LBO MODELING EXAM FROM WALL STREET PREP
QUESTIONS AND DETAILED ANSWERS| LATEST 2025-
2026 UPDATE|ACE THE TEST
What is generally not considered to be a pre-tax non-recurring (unusual
or infrequent) item? - Answer-Extraordinary gains/losses
what is false about depreciation and amortization - Answer-D&A may
be classified within interest expense
Company X's current assets increased by $40 million from 2007-2008
while the companies current liabilities increased by $25 million over the
same period. the cash impact of the change in working capital was -
Answer-a decrease of 15 million
the final component of an earnings projection model is calculating
interest expense. the calculation may create a circular reference because
- Answer-interest expense affects net income, which affects FCF, which
affects the amount of debt a company pays down, which, in turn affects
the interest expense, hence the circular reference
a 10-q financial filing has all of the following characteristics except -
Answer-issued four times a year.
Depreciation Expense found in the SG&A line of the income statement
for a manufacturing firm would most likely be attributable to which of
the following - Answer-computers used by the accounting department
, If a company has projected revenues of $10 billion, a gross profit
margin of 65%, and projected SG&A expenses of $2billion, what is the
company's operating (EBIT) margin? - Answer-45%
A company has the following information, 1. 2014 revenues of $5
billion,2013 Accounts receivable of $400 million, 2014 accounts
receivable of $600 million, what are the days sales outstanding -
Answer-36.5
A company has the following information:
• 2014 Revenues of $8 billion
• 2014 COGS of $5 billion
• 2013 Accounts receivable of $400 million
• 2014 Accounts receivable of $600 million
• 2013 Inventories of $1 billion
• 2014 Inventories of $800 million
• 2013 Accounts payable of $250 million
• 2014 Accounts payable of $300 million
What are the inventory days for the company? - Answer-65.7 days
Which of the following is true - Answer-Coca Cola's brand name is not
reflected as an intangible asset on its balance sheet
A company has the following information:
QUESTIONS AND DETAILED ANSWERS| LATEST 2025-
2026 UPDATE|ACE THE TEST
What is generally not considered to be a pre-tax non-recurring (unusual
or infrequent) item? - Answer-Extraordinary gains/losses
what is false about depreciation and amortization - Answer-D&A may
be classified within interest expense
Company X's current assets increased by $40 million from 2007-2008
while the companies current liabilities increased by $25 million over the
same period. the cash impact of the change in working capital was -
Answer-a decrease of 15 million
the final component of an earnings projection model is calculating
interest expense. the calculation may create a circular reference because
- Answer-interest expense affects net income, which affects FCF, which
affects the amount of debt a company pays down, which, in turn affects
the interest expense, hence the circular reference
a 10-q financial filing has all of the following characteristics except -
Answer-issued four times a year.
Depreciation Expense found in the SG&A line of the income statement
for a manufacturing firm would most likely be attributable to which of
the following - Answer-computers used by the accounting department
, If a company has projected revenues of $10 billion, a gross profit
margin of 65%, and projected SG&A expenses of $2billion, what is the
company's operating (EBIT) margin? - Answer-45%
A company has the following information, 1. 2014 revenues of $5
billion,2013 Accounts receivable of $400 million, 2014 accounts
receivable of $600 million, what are the days sales outstanding -
Answer-36.5
A company has the following information:
• 2014 Revenues of $8 billion
• 2014 COGS of $5 billion
• 2013 Accounts receivable of $400 million
• 2014 Accounts receivable of $600 million
• 2013 Inventories of $1 billion
• 2014 Inventories of $800 million
• 2013 Accounts payable of $250 million
• 2014 Accounts payable of $300 million
What are the inventory days for the company? - Answer-65.7 days
Which of the following is true - Answer-Coca Cola's brand name is not
reflected as an intangible asset on its balance sheet
A company has the following information:
