Wall Street Prep Premium Exam Questions Complete With Correct Answers

Wall Street Prep Premium Exam Questions Complete With Correct Answers Q.What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ANSWERS-Extraordinary gains/losses Q.what is false about depreciation and amortization - ANSWERS-D&A may be classified within interest expense Q.Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was - ANSWERS-a decrease of 15 million Q.the final component of an earnings projection model is calculating interest expense. the calculation may create a circular reference because - ANSWERS-interest expense affects net income, which affects FCF, which affects the amount of debt a company pays down, which, in turn affects the interest expense, hence the circular reference Q.a 10-q financial filing has all of the following characteristics except - ANSWERS-issued four times a year. Q.Depreciation Expense found in the SG&A line of the income statement for a manufacturing firm would most likely be attributable to which of the following - ANSWERS-computers used by the accounting department Q.If a company has projected revenues of $10 billion, a gross profit margin of 65%, and projected SG&A expenses of $2billion, what is the company's operating (EBIT) margin? - ANSWERS-45% Q.A company has the following information, 1. 2014 revenues of $5 billion,2013 Accounts receivable of $400 million, 2014 accounts receivable of $600 million, what are the days sales outstanding - ANSWERS-36.5 Q.A company has the following information: • 2014 Revenues of $8 billion • 2014 COGS of $5 billion • 2013 Accounts receivable of $400 million • 2014 Accounts receivable of $600 million • 2013 Inventories of $1 billion • 2014 Inventories of $800 million • 2013 Accounts payable of $250 million • 2014 Accounts payable of $300 million What are the inventory days for the company? - ANSWERS-65.7 days Q.Which of the following is true - ANSWERS-Coca Cola's brand name is not reflected as an intangible asset on its balance sheet Q.A company has the following information: • 2014 share repurchase plan of $4 billion • Average share price of $60 for the year 2013 • Expected EPS growth for 2014 of 10% What should the number of shares repurchased by the company be in your financial model? - ANSWERS-60.6 million Q.non-controlling interest - ANSWERS-is an expense on the income statement and equity o the balance sheet Q.A company has the following information: • 2013 retained earnings balance of $12 billion • Net income of $3.5 billion in 2014 • Capex of $200 million in 2014 • Preferred dividends of $100 million in 2014 • Common dividends of $400 million in 2014 What is the retained earnings balance at the end of 2014? - ANSWERS-15 billion Q.in order to find out how much cash is available to pay down short term debt, such as revolving credit line, you must take - ANSWERS-beginning cash balance + pre-debt cash flows - min. cash balance - required principal payments of LT and other debt