FINANCIAL MODELING FINAL EXAM: 6 FINANCIAL
STATEMENTS QUESTIONS WITH CORRECT
ANSWERS 2025
OrderMofMmakingMfinancialMstatementsM-MCORRECTMANSWERM-
1)MIncomeMstatementMactualsMandMpredictionsM(minusMD&A,MinterestMexpense&income)
2)MCashMflowMstatementMactualsM(linkMnetMincomeMandMdepreciationMfromMincomeMstatement)MandMpred
ictionsM(minusMchangesMinMoperatingMworkingMcapitalMandMcashMflowsMfromMfinancingMactivities)
3)MBalanceMsheetMactualsM
4)MDepreciationMscheduleM
5)MLinkMdepreciationMintoMincomeMstatement
6)MOperatingMworkingMcapital
7)MLinkMOWCMintoMcashMflowMstatementMchangesMinMOWC
8)MBalanceMsheetMprojectionsMandMBALANCEDMBALANCEMSHEET
9)MDebtMSchedule
10)MLinkMinterestMexpenseMandMinterestMincomeMfromMdebtMscheduleMintoMincomeMstatement
11)MLinkMdebtMscheduleMintoMcashMflowsMfromMfinancingMactivitiesMofMCFS
ComponentsMofManMIncomeMStatementM-MCORRECTMANSWERM-
Revenue:MNetMProductM(Service)MSalesMandM(y/yM%MgrowthMunderMeach),MtotalMnetMsalesMandM(y/yMnetMs
alesM%MgrowthMandMunderneathMoneMmoreMlineMifMneededM)
CostMofMGoodsMSold:M
COGS,M(cogsMasMaM%MofMsales)M
GrossMProfit:MGPM(GPMMargin)M
OperatingMExpenses:MListMeachM(andMthatMoperatingMexpenseMasMaM%MofMnetMsalesMunderMeach),MTotalMo
peratingMexpensesM
EBITDA(EBITDAMmargin)
DepMandMAmortizationM
EBITM(EBITMmargin)
OtherMincomeM(expense)
Interest:MInterestMexpense,MinterestMincome,MnetMinterestMexpenseM
EBTM(EBTMmargin)
, IncomeMtaxMexpenseM(allMinMeffectiveMtaxMrate)
NetMincomeMfromMcontinuingMoperations
NonreccuringMevents:MlistMeach,MtotalMnon-recurringMevents
NetMincomeM(afterMnonreccuringMevents)M
Equity-methodMinvestmentMactivity
DividendsMpaidMonMcommonMstockM
NetMIncomeM(asMreported)
EPS:MBasic,MdilutedM
AverageMcommonMsharesMoutstanding:M
basic,Mdiluted
whatMareMexamplesMofMnonrecurringMeventsM-MCORRECTMANSWERM-
discontinuedMoperations,MextraordinaryMitems,MeffectMofMaccountingMchanges,MotherMitems,MtotalMnonre
curringMevents
HowMtoMcalculateMAll-inMeffectiveMtaxMrateM-MCORRECTMANSWERM-incomeMtaxMexpense/EBT
HowMtoMprojectMtaxMrateM-MCORRECTMANSWERM-
commandMfM"taxMrate"MinMlatestM10kMorMgoMtoMlatestM10qMandMdivideMincomeMtaxMexpenseMintoMebtMonM
theMincomeMstatement
WhatMisMNetMincomeM(asMreported)MsupposedMtoMmatchMwith?M-MCORRECTMANSWERM-
TopMofMcashMflowMstatementMnetMincome
WhereMtoMfindMbasicMsharesMoutstandingMforMfirstMexpectedMyearM-MCORRECTMANSWERM-
coverMofMlatestM10q
howMtoMcalculateMdilutedMsharesMoutstandingM-MCORRECTMANSWERM-
basicMsharesMoutstandingM+MdilutedMsharesMwhichMcanMbeMfoundMinMmatchingMq1MinvestorMpresentation
ComponentsMofMCashMFlowMStatementM-MCORRECTMANSWERM-CashMflowMfromMoperatingMactivities
