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FINANCIAL STATEMENT MODELING FINAL PRACTICE EXAM |2025-
2026 LATEST UPDATED|REAL EXAM QUESTIONS AND ANSWERS |
100% RATED CORRECT | 100% VERFIED SOLUTIONS | ALREADY
GRADED A+
Which formula is used to check that a Balance Sheet has been built correctly? - (answer)Total
Assets = Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - (answer)COGS / Inventory
How do you calculate Days Sales Outstanding? - (answer)Accounts Receivable / Revenue * 365
We can project prepaid expenses by assuming its percentage of... - (answer)Revenue
How do you calculate Net Working Capital? - (answer)Total non-cash current assets - Total non-
debt current liabilities
Depreciation is to PP&E as Amortization is to... - (answer)Intangible Assets.
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We use this driver to project Capex: - (answer)% 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) - (answer)TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions = $0.75
million. What is the ending balance? - (answer)$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? - (answer)Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net Income
because... - (answer)They are non-cash expenses
In what section of the cash flow statement does Capex belong? - (answer)Investing
Share repurchases decrease Stockholder's Equity (T or F) - (answer)True
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How do we project Dividends? - (answer)Assumed Dividend Payout Ratio * Projected Net
Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? - (answer)(CFS)
Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - (answer)False
What is a revolver? - (answer)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? - (answer)$1.75 million
Circularity is caused when you have multiple cells' formulas referencing each other. (T or F) -
(answer)True
FINANCIAL STATEMENT MODELING FINAL PRACTICE EXAM |2025-
2026 LATEST UPDATED|REAL EXAM QUESTIONS AND ANSWERS |
100% RATED CORRECT | 100% VERFIED SOLUTIONS | ALREADY
GRADED A+
Which formula is used to check that a Balance Sheet has been built correctly? - (answer)Total
Assets = Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - (answer)COGS / Inventory
How do you calculate Days Sales Outstanding? - (answer)Accounts Receivable / Revenue * 365
We can project prepaid expenses by assuming its percentage of... - (answer)Revenue
How do you calculate Net Working Capital? - (answer)Total non-cash current assets - Total non-
debt current liabilities
Depreciation is to PP&E as Amortization is to... - (answer)Intangible Assets.
,2|Page
We use this driver to project Capex: - (answer)% 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) - (answer)TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions = $0.75
million. What is the ending balance? - (answer)$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? - (answer)Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net Income
because... - (answer)They are non-cash expenses
In what section of the cash flow statement does Capex belong? - (answer)Investing
Share repurchases decrease Stockholder's Equity (T or F) - (answer)True
, 3|Page
How do we project Dividends? - (answer)Assumed Dividend Payout Ratio * Projected Net
Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? - (answer)(CFS)
Ending Cash = (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - (answer)False
What is a revolver? - (answer)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? - (answer)$1.75 million
Circularity is caused when you have multiple cells' formulas referencing each other. (T or F) -
(answer)True
