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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. Cash (plug figure)
= Dividends + Profit After Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Total Liabilities and equity -- current assets -- net fixed assets
= Net Fixed Assets + Other Current Assets + Cash

2. Depreciation
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= -- sales(yr1) x COGS/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

3. Interest Payments on Debt
= Profit before tax + taxes
= Sales x Current Assets/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Net Fixed Assets + Other Current Assets + Cash

4. Other Current Assets
= Sales x Current Assets/Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Liabilities/Sales Ratio

5. Cost of Goods Sold
= Sales x Current Assets/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets
= Dividends + Profit After Tax
= -- sales(yr1) x COGS/Sales Ratio

6. At Cost
= Net Fixed Assets -- Deprecitation
= Net Fixed Assets + Other Current Assets + Cash
= -- sales(yr1) x COGS/Sales Ratio
= Sales (yr1) x Current Liabilities/Sales Ratio

7. Taxes
= Net Fixed Assets -- Deprecitation
= Profit before tax + taxes
= -- Profit before tax x Tax Rate
= Stock (y0)

8. Interest earned on cash and other marketable securities
= Accumulated Retained Earnings (y0) +Retained Earnings
= Debt (y0) -- Debt repayment amount
= Sales x Current Assets/Sales Ratio
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

9. Dividends
= -- sales(yr1) x COGS/Sales Ratio
= --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

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

11. Accumlated Depreciation
= Accumulated Retained Earnings (y0) +Retained Earnings
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Assets/ Sales Ratio
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

12. Total Assets
= -- sales(yr1) x COGS/Sales Ratio
= Accumulated Retained Earnings (y0) +Retained Earnings
= Sales (yr1) x Current Assets/ Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash

13. Net Fixed Assets
= Sales (yr1) x Current Assets/ Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Debt (y0) -- Debt repayment amount

14. Stock
= -- sales(yr1) x COGS/Sales Ratio
= Stock (y0)
= Net Fixed Assets -- Deprecitation
= --Dividend Payout ratio x profit before tax

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

16. Current Liabilities
= Sales (yr1) x Current Liabilities/Sales Ratio
= Accumulated Retained Earnings (y0) +Retained Earnings
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= -- Profit before tax x Tax Rate

17. Profit Before Tax
= sales( from yr 0) x (1+sales growth)
= Profit before tax + taxes
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

18. Retained Earnings
= Dividends + Profit After Tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Stock (y0)
= Sales (yr1) x Current Assets/ Sales Ratio

19. Sales
= Sales (yr1) x Current Assets/ Sales Ratio
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Liabilities/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash

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

21. Accumulated Retained Earnings
= Net Fixed Assets -- Deprecitation
= Sales (yr1) x Current Assets/ Sales Ratio
= Accumulated Retained Earnings (y0) +Retained Earnings
= -- Profit before tax x Tax Rate