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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. Debt
= Sales (yr1) x Current Assets/ Sales Ratio
= Debt (y0) -- Debt repayment amount
= Net Fixed Assets + Other Current Assets + Cash
= Net Fixed Assets -- Deprecitation

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

3. Cash (plug figure)
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales x Current Assets/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= -- Profit before tax x Tax Rate

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

5. Stock
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales (yr1) x Current Assets/ Sales Ratio
= Stock (y0)
= Profit before tax + taxes

6. Taxes
= sales( from yr 0) x (1+sales growth)
= -- sales(yr1) x COGS/Sales Ratio
= -- Profit before tax x Tax Rate
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

7. Dividends
= Net Fixed Assets -- Deprecitation
= Sales (yr1) x Current Liabilities/Sales Ratio
= Dividends + Profit After Tax
= --Dividend Payout ratio x profit before tax

8. Cost of Goods Sold
= --Dividend Payout ratio x profit before tax
= -- sales(yr1) x COGS/Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Accumulated Retained Earnings (y0) +Retained Earnings

9. Profit after Tax
= Profit before tax + taxes
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Net Fixed Assets + Other Current Assets + Cash

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

11. Net Fixed Assets
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Assets/ Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= Accumulated Retained Earnings (y0) +Retained Earnings

12. Accumulated Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Accumulated Retained Earnings (y0) +Retained Earnings

13. At Cost
= Net Fixed Assets -- Deprecitation
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Liabilities/Sales Ratio
= Sales x Current Assets/Sales Ratio

14. Interest earned on cash and other marketable securities
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Stock (y0)
= -- Profit before tax x Tax Rate
= sales( from yr 0) x (1+sales growth)

15. Depreciation
= Net Fixed Assets -- Deprecitation
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= -- Profit before tax x Tax Rate

16. Current Liabilities
= sales( from yr 0) x (1+sales growth)
= Sales x Current Assets/Sales Ratio
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Liabilities/Sales Ratio

17. Interest Payments on Debt
= -- sales(yr1) x COGS/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales (yr1) x Current Liabilities/Sales Ratio

18. Total Assets
= Debt (y0) -- Debt repayment amount
= Sales x Current Assets/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Net Fixed Assets + Other Current Assets + Cash

19. Profit Before Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Net Fixed Assets -- Deprecitation

20. Retained Earnings
= Dividends + Profit After Tax
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales x Current Assets/Sales Ratio

21. Total Liabilites and Equity
= Profit before tax + taxes
= --Dividend Payout ratio x profit before tax
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Net Fixed Assets + Other Current Assets + Cash