FINANCIAL STATEMENT MODELING EXAM
2025/2026 | REAL QUESTION AND ANSWERS| A+
Study Material
Beginning Intangible Balance is $10 million; Amortization = $1.5 million;
Additions = $0.75 million. What is the ending balance?
$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?
Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net
Income because...
They are non-cash expenses
In what section of the cash flow statement does Capex belong?
,Investing
Share repurchases decrease Stockholder's Equity (T or F)
True
How do we project Dividends?
Assumed Dividend Payout Ratio * Projected Net Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)?
(CFS) Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F)
False
Which formula is used to check that a Balance Sheet has been built correctly?
Total Assets = Total Liabilities + Stockholders' Equity
, How do you calculate Inventory Turns?
COGS / Inventory
How do you calculate Days Sales Outstanding?
Accounts Receivable / Revenue * 365
We can project prepaid expenses by assuming its percentage of...
Revenue
How do you calculate Net Working Capital?
Total non-cash current assets - Total non-debt current liabilities
Depreciation is to PP&E as Amortization is to...
Intangible Assets.
We use this driver to project Capex:
% of revenue
2025/2026 | REAL QUESTION AND ANSWERS| A+
Study Material
Beginning Intangible Balance is $10 million; Amortization = $1.5 million;
Additions = $0.75 million. What is the ending balance?
$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?
Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net
Income because...
They are non-cash expenses
In what section of the cash flow statement does Capex belong?
,Investing
Share repurchases decrease Stockholder's Equity (T or F)
True
How do we project Dividends?
Assumed Dividend Payout Ratio * Projected Net Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)?
(CFS) Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F)
False
Which formula is used to check that a Balance Sheet has been built correctly?
Total Assets = Total Liabilities + Stockholders' Equity
, How do you calculate Inventory Turns?
COGS / Inventory
How do you calculate Days Sales Outstanding?
Accounts Receivable / Revenue * 365
We can project prepaid expenses by assuming its percentage of...
Revenue
How do you calculate Net Working Capital?
Total non-cash current assets - Total non-debt current liabilities
Depreciation is to PP&E as Amortization is to...
Intangible Assets.
We use this driver to project Capex:
% of revenue
