1
FINANCIAL STATEMENT MODELING EXAM LATEST
2024/2025 QUESTIONS AND CORRECT
ANSWERS(100% CORRECT VERIFIED
ANSWERS)ALREADY GRADED A+
Which formula is used to check that a Balance Sheet has been built correctly? -
(answers)Total Assets = Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - (answers)COGS / Inventory
How do you calculate Days Sales Outstanding? - (answers)Accounts Receivable
/ Revenue * 365
We can project prepaid expenses by assuming its percentage of... -
(answers)Revenue
How do you calculate Net Working Capital? - (answers)Total non-cash current
assets - Total non-debt current liabilities
Depreciation is to PP&E as Amortization is to... - (answers)Intangible Assets.
We use this driver to project Capex: - (answers)% 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) -
(answers)TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million;
Additions = $0.75 million. What is the ending balance? - (answers)$9.25
million
, 2
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? - (answers)Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net
Income because... - (answers)They are non-cash expenses
In what section of the cash flow statement does Capex belong? -
(answers)Investing
Share repurchases decrease Stockholder's Equity (T or F) - (answers)True
How do we project Dividends? - (answers)Assumed Dividend Payout Ratio *
Projected Net Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? -
(answers)(CFS) Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - (answers)False
What is a revolver? - (answers)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? -
(answers)$1.75 million
FINANCIAL STATEMENT MODELING EXAM LATEST
2024/2025 QUESTIONS AND CORRECT
ANSWERS(100% CORRECT VERIFIED
ANSWERS)ALREADY GRADED A+
Which formula is used to check that a Balance Sheet has been built correctly? -
(answers)Total Assets = Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - (answers)COGS / Inventory
How do you calculate Days Sales Outstanding? - (answers)Accounts Receivable
/ Revenue * 365
We can project prepaid expenses by assuming its percentage of... -
(answers)Revenue
How do you calculate Net Working Capital? - (answers)Total non-cash current
assets - Total non-debt current liabilities
Depreciation is to PP&E as Amortization is to... - (answers)Intangible Assets.
We use this driver to project Capex: - (answers)% 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) -
(answers)TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million;
Additions = $0.75 million. What is the ending balance? - (answers)$9.25
million
, 2
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? - (answers)Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net
Income because... - (answers)They are non-cash expenses
In what section of the cash flow statement does Capex belong? -
(answers)Investing
Share repurchases decrease Stockholder's Equity (T or F) - (answers)True
How do we project Dividends? - (answers)Assumed Dividend Payout Ratio *
Projected Net Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? -
(answers)(CFS) Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - (answers)False
What is a revolver? - (answers)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? -
(answers)$1.75 million
