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Financial Statement Analysis

Instructions:

Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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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. Financial Leverage
EBIT/total asset
Total Debt/Total shareholders' equity
Taxes payable+Change in DTL - Change in DTA
Average Total Asset/Average total equity

2. Debt to capital
Gross Profit/Revenue
Total debt/(Total debt+Total shareholders equity)
EBIT/total asset
(2/useful life)*(Cost-Depreciation)

3. Cash Conversion Cycle
COGS/Average Inventory
CFO/operating income
CFO/cash paid for long term asset
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

4. Cash to ROA
CFO/average total assets
(CFO-preferred dividends)/weighted average number of common shares
Gross Profit/Revenue
[(Orginal Cost-Salvage)/Life in output units] * output units in production

5. Total asset turnover
CFO/cash long-term debt repayment
Revenue/Average Total Assets
STD NI/Mean NI
CFO/operating income

6. Pretax Income
EBT/Revenue
NI/total capital
Revenue/Average Working Capital
CFO/average total equity

7. Dividend payment
CFO/dividends paid
Begininng inventories+purchases-COGS
CFO/average total equity
CFO/cash paid for long term asset

8. Interest coverage
CFO/dividends paid
NI/total capital
STD NI/Mean NI
(CFO+interest paid+taxes paid )/interest paid

9. Debt to Asset
Cost-Salvage/useful Life
Total Debt/Total Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(2/useful life)*(Cost-Depreciation)

10. Ending inventories
ROCE - ROA
Begininng inventories+purchases-COGS
(CFO+interest paid+taxes paid )/interest paid
Gross Profit/Revenue

11. Cash to income
[(Orginal Cost-Salvage)/Life in output units] * output units in production
STD NI/Mean NI
CFO/operating income
EBT/Revenue

12. Inventory turnover
EBIT/total asset
(2/useful life)*(Cost-Depreciation)
[(Orginal Cost-Salvage)/Life in output units] * output units in production
COGS/Average Inventory

13. Working Capital Turnover
STD of Sales/Mean Sales
Revenue/Average Working Capital
EBT/Revenue
365/Inventory turnover

14. Return on equity
NI/average total equity
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
CFO/operating income
(EBIT+lease payments)/(interest payments+lease payments)

15. Interest expense
CA/CL
(market rate at issue)*(balance sheet value of the liability at beg period)
Cash+Marketable Securities+ Receivables)/Current Liabilities
(NI-preferred dividends)/weighted average of common shares

16. Debt payment
365/Inventory turnover
Gross Profit/Revenue
CFO/cash long-term debt repayment
STD OI/mean OI

17. Operating return on assets
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Cost-Salvage/useful Life
CFO/average total assets
EBIT/total asset

18. Fixed charged coverage
CFO/cash outflows from investing and financing
CFO/average total assets
(EBIT+lease payments)/(interest payments+lease payments)
CFO-fixed capital investment+net borrowing

19. FCFF
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
ROCE - ROA

20. Debt coverage
(CFO+interest paid+taxes paid )/interest paid
CFO/Total debt
Revenue/Average Fixed Assets
NI available to common/average common equity

21. Return on common equity
(CFO+interest paid+taxes paid )/interest paid
STD NI/Mean NI
CFO/Net Revenue
NI available to common/average common equity

22. Days of sales outstanding
CA/CL
365/receivables turnover
Average Total Asset/Average total equity
(market rate at issue)*(balance sheet value of the liability at beg period)

23. Straight Line depreciation
STD OI/mean OI
CFO/operating income
(NI-preferred dividends)+(convertible preferred dividends)+(convertible debt interest)*(1-T)/(weighted average of common shares+conv. preferred shares+conv.of debt+issuable from stock option)
Cost-Salvage/useful Life

24. Defensive interval
CFO/Total debt
NI/average total equity
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
NI/Revenue

