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1. What is generally not considered to be a pre-tax non-recurring (unusual
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vv orinfrequent) item?: Ans- Extraordinary gains/losses
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2. what is false about depreciation and amortization: Ans- D&A may be
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vvclassifiedwithin interest expense v vv vv




3. Company X's current assets increased by $40 million from 2007-2008 vv vv vv vv vv vv vv vv vv




vvwhilethe companies current liabilities increased by $25 million over the
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vv same period. the cash impact of the change in working capital was: Ans-
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a decrease of 15 million
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4. the final component of an earnings projection model is calculating
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vv interestexpense. the calculation may create a circular reference because:
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vv Ans- interest expense affects net income, which affects FCF, which affects the
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amount of debt acompany pays down, which, in turn affects the interest expense,
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vvhence the circularreference
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5. a 10-q financial filing has all of the following characteristics except: Ans-
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vv vvissuedfour times a year. v vv vv vv




6. Depreciation Expense found in the SG&A line of the income vv vv vv vv vv vv vv vv vv




vv statement for a manufacturing firm would most likely be attributable to
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vv which of the following: Ans- vv vv v vv vv computers used by the accounting
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vv department
7. If a company has projected revenues of $10 billion, a gross profit
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,vv marginof 65%, and projected SG&A expenses of $2billion, what is the
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vv company's operating (EBIT) margin?: 45%
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8. A company has the following information, 1. 2014 revenues of $5
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billion,2013 Accounts receivable of $400 million, 2014 accounts receivable of
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$600 million,what are the days sales outstanding: 36.5
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9. A company has the following information:
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• 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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10. Which of the following is true: Coca Cola's brand name is not reflected as
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vv anintangible asset on its balance sheet
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11. A company has the following information:
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• 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% vv vv vv vv vv vv




What should the number of shares repurchased by the company be in
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vv yourfinancial model?: 60.6 million
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12. non-controlling interest: is an expense on the income statement and equity vv vv vv vv vv vv vv vv vv vv




vv othe balance sheet
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13. A company has the following information:
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• 2013 retained earnings balance of $12 billion
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• Net income of $3.5 billion in 2014
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• Capex of $200 million in 2014 vv vv vv vv vv




• Preferred dividends of $100 million in 2014 vv vv vv vv vv vv




• Common dividends of $400 million in 2014 vv vv vv vv vv vv




What is the retained earnings balance at the end of 2014?: 15 billion
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14. in order to find out how much cash is available to pay down short term
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vv debt, such as revolving credit line, you must take: beginning cash balance +
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vv pre-debt cash flows - min. cash balance - required principal payments of LT and
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vv other debt vv




15. to calculate interest expense in the future, you should do which of the
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vv following: apply a weighted average interest rate times the average debt
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vv balanceover the course of the yearv vv vv vv vv vv




16. enterprise (transaction) value represents the:: value of all capital invested
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vv ina business
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17. A debt holder would be primarily concerned with which of the
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I. Enterprise (Transaction) Value / EBITDA vv vv vv vv




II. Price/Earnings
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