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Financial Statement Analysis

Instructions:

Answer 50 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. Straight Line depreciation
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(Cash+Marketable Securities)/Current Liabilities
NI/total capital
Cost-Salvage/useful Life

2. CF per share
Revenue/Average Fixed Assets
(CFO-preferred dividends)/weighted average number of common shares
ROCE - ROA
CFO/Total debt

3. Cash Conversion Cycle
CFO-fixed capital investment+net borrowing
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(CFO+interest paid+taxes paid )/interest paid
Begininng inventories+purchases-COGS

4. Fixed assets turnover
Taxes payable+Change in DTL - Change in DTA
Revenue/Average Total Assets
Revenue/Average Fixed Assets
CFO/cash long-term debt repayment

5. Debt to capital
Total debt/(Total debt+Total shareholders equity)
[NI/sales][Sales/Assets][Assets/Equity]
CFO/Total debt
NI/average total equity

6. Day of inventory on hand
Total Debt/Total shareholders' equity
Cost-Salvage/useful Life
365/Inventory turnover
NI/total capital

7. Basic EPS
EBT/Revenue
(EBIT+lease payments)/(interest payments+lease payments)
(NI-preferred dividends)/weighted average of common shares
(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)

8. Units in production
CFO/Total debt
(Cash+Marketable Securities)/Current Liabilities
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(EBIT+lease payments)/(interest payments+lease payments)

9. Current Ratio
(2/useful life)*(Cost-Depreciation)
CA/CL
CFO/Total debt
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

10. Cash to ROA
NI/total capital
CFO/average total assets
(EBIT+lease payments)/(interest payments+lease payments)
365/Inventory turnover

11. Debt to equity

12. CV Operating Income
CFO/average total equity
Total Debt/Total shareholders' equity
Taxes payable+Change in DTL - Change in DTA
STD OI/mean OI

13. Working Capital Turnover
(CFO+interest paid+taxes paid )/interest paid
ROCE - ROA
Total Debt/Total shareholders' equity
Revenue/Average Working Capital

14. Number of days of payable
365/payable turnover ratio
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI available to common/average common equity
(NI-preferred dividends)/weighted average of common shares

15. Return on common equity
Revenue/Average Total Assets
COGS/Average Inventory
CFO-fixed capital investment+net borrowing
NI available to common/average common equity

16. Defensive interval
EBIT/Revenue
NI available to common/average common equity
Revenue/Average Working Capital
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

17. Dividend payment
CA/CL
CFO/dividends paid
EBIT/Revenue
NI/total capital

18. Operating return on assets
CFO/cash outflows from investing and financing
EBIT/total asset
NI/total capital
365/payable turnover ratio

19. Reinvestment
365/Inventory turnover
STD OI/mean OI
CFO/cash paid for long term asset
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

20. Financial Leverage
Average Total Asset/Average total equity
STD NI/Mean NI
(CFO-preferred dividends)/weighted average number of common shares
Purchases/Average trade payable

21. Interest expense
CFO/Total debt
CA/CL
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/dividends paid

22. CV sales
STD of Sales/Mean Sales
Purchases/Average trade payable
CFO/Total debt
NI/total capital

23. Payable Turnover
Purchases/Average trade payable
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Total Debt/Total shareholders' equity
365/Inventory turnover

24. Debt to Asset
Revenue/Average Working Capital
Total Debt/Total Asset
CFO/operating income
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

25. Cash Ratio
(Cash+Marketable Securities)/Current Liabilities
Purchases/Average trade payable
Total Debt/Total shareholders' equity
365/receivables turnover

26. Original DuPont:ROE
CFO/cash outflows from investing and financing
[NI/sales][Sales/Assets][Assets/Equity]
Taxes payable+Change in DTL - Change in DTA
CFO/operating income

27. Income tax expense
CFO/operating income
Total Debt/Total shareholders' equity
Taxes payable+Change in DTL - Change in DTA
Revenue/Average Total Assets

28. Investing and financing
(CFO+interest paid+taxes paid )/interest paid
EBT/Revenue
Gross Profit/Revenue
CFO/cash outflows from investing and financing

29. Inventory turnover
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/cash outflows from investing and financing
COGS/Average Inventory

30. DDB
EBT/Revenue
CFO/average total assets
(2/useful life)*(Cost-Depreciation)
(Cash+Marketable Securities)/Current Liabilities

31. Cash to ROE
CFO/average total equity
Begininng inventories+purchases-COGS
CFO/Net Revenue
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

32. Days of sales outstanding
(CFO+interest paid+taxes paid )/interest paid
365/receivables turnover
365/Inventory turnover
365/payable turnover ratio

33. Fixed charged coverage
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(EBIT+lease payments)/(interest payments+lease payments)
CFO/average total equity
CFO/dividends paid

34. Debt payment
CFO/cash long-term debt repayment
Revenue/Average Fixed Assets
(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

35. CV NI
CFO/average total assets
365/payable turnover ratio
CFO/cash long-term debt repayment
STD NI/Mean NI

36. CF to Revenue
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
365/Inventory turnover
CFO/Net Revenue
(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)

37. Interest coverage
Begininng inventories+purchases-COGS
(CFO-preferred dividends)/weighted average number of common shares
(CFO+interest paid+taxes paid )/interest paid
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

38. Diluted EPS
CFO/operating income
(Cash+Marketable Securities)/Current Liabilities
(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)
Total Debt/Total shareholders' equity

39. Pretax Income
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
EBT/Revenue
NI available to common/average common equity

40. Quick Ratio
[NI/sales][Sales/Assets][Assets/Equity]
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/Net Revenue
Total debt/(Total debt+Total shareholders equity)

41. Debt coverage
Begininng inventories+purchases-COGS
Annual Sales/Average receivables
EBIT/Revenue
CFO/Total debt

42. Cash to income
Taxes payable+Change in DTL - Change in DTA
Revenue/Average Total Assets
EBT/Revenue
CFO/operating income

43. Ending inventories
COGS/Average Inventory
STD OI/mean OI
CFO-fixed capital investment+net borrowing
Begininng inventories+purchases-COGS

44. Return on equity
NI/average total equity
EBIT/Revenue
Revenue/Average Working Capital
Revenue/Average Fixed Assets

45. FCFE
CFO-fixed capital investment+net borrowing
NI/Revenue
(2/useful life)*(Cost-Depreciation)
NI available to common/average common equity

46. Leverage
Total Debt/Total shareholders' equity
ROCE - ROA
(2/useful life)*(Cost-Depreciation)
Total Debt/Total Asset

47. Receivables Turnover
365/Inventory turnover
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
Annual Sales/Average receivables
CFO/dividends paid

48. Return on Asset
365/receivables turnover
NI/Revenue
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(2/useful life)*(Cost-Depreciation)

49. Operating Profit Margin
Begininng inventories+purchases-COGS
EBIT/total asset
CFO/average total assets
EBIT/Revenue

50. FCFF
ROCE - ROA
CFO/operating income
COGS/Average Inventory
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment