1
FINANCIAL STATEMENT MODELLING EXAM
QUESTIONS AND CORRECT ANSWERS| ACCURATE
REAL EXAM WITH FREQUENTLY TESTED QUESTIONS
AND RATIONALE|ALREADY A GRADED|GUARANTEED
PASS|LATEST UPDATE 2024/2025.
Which formula is used to check that a Balance Sheet has been built correctly? -
(answer)Total Assets = Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - (answer)COGS / Inventory
How do you calculate Days Sales Outstanding? - (answer)Accounts Receivable /
Revenue * 365
We can project prepaid expenses by assuming its percentage of... -
(answer)Revenue
How do you calculate Net Working Capital? - (answer)Total non-cash current
assets - Total non-debt current liabilities
Depreciation is to PP&E as Amortization is to... - (answer)Intangible Assets.
We use this driver to project Capex: - (answer)% of revenue
, 2
When calculating the ending balance of a line item in a projected year, we
reference last year's ending balance as the beginning balance (T or F) -
(answer)TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions
= $0.75 million. What is the ending balance? - (answer)$9.25 million
Assuming Intangible Balance is 10.0 in C11, amortization is -1.5 in C12, and
additions is 0.75 in C13, how would you quickly calculate ending Tangible Balance
in C14? - (answer)Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net
Income because... - (answer)They are non-cash expenses
In what section of the cash flow statement does Capex belong? -
(answer)Investing
Share repurchases decrease Stockholder's Equity (T or F) - (answer)True
How do we project Dividends? - (answer)Assumed Dividend Payout Ratio *
Projected Net Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? -
(answer)(CFS) Ending Cash = (BS) Same Year's Cash Balance
FINANCIAL STATEMENT MODELLING EXAM
QUESTIONS AND CORRECT ANSWERS| ACCURATE
REAL EXAM WITH FREQUENTLY TESTED QUESTIONS
AND RATIONALE|ALREADY A GRADED|GUARANTEED
PASS|LATEST UPDATE 2024/2025.
Which formula is used to check that a Balance Sheet has been built correctly? -
(answer)Total Assets = Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - (answer)COGS / Inventory
How do you calculate Days Sales Outstanding? - (answer)Accounts Receivable /
Revenue * 365
We can project prepaid expenses by assuming its percentage of... -
(answer)Revenue
How do you calculate Net Working Capital? - (answer)Total non-cash current
assets - Total non-debt current liabilities
Depreciation is to PP&E as Amortization is to... - (answer)Intangible Assets.
We use this driver to project Capex: - (answer)% of revenue
, 2
When calculating the ending balance of a line item in a projected year, we
reference last year's ending balance as the beginning balance (T or F) -
(answer)TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions
= $0.75 million. What is the ending balance? - (answer)$9.25 million
Assuming Intangible Balance is 10.0 in C11, amortization is -1.5 in C12, and
additions is 0.75 in C13, how would you quickly calculate ending Tangible Balance
in C14? - (answer)Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net
Income because... - (answer)They are non-cash expenses
In what section of the cash flow statement does Capex belong? -
(answer)Investing
Share repurchases decrease Stockholder's Equity (T or F) - (answer)True
How do we project Dividends? - (answer)Assumed Dividend Payout Ratio *
Projected Net Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? -
(answer)(CFS) Ending Cash = (BS) Same Year's Cash Balance
