FINANCIAL MODELING FINAL
EXAM: 6 FINANCIAL
STATEMENTS QUESTIONS
AND CORRECT DETAILED /
K
VERIFIED ANSWERS
C
LO
YC
D
U
ST
, Order of making financial statements - ANS 1) Income statement actuals and predictions
(minus D&A, interest expense income)
2) Cash flow statement actuals (link net income and depreciation from income statement) and
predictions (minus changes in operating working capital and cash flows from financing activities)
3) Balance sheet actuals
4) Depreciation schedule
5) Link depreciation into income statement
6) Operating working capital
7) Link OWC into cash flow statement changes in OWC
8) Balance sheet projections and BALANCED BALANCE SHEET
K
9) Debt Schedule
10) Link interest expense and interest income from debt schedule into income statement
11) Link debt schedule into cash flows from financing activities of CFS
C
Components of an Income Statement - ANS Revenue: Net Product (Service) Sales and (y/y %
growth under each), total net sales and (y/y net sales % growth and underneath one more line if
LO
needed )
Cost of Goods Sold:
COGS, (cogs as a % of sales)
Gross Profit: GP (GP Margin)
Operating Expenses: List each (and that operating expense as a % of net sales under each),
YC
Total operating expenses
EBITDA(EBITDA margin)
Dep and Amortization
EBIT (EBIT margin)
Other income (expense)
Interest: Interest expense, interest income, net interest expense
D
EBT (EBT margin)
Income tax expense (all in effective tax rate)
Net income from continuing operations
U
Nonreccuring events: list each, total non-recurring events
Net income (after nonreccuring events)
Equity-method investment activity
ST
Dividends paid on common stock
Net Income (as reported)
EPS: Basic, diluted
Average common shares outstanding:
basic, diluted
what are examples of nonrecurring events - ANS discontinued operations, extraordinary items,
effect of accounting changes, other items, total nonrecurring events
How to calculate All-in effective tax rate - ANS income tax expense/EBT
EXAM: 6 FINANCIAL
STATEMENTS QUESTIONS
AND CORRECT DETAILED /
K
VERIFIED ANSWERS
C
LO
YC
D
U
ST
, Order of making financial statements - ANS 1) Income statement actuals and predictions
(minus D&A, interest expense income)
2) Cash flow statement actuals (link net income and depreciation from income statement) and
predictions (minus changes in operating working capital and cash flows from financing activities)
3) Balance sheet actuals
4) Depreciation schedule
5) Link depreciation into income statement
6) Operating working capital
7) Link OWC into cash flow statement changes in OWC
8) Balance sheet projections and BALANCED BALANCE SHEET
K
9) Debt Schedule
10) Link interest expense and interest income from debt schedule into income statement
11) Link debt schedule into cash flows from financing activities of CFS
C
Components of an Income Statement - ANS Revenue: Net Product (Service) Sales and (y/y %
growth under each), total net sales and (y/y net sales % growth and underneath one more line if
LO
needed )
Cost of Goods Sold:
COGS, (cogs as a % of sales)
Gross Profit: GP (GP Margin)
Operating Expenses: List each (and that operating expense as a % of net sales under each),
YC
Total operating expenses
EBITDA(EBITDA margin)
Dep and Amortization
EBIT (EBIT margin)
Other income (expense)
Interest: Interest expense, interest income, net interest expense
D
EBT (EBT margin)
Income tax expense (all in effective tax rate)
Net income from continuing operations
U
Nonreccuring events: list each, total non-recurring events
Net income (after nonreccuring events)
Equity-method investment activity
ST
Dividends paid on common stock
Net Income (as reported)
EPS: Basic, diluted
Average common shares outstanding:
basic, diluted
what are examples of nonrecurring events - ANS discontinued operations, extraordinary items,
effect of accounting changes, other items, total nonrecurring events
How to calculate All-in effective tax rate - ANS income tax expense/EBT
