Financial Calcs Formulas

Question 1

Capital Cost Allowance (CCA)

Answer 1

CCA = UCC * CCA Rate * 50% (in the first year)

Question 2

Depreciation Expense

Answer 2

Depreciation Expense = (Cost - Salvage Value) / Useful Life

Question 3

Cost of Goods Sold (COGS)

Answer 3

COGS = Beginning Inventory + Purchases - Ending Inventory

Question 4

Net Income

Answer 4

Net Income = Revenue - Expenses

Question 5

Shareholders’ Equity

Answer 5

Shareholders’ Equity = Total Assets - Total Liabilities

Question 6

Gross Rent Multiplier (GRM)

Answer 6

GRM = Property Price / Gross Rental Income

Question 7

Return on Investment (ROI)

Answer 7

ROI = (Net Profit / Cost of Investment) * 100

Question 8

Debt Service Coverage Ratio (DSCR)

Answer 8

DSCR = Net Operating Income / Total Debt Service

Question 9

Operating Expense Ratio (OER)

Answer 9

OER = Operating Expenses / Gross Operating Income

Question 10

Cash on Cash Return

Answer 10

Annual Pre - Tax Cash Flow / Total Cash Invested

Question 11

Amortization

Answer 11

Amortization Schedule Calculation

Question 12

Annual Percentage Rate (APR)

Answer 12

APR = [(Fees + Interest) / Principal] / n * 365

Question 13

Value of Cash

Answer 13

Cash = Total Current Assets - Merchandise Inventory - Accounts Receivable

Question 14

Value of Machinery

Answer 14

Machinery = Total Non - Current Assets + Accumulated Depreciation - Land

Question 15

Total Non-Current Assets

Answer 15

Total Non - Current Assets = Total Assets - Total Current Assets

Question 16

Share Capital

Answer 16

Share Capital = Total Shareholders’ Equity - Retained Earnings

Question 17

Total Shareholders’ Equity

Answer 17

Total Shareholders’ Equity = Total Liabilities and Shareholders’ Equity - Total Liabilities

Question 18

Total Liabilities and Shareholders’ Equity

Answer 18

Total Liabilities and Shareholders’ Equity = Total Assets

Question 19

Income Tax Expense

Answer 19

Income Tax Expense = Revenue - (Interest Payments + Operating Expenses + Cost of Goods Sold) - After Tax Net Income

Question 20

Building’s Capital Cost Allowance (First Year)

Answer 20

CCA = (CCA Rate * ((Annual Depreciation Expense * Estimated Economic Life) + Salvage Value)) * 0.5

Question 21

UCC (Undepreciated Capital Cost)

Answer 21

UCC = Cost of Property - Cumulative CCA Claimed

Question 22

Revenue

Answer 22

Revenue = Price * Quantity Sold

Question 23

Operating Expenses

Answer 23

Operating Expenses = Salaries + Rent + Utilities + Office Supplies + Depreciation + Miscellaneous Expenses

Question 24

Net Operating Income (NOI)

Answer 24

NOI = Gross Operating Income - Operating Expenses

Question 25

Total Debt Service

Answer 25

Total Debt Service = Interest Payments + Principal Repayment

Question 26

Gross Operating Income

Answer 26

Gross Operating Income = Gross Rental Income + Other Income

Question 27

Principal

Answer 27

No specific formula, as Principal is the initial amount.

Question 28

Annual Pre-Tax Cash Flow

Answer 28

Annual Pre - Tax Cash Flow = NOI - Debt Service

Question 29

Total Cash Invested

Answer 29

Total Cash Invested = Down Payment + Closing Costs + Renovation Costs + Other Initial Costs

Question 30

Debt Yield

Answer 30

Debt Yield = Net Operating Income / Loan Amount

Question 31

Break-Even Occupancy

Answer 31

Break - Even Occupancy = (Operating Expenses + Debt Service) / Gross Potential Rent

Question 32

Gross Rent Multiplier (GRM)

Answer 32

GRM = Property Price / Gross Annual Rental Income

Question 33

Effective Gross Income (EGI)

Answer 33

EGI = Gross Potential Rent - Vacancy and Credit Losses + Other Income

Question 34

Total Debt Service

Answer 34

Total Debt Service = Principal + Interest Payments

Question 35

Loan-to-Value Ratio (LTV)

Answer 35

LTV = Loan Amount / Appraised Property Value

Question 36

Loan-to-Value Ratio (LTV)

Answer 36

LTV = Appraised Value of the PropertyLoan Amount​

Question 37

Cost of Goods Sold (COGS)

Answer 37

COGS = Beginning Inventory + Purchases−Ending Inventory

Question 38

Income Tax Expense

Answer 38

Income Tax Expense = Revenue−(Interest Expense + Operating Expense + Depreciation + Other Expenses)

Question 39

Net Present Value (NPV)

Answer 39

NPV = ∑(1 + r)tRt​​−C0​

Question 40

Internal Rate of Return (IRR)

Answer 40

0 = ∑(1 + IRR)tRt​​−C0​

Question 41

Current Ratio

Answer 41

Current Ratio = Current LiabilitiesCurrent Assets​

Question 42

Quick Ratio (Acid-Test Ratio)

Answer 42

Quick Ratio = Current LiabilitiesCurrent Assets−Inventory​

Question 43

Debt-to-Equity Ratio

Answer 43

Debt - to - Equity Ratio = Shareholders’ EquityTotal Liabilities​

Question 44

Return on Equity (ROE)

Answer 44

ROE = Shareholders’ EquityNet Income​

Question 45

Earnings Per Share (EPS)

Answer 45

EPS = Average Outstanding SharesNet Income−Dividends on Preferred Stock​

Question 46

Price-to-Earnings Ratio (P/E Ratio)

Answer 46

P/E Ratio = Earnings per ShareMarket Value per Share​

Question 47

Annual Depreciation Expense

Answer 47

Annual Depreciation = Estimated Remaining LifeCost−Salvage Value​

Question 48

Book Value of Building

Answer 48

Book Value = (Annual Depreciation×Remaining Life) + Salvage Value

Question 49

Capital Cost Allowance (CCA)

Answer 49

First Year: CCA = 2(UCC×Rate)​
Thereafter: CCA = UCC×Rate

Question 50

Cost of Goods Sold (COGS)

Answer 50

COGS = Beginning Inventory + Purchases−Ending Inventory

Question 51

Unit Entitlement

Answer 51

Unit Entitlement = Total Strata Lot AreaIndividual Strata Lot Area​

Question 52

Monthly Share of Common Expenses

Answer 52

Monthly Share = 12Annual Common Expenses×Unit Entitlement​

Question 53

Loan-to-Value Ratio (LTV)

Answer 53

LTV = Appraised Property ValueLoan Amount​×100

Question 54

Total Current Assets

Answer 54

Total Current Assets = Cash + Accounts Receivable + Inventory

Question 55

Total Non-Current Assets

Answer 55

Total Non - Current Assets = Total Assets−Total Current Assets

Question 56

Total Shareholders' Equity

Answer 56

Total Shareholders’ Equity = Total Liabilities and Shareholders’ Equity−Total Liabilities

Question 57

Total Liabilities and Shareholders' Equity

Answer 57

Total Liabilities and Shareholders’ Equity = Total Assets

Question 58

Purchase Price of Building

Answer 58

Purchase Price = (Annual Depreciation×Economic Life) + Salvage Value

Question 59

Remaining Depreciable Base or UCC

Answer 59

UCCend of year​ = UCCbeginning of year​ + Additions−Disposals−CCA deduction for the year