Financial Statement Modeling Exam
• Question 1
Questions 1-4 will refer to an AEO 10K that you can download by clicking
here.
Ignoring the impact of Share-based compensation expense included in
cost of sales, what is gross profit for the year ending 1/30/2016?
o $1,267,757
o $1,323,734
o $1,326,181
o $1,337,711
o $1,372,581
Your answer is incorrect.
The correct answer is $1,323,734
Share-based compensation in cost of sales can be found by searching the
Company’s 10-K and is described in the Gross Profit section of
Management’s Discussion and Analysis. This amount needs to be added
back to Gross Profit from the Company’s Income Statement.
• Question 2
This question uses the same AEO 10k as the previous question.
What is depreciation expense for the year ending 1/30/2016?
o $112.6 million
o $119.6 million
o $128.4 million
o $140.6 million
o $148.2 million
Your answer is correct.
The correct answer is $140.6 million
Depreciation expense is in the Property and Equipment section of the
Company’s 10K footnotes. Note the amount listed on the Cash Flow
Statement is Depreciation AND Amortization.
• Question 3
This question uses the same AEO 10k as the previous question.
What is AEO’s share count on 3/7/2016?
o 180.1 million
o 180.7 million
o 194.4 million
, o 196.2 million
o 196.7 million
Your answer is correct.
The correct answer is 180.7 million
This amount can be found at the bottom of the Title page of the 10K.
• Question 4
This question uses the same AEO 10k as the previous question.
As of 1/30/2016, what is the sum of the next 5 years’ amortization
expenses of AEO’s intangible assets?
o $3.5 million
o $9.7 million
o $12.2 million
o $15.6 million
, o $17.3 million
Your answer is correct.
The correct answer is $17.3 million
This amount can be found in the Intangible Assets section of the 10K
Footnotes.
• Question 5
All else being equal, which of the following does NOT lead to a lower
revolver balance for a Company?
o Higher Cash Flow from Operations
o Increased Dividends
o Increase of existing cash on the Balance Sheet
o Increases in Accounts Payable
o Increase in Minimum cash balance
o 1 and 4 only
o 2 and 4 only
o 3 and 5 only
o 4 and 5 only
o 2 and 5 only
Your answer is correct.
The correct answer is 2 and 5 only
Increased dividends would use cash that could otherwise be used to
paydown the Revolver. Increase in Minimum cash balance would reduce
cash available to paydown debt by keeping additional cash on the Balance
Sheet.
• Question 6
This question will refer to the data below. For this question, assume that:
Vorsche Motor Company reported results for the fiscal year ended
12/31/2013 which included the following disclosures:
Select balances as of 12/31/2013:
o Gross PP&E: 28,519.00
o Net PP&E: 16,597.00
o Non-depreciable PP&E (i.e., land): 1,650.00
o Accumulated depreciation: 11,922.00
• Question 1
Questions 1-4 will refer to an AEO 10K that you can download by clicking
here.
Ignoring the impact of Share-based compensation expense included in
cost of sales, what is gross profit for the year ending 1/30/2016?
o $1,267,757
o $1,323,734
o $1,326,181
o $1,337,711
o $1,372,581
Your answer is incorrect.
The correct answer is $1,323,734
Share-based compensation in cost of sales can be found by searching the
Company’s 10-K and is described in the Gross Profit section of
Management’s Discussion and Analysis. This amount needs to be added
back to Gross Profit from the Company’s Income Statement.
• Question 2
This question uses the same AEO 10k as the previous question.
What is depreciation expense for the year ending 1/30/2016?
o $112.6 million
o $119.6 million
o $128.4 million
o $140.6 million
o $148.2 million
Your answer is correct.
The correct answer is $140.6 million
Depreciation expense is in the Property and Equipment section of the
Company’s 10K footnotes. Note the amount listed on the Cash Flow
Statement is Depreciation AND Amortization.
• Question 3
This question uses the same AEO 10k as the previous question.
What is AEO’s share count on 3/7/2016?
o 180.1 million
o 180.7 million
o 194.4 million
, o 196.2 million
o 196.7 million
Your answer is correct.
The correct answer is 180.7 million
This amount can be found at the bottom of the Title page of the 10K.
• Question 4
This question uses the same AEO 10k as the previous question.
As of 1/30/2016, what is the sum of the next 5 years’ amortization
expenses of AEO’s intangible assets?
o $3.5 million
o $9.7 million
o $12.2 million
o $15.6 million
, o $17.3 million
Your answer is correct.
The correct answer is $17.3 million
This amount can be found in the Intangible Assets section of the 10K
Footnotes.
• Question 5
All else being equal, which of the following does NOT lead to a lower
revolver balance for a Company?
o Higher Cash Flow from Operations
o Increased Dividends
o Increase of existing cash on the Balance Sheet
o Increases in Accounts Payable
o Increase in Minimum cash balance
o 1 and 4 only
o 2 and 4 only
o 3 and 5 only
o 4 and 5 only
o 2 and 5 only
Your answer is correct.
The correct answer is 2 and 5 only
Increased dividends would use cash that could otherwise be used to
paydown the Revolver. Increase in Minimum cash balance would reduce
cash available to paydown debt by keeping additional cash on the Balance
Sheet.
• Question 6
This question will refer to the data below. For this question, assume that:
Vorsche Motor Company reported results for the fiscal year ended
12/31/2013 which included the following disclosures:
Select balances as of 12/31/2013:
o Gross PP&E: 28,519.00
o Net PP&E: 16,597.00
o Non-depreciable PP&E (i.e., land): 1,650.00
o Accumulated depreciation: 11,922.00
