2025 FINANCIAL STATEMENT MODELING STUDY GUIDE
QUESTIONS WITH ANSWERS 2025/2026 GRADED A+
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
, Where can you find the historical balance sheet? - 10K, 10Q, Equity Research
How do we calculate historical revenue growth rate for 2019? - (2019 Revenue / 2018
Revenue) - 1
Which type of ratio is the inventory turns ratio? - Efficiency Ratio
How do you calculate days payable outstanding? - Accounts Payable * 365 / Cost of
Goods Sold
We can project cost of goods sold by assuming it's a percentage of... - Revenue
What do current liabilities mean for a company? - Liabilities that will become due within
the next 12 months
How did we project out prepaid expenses? - As a % of revenue
How did we project out accrued liabilities? - As a % of COGS
What is Capex? - A capital investment made by a company,
Money that is spent to put an asset on the balance sheet,
A cash outflow
Which of the below is true regarding the link from the Balance Sheet to the Cash Flow
Statement? - Ending cash on both statements must match
Beginning balance = $10M, Capex = $3M, Depreciation= $2M, COGS = $1M. What is
the ending PP&E balance? - $11M
What does amortization pertain to? - Intangibles
How did we project out depreciation expense? - As a % of capex
In which section of the cash flow statement will capital raises be found? - Cash flow
from financing
What items are included in the cash flow from operations section? - Net Income,
D&A,
Working Capital
What items are included in the cash flow from financing section? - Debt,
Share repurchases,
Dividends
QUESTIONS WITH ANSWERS 2025/2026 GRADED A+
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
, Where can you find the historical balance sheet? - 10K, 10Q, Equity Research
How do we calculate historical revenue growth rate for 2019? - (2019 Revenue / 2018
Revenue) - 1
Which type of ratio is the inventory turns ratio? - Efficiency Ratio
How do you calculate days payable outstanding? - Accounts Payable * 365 / Cost of
Goods Sold
We can project cost of goods sold by assuming it's a percentage of... - Revenue
What do current liabilities mean for a company? - Liabilities that will become due within
the next 12 months
How did we project out prepaid expenses? - As a % of revenue
How did we project out accrued liabilities? - As a % of COGS
What is Capex? - A capital investment made by a company,
Money that is spent to put an asset on the balance sheet,
A cash outflow
Which of the below is true regarding the link from the Balance Sheet to the Cash Flow
Statement? - Ending cash on both statements must match
Beginning balance = $10M, Capex = $3M, Depreciation= $2M, COGS = $1M. What is
the ending PP&E balance? - $11M
What does amortization pertain to? - Intangibles
How did we project out depreciation expense? - As a % of capex
In which section of the cash flow statement will capital raises be found? - Cash flow
from financing
What items are included in the cash flow from operations section? - Net Income,
D&A,
Working Capital
What items are included in the cash flow from financing section? - Debt,
Share repurchases,
Dividends
