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Financial Forecasting And Modeling Equations

Instructions:

Answer 21 questions in 15 minutes.
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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. Interest earned on cash and other marketable securities
= Stock (y0)
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Profit before tax + taxes

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

3. Taxes
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Stock (y0)
= -- Profit before tax x Tax Rate
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

4. Total Liabilites and Equity
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Profit before tax + taxes
= sales( from yr 0) x (1+sales growth)

5. Profit Before Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Sales x Current Assets/Sales Ratio

6. Total Assets
= Net Fixed Assets + Other Current Assets + Cash
= Debt (y0) -- Debt repayment amount
= Accumulated Retained Earnings (y0) +Retained Earnings
= Stock (y0)

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

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

9. Dividends
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= --Dividend Payout ratio x profit before tax
= sales( from yr 0) x (1+sales growth)
= Profit before tax + taxes

10. Interest Payments on Debt
= Stock (y0)
= Dividends + Profit After Tax
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2

11. Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Dividends + Profit After Tax
= Net Fixed Assets + Other Current Assets + Cash

12. Cash (plug figure)
= Net Fixed Assets -- Deprecitation
= Total Liabilities and equity -- current assets -- net fixed assets
= Profit before tax + taxes
= Accumulated Retained Earnings (y0) +Retained Earnings

13. Cost of Goods Sold
= Profit before tax + taxes
= Stock (y0)
= Debt (y0) -- Debt repayment amount
= -- sales(yr1) x COGS/Sales Ratio

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

15. Sales
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Net Fixed Assets + Other Current Assets + Cash
= sales( from yr 0) x (1+sales growth)
= --Interest rate on debt x [Debt (yr0+1) ] /2

16. Net Fixed Assets
= Sales x Current Assets/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales (yr1) x Current Assets/ Sales Ratio
= sales( from yr 0) x (1+sales growth)

17. Other Current Assets
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= -- sales(yr1) x COGS/Sales Ratio
= Sales x Current Assets/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets

18. Debt
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Debt (y0) -- Debt repayment amount
= Profit before tax + taxes
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

19. At Cost
= -- Profit before tax x Tax Rate
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Debt (y0) -- Debt repayment amount
= Net Fixed Assets -- Deprecitation

20. Accumlated Depreciation
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Dividends + Profit After Tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Accumulated Retained Earnings (y0) +Retained Earnings

21. Accumulated Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= --Dividend Payout ratio x profit before tax
= Net Fixed Assets + Other Current Assets + Cash
= Net Fixed Assets -- Deprecitation