WSP Financial Modelling Questions and
answers
Why do you never want to re-enter the same input more than once in your model? - correct
answer-Bc. you want your model to be dynamic
Components of a financial statement model? - correct answer-Income statement
Balance sheet
Statement of cash flows
Both historical results and forecasts
What colour text should you use for:
Hard-coded inputs
Formulas
Links to other worksheets
Links to other files
Links to data providers - correct answer-Hard-coded inputs -> blue
Formulas -> black
Links to other worksheets -> green
Links to other files -> red
Links to data providers -> dark red
Should you hide rows? - correct answer-No, grouping is better
Should you merge cells? - correct answer-No, centering across selection is better
Footnotes vs comments? - correct answer-Footnotes will show up when model is printed
Comments for internal purposes
If you want to delete a worksheet and want to know if there are any links to that worksheet,
how can you do this? - correct answer-Ctrl + F
and then search for the name of the worksheet you want to delete
What documents would you gather prior to starting to model? - correct answer-Latest annual
report and corresponding 4th quarter press release and earnings call transcript
Latest equity research & EPS consensus estimates
Last 6 months news run (stock splits, acquisitions and other material changes)
For quarterly models and LTM calculations...
-also get latest 3 quarterly reports and corresponding press releases & earnings calls
answers
Why do you never want to re-enter the same input more than once in your model? - correct
answer-Bc. you want your model to be dynamic
Components of a financial statement model? - correct answer-Income statement
Balance sheet
Statement of cash flows
Both historical results and forecasts
What colour text should you use for:
Hard-coded inputs
Formulas
Links to other worksheets
Links to other files
Links to data providers - correct answer-Hard-coded inputs -> blue
Formulas -> black
Links to other worksheets -> green
Links to other files -> red
Links to data providers -> dark red
Should you hide rows? - correct answer-No, grouping is better
Should you merge cells? - correct answer-No, centering across selection is better
Footnotes vs comments? - correct answer-Footnotes will show up when model is printed
Comments for internal purposes
If you want to delete a worksheet and want to know if there are any links to that worksheet,
how can you do this? - correct answer-Ctrl + F
and then search for the name of the worksheet you want to delete
What documents would you gather prior to starting to model? - correct answer-Latest annual
report and corresponding 4th quarter press release and earnings call transcript
Latest equity research & EPS consensus estimates
Last 6 months news run (stock splits, acquisitions and other material changes)
For quarterly models and LTM calculations...
-also get latest 3 quarterly reports and corresponding press releases & earnings calls
