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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. Current Liabilities
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- Profit before tax x Tax Rate
= Net Fixed Assets + Other Current Assets + Cash

2. Cash (plug figure)
= Debt (y0) -- Debt repayment amount
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Total Liabilities and equity -- current assets -- net fixed assets
= Dividends + Profit After Tax

3. Sales
= sales( from yr 0) x (1+sales growth)
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales (yr1) x Current Liabilities/Sales Ratio
= Sales (yr1) x Current Assets/ Sales Ratio

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

5. Profit after Tax
= Sales x Current Assets/Sales Ratio
= Profit before tax + taxes
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

6. Dividends
= Sales (yr1) x Current Liabilities/Sales Ratio
= --Dividend Payout ratio x profit before tax
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets + Other Current Assets + Cash

7. Interest Payments on Debt
= Sales (yr1) x Current Assets/ Sales Ratio
= Net Fixed Assets -- Deprecitation
= Net Fixed Assets + Other Current Assets + Cash
= --Interest rate on debt x [Debt (yr0+1) ] /2

8. Total Liabilites and Equity
= sales( from yr 0) x (1+sales growth)
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Sales x Current Assets/Sales Ratio
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

9. Stock
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Stock (y0)
= --Dividend Payout ratio x profit before tax
= Accumulated Retained Earnings (y0) +Retained Earnings

10. Taxes
= Dividends + Profit After Tax
= sales( from yr 0) x (1+sales growth)
= -- Profit before tax x Tax Rate
= Sales x Current Assets/Sales Ratio

11. Profit Before Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Net Fixed Assets -- Deprecitation
= Dividends + Profit After Tax
= Sales x Current Assets/Sales Ratio

12. Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Assets/ Sales Ratio
= Dividends + Profit After Tax

13. Accumulated Retained Earnings
= Net Fixed Assets + Other Current Assets + Cash
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Dividends + Profit After Tax
= Accumulated Retained Earnings (y0) +Retained Earnings

14. Depreciation
= Net Fixed Assets + Other Current Assets + Cash
= Profit before tax + taxes
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

15. Net Fixed Assets
= Sales (yr1) x Current Assets/ Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Net Fixed Assets -- Deprecitation

16. Total Assets
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets + Other Current Assets + Cash
= -- Profit before tax x Tax Rate

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

18. Accumlated Depreciation
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Debt (y0) -- Debt repayment amount
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

19. Interest earned on cash and other marketable securities
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Dividend Payout ratio x profit before tax
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= -- Profit before tax x Tax Rate

20. At Cost
= Profit before tax + taxes
= Debt (y0) -- Debt repayment amount
= Net Fixed Assets -- Deprecitation
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

21. Debt
= Net Fixed Assets + Other Current Assets + Cash
= -- sales(yr1) x COGS/Sales Ratio
= Debt (y0) -- Debt repayment amount
= sales( from yr 0) x (1+sales growth)