WALL STREET PREP PREMIUM
CERTIFICATION REVIEW PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
⩥ what is false about depreciation and amortization. Answer: D&A may
be classified within interest expense
⩥ Company X's current assets increased by $40 million from 2007-2008
while the companies 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 projected revenues of $10 billion, a gross profit
margin of 65%, and projected SG&A expenses of $2billion, what is the
company's 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 has 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 are the inventory days for the company?. Answer: 65.7 days
⩥ Which of the following is true. Answer: 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?. Answer: 60.6 million
⩥ non-controlling interest. Answer: is an expense on the income
statement and equity o the balance sheet
⩥ A company has the following information:
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
What is the retained earnings balance at the end of 2014?. Answer: 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. Answer:
beginning cash balance + pre-debt cash flows - min. cash balance -
required principal payments of LT and other debt
CERTIFICATION REVIEW PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
⩥ what is false about depreciation and amortization. Answer: D&A may
be classified within interest expense
⩥ Company X's current assets increased by $40 million from 2007-2008
while the companies 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 projected revenues of $10 billion, a gross profit
margin of 65%, and projected SG&A expenses of $2billion, what is the
company's 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 has 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 are the inventory days for the company?. Answer: 65.7 days
⩥ Which of the following is true. Answer: 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?. Answer: 60.6 million
⩥ non-controlling interest. Answer: is an expense on the income
statement and equity o the balance sheet
⩥ A company has the following information:
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
What is the retained earnings balance at the end of 2014?. Answer: 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. Answer:
beginning cash balance + pre-debt cash flows - min. cash balance -
required principal payments of LT and other debt
