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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. Total Liabilites and Equity
= --Dividend Payout ratio x profit before tax
= Net Fixed Assets -- Deprecitation
= Sales x Current Assets/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

2. Profit after Tax
= -- Profit before tax x Tax Rate
= Profit before tax + taxes
= Accumulated Retained Earnings (y0) +Retained Earnings
= Net Fixed Assets + Other Current Assets + Cash

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

4. Cost of Goods Sold
= Sales (yr1) x Current Assets/ Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= --Interest rate on debt x [Debt (yr0+1) ] /2

5. Stock
= Net Fixed Assets + Other Current Assets + Cash
= sales( from yr 0) x (1+sales growth)
= Stock (y0)
= Accumulated Retained Earnings (y0) +Retained Earnings

6. Taxes
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= -- Profit before tax x Tax Rate
= --Dividend Payout ratio x profit before tax

7. Accumlated Depreciation
= Accumulated Retained Earnings (y0) +Retained Earnings
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

8. Sales
= Debt (y0) -- Debt repayment amount
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Sales x Current Assets/Sales Ratio
= sales( from yr 0) x (1+sales growth)

9. Interest Payments on Debt
= Sales (yr1) x Current Assets/ Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= sales( from yr 0) x (1+sales growth)
= --Interest rate on debt x [Debt (yr0+1) ] /2

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

11. Other Current Assets
= Accumulated Retained Earnings (y0) +Retained Earnings
= Stock (y0)
= Debt (y0) -- Debt repayment amount
= Sales x Current Assets/Sales Ratio

12. Interest earned on cash and other marketable securities
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Dividends + Profit After Tax
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= -- sales(yr1) x COGS/Sales Ratio

13. Net Fixed Assets
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Assets/ Sales Ratio
= Dividends + Profit After Tax
= sales( from yr 0) x (1+sales growth)

14. Debt
= Net Fixed Assets -- Deprecitation
= sales( from yr 0) x (1+sales growth)
= Debt (y0) -- Debt repayment amount
= Total Liabilities and equity -- current assets -- net fixed assets

15. Depreciation
= Dividends + Profit After Tax
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Profit before tax + taxes

16. Total Assets
= Sales (yr1) x Current Assets/ Sales Ratio
= Profit before tax + taxes
= Net Fixed Assets + Other Current Assets + Cash
= Debt (y0) -- Debt repayment amount

17. Dividends
= sales( from yr 0) x (1+sales growth)
= --Dividend Payout ratio x profit before tax
= Total Liabilities and equity -- current assets -- net fixed assets
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

18. Cash (plug figure)
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Total Liabilities and equity -- current assets -- net fixed assets
= Profit before tax + taxes
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

19. At Cost
= Net Fixed Assets -- Deprecitation
= sales( from yr 0) x (1+sales growth)
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

20. Accumulated Retained Earnings
= Accumulated Retained Earnings (y0) +Retained Earnings
= -- Profit before tax x Tax Rate
= Net Fixed Assets + Other Current Assets + Cash
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

21. Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets
= Dividends + Profit After Tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities