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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. Depreciation
= Sales x Current Assets/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= Accumulated Retained Earnings (y0) +Retained Earnings
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

2. Net Fixed Assets
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Sales (yr1) x Current Assets/ Sales Ratio
= Stock (y0)
= sales( from yr 0) x (1+sales growth)

3. Interest earned on cash and other marketable securities
= Profit before tax + taxes
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Total Liabilities and equity -- current assets -- net fixed assets
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

4. Sales
= Debt (y0) -- Debt repayment amount
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Sales x Current Assets/Sales Ratio
= sales( from yr 0) x (1+sales growth)

5. Taxes
= -- Profit before tax x Tax Rate
= -- sales(yr1) x COGS/Sales Ratio
= Accumulated Retained Earnings (y0) +Retained Earnings
= Sales x Current Assets/Sales Ratio

6. Current Liabilities
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Debt (y0) -- Debt repayment amount
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales (yr1) x Current Liabilities/Sales Ratio

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

8. Stock
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Net Fixed Assets -- Deprecitation
= Stock (y0)
= Profit before tax + taxes

9. Other Current Assets
= Dividends + Profit After Tax
= Net Fixed Assets + Other Current Assets + Cash
= -- Profit before tax x Tax Rate
= Sales x Current Assets/Sales Ratio

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

11. Accumlated Depreciation
= Profit before tax + taxes
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

12. Total Liabilites and Equity
= Sales (yr1) x Current Assets/ Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets + Other Current Assets + Cash
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

13. Interest Payments on Debt
= --Interest rate on debt x [Debt (yr0+1) ] /2
= -- sales(yr1) x COGS/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Dividends + Profit After Tax

14. Debt
= Net Fixed Assets -- Deprecitation
= --Dividend Payout ratio x profit before tax
= Debt (y0) -- Debt repayment amount
= Total Liabilities and equity -- current assets -- net fixed assets

15. At Cost
= Stock (y0)
= sales( from yr 0) x (1+sales growth)
= Accumulated Retained Earnings (y0) +Retained Earnings
= Net Fixed Assets -- Deprecitation

16. Profit after Tax
= -- sales(yr1) x COGS/Sales Ratio
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= Profit before tax + taxes

17. Cost of Goods Sold
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Sales x Current Assets/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= Profit before tax + taxes

18. Accumulated Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets
= Accumulated Retained Earnings (y0) +Retained Earnings
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Net Fixed Assets + Other Current Assets + Cash

19. Cash (plug figure)
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets
= -- Profit before tax x Tax Rate

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

21. Profit Before Tax
= Net Fixed Assets -- Deprecitation
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= sales( from yr 0) x (1+sales growth)
= Stock (y0)