FINANCIAL STATEMENT MODELING FINAL
EXAM LATEST EDITION WITH ACCURATE
SOLUTIONS AND FULL EXPLANATIONS
◍ Where can you find the historical balance sheet? Answer: 10K,
10Q, Equity Research
◍ How do we calculate historical revenue growth rate for 2019?
Answer: (2019 Revenue / 2018 Revenue) - 1
◍ Which type of ratio is the inventory turns ratio? Answer:
Efficiency Ratio
◍ How do you calculate days payable outstanding? Answer:
Accounts Payable * 365 / Cost of Goods Sold
◍ We can project cost of goods sold by assuming it's a percentage
of... Answer: Revenue
◍ What do current liabilities mean for a company? Answer:
Liabilities that will become due within the next 12 months
, ◍ How did we project out prepaid expenses? Answer: As a % of
revenue
◍ How did we project out accrued liabilities? Answer: As a % of
COGS
◍ What is Capex? Answer: 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? Answer: Ending cash on both
statements must match
◍ Beginning balance = $10M, Capex = $3M, Depreciation= $2M,
COGS = $1M. What is the ending PP&E balance? Answer: $11M
◍ What does amortization pertain to? Answer: Intangibles
◍ How did we project out depreciation expense? Answer: As a % of
capex
◍ In which section of the cash flow statement will capital raises be
found? Answer: Cash flow from financing
EXAM LATEST EDITION WITH ACCURATE
SOLUTIONS AND FULL EXPLANATIONS
◍ Where can you find the historical balance sheet? Answer: 10K,
10Q, Equity Research
◍ How do we calculate historical revenue growth rate for 2019?
Answer: (2019 Revenue / 2018 Revenue) - 1
◍ Which type of ratio is the inventory turns ratio? Answer:
Efficiency Ratio
◍ How do you calculate days payable outstanding? Answer:
Accounts Payable * 365 / Cost of Goods Sold
◍ We can project cost of goods sold by assuming it's a percentage
of... Answer: Revenue
◍ What do current liabilities mean for a company? Answer:
Liabilities that will become due within the next 12 months
, ◍ How did we project out prepaid expenses? Answer: As a % of
revenue
◍ How did we project out accrued liabilities? Answer: As a % of
COGS
◍ What is Capex? Answer: 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? Answer: Ending cash on both
statements must match
◍ Beginning balance = $10M, Capex = $3M, Depreciation= $2M,
COGS = $1M. What is the ending PP&E balance? Answer: $11M
◍ What does amortization pertain to? Answer: Intangibles
◍ How did we project out depreciation expense? Answer: As a % of
capex
◍ In which section of the cash flow statement will capital raises be
found? Answer: Cash flow from financing
