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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)
= -- Profit before tax x Tax Rate
= Total Liabilities and equity -- current assets -- net fixed assets
= Profit before tax + taxes
= Debt (y0) -- Debt repayment amount

2. Profit after Tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Sales (yr1) x Current Liabilities/Sales Ratio
= Profit before tax + taxes
= Current liabilities + Debt + Stock + Accumulated Retained Earnings

3. Dividends
= --Dividend Payout ratio x profit before tax
= Debt (y0) -- Debt repayment amount
= Sales (yr1) x Current Liabilities/Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio

4. Taxes
= -- sales(yr1) x COGS/Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= --Dividend Payout ratio x profit before tax
= -- Profit before tax x Tax Rate

5. Interest Payments on Debt
= Accumulated Retained Earnings (y0) +Retained Earnings
= -- Profit before tax x Tax Rate
= --Depreciation rate x [FA At Cost (yr 0+1) ] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2

6. Interest earned on cash and other marketable securities
= Stock (y0)
= Profit before tax + taxes
= Sales x Current Assets/Sales Ratio
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2

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

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

9. Other Current Assets
= -- sales(yr1) x COGS/Sales Ratio
= Sales (yr1) x Current Assets/ Sales Ratio
= Sales x Current Assets/Sales Ratio
= Debt (y0) -- Debt repayment amount

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

11. Retained Earnings
= Dividends + Profit After Tax
= Total Liabilities and equity -- current assets -- net fixed assets
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= -- Profit before tax x Tax Rate

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

13. Profit Before Tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Total Liabilities and equity -- current assets -- net fixed assets
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities

14. Total Assets
= Net Fixed Assets + Other Current Assets + Cash
= Sales (yr1) x Current Liabilities/Sales Ratio
= Profit before tax + taxes
= Dividends + Profit After Tax

15. Total Liabilites and Equity
= Sales (yr1) x Current Assets/ Sales Ratio
= -- sales(yr1) x COGS/Sales Ratio
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= Debt (y0) -- Debt repayment amount

16. Accumlated Depreciation
= --Dividend Payout ratio x profit before tax
= Depreciation (yr0) -- [Depreciation Rate x FA At Cost (y0+1)] /2
= Current liabilities + Debt + Stock + Accumulated Retained Earnings
= sales( from yr 0) x (1+sales growth)

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

18. Cost of Goods Sold
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= -- sales(yr1) x COGS/Sales Ratio
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Dividends + Profit After Tax

19. Accumulated Retained Earnings
= -- Profit before tax x Tax Rate
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Accumulated Retained Earnings (y0) +Retained Earnings
= Net Fixed Assets -- Deprecitation

20. Current Liabilities
= --Dividend Payout ratio x profit before tax
= Total Liabilities and equity -- current assets -- net fixed assets
= Sales (yr1) x Current Liabilities/Sales Ratio
= sales( from yr 0) x (1+sales growth)

21. Net Fixed Assets
= Sales + COGS + Depreciation + Interest on Debt + Intest earned on cash and marketable securities
= Sales (yr1) x Current Assets/ Sales Ratio
= Interest earned on cash balances rate x [Cash (yr 0 +1)] /2
= --Interest rate on debt x [Debt (yr0+1) ] /2