1
TRADING COMPS MODELING EXAM WALL STREET
PREP 2026/2027 WITH CORRECT /ACCURATE
ANSWERS| 100% RATED CORRECT !! | 100% SURE
PASS
What is generally not considered to be a pre-tax non-
recurring (unusual or infrequent) item? -
-Solution -Extraordinary gains/losses
what is false about depreciation and amortization -
-Solution -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 -
-Solution -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 -
-Solution -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 -
-Solution -issued four times a year.
, 2
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 -
-Solution -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? -
-Solution -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 -
-Solution -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? -
-Solution -65.7 days
Which of the following is true -
TRADING COMPS MODELING EXAM WALL STREET
PREP 2026/2027 WITH CORRECT /ACCURATE
ANSWERS| 100% RATED CORRECT !! | 100% SURE
PASS
What is generally not considered to be a pre-tax non-
recurring (unusual or infrequent) item? -
-Solution -Extraordinary gains/losses
what is false about depreciation and amortization -
-Solution -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 -
-Solution -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 -
-Solution -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 -
-Solution -issued four times a year.
, 2
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 -
-Solution -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? -
-Solution -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 -
-Solution -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? -
-Solution -65.7 days
Which of the following is true -
