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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. Retained Earnings
= Dividends + Profit After Tax
= Total Liabilities and equity -- current assets -- net fixed assets
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Accumulated Retained Earnings (y0) +Retained Earnings

2. Interest Payments on Debt
= --Interest rate on debt x [Debt (yr0+1) ] /2
= --Dividend Payout ratio x profit before tax
= Stock (y0)
= -- Profit before tax x Tax Rate

3. Profit after Tax
= Profit before tax + taxes
= Net Fixed Assets + Other Current Assets + Cash
= --Dividend Payout ratio x profit before tax
= sales( from yr 0) x (1+sales growth)

4. Cash (plug figure)
= Total Liabilities and equity -- current assets -- net fixed assets
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Liabilities/Sales Ratio

5. Stock
= Stock (y0)
= Dividends + Profit After Tax
= sales( from yr 0) x (1+sales growth)
= -- Profit before tax x Tax Rate

6. Taxes
= -- Profit before tax x Tax Rate
= Net Fixed Assets + Other Current Assets + Cash
= --Interest rate on debt x [Debt (yr0+1) ] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

7. Debt
= Net Fixed Assets + Other Current Assets + Cash
= Dividends + Profit After Tax
= Debt (y0) -- Debt repayment amount
= Total Liabilities and equity -- current assets -- net fixed assets

8. Total Assets
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Net Fixed Assets + Other Current Assets + Cash
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

9. Interest earned on cash and other marketable securities
= 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
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Dividends + Profit After Tax

10. At Cost
= Net Fixed Assets -- Deprecitation
= Accumulated Retained Earnings (y0) +Retained Earnings
= -- sales(yr1) x COGS/Sales Ratio
= Debt (y0) -- Debt repayment amount

11. Accumulated Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets
= Debt (y0) -- Debt repayment amount
= Accumulated Retained Earnings (y0) +Retained Earnings
= Net Fixed Assets + Other Current Assets + Cash

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

13. Depreciation
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= --Dividend Payout ratio x profit before tax
= Accumulated Retained Earnings (y0) +Retained Earnings
= --Interest rate on debt x [Debt (yr0+1) ] /2

14. Net Fixed Assets
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales (yr1) x Current Liabilities/Sales Ratio
= Sales x Current Assets/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio

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

16. Other Current Assets
= Profit before tax + taxes
= Sales x Current Assets/Sales Ratio
= Dividends + Profit After Tax
= Accumulated Retained Earnings (y0) +Retained Earnings

17. Cost of Goods Sold
= Net Fixed Assets + Other Current Assets + Cash
= -- sales(yr1) x COGS/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

18. Sales
= Net Fixed Assets + Other Current Assets + Cash
= Total Liabilities and equity -- current assets -- net fixed assets
= Accumulated Retained Earnings (y0) +Retained Earnings
= sales( from yr 0) x (1+sales growth)

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

20. Current Liabilities
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales (yr1) x Current Liabilities/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Total Liabilities and equity -- current assets -- net fixed assets

21. Total Liabilites and Equity
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Debt (y0) -- Debt repayment amount