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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 after Tax
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Sales (yr1) x Current Liabilities/Sales Ratio
= Profit before tax + taxes
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

2. Interest Payments on Debt
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales (yr1) x Current Assets/ Sales Ratio
= Debt (y0) -- Debt repayment amount
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

3. Debt
= Debt (y0) -- Debt repayment amount
= -- sales(yr1) x COGS/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

4. Cash (plug figure)
= --Dividend Payout ratio x profit before tax
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets + Other Current Assets + Cash
= -- sales(yr1) x COGS/Sales Ratio

5. Accumulated Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= Net Fixed Assets -- Deprecitation
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Net Fixed Assets + Other Current Assets + Cash

6. Retained Earnings
= Dividends + Profit After Tax
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Assets/ Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets

7. Other Current Assets
= Sales x Current Assets/Sales Ratio
= -- Profit before tax x Tax Rate
= Dividends + Profit After Tax
= -- sales(yr1) x COGS/Sales Ratio

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

9. Current Liabilities
= Stock (y0)
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Liabilities/Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

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

11. Profit Before Tax
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales x Current Assets/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

12. Total Liabilites and Equity
= Sales (yr1) x Current Liabilities/Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= sales( from yr 0) x (1+sales growth)

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

14. Taxes
= Profit before tax + taxes
= Sales x Current Assets/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= -- Profit before tax x Tax Rate

15. Total Assets
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= -- Profit before tax x Tax Rate
= Dividends + Profit After Tax
= Net Fixed Assets + Other Current Assets + Cash

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

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

18. Net Fixed Assets
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales (yr1) x Current Assets/ Sales Ratio
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio

19. Stock
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales (yr1) x Current Assets/ Sales Ratio
= Stock (y0)

20. Sales
= Stock (y0)
= Accumulated Retained Earnings (y0) +Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets
= sales( from yr 0) x (1+sales growth)

21. At Cost
= Total Liabilities and equity -- current assets -- net fixed assets
= Dividends + Profit After Tax
= --Dividend Payout ratio x profit before tax
= Net Fixed Assets -- Deprecitation