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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. At Cost
= --Dividend Payout ratio x profit before tax
= -- sales(yr1) x COGS/Sales Ratio
= Accumulated Retained Earnings (y0) +Retained Earnings
= Net Fixed Assets -- Deprecitation

2. Dividends
= --Dividend Payout ratio x profit before tax
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= -- sales(yr1) x COGS/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2

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

4. Sales
= sales( from yr 0) x (1+sales growth)
= Total Liabilities and equity -- current assets -- net fixed assets
= -- Profit before tax x Tax Rate
= --Interest rate on debt x [Debt (yr0+1) ] /2

5. Depreciation
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

6. Net Fixed Assets
= -- Profit before tax x Tax Rate
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Sales (yr1) x Current Assets/ Sales Ratio
= --Dividend Payout ratio x profit before tax

7. Profit after Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Net Fixed Assets -- Deprecitation
= Dividends + Profit After Tax
= Profit before tax + taxes

8. Total Liabilites and Equity
= -- sales(yr1) x COGS/Sales Ratio
= --Dividend Payout ratio x profit before tax
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Stock (y0)

9. Profit Before Tax
= Net Fixed Assets -- Deprecitation
= Profit before tax + taxes
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= -- sales(yr1) x COGS/Sales Ratio

10. Cash (plug figure)
= Accumulated Retained Earnings (y0) +Retained Earnings
= Sales (yr1) x Current Liabilities/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Total Liabilities and equity -- current assets -- net fixed assets

11. Taxes
= -- Profit before tax x Tax Rate
= Dividends + Profit After Tax
= Accumulated Retained Earnings (y0) +Retained Earnings
= -- sales(yr1) x COGS/Sales Ratio

12. Other Current Assets
= Accumulated Retained Earnings (y0) +Retained Earnings
= Sales x Current Assets/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= sales( from yr 0) x (1+sales growth)

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

14. Retained Earnings
= Dividends + Profit After Tax
= Total Liabilities and equity -- current assets -- net fixed assets
= --Interest rate on debt x [Debt (yr0+1) ] /2
= -- sales(yr1) x COGS/Sales Ratio

15. Interest earned on cash and other marketable securities
= -- Profit before tax x Tax Rate
= Accumulated Retained Earnings (y0) +Retained Earnings
= -- sales(yr1) x COGS/Sales Ratio
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

16. Debt
= --Dividend Payout ratio x profit before tax
= Net Fixed Assets + Other Current Assets + Cash
= Debt (y0) -- Debt repayment amount
= -- Profit before tax x Tax Rate

17. Accumlated Depreciation
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= Debt (y0) -- Debt repayment amount
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

18. Stock
= sales( from yr 0) x (1+sales growth)
= Stock (y0)
= Net Fixed Assets -- Deprecitation
= Net Fixed Assets + Other Current Assets + Cash

19. Interest Payments on Debt
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales (yr1) x Current Liabilities/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

20. Current Liabilities
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Stock (y0)

21. Accumulated Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= Profit before tax + taxes
= Stock (y0)
= --Dividend Payout ratio x profit before tax