Financial Statement Modeling Exam
Financial Statement Modeling Exam Study
Questions with Verified Answers 2025
Which formula is used to check that a Balance Sheet has been built correctly? -Correct
Answer ✔Total Assets = Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? -Correct Answer ✔COGS / Inventory
How do you calculate Days Sales Outstanding? -Correct Answer ✔Accounts Receivable
/ Revenue * 365
We can project prepaid expenses by assuming its percentage of... -Correct Answer
✔Revenue
How do you calculate Net Working Capital? -Correct Answer ✔Total non-cash current
assets - Total non-debt current liabilities
Depreciation is to PP&E as Amortization is to... -Correct Answer ✔Intangible Assets.
We use this driver to project Capex: -Correct Answer ✔% of revenue
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) -Correct Answer ✔TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions =
$0.75 million. What is the ending balance? -Correct 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? -Correct
Answer ✔Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net Income
because... -Correct Answer ✔They are non-cash expenses
In what section of the cash flow statement does Capex belong? -Correct Answer
✔Investing
Share repurchases decrease Stockholder's Equity (T or F) -Correct Answer ✔True
How do we project Dividends? -Correct Answer ✔Assumed Dividend Payout Ratio *
Projected Net Income
Financial Statement Modeling Exam
, Financial Statement Modeling Exam
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? -Correct
Answer ✔(CFS) Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) -Correct Answer ✔False
What is a revolver? -Correct Answer ✔A corporation's "credit card" that is used to
finance working capital needs
WSO's Banana Stand has an average revolver balance of $10 million with an interest
rate of 5%. It also has an average long-term debt balance of $50 million with an interest
rate of 2.5%. What is its total interest expense for the year? -Correct Answer ✔$1.75
million
Circularity is caused when you have multiple cells' formulas referencing each other. (T
or F) -Correct Answer ✔True
WSO's Banana Stand has a total interest expense of $2 million and has $100 million in
cash that earns 1%. What is its net interest expense (income)? -Correct Answer ✔$1
million
Which of these activities is not dilutive (anti-dilutive)? -Correct Answer ✔Share
Repurchasing
We use basic shares outstanding when calculating EPS (T or F) -Correct Answer
✔False
A company announces that it expects to spend $1 million on buybacks in the upcoming
year. If its shares are projected to have an average price of $250, how many shares will
be repurchased? -Correct Answer ✔4000
A model has these projections and assumptions: $20 million of Net Income, shares
trade at 20.0x earnings, and 1 million shares outstanding. What is the projected share
price? -Correct Answer ✔400 (Projected Share Price = Earnings Multiple * EPS)
A dilutive activity increases the amount of shares outstanding (T or F) -Correct Answer
✔True
Which one of these is not a type of revenue build-up? -Correct Answer ✔Overall Sales
Once you have the data table highlighted, how to you create a sensitivity table? -Correct
Answer ✔Alt - A - W - T
Which Excel tool would we use to build a way to evaluate multiple scenarios? -Correct
Answer ✔Data Validation
Financial Statement Modeling Exam
Financial Statement Modeling Exam Study
Questions with Verified Answers 2025
Which formula is used to check that a Balance Sheet has been built correctly? -Correct
Answer ✔Total Assets = Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? -Correct Answer ✔COGS / Inventory
How do you calculate Days Sales Outstanding? -Correct Answer ✔Accounts Receivable
/ Revenue * 365
We can project prepaid expenses by assuming its percentage of... -Correct Answer
✔Revenue
How do you calculate Net Working Capital? -Correct Answer ✔Total non-cash current
assets - Total non-debt current liabilities
Depreciation is to PP&E as Amortization is to... -Correct Answer ✔Intangible Assets.
We use this driver to project Capex: -Correct Answer ✔% of revenue
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) -Correct Answer ✔TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions =
$0.75 million. What is the ending balance? -Correct 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? -Correct
Answer ✔Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net Income
because... -Correct Answer ✔They are non-cash expenses
In what section of the cash flow statement does Capex belong? -Correct Answer
✔Investing
Share repurchases decrease Stockholder's Equity (T or F) -Correct Answer ✔True
How do we project Dividends? -Correct Answer ✔Assumed Dividend Payout Ratio *
Projected Net Income
Financial Statement Modeling Exam
, Financial Statement Modeling Exam
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? -Correct
Answer ✔(CFS) Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) -Correct Answer ✔False
What is a revolver? -Correct Answer ✔A corporation's "credit card" that is used to
finance working capital needs
WSO's Banana Stand has an average revolver balance of $10 million with an interest
rate of 5%. It also has an average long-term debt balance of $50 million with an interest
rate of 2.5%. What is its total interest expense for the year? -Correct Answer ✔$1.75
million
Circularity is caused when you have multiple cells' formulas referencing each other. (T
or F) -Correct Answer ✔True
WSO's Banana Stand has a total interest expense of $2 million and has $100 million in
cash that earns 1%. What is its net interest expense (income)? -Correct Answer ✔$1
million
Which of these activities is not dilutive (anti-dilutive)? -Correct Answer ✔Share
Repurchasing
We use basic shares outstanding when calculating EPS (T or F) -Correct Answer
✔False
A company announces that it expects to spend $1 million on buybacks in the upcoming
year. If its shares are projected to have an average price of $250, how many shares will
be repurchased? -Correct Answer ✔4000
A model has these projections and assumptions: $20 million of Net Income, shares
trade at 20.0x earnings, and 1 million shares outstanding. What is the projected share
price? -Correct Answer ✔400 (Projected Share Price = Earnings Multiple * EPS)
A dilutive activity increases the amount of shares outstanding (T or F) -Correct Answer
✔True
Which one of these is not a type of revenue build-up? -Correct Answer ✔Overall Sales
Once you have the data table highlighted, how to you create a sensitivity table? -Correct
Answer ✔Alt - A - W - T
Which Excel tool would we use to build a way to evaluate multiple scenarios? -Correct
Answer ✔Data Validation
Financial Statement Modeling Exam
