current Assets/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2

14. Accumlated Depreciation
= Total Liabilities and equity -- current assets -- net fixed assets
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= --Dividend Payout ratio x profit before tax

15. Net Fixed Assets
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Assets/ Sales Ratio
= Net Fixed Assets -- Deprecitation
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

16. Accumulated Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= sales( from yr 0) x (1+sales growth)
= Net Fixed Assets -- Deprecitation
= Sales (yr1) x Current Assets/ Sales Ratio

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

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

19. Interest Payments on Debt
= Accumulated Retained Earnings (y0) +Retained Earnings
= --Dividend Payout ratio x profit before tax
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

20. Cost of Goods Sold
= -- sales(yr1) x COGS/Sales Ratio
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- Profit before tax x Tax Rate
= Dividends + Profit After Tax

21. At Cost
= -- Profit before tax x Tax Rate
= Profit before tax + taxes
= Sales (yr1) x Current Liabilities/Sales Ratio
= Net Fixed Assets -- Deprecitation