Financial Modeling & Forecasting Statements –
Module 15 Exam | Q&A | Graded A+ (2025–2026)
Marla's company expects to need $2,050 in assets next year. Which of the
following would be the best source of financing for the forecast?
the amount of accounts payable
Estevan has a growing startup. However, he is concerned about how long the
company can last before having to see new investors. To gauge this, which of the
following will he need to keep track of?
the cash burn rate
If you are significantly above the mean average this year you are
significantly likely to be below the mean the next year
- use a number closer to the industry average
(reversion to the industry)
What is reversion to the industry?
,company has averages higher than usual. For next year's projections revert to
industry average
Initial Assumption (forecast sales-based expenses)
- sales
- net property, plant & equipment
- loans payable
- gross profit
- other operating expenses
- income tax rate
- dividends
fixed cost
remains the same regardless of level of activity
variable cost
cost that increases in direct proportion to the volume of the business
other operating expenses
, typically a mix of fixed & variable costs
sensitivity analysis
create worst case, standard and best case scenarios
Which of the following assumptions should you keep in mind when forecasting
interest and income tax?
Interest expense depends on how much interest-bearing debt a company has.
Assets
cash
inventory
equipment
liability
loans
accounts payable
Module 15 Exam | Q&A | Graded A+ (2025–2026)
Marla's company expects to need $2,050 in assets next year. Which of the
following would be the best source of financing for the forecast?
the amount of accounts payable
Estevan has a growing startup. However, he is concerned about how long the
company can last before having to see new investors. To gauge this, which of the
following will he need to keep track of?
the cash burn rate
If you are significantly above the mean average this year you are
significantly likely to be below the mean the next year
- use a number closer to the industry average
(reversion to the industry)
What is reversion to the industry?
,company has averages higher than usual. For next year's projections revert to
industry average
Initial Assumption (forecast sales-based expenses)
- sales
- net property, plant & equipment
- loans payable
- gross profit
- other operating expenses
- income tax rate
- dividends
fixed cost
remains the same regardless of level of activity
variable cost
cost that increases in direct proportion to the volume of the business
other operating expenses
, typically a mix of fixed & variable costs
sensitivity analysis
create worst case, standard and best case scenarios
Which of the following assumptions should you keep in mind when forecasting
interest and income tax?
Interest expense depends on how much interest-bearing debt a company has.
Assets
cash
inventory
equipment
liability
loans
accounts payable
