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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. Sales
= Dividends + Profit After Tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= -- Profit before tax x Tax Rate
= sales( from yr 0) x (1+sales growth)

2. Net Fixed Assets
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets -- Deprecitation
= Sales (yr1) x Current Assets/ Sales Ratio

3. Other Current Assets
= Net Fixed Assets -- Deprecitation
= Sales x Current Assets/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= Dividends + Profit After Tax

4. Cost of Goods Sold
= sales( from yr 0) x (1+sales growth)
= -- sales(yr1) x COGS/Sales Ratio
= Dividends + Profit After Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

5. Interest earned on cash and other marketable securities
= sales( from yr 0) x (1+sales growth)
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Accumulated Retained Earnings (y0) +Retained Earnings
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

6. Taxes
= --Dividend Payout ratio x profit before tax
= -- Profit before tax x Tax Rate
= Accumulated Retained Earnings (y0) +Retained Earnings
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

7. Current Liabilities
= Net Fixed Assets -- Deprecitation
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

8. Stock
= Stock (y0)
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Dividends + Profit After Tax
= Accumulated Retained Earnings (y0) +Retained Earnings

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

10. Debt
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= --Dividend Payout ratio x profit before tax

11. Dividends
= --Dividend Payout ratio x profit before tax
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Sales (yr1) x Current Liabilities/Sales Ratio
= Profit before tax + taxes

12. At Cost
= -- Profit before tax x Tax Rate
= Net Fixed Assets -- Deprecitation
= Debt (y0) -- Debt repayment amount
= -- sales(yr1) x COGS/Sales Ratio

13. Interest Payments on Debt
= Sales (yr1) x Current Assets/ Sales Ratio
= Net Fixed Assets -- Deprecitation
= Total Liabilities and equity -- current assets -- net fixed assets
= --Interest rate on debt x [Debt (yr0+1) ] /2

14. Profit Before Tax
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Sales (yr1) x Current Liabilities/Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales (yr1) x Current Assets/ Sales Ratio

15. Accumulated Retained Earnings
= --Dividend Payout ratio x profit before tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Accumulated Retained Earnings (y0) +Retained Earnings
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

16. Retained Earnings
= Dividends + Profit After Tax
= Net Fixed Assets -- Deprecitation
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= sales( from yr 0) x (1+sales growth)

17. Depreciation
= Net Fixed Assets + Other Current Assets + Cash
= -- sales(yr1) x COGS/Sales Ratio
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

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

19. Profit after Tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= -- Profit before tax x Tax Rate
= sales( from yr 0) x (1+sales growth)
= Profit before tax + taxes

20. Total Liabilites and Equity
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= -- Profit before tax x Tax Rate
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Dividends + Profit After Tax

21. Cash (plug figure)
= Stock (y0)
= Total Liabilities and equity -- current assets -- net fixed assets
= -- Profit before tax x Tax Rate
= Net Fixed Assets -- Deprecitation