ATI Leadership Proctored Exam Latest 2023/2024 GRADED A 70 QUESTIONS AND ANSWERS
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 millio n
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
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
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 millio n
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
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
