2025 FINANCIAL STATEMENT MODELING ACTUAL EXAM
QUESTIONS WITH ANSWERS 2025/2026 GRADED A+
Depreciation is to PP&E as Amortization is to... - Intangible Assets.
We use this driver to project Capex: - % 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) - TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions =
$0.75 million. What is the ending balance? - $9.25 million
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? - Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net Income
because... - They are non-cash expenses
In what section of the cash flow statement does Capex belong? - Investing
Share repurchases decrease Stockholder's Equity (T or F) - True
How do we project Dividends? - Assumed Dividend Payout Ratio * Projected Net
Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? - (CFS)
Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - False
What is a revolver? - 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? - $1.75 million
Circularity is caused when you have multiple cells' formulas referencing each other. (T
or F) - True
WSO's Banana Stand has a total interest expense of $2 million and has $100 million in
cash that earns 1%. What is its net interest expense (income)? - $1 million
Which of these activities is not dilutive (anti-dilutive)? - Share Repurchasing
We use basic shares outstanding when calculating EPS (T or F) - False
, A company announces that it expects to spend $1 million on buybacks in the upcoming
year. If its shares are projected to have an average price of $250, how many shares will
be repurchased? - 4000
A model has these projections and assumptions: $20 million of Net Income, shares
trade at 20.0x earnings, and 1 million shares outstanding. What is the projected share
price? - 400 (Projected Share Price = Earnings Multiple * EPS)
A dilutive activity increases the amount of shares outstanding (T or F) - True
Which one of these is not a type of revenue build-up? - Overall Sales
Once you have the data table highlighted, how to you create a sensitivity table? - Alt - A
-W-T
Which Excel tool would we use to build a way to evaluate multiple scenarios? - Data
Validation
A Depreciation Waterfall is a type of Depreciation Schedule that aggregates
depreciation of existing PP&E and new Capex. (T or F) - True
What do you do after clicking on "Record Macro"? - Do the repetitive task you want the
Macro to do for you automatically.
What is the shortcut used to move up one excel sheet? - CTRL + Page Up
What is the purpose of color coding the font of cells? - To show where calculations are
being made,
To determine where assumptions are being input,
To make auditing an excel file easier
Why do we use "Center Across Selection" instead of "Merge and Center"? - It will still
allow you to select entire columns / rows while Merge and Center does not allow that
What is the purpose of using drop down lists in excel? - Prevent errors by limiting inputs
What color should a cell font be that is linked to another sheet? - Green 155
Your cash flow statement will not include the following: - Revenue Growth
What is the purpose of using the EOMonth formula in excel? - To standardize ending
days of months,
To calculate forward ad backward months from the current month,
To automate the modeling out of dates
QUESTIONS WITH ANSWERS 2025/2026 GRADED A+
Depreciation is to PP&E as Amortization is to... - Intangible Assets.
We use this driver to project Capex: - % 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) - TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions =
$0.75 million. What is the ending balance? - $9.25 million
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? - Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net Income
because... - They are non-cash expenses
In what section of the cash flow statement does Capex belong? - Investing
Share repurchases decrease Stockholder's Equity (T or F) - True
How do we project Dividends? - Assumed Dividend Payout Ratio * Projected Net
Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? - (CFS)
Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - False
What is a revolver? - 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? - $1.75 million
Circularity is caused when you have multiple cells' formulas referencing each other. (T
or F) - True
WSO's Banana Stand has a total interest expense of $2 million and has $100 million in
cash that earns 1%. What is its net interest expense (income)? - $1 million
Which of these activities is not dilutive (anti-dilutive)? - Share Repurchasing
We use basic shares outstanding when calculating EPS (T or F) - False
, A company announces that it expects to spend $1 million on buybacks in the upcoming
year. If its shares are projected to have an average price of $250, how many shares will
be repurchased? - 4000
A model has these projections and assumptions: $20 million of Net Income, shares
trade at 20.0x earnings, and 1 million shares outstanding. What is the projected share
price? - 400 (Projected Share Price = Earnings Multiple * EPS)
A dilutive activity increases the amount of shares outstanding (T or F) - True
Which one of these is not a type of revenue build-up? - Overall Sales
Once you have the data table highlighted, how to you create a sensitivity table? - Alt - A
-W-T
Which Excel tool would we use to build a way to evaluate multiple scenarios? - Data
Validation
A Depreciation Waterfall is a type of Depreciation Schedule that aggregates
depreciation of existing PP&E and new Capex. (T or F) - True
What do you do after clicking on "Record Macro"? - Do the repetitive task you want the
Macro to do for you automatically.
What is the shortcut used to move up one excel sheet? - CTRL + Page Up
What is the purpose of color coding the font of cells? - To show where calculations are
being made,
To determine where assumptions are being input,
To make auditing an excel file easier
Why do we use "Center Across Selection" instead of "Merge and Center"? - It will still
allow you to select entire columns / rows while Merge and Center does not allow that
What is the purpose of using drop down lists in excel? - Prevent errors by limiting inputs
What color should a cell font be that is linked to another sheet? - Green 155
Your cash flow statement will not include the following: - Revenue Growth
What is the purpose of using the EOMonth formula in excel? - To standardize ending
days of months,
To calculate forward ad backward months from the current month,
To automate the modeling out of dates