25. Number of days of payable
ROCE - ROA
CFO/Net Revenue
EBIT/Revenue
365/payable turnover ratio

26. CV NI
Cost-Salvage/useful Life
Average Total Asset/Average total equity
365/payable turnover ratio
STD NI/Mean NI

27. Gross Profit Margin
(NI-preferred dividends)/weighted average of common shares
Gross Profit/Revenue
Annual Sales/Average receivables
CFO/dividends paid

28. Reinvestment
CFO/cash paid for long term asset
Gross Profit/Revenue
CFO/dividends paid
NI/Revenue

29. FCFE
Gross Profit/Revenue
(NI-preferred dividends)/weighted average of common shares
Average Total Asset/Average total equity
CFO-fixed capital investment+net borrowing

30. Quick Ratio
Cash+Marketable Securities+ Receivables)/Current Liabilities
STD of Sales/Mean Sales
Cost-Salvage/useful Life
CFO/average total equity

31. Units in production
CFO/dividends paid
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(EBIT+lease payments)/(interest payments+lease payments)
(market rate at issue)*(balance sheet value of the liability at beg period)

32. Debt to equity

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33. Investing and financing
CFO/cash outflows from investing and financing
NI/average total equity
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

34. CF per share
CFO/Net Revenue
CA/CL
STD OI/mean OI
(CFO-preferred dividends)/weighted average number of common shares

35. Income tax expense
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Gross Profit/Revenue
Taxes payable+Change in DTL - Change in DTA
Purchases/Average trade payable

36. Current Ratio
CFO-fixed capital investment+net borrowing
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CA/CL
365/Inventory turnover

37. Return on total capital
(CFO-preferred dividends)/weighted average number of common shares
(NI-preferred dividends)/weighted average of common shares
NI/total capital
365/payable turnover ratio

38. Receivables Turnover
Purchases/Average trade payable
CFO/Net Revenue
Annual Sales/Average receivables
CFO/average total assets

39. Original DuPont:ROE
[NI/sales][Sales/Assets][Assets/Equity]
EBIT/Revenue
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/Total debt

40. Leverage
CFO/Net Revenue
STD OI/mean OI
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
ROCE - ROA

41. Return on Asset
365/Inventory turnover
CFO/dividends paid
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(CFO-preferred dividends)/weighted average number of common shares

42. Basic EPS
NI available to common/average common equity
Total debt/(Total debt+Total shareholders equity)
(NI-preferred dividends)/weighted average of common shares
Taxes payable+Change in DTL - Change in DTA

43. DDB
Cash+Marketable Securities+ Receivables)/Current Liabilities
(CFO-preferred dividends)/weighted average number of common shares
EBT/Revenue
(2/useful life)*(Cost-Depreciation)

44. CF to Revenue
CFO/Net Revenue
CA/CL
STD of Sales/Mean Sales
STD NI/Mean NI

45. CV Operating Income
STD OI/mean OI
CFO/Total debt
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
ROCE - ROA

46. Diluted EPS
(NI-preferred dividends)+(convertible preferred dividends)+(convertible debt interest)*(1-T)/(weighted average of common shares+conv. preferred shares+conv.of debt+issuable from stock option)
(CFO-preferred dividends)/weighted average number of common shares
Total debt/(Total debt+Total shareholders equity)
NI/total capital

47. Cash Ratio
(Cash+Marketable Securities)/Current Liabilities
CFO/cash paid for long term asset
Total debt/(Total debt+Total shareholders equity)
CA/CL

48. Payable Turnover
Average Total Asset/Average total equity
(EBIT+lease payments)/(interest payments+lease payments)
NI/average total equity
Purchases/Average trade payable

49. CV sales
CFO-fixed capital investment+net borrowing
STD OI/mean OI
Revenue/Average Fixed Assets
STD of Sales/Mean Sales

50. Cash to ROE
STD of Sales/Mean Sales
CFO/average total equity
EBT/Revenue
CFO/cash paid for long term asset