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CFI CBCA Core Final Exam Newest 2025/2026 Actual Exam
Complete All 200 Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+
Calculate the net cash provided by the operating activities based on the
information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000 - ANSWER-80,000 = Net Income
+ Depreciation - Increase in accounts receivable - Increase in inventory
+ Increase in accounts payable
Calculate the total capital expenditure of 2018 based on the information
below:
2017 PP&E: 43,000
2018 PP&E: 65,000
2017 Depreciation: 10,000
2018 Depreciation: 12,000 - ANSWER-= 34,000 = 2018 PP&E - 2017
PP&E + 2018 Depreciation
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Calculate the company's free cash flow for the current year based on the
information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000
Capital expenditures: 45,000
Increase in long-term debt: 15,000 - ANSWER-Cash from Operations =
Net income + Depreciation - Increase in accounts receivable - Increase
in inventory + Increase in accounts payable = 80,000
Free cash flow = Cash from Operations - Capital Expenditures
Free cash flow = 35,000
What is the starting point when conducting a financial analysis of the
performance of a company? - ANSWER-Review of company financial
statements
With an end goal in mind, what is the purpose for a credit analyst or
commercial banking professional completing a financial analysis? -
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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? -
ANSWER-Comparison of line items between the balance sheet and
income statement
Which of the following is a part of completing a vertical analysis? -
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: - ANSWER-Coverage, leverage, and liquidity
The gross profit margin is calculated as... - ANSWER-(Revenue -
COGS) /Revenue
Which of the following are unique features of a balance sheet? Select
ALL that apply. - 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... - ANSWER-Net sales /Total (or net) Assets
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Which of the following is not considered a financing activity that you
would see on the cash flow statement? - 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. - 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.. - 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? - 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:
CFI CBCA Core Final Exam Newest 2025/2026 Actual Exam
Complete All 200 Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+
Calculate the net cash provided by the operating activities based on the
information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000 - ANSWER-80,000 = Net Income
+ Depreciation - Increase in accounts receivable - Increase in inventory
+ Increase in accounts payable
Calculate the total capital expenditure of 2018 based on the information
below:
2017 PP&E: 43,000
2018 PP&E: 65,000
2017 Depreciation: 10,000
2018 Depreciation: 12,000 - ANSWER-= 34,000 = 2018 PP&E - 2017
PP&E + 2018 Depreciation
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Calculate the company's free cash flow for the current year based on the
information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000
Capital expenditures: 45,000
Increase in long-term debt: 15,000 - ANSWER-Cash from Operations =
Net income + Depreciation - Increase in accounts receivable - Increase
in inventory + Increase in accounts payable = 80,000
Free cash flow = Cash from Operations - Capital Expenditures
Free cash flow = 35,000
What is the starting point when conducting a financial analysis of the
performance of a company? - ANSWER-Review of company financial
statements
With an end goal in mind, what is the purpose for a credit analyst or
commercial banking professional completing a financial analysis? -
,3|Page
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? -
ANSWER-Comparison of line items between the balance sheet and
income statement
Which of the following is a part of completing a vertical analysis? -
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: - ANSWER-Coverage, leverage, and liquidity
The gross profit margin is calculated as... - ANSWER-(Revenue -
COGS) /Revenue
Which of the following are unique features of a balance sheet? Select
ALL that apply. - 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... - ANSWER-Net sales /Total (or net) Assets
, 4|Page
Which of the following is not considered a financing activity that you
would see on the cash flow statement? - 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. - 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.. - 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? - 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:
