Wall Street Prep Premium Exam Questions
With Complete Solutions.
What mis mgenerally mnot mconsidered mto mbe ma mpre-tax mnon-recurring m(unusual mor minfrequent) mitem?
m- m m m mcorrect manswer.Extraordinary mgains/losses
what mis mfalse mabout mdepreciation mand mamortization m- m m m mcorrect manswer.D&A mmay mbe mclassified
mwithin minterest mexpense
Company mX's mcurrent massets mincreased mby m$40 mmillion mfrom m2007-2008 mwhile mthe mcompanies
mcurrent mliabilities mincreased mby m$25 mmillion mover mthe msame mperiod. mthe mcash mimpact mof mthe
mchange min mworking mcapital mwas m- m m m mcorrect manswer.a mdecrease mof m15 mmillion
the mfinal mcomponent mof man mearnings mprojection mmodel mis mcalculating minterest mexpense. mthe
mcalculation mmay mcreate ma mcircular mreference mbecause m- m m m mcorrect manswer.interest mexpense
maffects mnet mincome, mwhich maffects mFCF, mwhich maffects mthe mamount mof mdebt ma mcompany mpays
mdown, mwhich, min mturn maffects mthe minterest mexpense, mhence mthe mcircular mreference
a m10-q mfinancial mfiling mhas mall mof mthe mfollowing mcharacteristics mexcept m- m m m mcorrect manswer.issued
mfour mtimes ma myear.
Depreciation mExpense mfound min mthe mSG&A mline mof mthe mincome mstatement mfor ma mmanufacturing
mfirm mwould mmost mlikely mbe mattributable mto mwhich mof mthe mfollowing m- m m m mcorrect
manswer.computers mused mby mthe maccounting mdepartment
If ma mcompany mhas mprojected mrevenues mof m$10 mbillion, ma mgross mprofit mmargin mof m65%, mand
mprojected mSG&A mexpenses mof m$2billion, mwhat mis mthe mcompany's moperating m(EBIT) mmargin? m- m m m
mcorrect manswer.45%
A mcompany mhas mthe mfollowing minformation, m1. m2014 mrevenues mof m$5 mbillion,2013 mAccounts
mreceivable mof m$400 mmillion, m2014 maccounts mreceivable mof m$600 mmillion, mwhat mare mthe mdays
msales moutstanding m- m m m m correct manswer.36.5
, A mcompany mhas mthe mfollowing minformation:
• m2014 mRevenues mof m$8 mbillion
• m2014 mCOGS mof m$5 mbillion
• m2013 mAccounts mreceivable mof m$400 mmillion
• m2014 mAccounts mreceivable mof m$600 mmillion
• m2013 mInventories mof m$1 mbillion
• m2014 mInventories mof m$800 mmillion
• m2013 mAccounts mpayable mof m$250 mmillion
• m2014 mAccounts mpayable mof m$300 mmillion
What mare mthe minventory mdays mfor mthe mcompany? m- m m m mcorrect manswer.65.7 mdays
Which mof mthe mfollowing mis mtrue m- m m m mcorrect manswer.Coca mCola's mbrand mname mis mnot mreflected
mas man mintangible masset mon mits mbalance msheet
A mcompany mhas mthe mfollowing minformation:
• m2014 mshare mrepurchase mplan mof m$4 mbillion
• mAverage mshare mprice mof m$60 mfor mthe myear m2013
• mExpected mEPS mgrowth mfor m2014 mof m10%
What mshould mthe mnumber mof mshares mrepurchased mby mthe mcompany mbe min myour mfinancial mmodel?
m- m m m mcorrect manswer.60.6 mmillion
non-controlling minterest m- m m m mcorrect manswer.is man mexpense mon mthe mincome mstatement mand
mequity mo mthe mbalance msheet
A mcompany mhas mthe mfollowing minformation:
• m2013 mretained mearnings mbalance mof m$12 mbillion
• mNet mincome mof m$3.5 mbillion min m2014
• mCapex mof m$200 mmillion min m2014
• mPreferred mdividends mof m$100 mmillion min m2014
With Complete Solutions.
