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Financial Forecasting And Modeling Equations

Instructions:

Answer 21 questions in 15 minutes.
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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. Accumulated Retained Earnings
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Dividends + Profit After Tax
= Accumulated Retained Earnings (y0) +Retained Earnings
= --Interest rate on debt x [Debt (yr0+1) ] /2

2. Stock
= Stock (y0)
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales x Current Assets/Sales Ratio
= --Dividend Payout ratio x profit before tax

3. Taxes
= Profit before tax + taxes
= Stock (y0)
= --Dividend Payout ratio x profit before tax
= -- Profit before tax x Tax Rate

4. Cost of Goods Sold
= --Dividend Payout ratio x profit before tax
= Sales (yr1) x Current Liabilities/Sales Ratio
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= -- sales(yr1) x COGS/Sales Ratio

5. Debt
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Debt (y0) -- Debt repayment amount
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2

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

7. Sales
= Net Fixed Assets + Other Current Assets + Cash
= sales( from yr 0) x (1+sales growth)
= Stock (y0)
= --Dividend Payout ratio x profit before tax

8. Net Fixed Assets
= -- Profit before tax x Tax Rate
= Sales (yr1) x Current Assets/ Sales Ratio
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Net Fixed Assets -- Deprecitation

9. At Cost
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Net Fixed Assets -- Deprecitation
= Dividends + Profit After Tax
= Accumulated Retained Earnings (y0) +Retained Earnings

10. Total Assets
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Liabilities/Sales Ratio
= Net Fixed Assets + Other Current Assets + Cash
= Dividends + Profit After Tax

11. Current Liabilities
= Dividends + Profit After Tax
= Net Fixed Assets -- Deprecitation
= Sales (yr1) x Current Liabilities/Sales Ratio
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

12. Interest earned on cash and other marketable securities
= Net Fixed Assets + Other Current Assets + Cash
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Dividend Payout ratio x profit before tax
= Net Fixed Assets -- Deprecitation

13. Interest Payments on Debt
= --Interest rate on debt x [Debt (yr0+1) ] /2
= Debt (y0) -- Debt repayment amount
= Net Fixed Assets + Other Current Assets + Cash
= --Dividend Payout ratio x profit before tax

14. Profit after Tax
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales (yr1) x Current Assets/ Sales Ratio
= Profit before tax + taxes
= --Dividend Payout ratio x profit before tax

15. Accumlated Depreciation
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Net Fixed Assets -- Deprecitation
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Profit before tax + taxes

16. Cash (plug figure)
= Debt (y0) -- Debt repayment amount
= -- Profit before tax x Tax Rate
= Accumulated Retained Earnings (y0) +Retained Earnings
= Total Liabilities and equity -- current assets -- net fixed assets

17. Depreciation
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= -- sales(yr1) x COGS/Sales Ratio
= Profit before tax + taxes
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2

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

19. Total Liabilites and Equity
= sales( from yr 0) x (1+sales growth)
= Sales (yr1) x Current Assets/ Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Profit before tax + taxes

20. Profit Before Tax
= Accumulated Retained Earnings (y0) +Retained Earnings
= Sales (yr1) x Current Liabilities/Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales x Current Assets/Sales Ratio

21. Dividends
= Net Fixed Assets + Other Current Assets + Cash
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= -- Profit before tax x Tax Rate
= --Dividend Payout ratio x profit before tax