Wall Street Prep Premium Exam 2024
Questions and Answers (Verified Answers)
1. What is generally not considered to be a pre-tax non-recurring (unusual
or infrequent) item? ANS Extraordinary gains/losses
2. what is false about depreciation and amortization ANS D&A may be
classifiedwithin interest expense
3. 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 ANS a
decrease of 15 million
4. the final component of an earnings projection model is calculating interest
expense. the calculation may create a circular reference because ANS
interest expense affects net income, which affects FCF, which affects the amount
of debt acompany pays down, which, in turn affects the interest expense, hence
the circularreference
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,5. a 10-q financial filing has all of the following characteristics except ANS
issuedfour times a year.
6. 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 ANS computers used by the accounting department
7. 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? ANS 45%
8. A company has the following information, 1. 2014 revenues of $5 bil-
lion,2013 Accounts receivable of $400 million, 2014 accounts receivable of
$600 million, what are the days sales outstanding ANS 36.5
9. 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
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, • 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? ANS 65.7 days
10. Which of the following is true ANS Coca Cola's brand name is not
reflected asan intangible asset on its balance sheet
3/9
Questions and Answers (Verified Answers)
1. What is generally not considered to be a pre-tax non-recurring (unusual
or infrequent) item? ANS Extraordinary gains/losses
2. what is false about depreciation and amortization ANS D&A may be
classifiedwithin interest expense
3. 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 ANS a
decrease of 15 million
4. the final component of an earnings projection model is calculating interest
expense. the calculation may create a circular reference because ANS
interest expense affects net income, which affects FCF, which affects the amount
of debt acompany pays down, which, in turn affects the interest expense, hence
the circularreference
1/9
,5. a 10-q financial filing has all of the following characteristics except ANS
issuedfour times a year.
6. 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 ANS computers used by the accounting department
7. 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? ANS 45%
8. A company has the following information, 1. 2014 revenues of $5 bil-
lion,2013 Accounts receivable of $400 million, 2014 accounts receivable of
$600 million, what are the days sales outstanding ANS 36.5
9. 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
2/9
, • 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? ANS 65.7 days
10. Which of the following is true ANS Coca Cola's brand name is not
reflected asan intangible asset on its balance sheet
3/9