What mis mgenerally mnot mconsidered mto mbe ma mpre-tax mnon-recurring m(unusual mor minfrequent) mitem?
m- m m m mcorrect manswer.Extraordinary mgains/losses
what mis mfalse mabout mdepreciation mand mamortization m- m m m mcorrect manswer.D&A mmay mbe mclassified
mwithin minterest mexpense
Company mX's mcurrent massets mincreased mby m$40 mmillion mfrom m2007-2008 mwhile mthe mcompanies
mcurrent mliabilities mincreased mby m$25 mmillion mover mthe msame mperiod. mthe mcash mimpact mof mthe
mchange min mworking mcapital mwas m- m m m mcorrect manswer.a mdecrease mof m15 mmillion
the mfinal mcomponent mof man mearnings mprojection mmodel mis mcalculating minterest mexpense. mthe
mcalculation mmay mcreate ma mcircular mreference mbecause m- m m m mcorrect manswer.interest mexpense
maffects mnet mincome, mwhich maffects mFCF, mwhich maffects mthe mamount mof mdebt ma mcompany mpays
mdown, mwhich, min mturn maffects mthe minterest mexpense, mhence mthe mcircular mreference
a m10-q mfinancial mfiling mhas mall mof mthe mfollowing mcharacteristics mexcept m- m m m mcorrect manswer.issued
mfour mtimes ma myear.
Depreciation mExpense mfound min mthe mSG&A mline mof mthe mincome mstatement mfor ma mmanufacturing
mfirm mwould mmost mlikely mbe mattributable mto mwhich mof mthe mfollowing m- m m m mcorrect
manswer.computers mused mby mthe maccounting mdepartment
If ma mcompany mhas mprojected mrevenues mof m$10 mbillion, ma mgross mprofit mmargin mof m65%, mand
mprojected mSG&A mexpenses mof m$2billion, mwhat mis mthe mcompany's moperating m(EBIT) mmargin? m- m m m
mcorrect manswer.45%
A mcompany mhas mthe mfollowing minformation, m1. m2014 mrevenues mof m$5 mbillion,2013 mAccounts
mreceivable mof m$400 mmillion, m2014 maccounts mreceivable mof m$600 mmillion, mwhat mare mthe mdays
msales moutstanding m- m m m m correct manswer.36.5
, A mcompany mhas mthe mfollowing minformation:
• m2014 mRevenues mof m$8 mbillion
• m2014 mCOGS mof m$5 mbillion
• m2013 mAccounts mreceivable mof m$400 mmillion
• m2014 mAccounts mreceivable mof m$600 mmillion
• m2013 mInventories mof m$1 mbillion
• m2014 mInventories mof m$800 mmillion
• m2013 mAccounts mpayable mof m$250 mmillion
• m2014 mAccounts mpayable mof m$300 mmillion
What mare mthe minventory mdays mfor mthe mcompany? m- m m m mcorrect manswer.65.7 mdays
Which mof mthe mfollowing mis mtrue m- m m m mcorrect manswer.Coca mCola's mbrand mname mis mnot mreflected
mas man mintangible masset mon mits mbalance msheet
A mcompany mhas mthe mfollowing minformation:
• m2014 mshare mrepurchase mplan mof m$4 mbillion
• mAverage mshare mprice mof m$60 mfor mthe myear m2013
• mExpected mEPS mgrowth mfor m2014 mof m10%
What mshould mthe mnumber mof mshares mrepurchased mby mthe mcompany mbe min myour mfinancial mmodel?
m- m m m mcorrect manswer.60.6 mmillion
non-controlling minterest m- m m m mcorrect manswer.is man mexpense mon mthe mincome mstatement mand
mequity mo mthe mbalance msheet
A mcompany mhas mthe mfollowing minformation:
• m2013 mretained mearnings mbalance mof m$12 mbillion
• mNet mincome mof m$3.5 mbillion min m2014
• mCapex mof m$200 mmillion min m2014
• mPreferred mdividends mof m$100 mmillion min m2014
