CFI CBCA Exam Actual Exam | All Questions
and Correct Answers | Graded A+ |
Verified Answers | Just Released
With an end goal in mind, what is the purpose for a credit analyst or commercial
banking professional completing a financial analysis? ---------CORRECT ANSWER----
-------------To understand a company's overall financial health and credit risk.
Which of the following is not a part of completing a vertical analysis? ---------
CORRECT ANSWER-----------------Comparison of line items between the balance
sheet and income statement
Which of the following is a part of completing a vertical analysis? ---------CORRECT
ANSWER-----------------Comparing line items in a single financial statement to a
base figure; Comparison of the client's profile to another company in the same
credit portfolio; Comparison of the client's profile to their peer group using third
party benchmarks
Financial ratios include: ---------CORRECT ANSWER-----------------Coverage, leverage,
and liquidity
,The gross profit margin is calculated as... ---------CORRECT ANSWER-----------------
(Revenue - COGS) /Revenue
Which of the following are unique features of a balance sheet? Select ALL that
apply. ---------CORRECT ANSWER-----------------The asset section is broken down
into two sections: current and non-current assets; Assets are typically organized
in terms of liquidity.
Efficiency ratios are important to look at how efficiently a company is using its
assets. An example of this would be the Asset Turnover Ratio, which is calculated
as... ---------CORRECT ANSWER-----------------Net sales /Total (or net) Assets
Which of the following is not considered a financing activity that you would see
on the cash flow statement? ---------CORRECT ANSWER-----------------Additions of
PP&E
Why might a credit professional test a client's operating line as some percent
other than fully drawn (e.g., 25, 50, or 75%)? Select ALL that apply. ---------
CORRECT ANSWER-----------------The client provided detailed projections of
utilization as a source of reference; Historical usage patterns reveal that it has
never been fully utilized in the past; A credit professional will always use figures
based on a fully drawn operating line
,When a credit analyst is reviewing a borrowing request, it can get complex when
multiple credit facilities are involved. Why is a sources and uses of funds table
important for an analyst when reviewing the request? Select ALL that apply.. ------
---CORRECT ANSWER-----------------It will allow for a lender's adjudication team to
evaluate the borrowing request more clearly; It will permit clearer discussions
with the borrower's management team around the borrowing request
For owner-operated borrowers, which of the following statements is true with
respect to understanding management compensation when calculating debt
service coverage? ---------CORRECT ANSWER-----------------The analyst must adjust
EBITDA for any drawings considered "non-discretionary". Removing these
dividends will reduce the debt service coverage ratio.
Given the table below, calculate the annual debt service obligation using the PMT
function in Microsoft Excel:
Loan Amount $75,000
Interest Rate 4.75%
Periods (Term in Years) 6
Compounding Periods per Year 1
Monthly Payment? ---------CORRECT ANSWER-----------------= $14,658.38
What would a low AR days number, compared to the industry, mean for a
company? ---------CORRECT ANSWER-----------------Receivables are being collected
efficiently, and customers are paying their debts quickly.
, Which of the following statements are true when completing a horizontal
analysis? ---------CORRECT ANSWER-----------------Horizontal analysis is usually
performed after vertical analysis.
This analysis can be used to better project future performance and solvency.
Analysis can reveal things such as consistent records of sales, or profitability
growth.
Which of the following statements are true when completing a horizontal
analysis? Select ALL that apply. ---------CORRECT ANSWER-----------------Protect
inputs by locking input cells
Complex financial models are all of the following EXCEPT: ---------CORRECT
ANSWER-----------------They are easy to follow and audit
Forecast the 2019 Cost of goods sold on the previous year's number and the
assumptions
2018 Actual
Sales Growth 6%
Gross Margin 40%
Revenues 50,000
Cost of Goods Sold 30,000
and Correct Answers | Graded A+ |
Verified Answers | Just Released
With an end goal in mind, what is the purpose for a credit analyst or commercial
banking professional completing a financial analysis? ---------CORRECT ANSWER----
-------------To understand a company's overall financial health and credit risk.
Which of the following is not a part of completing a vertical analysis? ---------
CORRECT ANSWER-----------------Comparison of line items between the balance
sheet and income statement
Which of the following is a part of completing a vertical analysis? ---------CORRECT
ANSWER-----------------Comparing line items in a single financial statement to a
base figure; Comparison of the client's profile to another company in the same
credit portfolio; Comparison of the client's profile to their peer group using third
party benchmarks
Financial ratios include: ---------CORRECT ANSWER-----------------Coverage, leverage,
and liquidity
,The gross profit margin is calculated as... ---------CORRECT ANSWER-----------------
(Revenue - COGS) /Revenue
Which of the following are unique features of a balance sheet? Select ALL that
apply. ---------CORRECT ANSWER-----------------The asset section is broken down
into two sections: current and non-current assets; Assets are typically organized
in terms of liquidity.
Efficiency ratios are important to look at how efficiently a company is using its
assets. An example of this would be the Asset Turnover Ratio, which is calculated
as... ---------CORRECT ANSWER-----------------Net sales /Total (or net) Assets
Which of the following is not considered a financing activity that you would see
on the cash flow statement? ---------CORRECT ANSWER-----------------Additions of
PP&E
Why might a credit professional test a client's operating line as some percent
other than fully drawn (e.g., 25, 50, or 75%)? Select ALL that apply. ---------
CORRECT ANSWER-----------------The client provided detailed projections of
utilization as a source of reference; Historical usage patterns reveal that it has
never been fully utilized in the past; A credit professional will always use figures
based on a fully drawn operating line
,When a credit analyst is reviewing a borrowing request, it can get complex when
multiple credit facilities are involved. Why is a sources and uses of funds table
important for an analyst when reviewing the request? Select ALL that apply.. ------
---CORRECT ANSWER-----------------It will allow for a lender's adjudication team to
evaluate the borrowing request more clearly; It will permit clearer discussions
with the borrower's management team around the borrowing request
For owner-operated borrowers, which of the following statements is true with
respect to understanding management compensation when calculating debt
service coverage? ---------CORRECT ANSWER-----------------The analyst must adjust
EBITDA for any drawings considered "non-discretionary". Removing these
dividends will reduce the debt service coverage ratio.
Given the table below, calculate the annual debt service obligation using the PMT
function in Microsoft Excel:
Loan Amount $75,000
Interest Rate 4.75%
Periods (Term in Years) 6
Compounding Periods per Year 1
Monthly Payment? ---------CORRECT ANSWER-----------------= $14,658.38
What would a low AR days number, compared to the industry, mean for a
company? ---------CORRECT ANSWER-----------------Receivables are being collected
efficiently, and customers are paying their debts quickly.
, Which of the following statements are true when completing a horizontal
analysis? ---------CORRECT ANSWER-----------------Horizontal analysis is usually
performed after vertical analysis.
This analysis can be used to better project future performance and solvency.
Analysis can reveal things such as consistent records of sales, or profitability
growth.
Which of the following statements are true when completing a horizontal
analysis? Select ALL that apply. ---------CORRECT ANSWER-----------------Protect
inputs by locking input cells
Complex financial models are all of the following EXCEPT: ---------CORRECT
ANSWER-----------------They are easy to follow and audit
Forecast the 2019 Cost of goods sold on the previous year's number and the
assumptions
2018 Actual
Sales Growth 6%
Gross Margin 40%
Revenues 50,000
Cost of Goods Sold 30,000
