Formula Sheet 3 - Fin Stmt Analysis

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Percentage completion method formula

Explain how choosing either % completion or completed contract method affects financial ratios
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How does a stock dividend affect equity?

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Describe CFO major inflows and outflows

Describe CFI major inflows and outflows

Describe CFF major inflows and outflows

Discretionary free cash flow =

Free cash flow to owners =

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 Formula Sheet 3 - Fin Stmt Analysis
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Define the direct method and formula

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Define the indirect method and formula

Cash collected from credit sales=

Cash paid to suppliers =

Cash flow from non-operating activities =

Working Capital =

Current ratio =

Quick ratio/acid test =

Cash ratio =

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 Formula Sheet 3 - Fin Stmt Analysis
http://www.cpa-cfa.org
A/R T/O =

Inventory T/O =

A/P T/O =

Days sales outstanding =

Avg A/R collection period =

Inventory processing period =

A/P payment period =

Cash conversion cycle =

LT debt to LT capital =

Gross margin % =

Operating profit margin =

Net Profit margin =

Return on Owners equity =

Asset T/O =

Equity T/O =

ROE =

ROE =

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 Formula Sheet 3 - Fin Stmt Analysis
http://www.cpa-cfa.org

ROA =

ROA =

Return on total capital =

Traditional Dupoint model =

Times interest earned =

Sustainable growth rate =

Basic EPS =

Diluted EPS =

WACSO =

Additional shares from exercising warrants =

Book value per common share =

When prices are rising

Under FIFO:

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 Formula Sheet 3 - Fin Stmt Analysis
http://www.cpa-cfa.org
Under LIFO:

How do you convert LIFO to FIFO on B/S?

How do you convert LIFO to FIFO on I/S?

What are the depreciation methods and they’re formulas

1.

2.

3.

4.

Avg Depreciable life of fixed assets =

Avg Age of fixed assets =

Effect of depreciation on ratios

Using SL:

Using Accelerated::

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 Formula Sheet 3 - Fin Stmt Analysis
http://www.cpa-cfa.org
Depletion rate =
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Effect of capitalization vs expensing on ratios
Capitalizing:

Expensing:

DTL =

DTA =

Fill in the table

TI Temporary Diff GAAP Inc

Statutory tax rate = Effective tax rate =

(current)

Create a Bond Amortization table

Effect of bond type vs par on cash flows

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 Formula Sheet 3 - Fin Stmt Analysis
http://www.cpa-cfa.org

The effect of warrants issuance on the F/S and ratios

Compared to a capital lease, an operating lease will (in the early years)

B/S:

I/S:

When must a lessee capitalize?__________

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•
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PV of minimum lease payments =

When calculating the PV of min lease payment use the ______________

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Create a lease amortization table
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Formula Sheet 3 - Fin Stmt Analysis
http://www.cpa-cfa.org