WALL STREET PREP
PREMIUM EXAM/50
QUESTIONS AND ANSWERS
(A+)
What is generally not considered to be a pre-tax
non-recurring (unusual or infrequent) item? -
=Extraordinary gains/losses
PR
-what is false about depreciation and amortization
- =D&A may be classified within interest expense
O
-Company X's current assets increased by $40
million from 2007-2008 while the companies
FD
current liabilities increased by $25 million over the
same period. the cash impact of the change in
working capital was - =a decrease of 15 million
O
-the final component of an earnings projection
C
model is calculating interest expense. the
calculation may create a circular reference
because - =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 - =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 - =computers used by the accounting
department
-If a company has projected revenues of $10
billion, a gross profit margin of 65%, and projected
SG&A expenses of $2billion, what is the
PR
company's operating (EBIT) margin? - =45%
-A company has the following information, 1. 2014
revenues of $5 billion,2013 Accounts receivable of
O
$400 million, 2014 accounts receivable of $600
million, what are the days sales outstanding -
FD
=36.5
-A company has the following information:
O
• 2014 Revenues of $8 billion
• 2014 COGS of $5 billion
C
• 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 are the inventory days for the company? -
=65.7 days
, -Which of the following is true - =Coca Cola's
brand name is not reflected as an intangible asset
on its balance sheet
-A company has the following information:
• 2014 share repurchase plan of $4 billion
• Average share price of $60 for the year 2013
• Expected EPS growth for 2014 of 10%
What should the number of shares repurchased by
the company be in your financial model? - =60.6
PR
million
-non-controlling interest - =is an expense on the
income statement and equity o the balance sheet
O
-A company has the following information:
FD
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
O
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
C
What is the retained earnings balance at the end
of 2014? - =15 billion
-in order to find out how much cash is available to
pay down short term debt, such as revolving credit
line, you must take - =beginning cash balance +
pre-debt cash flows - min. cash balance - required
principal payments of LT and other debt
PREMIUM EXAM/50
QUESTIONS AND ANSWERS
(A+)
What is generally not considered to be a pre-tax
non-recurring (unusual or infrequent) item? -
=Extraordinary gains/losses
PR
-what is false about depreciation and amortization
- =D&A may be classified within interest expense
O
-Company X's current assets increased by $40
million from 2007-2008 while the companies
FD
current liabilities increased by $25 million over the
same period. the cash impact of the change in
working capital was - =a decrease of 15 million
O
-the final component of an earnings projection
C
model is calculating interest expense. the
calculation may create a circular reference
because - =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 - =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 - =computers used by the accounting
department
-If a company has projected revenues of $10
billion, a gross profit margin of 65%, and projected
SG&A expenses of $2billion, what is the
PR
company's operating (EBIT) margin? - =45%
-A company has the following information, 1. 2014
revenues of $5 billion,2013 Accounts receivable of
O
$400 million, 2014 accounts receivable of $600
million, what are the days sales outstanding -
FD
=36.5
-A company has the following information:
O
• 2014 Revenues of $8 billion
• 2014 COGS of $5 billion
C
• 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 are the inventory days for the company? -
=65.7 days
, -Which of the following is true - =Coca Cola's
brand name is not reflected as an intangible asset
on its balance sheet
-A company has the following information:
• 2014 share repurchase plan of $4 billion
• Average share price of $60 for the year 2013
• Expected EPS growth for 2014 of 10%
What should the number of shares repurchased by
the company be in your financial model? - =60.6
PR
million
-non-controlling interest - =is an expense on the
income statement and equity o the balance sheet
O
-A company has the following information:
FD
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
O
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
C
What is the retained earnings balance at the end
of 2014? - =15 billion
-in order to find out how much cash is available to
pay down short term debt, such as revolving credit
line, you must take - =beginning cash balance +
pre-debt cash flows - min. cash balance - required
principal payments of LT and other debt
