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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
= Dividends + Profit After Tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2

2. Taxes
= Profit before tax + taxes
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- Profit before tax x Tax Rate
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

3. Total Assets
= Sales (yr1) x Current Liabilities/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= Stock (y0)
= Sales (yr1) x Current Assets/ Sales Ratio

4. Profit after Tax
= Profit before tax + taxes
= Debt (y0) -- Debt repayment amount
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales x Current Assets/Sales Ratio

5. Depreciation
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Net Fixed Assets -- Deprecitation
= Sales (yr1) x Current Assets/ Sales Ratio
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

6. Cash (plug figure)
= Debt (y0) -- Debt repayment amount
= Total Liabilities and equity -- current assets -- net fixed assets
= -- sales(yr1) x COGS/Sales Ratio
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2

7. At Cost
= --Dividend Payout ratio x profit before tax
= sales( from yr 0) x (1+sales growth)
= Stock (y0)
= Net Fixed Assets -- Deprecitation

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

9. Stock
= Sales (yr1) x Current Assets/ Sales Ratio
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Stock (y0)
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

10. Accumulated Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales (yr1) x Current Liabilities/Sales Ratio
= Accumulated Retained Earnings (y0) +Retained Earnings
= Debt (y0) -- Debt repayment amount

11. Interest Payments on Debt
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Liabilities/Sales Ratio
= --Dividend Payout ratio x profit before tax

12. Profit Before Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= -- Profit before tax x Tax Rate
= Sales (yr1) x Current Liabilities/Sales Ratio
= Dividends + Profit After Tax

13. Retained Earnings
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Net Fixed Assets -- Deprecitation
= Dividends + Profit After Tax
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

14. Other Current Assets
= Sales (yr1) x Current Assets/ Sales Ratio
= --Dividend Payout ratio x profit before tax
= Sales x Current Assets/Sales Ratio
= Profit before tax + taxes

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

16. Accumlated Depreciation
= Total Liabilities and equity -- current assets -- net fixed assets
= -- sales(yr1) x COGS/Sales Ratio
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Debt (y0) -- Debt repayment amount

17. Interest earned on cash and other marketable securities
= Net Fixed Assets + Other Current Assets + Cash
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Sales x Current Assets/Sales Ratio

18. Net Fixed Assets
= Debt (y0) -- Debt repayment amount
= Sales x Current Assets/Sales Ratio
= Stock (y0)
= Sales (yr1) x Current Assets/ Sales Ratio

19. Cost of Goods Sold
= sales( from yr 0) x (1+sales growth)
= -- sales(yr1) x COGS/Sales Ratio
= Sales x Current Assets/Sales Ratio
= Total Liabilities and equity -- current assets -- net fixed assets

20. Debt
= Debt (y0) -- Debt repayment amount
= Total Liabilities and equity -- current assets -- net fixed assets
= sales( from yr 0) x (1+sales growth)
= Sales x Current Assets/Sales Ratio

21. Total Liabilites and Equity
= -- sales(yr1) x COGS/Sales Ratio
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= --Dividend Payout ratio x profit before tax