Test your basic knowledge |

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. Net Fixed Assets
= Stock (y0)
= Net Fixed Assets + Other Current Assets + Cash
= Sales (yr1) x Current Assets/ Sales Ratio
= -- Profit before tax x Tax Rate

2. Interest Payments on Debt
= --Interest rate on debt x [Debt (yr0+1) ] /2
= sales( from yr 0) x (1+sales growth)
= Profit before tax + taxes
= -- sales(yr1) x COGS/Sales Ratio

3. Debt
= Net Fixed Assets -- Deprecitation
= Total Liabilities and equity -- current assets -- net fixed assets
= Dividends + Profit After Tax
= Debt (y0) -- Debt repayment amount

4. Interest earned on cash and other marketable securities
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio

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

6. Total Assets
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets + Other Current Assets + Cash
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

7. Sales
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Stock (y0)
= sales( from yr 0) x (1+sales growth)
= Total Liabilities and equity -- current assets -- net fixed assets

8. Cash (plug figure)
= Sales (yr1) x Current Assets/ Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales x Current Assets/Sales Ratio
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

9. Retained Earnings
= Debt (y0) -- Debt repayment amount
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Net Fixed Assets -- Deprecitation
= Dividends + Profit After Tax

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

11. Total Liabilites and Equity
= Stock (y0)
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= sales( from yr 0) x (1+sales growth)
= --Interest rate on debt x [Debt (yr0+1) ] /2

12. Other Current Assets
= -- Profit before tax x Tax Rate
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales x Current Assets/Sales Ratio
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

13. Cost of Goods Sold
= -- sales(yr1) x COGS/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Net Fixed Assets -- Deprecitation
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

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

15. At Cost
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Sales (yr1) x Current Assets/ Sales Ratio
= Profit before tax + taxes
= Net Fixed Assets -- Deprecitation

16. Dividends
= Net Fixed Assets -- Deprecitation
= Net Fixed Assets + Other Current Assets + Cash
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Assets/ Sales Ratio

17. Stock
= Net Fixed Assets + Other Current Assets + Cash
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= Stock (y0)

18. Accumlated Depreciation
= Stock (y0)
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

19. Profit Before Tax
= --Interest rate on debt x [Debt (yr0+1) ] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Profit before tax + taxes

20. Taxes
= Dividends + Profit After Tax
= -- Profit before tax x Tax Rate
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Net Fixed Assets -- Deprecitation

21. Profit after Tax
= Sales (yr1) x Current Assets/ Sales Ratio
= Stock (y0)
= -- Profit before tax x Tax Rate
= Profit before tax + taxes