Wall Street Prep Premium Exam with accurate || || || || || || ||
detailed solutions ||
What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? -
|| || || || || || || || || || || || || || ||
✔✔Extraordinary gains/losses ||
what is false about depreciation and amortization - ✔✔D&A may be classified within interest
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expense
Company X's current assets increased by $40 million from 2007-2008 while the companies
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current liabilities increased by $25 million over the same period. the cash impact of the change in
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working capital was - ✔✔a decrease of 15 million || || || || || || || ||
the final component of an earnings projection model is calculating interest expense. the
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calculation may create a circular reference because - ✔✔interest expense affects net income,
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which affects FCF, which affects the amount of debt a company pays down, which, in turn affects
|| || || || || || || || || || || || || || || || ||
the interest expense, hence the circular reference
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a 10-q financial filing has all of the following characteristics except - ✔✔issued four times a year.
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Depreciation Expense found in the SG&A line of the income statement for a manufacturing firm
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would most likely be attributable to which of the following - ✔✔computers used by the
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accounting department ||
If a company has projected revenues of $10 billion, a gross profit margin of 65%, and projected
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SG&A expenses of $2billion, what is the company's operating (EBIT) margin? - ✔✔45%
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A company has the following information, 1. 2014 revenues of $5 billion,2013 Accounts
|| || || || || || || || || || || || ||
receivable of $400 million, 2014 accounts receivable of $600 million, what are the days sales
|| || || || || || || || || || || || || || ||
outstanding - ✔✔36.5 || ||
, A company has the following information:
|| || || || ||
• 2014 Revenues of $8 billion
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• 2014 COGS of $5 billion
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• 2013 Accounts receivable of $400 million
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• 2014 Accounts receivable of $600 million
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• 2013 Inventories of $1 billion
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• 2014 Inventories of $800 million
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• 2013 Accounts payable of $250 million
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• 2014 Accounts payable of $300 million
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What are the inventory days for the company? - ✔✔65.7 days
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Which of the following is true - ✔✔Coca Cola's brand name is not reflected as an intangible asset
|| || || || || || || || || || || || || || || || || ||
on its balance sheet
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A company has the following information:
|| || || || ||
• 2014 share repurchase plan of $4 billion
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• Average share price of $60 for the year 2013
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• Expected EPS growth for 2014 of 10%
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What should the number of shares repurchased by the company be in your financial model? -
|| || || || || || || || || || || || || || || ||
✔✔60.6 million ||
non-controlling interest - ✔✔is an expense on the income statement and equity o the balance
|| || || || || || || || || || || || || || ||
sheet
A company has the following information:
|| || || || ||
• 2013 retained earnings balance of $12 billion
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• Net income of $3.5 billion in 2014
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detailed solutions ||
What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? -
|| || || || || || || || || || || || || || ||
✔✔Extraordinary gains/losses ||
what is false about depreciation and amortization - ✔✔D&A may be classified within interest
|| || || || || || || || || || || || || ||
expense
Company X's current assets increased by $40 million from 2007-2008 while the companies
|| || || || || || || || || || || || ||
current liabilities increased by $25 million over the same period. the cash impact of the change in
|| || || || || || || || || || || || || || || || ||
working capital was - ✔✔a decrease of 15 million || || || || || || || ||
the final component of an earnings projection model is calculating interest expense. the
|| || || || || || || || || || || || ||
calculation may create a circular reference because - ✔✔interest expense affects net income,
|| || || || || || || || || || || || ||
which affects FCF, which affects the amount of debt a company pays down, which, in turn affects
|| || || || || || || || || || || || || || || || ||
the interest expense, hence the circular reference
|| || || || || ||
a 10-q financial filing has all of the following characteristics except - ✔✔issued four times a year.
|| || || || || || || || || || || || || || || ||
Depreciation Expense found in the SG&A line of the income statement for a manufacturing firm
|| || || || || || || || || || || || || || ||
would most likely be attributable to which of the following - ✔✔computers used by the
|| || || || || || || || || || || || || || ||
accounting department ||
If a company has projected revenues of $10 billion, a gross profit margin of 65%, and projected
|| || || || || || || || || || || || || || || || ||
SG&A expenses of $2billion, what is the company's operating (EBIT) margin? - ✔✔45%
|| || || || || || || || || || || ||
A company has the following information, 1. 2014 revenues of $5 billion,2013 Accounts
|| || || || || || || || || || || || ||
receivable of $400 million, 2014 accounts receivable of $600 million, what are the days sales
|| || || || || || || || || || || || || || ||
outstanding - ✔✔36.5 || ||
, A company has the following information:
|| || || || ||
• 2014 Revenues of $8 billion
|| || || || ||
• 2014 COGS of $5 billion
|| || || || ||
• 2013 Accounts receivable of $400 million
|| || || || || ||
• 2014 Accounts receivable of $600 million
|| || || || || ||
• 2013 Inventories of $1 billion
|| || || || ||
• 2014 Inventories of $800 million
|| || || || ||
• 2013 Accounts payable of $250 million
|| || || || || ||
• 2014 Accounts payable of $300 million
|| || || || || ||
What are the inventory days for the company? - ✔✔65.7 days
|| || || || || || || || || ||
Which of the following is true - ✔✔Coca Cola's brand name is not reflected as an intangible asset
|| || || || || || || || || || || || || || || || || ||
on its balance sheet
|| || ||
A company has the following information:
|| || || || ||
• 2014 share repurchase plan of $4 billion
|| || || || || || ||
• Average share price of $60 for the year 2013
|| || || || || || || || ||
• Expected EPS growth for 2014 of 10%
|| || || || || || ||
What should the number of shares repurchased by the company be in your financial model? -
|| || || || || || || || || || || || || || || ||
✔✔60.6 million ||
non-controlling interest - ✔✔is an expense on the income statement and equity o the balance
|| || || || || || || || || || || || || || ||
sheet
A company has the following information:
|| || || || ||
• 2013 retained earnings balance of $12 billion
|| || || || || || ||
• Net income of $3.5 billion in 2014
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