FINANCIAL STATEMENT MODELLING ACTUAL
EXAM ALL 100+ QUESTIONS AND CORRECT
ANSWERS (100% CORRECT ANSWERS)/
FINANCIAL STATEMENT MODELLING ACTUAL
EXAM ALL 100+ QUESTIONS AND CORRECT
ANSWERS (100% CORRECT ANSWERS)
LATEST 2024-2025 VERSION
1. Which formula is used to check that a Balance Sheet has been built
correctly? - ANSWER-Total Assets = Total Liabilities + Stockholders'
Equity
2. How do you calculate Inventory Turns? - ANSWER-COGS / Inventory
3. How do you calculate Days Sales Outstanding? - ANSWER-Accounts
Receivable / Revenue * 365
4. We can project prepaid expenses by assuming its percentage of... -
ANSWER-Revenue
5. How do you calculate Net Working Capital? - ANSWER-Total non-cash
current assets - Total non-debt current liabilities
6. Depreciation is to PP&E as Amortization is to... - ANSWER-Intangible
Assets.
7. We use this driver to project Capex: - ANSWER-% of revenue
8. 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
, 9. Beginning Intangible Balance is $10 million; Amortization = $1.5
million; Additions = $0.75 million. What is the ending balance? -
ANSWER-$9.25 million
10.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 + =
11.In the Cash Flow Statement, we add back Depreciation and Amortization
to Net Income because... - ANSWER-They are non-cash expenses
12.In what section of the cash flow statement does Capex belong? -
ANSWER-Investing
13.Share repurchases decrease Stockholder's Equity (T or F) - ANSWER-
True
14.How do we project Dividends? - ANSWER-Assumed Dividend Payout
Ratio * Projected Net Income
15.How do we link the Cash Flow Statement (CFS) to the Balance Sheet
(BS)? - ANSWER-(CFS) Ending Cash = (BS) Same Year's Cash Balance
16.Debt issuance decreases long-term debt (T or F) - ANSWER-False
17.What is a revolver? - ANSWER-A corporation's "credit card" that is used
to finance working capital needs
18.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
EXAM ALL 100+ QUESTIONS AND CORRECT
ANSWERS (100% CORRECT ANSWERS)/
FINANCIAL STATEMENT MODELLING ACTUAL
EXAM ALL 100+ QUESTIONS AND CORRECT
ANSWERS (100% CORRECT ANSWERS)
LATEST 2024-2025 VERSION
1. Which formula is used to check that a Balance Sheet has been built
correctly? - ANSWER-Total Assets = Total Liabilities + Stockholders'
Equity
2. How do you calculate Inventory Turns? - ANSWER-COGS / Inventory
3. How do you calculate Days Sales Outstanding? - ANSWER-Accounts
Receivable / Revenue * 365
4. We can project prepaid expenses by assuming its percentage of... -
ANSWER-Revenue
5. How do you calculate Net Working Capital? - ANSWER-Total non-cash
current assets - Total non-debt current liabilities
6. Depreciation is to PP&E as Amortization is to... - ANSWER-Intangible
Assets.
7. We use this driver to project Capex: - ANSWER-% of revenue
8. 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
, 9. Beginning Intangible Balance is $10 million; Amortization = $1.5
million; Additions = $0.75 million. What is the ending balance? -
ANSWER-$9.25 million
10.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 + =
11.In the Cash Flow Statement, we add back Depreciation and Amortization
to Net Income because... - ANSWER-They are non-cash expenses
12.In what section of the cash flow statement does Capex belong? -
ANSWER-Investing
13.Share repurchases decrease Stockholder's Equity (T or F) - ANSWER-
True
14.How do we project Dividends? - ANSWER-Assumed Dividend Payout
Ratio * Projected Net Income
15.How do we link the Cash Flow Statement (CFS) to the Balance Sheet
(BS)? - ANSWER-(CFS) Ending Cash = (BS) Same Year's Cash Balance
16.Debt issuance decreases long-term debt (T or F) - ANSWER-False
17.What is a revolver? - ANSWER-A corporation's "credit card" that is used
to finance working capital needs
18.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
