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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. Net Fixed Assets
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Net Fixed Assets -- Deprecitation
= Sales (yr1) x Current Assets/ Sales Ratio
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

2. Stock
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Assets/ Sales Ratio
= Stock (y0)
= Profit before tax + taxes

3. Total Liabilites and Equity
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Sales (yr1) x Current Assets/ Sales Ratio
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2

4. Cost of Goods Sold
= -- sales(yr1) x COGS/Sales Ratio
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Sales x Current Assets/Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

5. Debt
= Sales (yr1) x Current Assets/ Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Debt (y0) -- Debt repayment amount

6. At Cost
= -- Profit before tax x Tax Rate
= --Interest rate on debt x [Debt (yr0+1) ] /2
= sales( from yr 0) x (1+sales growth)
= Net Fixed Assets -- Deprecitation

7. Cash (plug figure)
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets -- Deprecitation
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Dividends + Profit After Tax

8. Retained Earnings
= Dividends + Profit After Tax
= Stock (y0)
= -- sales(yr1) x COGS/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash

9. Dividends
= --Dividend Payout ratio x profit before tax
= Dividends + Profit After Tax
= sales( from yr 0) x (1+sales growth)
= Stock (y0)

10. Sales
= sales( from yr 0) x (1+sales growth)
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= Net Fixed Assets -- Deprecitation

11. Interest earned on cash and other marketable securities
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Stock (y0)
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Accumulated Retained Earnings (y0) +Retained Earnings

12. Profit after Tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Debt (y0) -- Debt repayment amount
= Profit before tax + taxes

13. Accumlated Depreciation
= -- Profit before tax x Tax Rate
= -- sales(yr1) x COGS/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

14. Total Assets
= Sales (yr1) x Current Liabilities/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= Total Liabilities and equity -- current assets -- net fixed assets
= Stock (y0)

15. Other Current Assets
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Sales x Current Assets/Sales Ratio
= Sales (yr1) x Current Liabilities/Sales Ratio
= Stock (y0)

16. Accumulated Retained Earnings
= Profit before tax + taxes
= sales( from yr 0) x (1+sales growth)
= Accumulated Retained Earnings (y0) +Retained Earnings
= Sales (yr1) x Current Assets/ Sales Ratio

17. Taxes
= -- Profit before tax x Tax Rate
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets

18. Current Liabilities
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales (yr1) x Current Liabilities/Sales Ratio
= Net Fixed Assets -- Deprecitation
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

19. Interest Payments on Debt
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Profit before tax + taxes
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= sales( from yr 0) x (1+sales growth)

20. Profit Before Tax
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= --Dividend Payout ratio x profit before tax
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

21. Depreciation
= Sales (yr1) x Current Assets/ Sales Ratio
= sales( from yr 0) x (1+sales growth)
= Profit before tax + taxes
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2