WALL STREET PREP FINANCIAL
MODELING COMPREHENSIVE STUDY
GUIDE COMPLETE QUESTIONS AND
CORRECT ANSWERS
●● COGS
Answer: anything related directly to production of goods being sold
●● Operating Expenses
Answer: Costs involved in operating a business, such as rent, utilities,
and salaries.
●● D&A useful life =
Answer: Cost(gross depreciable PP&E / annual depreciaiton
●● net income =
Answer: revenue - exspenses
●● gross profit
Answer: revenue - COGS
●● EBITDA
, Answer: revenue - cogs - operating exspenses
●● EBIT =
Answer: EBITDA - D&A
●● non-cash exspenses
Answer: D&A, SBC
●● Cash flow statement
Answer: the total amount of cash that a company generates over a period
of time
●● Unlevered Free Cash Flow (UFCF) =
Answer: EBIT*(1-tax rate) + D&A + Deferred Taxes + Other non cash
items - Working Capital Charges - Capital Expenditures
EBITDA - taxes - capex - change NWC
●● Balance sheet
Answer: snapshot in time of a companies assets, liabilities, and equity all
in balance
●● Equity =
MODELING COMPREHENSIVE STUDY
GUIDE COMPLETE QUESTIONS AND
CORRECT ANSWERS
●● COGS
Answer: anything related directly to production of goods being sold
●● Operating Expenses
Answer: Costs involved in operating a business, such as rent, utilities,
and salaries.
●● D&A useful life =
Answer: Cost(gross depreciable PP&E / annual depreciaiton
●● net income =
Answer: revenue - exspenses
●● gross profit
Answer: revenue - COGS
●● EBITDA
, Answer: revenue - cogs - operating exspenses
●● EBIT =
Answer: EBITDA - D&A
●● non-cash exspenses
Answer: D&A, SBC
●● Cash flow statement
Answer: the total amount of cash that a company generates over a period
of time
●● Unlevered Free Cash Flow (UFCF) =
Answer: EBIT*(1-tax rate) + D&A + Deferred Taxes + Other non cash
items - Working Capital Charges - Capital Expenditures
EBITDA - taxes - capex - change NWC
●● Balance sheet
Answer: snapshot in time of a companies assets, liabilities, and equity all
in balance
●● Equity =
