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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. Quick Ratio
(NI-preferred dividends)/weighted average of common shares
Purchases/Average trade payable
Cash+Marketable Securities+ Receivables)/Current Liabilities
COGS/Average Inventory

2. Dividend payment
CFO/dividends paid
CFO/average total equity
NI/average total equity
CFO/cash outflows from investing and financing

3. FCFF
NI available to common/average common equity
ROCE - ROA
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+ Receivables)/Current Liabilities

4. Straight Line depreciation
(market rate at issue)*(balance sheet value of the liability at beg period)
NI/average total equity
Cost-Salvage/useful Life
Taxes payable+Change in DTL - Change in DTA

5. CV sales
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
STD of Sales/Mean Sales
Taxes payable+Change in DTL - Change in DTA
CA/CL

6. Pretax Income
EBT/Revenue
365/Inventory turnover
NI/Revenue
NI/average total equity

7. Debt coverage
CFO/Total debt
Purchases/Average trade payable
365/payable turnover ratio
(Cash+Marketable Securities)/Current Liabilities

8. CV Operating Income
CFO/dividends paid
Annual Sales/Average receivables
STD OI/mean OI
Average Total Asset/Average total equity

9. Interest expense
Total Debt/Total Asset
Total debt/(Total debt+Total shareholders equity)
Average Total Asset/Average total equity
(market rate at issue)*(balance sheet value of the liability at beg period)

10. Investing and financing
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
CFO/average total equity
Taxes payable+Change in DTL - Change in DTA

11. Original DuPont:ROE
[NI/sales][Sales/Assets][Assets/Equity]
Average Total Asset/Average total equity
EBIT/Revenue
Cash+Marketable Securities+ Receivables)/Current Liabilities

12. Return on Asset
CFO-fixed capital investment+net borrowing
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/Total debt

13. Net Profit Margin
Annual Sales/Average receivables
(Cash+Marketable Securities)/Current Liabilities
CFO/operating income
NI/Revenue

14. FCFE
CFO-fixed capital investment+net borrowing
CA/CL
NI available to common/average common equity
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

15. Interest coverage
CFO/cash long-term debt repayment
CFO/operating income
(market rate at issue)*(balance sheet value of the liability at beg period)
(CFO+interest paid+taxes paid )/interest paid

16. DDB
(2/useful life)*(Cost-Depreciation)
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
365/payable turnover ratio
EBIT/total asset

17. Days of sales outstanding
CFO/cash outflows from investing and financing
Purchases/Average trade payable
365/receivables turnover
NI/average total equity

18. Gross Profit Margin
Revenue/Average Working Capital
Gross Profit/Revenue
EBT/Revenue
(CFO-preferred dividends)/weighted average number of common shares

19. Units in production
NI/Revenue
CFO/average total assets
(Cash+Marketable Securities)/Current Liabilities
[(Orginal Cost-Salvage)/Life in output units] * output units in production

20. CF to Revenue
(Cash+Marketable Securities)/Current Liabilities
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/Net Revenue
STD OI/mean OI

21. Cash to ROA
(2/useful life)*(Cost-Depreciation)
Purchases/Average trade payable
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/average total assets

22. CV NI
CFO/cash outflows from investing and financing
(EBIT+lease payments)/(interest payments+lease payments)
Revenue/Average Total Assets
STD NI/Mean NI

23. Day of inventory on hand
365/Inventory turnover
CFO/operating income
Gross Profit/Revenue
365/receivables turnover

24. Basic EPS
(NI-preferred dividends)/weighted average of common shares
COGS/Average Inventory
(market rate at issue)*(balance sheet value of the liability at beg period)
[NI/sales][Sales/Assets][Assets/Equity]

25. Defensive interval
CFO-fixed capital investment+net borrowing
COGS/Average Inventory
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

26. Number of days of payable
CFO/average total assets
CFO/cash outflows from investing and financing
EBIT/Revenue
365/payable turnover ratio

