Financial Statement Modeling
1. Which formula is used to check that a Total Assets = Total Liabilities + Stockholders' Eq-
Balance Sheet has been built correctly? uity
2. How do you calculate Inventory Turns? COGS / Inventory
3. How do you calculate Days Sales Out- Accounts Receivable / Revenue * 365
standing?
4. We can project prepaid expenses by as- Revenue
suming its percentage of...
5. How do you calculate Net Working Cap- Total non-cash current assets - Total non-debt
ital? current liabilities
6. Depreciation is to PP&E as Amortization Intangible Assets.
is to...
7. We use this driver to project Capex: % of revenue
8. When calculating the ending balance of TRUE
a line item in a projected year, we refer-
ence last year's ending balance as the
beginning balance (T or F)
9. Beginning Intangible Balance is $10 mil- $9.25 million
lion; Amortization = $1.5 million; Addi-
tions = $0.75 million. What is the ending
balance?
10. Assuming Intangible Balance is 10.0 in Alt + =
C11, amortization is -1.5 in C12, and ad-
ditions is 0.75 in C13, how would you
quickly calculate ending Tangible Bal-
ance in C14?
1/9
, Financial Statement Modeling
11. In the Cash Flow Statement, we add They are non-cash expenses
back Depreciation and Amortization to
Net Income because...
12. In what section of the cash flow state- Investing
ment does Capex belong?
13. Share repurchases decrease Stockhold- True
er's Equity (T or F)
14. How do we project Dividends? Assumed Dividend Payout Ratio * Projected Net
Income
15. How do we link the Cash Flow State- (CFS) Ending Cash = (BS) Same Year's Cash Bal-
ment (CFS) to the Balance Sheet (BS)? ance
16. Debt issuance decreases long-term False
debt (T or F)
17. What is a revolver? A corporation's "credit card" that is used to fi-
nance working capital needs
18. WSO's Banana Stand has an average re- $1.75 million
volver balance of $10 million with an in-
terest 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?
19. Circularity is caused when you have True
multiple cells' formulas referencing
each other. (T or F)
2/9
1. Which formula is used to check that a Total Assets = Total Liabilities + Stockholders' Eq-
Balance Sheet has been built correctly? uity
2. How do you calculate Inventory Turns? COGS / Inventory
3. How do you calculate Days Sales Out- Accounts Receivable / Revenue * 365
standing?
4. We can project prepaid expenses by as- Revenue
suming its percentage of...
5. How do you calculate Net Working Cap- Total non-cash current assets - Total non-debt
ital? current liabilities
6. Depreciation is to PP&E as Amortization Intangible Assets.
is to...
7. We use this driver to project Capex: % of revenue
8. When calculating the ending balance of TRUE
a line item in a projected year, we refer-
ence last year's ending balance as the
beginning balance (T or F)
9. Beginning Intangible Balance is $10 mil- $9.25 million
lion; Amortization = $1.5 million; Addi-
tions = $0.75 million. What is the ending
balance?
10. Assuming Intangible Balance is 10.0 in Alt + =
C11, amortization is -1.5 in C12, and ad-
ditions is 0.75 in C13, how would you
quickly calculate ending Tangible Bal-
ance in C14?
1/9
, Financial Statement Modeling
11. In the Cash Flow Statement, we add They are non-cash expenses
back Depreciation and Amortization to
Net Income because...
12. In what section of the cash flow state- Investing
ment does Capex belong?
13. Share repurchases decrease Stockhold- True
er's Equity (T or F)
14. How do we project Dividends? Assumed Dividend Payout Ratio * Projected Net
Income
15. How do we link the Cash Flow State- (CFS) Ending Cash = (BS) Same Year's Cash Bal-
ment (CFS) to the Balance Sheet (BS)? ance
16. Debt issuance decreases long-term False
debt (T or F)
17. What is a revolver? A corporation's "credit card" that is used to fi-
nance working capital needs
18. WSO's Banana Stand has an average re- $1.75 million
volver balance of $10 million with an in-
terest 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?
19. Circularity is caused when you have True
multiple cells' formulas referencing
each other. (T or F)
2/9
