Formulas to Remember

Question 1

Ending Retained Earnings

Answer 1

Income+Retained Earnings-Dividends

Question 2

Income

Answer 2

Sales Revenue x Margin

Question 3

Dividends

Answer 3

Dividend Ratio x Income

Question 4

Accounting Equation

Answer 4

Assets=Liabilities+Equity

Question 5

Cash Flow From Operating Activities (CFO)

Answer 5

Net Income + Depreciation +/- Decrease/Increase in Current Assets +/- Increase/Decrease in current liabilities

Question 6

Cash Flow From Investing (CFI)

Answer 6

Net Change in PPE + Depreciation

Question 7

Cash Flow From Financing (CFF)

Answer 7

Change in Stock + Change in long term liabilities - Dividends

Question 8

Simple Interest

Answer 8

Principle + (Principle * Interest * Compounding Period)

Question 9

Rate of Return (ROR)

Answer 9

(Dividend + Sell Price) - Buy Price

Question 10

Differential Cash Flow (DCF)

Answer 10

Increase in Revenue - Increase in Variable and Fixed Costs - Income Tax Expense - Increase in Working Capital

Question 11

EBIT

Answer 11

Sales Revenue - Variable Costs - Fixed Costs

Question 12

Discretionary Financing Needed (DFI)

Answer 12

Projected Total Assets - Projected Total Liabilities - Projected Equity

Question 13

Weighted Average of Cost of Capital

Answer 13

Weighted Average of Debt and Equity