©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED 1/28/2025.
Financial Statement Modeling Exam
Questions With Correct Answers 100%
Verified.
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
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
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, ©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED 1/28/2025.
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? - Answer✔(CFS)
Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - Answer✔False
What is a revolver? - 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? - Answer✔$1.75 million
Circularity is caused when you have multiple cells' formulas referencing each other. (T or F) -
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)? - Answer✔$1 million
Which of these activities is not dilutive (anti-dilutive)? - Answer✔Share Repurchasing
We use basic shares outstanding when calculating EPS (T or F) - 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? - 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? -
Answer✔400 (Projected Share Price = Earnings Multiple * EPS)
A dilutive activity increases the amount of shares outstanding (T or F) - Answer✔True
Which one of these is not a type of revenue build-up? - Answer✔Overall Sales
Once you have the data table highlighted, how to you create a sensitivity table? - Answer✔Alt -
A-W-T
Which Excel tool would we use to build a way to evaluate multiple scenarios? - Answer✔Data
Validation
A Depreciation Waterfall is a type of Depreciation Schedule that aggregates depreciation of
existing PP&E and new Capex. (T or F) - Answer✔True
What do you do after clicking on "Record Macro"? - Answer✔Do the repetitive task you want
the Macro to do for you automatically.
What is the shortcut used to move up one excel sheet? - Answer✔CTRL + Page Up
What is the purpose of color coding the font of cells? - Answer✔To show where calculations are
being made,
2|Page
Financial Statement Modeling Exam
Questions With Correct Answers 100%
Verified.
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
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
1|Page
, ©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED 1/28/2025.
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? - Answer✔(CFS)
Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - Answer✔False
What is a revolver? - 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? - Answer✔$1.75 million
Circularity is caused when you have multiple cells' formulas referencing each other. (T or F) -
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)? - Answer✔$1 million
Which of these activities is not dilutive (anti-dilutive)? - Answer✔Share Repurchasing
We use basic shares outstanding when calculating EPS (T or F) - 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? - 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? -
Answer✔400 (Projected Share Price = Earnings Multiple * EPS)
A dilutive activity increases the amount of shares outstanding (T or F) - Answer✔True
Which one of these is not a type of revenue build-up? - Answer✔Overall Sales
Once you have the data table highlighted, how to you create a sensitivity table? - Answer✔Alt -
A-W-T
Which Excel tool would we use to build a way to evaluate multiple scenarios? - Answer✔Data
Validation
A Depreciation Waterfall is a type of Depreciation Schedule that aggregates depreciation of
existing PP&E and new Capex. (T or F) - Answer✔True
What do you do after clicking on "Record Macro"? - Answer✔Do the repetitive task you want
the Macro to do for you automatically.
What is the shortcut used to move up one excel sheet? - Answer✔CTRL + Page Up
What is the purpose of color coding the font of cells? - Answer✔To show where calculations are
being made,
2|Page
