WALL STREET PREP PREMIUM EXAM
QUESTIONS AND ANSWERS
50 EXAM QUESTIONS AND ANSWERS
What is usually NOT classified as a pre-tax non-recurring (unusual or
infrequent) item? - ANSWER Extraordinary gains/losses
what is not true of depreciation and amortization - ANSWER D&A may be
classified within interest expense
Company X's current assets increased by $ 40 million from 2007 to 2008 while
the company's current liabilities increased by $25 million over the same period.
the cash impact of the change in working capital was - ANSWER a decrease of
15 million
the final component of an earnings projection model is calculating interest
expense. the calculation may create a circular reference because - ANSWER
interest expense affects net income, which affects FCF, which affects the
amount of debt a company pays down, which, in turn, affects the interest
expense, hence the circular reference
a 10-q financial filing has all of the following characteristics except - ANSWER
issued four times a year.
Depreciation Expense found in the SG&A line of the income statement for a
manufacturing firm would most likely be attributable to which of the following
- ANSWER computers used by the accounting department
, If a company has forecasted revenues of $10 billion, a gross profit margin of
65%, and forecasted SG&A expenses of $2billion, what is the companys
operating (EBIT) margin? - ANSWER 45%
A company has the following information, 1. 2014 revenues of $5 billion,2013
Accounts receivable of $400 million, 2014 accounts receivable of $600 million,
what are the days sales outstanding - ANSWER 36.5
A company reports the following information:
• 2014 Revenues of $8 billion
• 2014 COGS of $5 billion
• 2013 Accounts receivable of $400 million
• 2014 Accounts receivable of $600 million
• 2013 Inventories of $1 billion
• 2014 Inventories of $800 million
• 2013 Accounts payable of $250 million
• 2014 Accounts payable of $300 million
What is the inventory days for the company? - ANSWER 65.7 days
Which of the following is true - ANSWER The brand name of Coca Cola does
not appear as an intangible asset in its balance sheet
A firm reports the following:
• $4 billion share repurchase plan in 2014
• Average share price in 2013 was $60
• 10% expected growth in EPS for 2014
QUESTIONS AND ANSWERS
50 EXAM QUESTIONS AND ANSWERS
What is usually NOT classified as a pre-tax non-recurring (unusual or
infrequent) item? - ANSWER Extraordinary gains/losses
what is not true of depreciation and amortization - ANSWER D&A may be
classified within interest expense
Company X's current assets increased by $ 40 million from 2007 to 2008 while
the company's current liabilities increased by $25 million over the same period.
the cash impact of the change in working capital was - ANSWER a decrease of
15 million
the final component of an earnings projection model is calculating interest
expense. the calculation may create a circular reference because - ANSWER
interest expense affects net income, which affects FCF, which affects the
amount of debt a company pays down, which, in turn, affects the interest
expense, hence the circular reference
a 10-q financial filing has all of the following characteristics except - ANSWER
issued four times a year.
Depreciation Expense found in the SG&A line of the income statement for a
manufacturing firm would most likely be attributable to which of the following
- ANSWER computers used by the accounting department
, If a company has forecasted revenues of $10 billion, a gross profit margin of
65%, and forecasted SG&A expenses of $2billion, what is the companys
operating (EBIT) margin? - ANSWER 45%
A company has the following information, 1. 2014 revenues of $5 billion,2013
Accounts receivable of $400 million, 2014 accounts receivable of $600 million,
what are the days sales outstanding - ANSWER 36.5
A company reports the following information:
• 2014 Revenues of $8 billion
• 2014 COGS of $5 billion
• 2013 Accounts receivable of $400 million
• 2014 Accounts receivable of $600 million
• 2013 Inventories of $1 billion
• 2014 Inventories of $800 million
• 2013 Accounts payable of $250 million
• 2014 Accounts payable of $300 million
What is the inventory days for the company? - ANSWER 65.7 days
Which of the following is true - ANSWER The brand name of Coca Cola does
not appear as an intangible asset in its balance sheet
A firm reports the following:
• $4 billion share repurchase plan in 2014
• Average share price in 2013 was $60
• 10% expected growth in EPS for 2014
