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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. Total Liabilites and Equity
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Debt (y0) -- Debt repayment amount
= Stock (y0)
= Dividends + Profit After Tax

2. Sales
= Profit before tax + taxes
= Net Fixed Assets + Other Current Assets + Cash
= Net Fixed Assets -- Deprecitation
= sales( from yr 0) x (1+sales growth)

3. Other Current Assets
= --Dividend Payout ratio x profit before tax
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Sales x Current Assets/Sales Ratio

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

5. Accumlated Depreciation
= Sales (yr1) x Current Assets/ Sales Ratio
= sales( from yr 0) x (1+sales growth)
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Dividends + Profit After Tax

6. Profit Before Tax
= Dividends + Profit After Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= -- Profit before tax x Tax Rate
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

7. Debt
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Sales x Current Assets/Sales Ratio
= Debt (y0) -- Debt repayment amount
= Total Liabilities and equity -- current assets -- net fixed assets

8. Total Assets
= Debt (y0) -- Debt repayment amount
= Net Fixed Assets + Other Current Assets + Cash
= Dividends + Profit After Tax
= Profit before tax + taxes

9. Interest Payments on Debt
= --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
= Sales (yr1) x Current Assets/ Sales Ratio

10. Cost of Goods Sold
= Profit before tax + taxes
= -- sales(yr1) x COGS/Sales Ratio
= --Dividend Payout ratio x profit before tax
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

11. Cash (plug figure)
= -- Profit before tax x Tax Rate
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets -- Deprecitation
= --Dividend Payout ratio x profit before tax

12. Retained Earnings
= Sales x Current Assets/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Dividends + Profit After Tax

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

14. Profit after Tax
= --Dividend Payout ratio x profit before tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Profit before tax + taxes

15. At Cost
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Net Fixed Assets -- Deprecitation
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= sales( from yr 0) x (1+sales growth)

16. Dividends
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales (yr1) x Current Liabilities/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= --Dividend Payout ratio x profit before tax

17. Accumulated Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= Dividends + Profit After Tax
= Sales x Current Assets/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

18. Interest earned on cash and other marketable securities
= --Dividend Payout ratio x profit before tax
= Profit before tax + taxes
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Dividends + Profit After Tax

19. Net Fixed Assets
= Profit before tax + taxes
= Sales x Current Assets/Sales Ratio
= Accumulated Retained Earnings (y0) +Retained Earnings
= Sales (yr1) x Current Assets/ Sales Ratio

20. Taxes
= Net Fixed Assets -- Deprecitation
= Net Fixed Assets + Other Current Assets + Cash
= Sales x Current Assets/Sales Ratio
= -- Profit before tax x Tax Rate

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