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
EXAM WORKBOOK
, 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
o Net PP&E (excl. land): 14,947.00
o During the fiscal year ended 12/31/2013 depreciation
expense was $5,797.0. Assume no salvage value.
What is the useful life of existing, depreciable PP&E as a 12/31/2013?
(Round to nearest whole number.)
o 4 Years
o 5 Years
o 6 Years
EXAM WORKBOOK
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
EXAM WORKBOOK
, 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
o Net PP&E (excl. land): 14,947.00
o During the fiscal year ended 12/31/2013 depreciation
expense was $5,797.0. Assume no salvage value.
What is the useful life of existing, depreciable PP&E as a 12/31/2013?
(Round to nearest whole number.)
o 4 Years
o 5 Years
o 6 Years
EXAM WORKBOOK
