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Financial Forecasting And Modeling Equations

Instructions:

Answer 21 questions in 15 minutes.
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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. Total Liabilites and Equity
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Stock (y0)
= -- Profit before tax x Tax Rate

2. Sales
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= sales( from yr 0) x (1+sales growth)
= Net Fixed Assets -- Deprecitation

3. Other Current Assets
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Sales x Current Assets/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets

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

5. Current Liabilities
= -- Profit before tax x Tax Rate
= Debt (y0) -- Debt repayment amount
= Profit before tax + taxes
= Sales (yr1) x Current Liabilities/Sales Ratio

6. Accumulated Retained Earnings
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Accumulated Retained Earnings (y0) +Retained Earnings
= Profit before tax + taxes

7. At Cost
= Net Fixed Assets -- Deprecitation
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Profit before tax + taxes

8. Profit Before Tax
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Dividends + Profit After Tax
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

9. Depreciation
= Total Liabilities and equity -- current assets -- net fixed assets
= Profit before tax + taxes
= sales( from yr 0) x (1+sales growth)
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

10. Cost of Goods Sold
= -- sales(yr1) x COGS/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= --Interest rate on debt x [Debt (yr0+1) ] /2

11. Profit after Tax
= Profit before tax + taxes
= -- sales(yr1) x COGS/Sales Ratio
= --Dividend Payout ratio x profit before tax
= sales( from yr 0) x (1+sales growth)

12. Taxes
= -- Profit before tax x Tax Rate
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Sales x Current Assets/Sales Ratio
= Stock (y0)

13. Cash (plug figure)
= -- Profit before tax x Tax Rate
= Total Liabilities and equity -- current assets -- net fixed assets
= --Dividend Payout ratio x profit before tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

14. Dividends
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio

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

16. Interest Payments on Debt
= Total Liabilities and equity -- current assets -- net fixed assets
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Stock (y0)
= Profit before tax + taxes

17. Stock
= Stock (y0)
= -- sales(yr1) x COGS/Sales Ratio
= Accumulated Retained Earnings (y0) +Retained Earnings
= Debt (y0) -- Debt repayment amount

18. Total Assets
= Net Fixed Assets + Other Current Assets + Cash
= Accumulated Retained Earnings (y0) +Retained Earnings
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

19. Debt
= Debt (y0) -- Debt repayment amount
= Total Liabilities and equity -- current assets -- net fixed assets
= -- Profit before tax x Tax Rate
= Net Fixed Assets -- Deprecitation

20. Net Fixed Assets
= Sales (yr1) x Current Assets/ Sales Ratio
= --Dividend Payout ratio x profit before tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= sales( from yr 0) x (1+sales growth)

21. Accumlated Depreciation
= Sales x Current Assets/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= Profit before tax + taxes
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2