27. CF per share
[NI/sales][Sales/Assets][Assets/Equity]
Cash+Marketable Securities+ Receivables)/Current Liabilities
(CFO-preferred dividends)/weighted average number of common shares
Begininng inventories+purchases-COGS

28. Cash Ratio
CFO/average total equity
COGS/Average Inventory
365/Inventory turnover
(Cash+Marketable Securities)/Current Liabilities

29. Diluted EPS
NI/average total equity
Average Total Asset/Average total equity
(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)
[(Orginal Cost-Salvage)/Life in output units] * output units in production

30. Payable Turnover
NI/Revenue
Average Total Asset/Average total equity
Purchases/Average trade payable
[(Orginal Cost-Salvage)/Life in output units] * output units in production

31. Return on common equity
NI available to common/average common equity
NI/average total equity
STD OI/mean OI
(EBIT+lease payments)/(interest payments+lease payments)

32. Total asset turnover
Total Debt/Total Asset
(2/useful life)*(Cost-Depreciation)
ROCE - ROA
Revenue/Average Total Assets

33. Ending inventories
Average Total Asset/Average total equity
Purchases/Average trade payable
STD NI/Mean NI
Begininng inventories+purchases-COGS

34. Fixed charged coverage
Total debt/(Total debt+Total shareholders equity)
(EBIT+lease payments)/(interest payments+lease payments)
Revenue/Average Total Assets
Cash+Marketable Securities+ Receivables)/Current Liabilities

35. Return on total capital
NI/total capital
CFO/cash paid for long term asset
365/Inventory turnover
(Cash+Marketable Securities)/Current Liabilities

36. Debt to capital
Total debt/(Total debt+Total shareholders equity)
STD NI/Mean NI
Average Total Asset/Average total equity
NI/average total equity

37. Financial Leverage
(CFO-preferred dividends)/weighted average number of common shares
NI/Revenue
Average Total Asset/Average total equity
Taxes payable+Change in DTL - Change in DTA

38. Working Capital Turnover
Revenue/Average Working Capital
365/Inventory turnover
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
STD of Sales/Mean Sales

39. Return on equity
CFO-fixed capital investment+net borrowing
COGS/Average Inventory
CFO/cash long-term debt repayment
NI/average total equity

40. Cash to income
CFO-fixed capital investment+net borrowing
CFO/operating income
STD OI/mean OI
[(Orginal Cost-Salvage)/Life in output units] * output units in production

41. Cash to ROE
CFO/average total equity
Total debt/(Total debt+Total shareholders equity)
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(market rate at issue)*(balance sheet value of the liability at beg period)

42. Operating Profit Margin
NI/total capital
CFO/average total equity
Annual Sales/Average receivables
EBIT/Revenue

43. Current Ratio
365/Inventory turnover
CA/CL
EBT/Revenue
Total Debt/Total Asset

44. Cash Conversion Cycle
Total debt/(Total debt+Total shareholders equity)
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI/average total equity
Begininng inventories+purchases-COGS

45. Debt to equity

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46. Income tax expense
Taxes payable+Change in DTL - Change in DTA
[NI/sales][Sales/Assets][Assets/Equity]
CFO/operating income
365/payable turnover ratio

47. Inventory turnover
365/receivables turnover
COGS/Average Inventory
Purchases/Average trade payable
ROCE - ROA

48. Operating return on assets
Cash+Marketable Securities+ Receivables)/Current Liabilities
(Cash+Marketable Securities)/Current Liabilities
(market rate at issue)*(balance sheet value of the liability at beg period)
EBIT/total asset

49. Receivables Turnover
Annual Sales/Average receivables
COGS/Average Inventory
CFO/cash paid for long term asset
NI/average total equity

50. Fixed assets turnover
Revenue/Average Fixed Assets
CFO/dividends paid
365/Inventory turnover
STD OI/mean OI