A B C D E

1 Year 1 Year 2 Year 3 Year 4

2 Sales $1,000,000 $1,500,000 $2,000,000 $2,500,000

3 COGS $800,000 $1,100,000 $1,400,000 $1,700,000

4 Gross Profit =B2-B3 =C2-C3 =D2-D3 =E2-E3

5 Net Income $100,000 $200,000 $300,000 $400,000

6 EBIT $150,000 $250,000 $350,000 $450,000

7 EBITDA =B6+Depreciation =C6+Depreciation =D6+Depreciation =E6+Depreciation

What is the formula for calculating Gross Profit?

a) =SUM(B2:B3)

b) =B2-B3

c) =B3/B2

d) =SUM(B2:B3)/2
e) =(B2+B3)/B2

Answer: b) =B2-B3

What is the formula for calculating EBITDA in Year 3?

a) =D6

b) =D6+Depreciation

c) =D2+Depreciation

d) =D6/B2

e) =D7-C3

Answer: b) =D6+Depreciation

What is the formula for calculating Net Income in Year 2?

a) =B5

b) =C5

c) =B5-B3

d) =C2-C3

e) =B2-B5

Answer: a) =B5

What is the formula for calculating COGS in Year 4?

a) =B3+E2

b) =E2-E3

c) =E3/E2

d) =B2-B3

e) =E3

Answer: e) =E3

What is the formula for calculating Gross Profit Margin in Year 1?

a) =B2/B3

b) =B4/B2

c) =B4/B3
d) =B5/B2

e) =B5/B3

Answer: b) =B4/B2
 A B C

2 Sales 100,000

3 Cost of Goods Sold 60,000

4 Gross Profit

5 Operating Expenses 30,000

6 EBIT

7 Interest Expense 5,000

8 Taxes 10,000

9 Net Income
What is the formula for calculating Gross Profit?

a) =A2-A3

b) =A3/A2

c) =A2/(A2+A3)

d) =A3/(A2+A3)

Answer: a) =A2-A3

What is the formula for calculating Operating Profit?

a) =A4-A5

b) =A3/A2

c) =A2/(A2+A3)

d) =A3/(A2+A3)

Answer: a) =A4-A5

What is the formula for calculating EBIT?

a) =A5-A6

b) =A4-A5

c) =A5+A7

d) =A5-A7

Answer: b) =A4-A5

What is the formula for calculating Net Income?

a) =A6-A7

b) =A5-A7

c) =A5-A8

d) =A5+A7-A8

Answer: d) =A5+A7-A8

What is the formula for calculating Gross Profit Margin?

a) =A4/A2

b) =A2-A3
c) =A4/A3

d) =A4/(A2-A3)

Answer: a) =A4/A2

What is the formula for calculating Operating Profit Margin?

a) =A5/A2

b) =A4/A2

c) =A5/A3

d) =A5/(A2-A3)

Answer: a) =A5/A2

What is the formula for calculating Net Profit Margin?

a) =A6/A2

b) =A6/A3

c) =A5/A2

d) =A9/A2

Answer: a) =A6/A2

What is the formula for calculating Return on Assets (ROA)?

a) =A9/A2

b) =A9/A3

c) =A6/A2

d) =A6/A3

Answer: a) =A9/A2

What is the formula for calculating Return on Equity (ROE)?

a) =A9/A2

b) =A9/A3

c) =A9/(A2+A3)

d) =A9/A4

Answer: c) =A9/(A2+A3)
What is the formula for calculating Debt-to-Equity ratio?

a) =A7/A8

b) =A8/A7

c) =A3/A9

d) =A2/A3

Answer: b) =A8/A7

1. What is the result of the math operation

in cell A4?
a) -0.88
b) 7.86
c) 12.34
d) 16.43
e) 20.85
Solution: d

2. What should be the formula in B5?

a) =B2/(B2/(1-B4))
b) =B2/(B3/(1-B4))
c) =B2/(B2-B3/(1-B4))
d) =B2/B2-B3/1-B4
e) =(B2/B2)-B3/(1-B4)
Solution: c

3. Which of the following is the correct formula for

cell B5 to calculate the earnings per share?
 a) =B2-B3*B2/B4
b) =(B2-B3)/B4
c) =B2*(1-B3)/B4
d) =(B2+B3*B2)/B4
e) =B2*(1+B3)/B4
Solution: c

4. What custom category was used to format cell A2

using the data in cell A1?
a) #,##0.00,
b) #,##0.00
c) #,###.00
d) #,##0,
e) #,##0
Solution: a