STATEMENTS QUESTIONS WITH CORRECT
ANSWERS 2025
OrderMofMmakingMfinancialMstatementsM-MCORRECTMANSWERM-
1)MIncomeMstatementMactualsMandMpredictionsM(minusMD&A,MinterestMexpense&income)
2)MCashMflowMstatementMactualsM(linkMnetMincomeMandMdepreciationMfromMincomeMstatement)MandMpred
ictionsM(minusMchangesMinMoperatingMworkingMcapitalMandMcashMflowsMfromMfinancingMactivities)
3)MBalanceMsheetMactualsM
4)MDepreciationMscheduleM
5)MLinkMdepreciationMintoMincomeMstatement
6)MOperatingMworkingMcapital
7)MLinkMOWCMintoMcashMflowMstatementMchangesMinMOWC
8)MBalanceMsheetMprojectionsMandMBALANCEDMBALANCEMSHEET
9)MDebtMSchedule
10)MLinkMinterestMexpenseMandMinterestMincomeMfromMdebtMscheduleMintoMincomeMstatement
11)MLinkMdebtMscheduleMintoMcashMflowsMfromMfinancingMactivitiesMofMCFS
ComponentsMofManMIncomeMStatementM-MCORRECTMANSWERM-
Revenue:MNetMProductM(Service)MSalesMandM(y/yM%MgrowthMunderMeach),MtotalMnetMsalesMandM(y/yMnetMs
alesM%MgrowthMandMunderneathMoneMmoreMlineMifMneededM)
CostMofMGoodsMSold:M
COGS,M(cogsMasMaM%MofMsales)M
GrossMProfit:MGPM(GPMMargin)M
OperatingMExpenses:MListMeachM(andMthatMoperatingMexpenseMasMaM%MofMnetMsalesMunderMeach),MTotalMo
peratingMexpensesM
EBITDA(EBITDAMmargin)
DepMandMAmortizationM
EBITM(EBITMmargin)
OtherMincomeM(expense)
Interest:MInterestMexpense,MinterestMincome,MnetMinterestMexpenseM
EBTM(EBTMmargin)
, IncomeMtaxMexpenseM(allMinMeffectiveMtaxMrate)
NetMincomeMfromMcontinuingMoperations
NonreccuringMevents:MlistMeach,MtotalMnon-recurringMevents
NetMincomeM(afterMnonreccuringMevents)M
Equity-methodMinvestmentMactivity
DividendsMpaidMonMcommonMstockM
NetMIncomeM(asMreported)
EPS:MBasic,MdilutedM
AverageMcommonMsharesMoutstanding:M
basic,Mdiluted
whatMareMexamplesMofMnonrecurringMeventsM-MCORRECTMANSWERM-
discontinuedMoperations,MextraordinaryMitems,MeffectMofMaccountingMchanges,MotherMitems,MtotalMnonre
curringMevents
HowMtoMcalculateMAll-inMeffectiveMtaxMrateM-MCORRECTMANSWERM-incomeMtaxMexpense/EBT
HowMtoMprojectMtaxMrateM-MCORRECTMANSWERM-
commandMfM"taxMrate"MinMlatestM10kMorMgoMtoMlatestM10qMandMdivideMincomeMtaxMexpenseMintoMebtMonM
theMincomeMstatement
WhatMisMNetMincomeM(asMreported)MsupposedMtoMmatchMwith?M-MCORRECTMANSWERM-
TopMofMcashMflowMstatementMnetMincome
WhereMtoMfindMbasicMsharesMoutstandingMforMfirstMexpectedMyearM-MCORRECTMANSWERM-
coverMofMlatestM10q
howMtoMcalculateMdilutedMsharesMoutstandingM-MCORRECTMANSWERM-
basicMsharesMoutstandingM+MdilutedMsharesMwhichMcanMbeMfoundMinMmatchingMq1MinvestorMpresentation
ComponentsMofMCashMFlowMStatementM-MCORRECTMANSWERM-CashMflowMfromMoperatingMactivities