Wall Street Prep Premium Exam
1. What is generally not considered to be a pre-tax Extraordinary non-
recurring (unusual or infrequent) item? gains/losses
2. what is false about depreciation and amortization D&A may be classi-
fied within interest ex-
pense
3. Company X's current assets increased by $40 mil- a decrease of 15
million from 2007-2008 while the companies current lion liabilities
increased by $25 million over the same period. the cash impact of the
change in working capital was
4. the final component of an earnings projection interest expense
afmodel is calculating interest expense. the calcu- fects net income,
lation may create a circular reference because which affects FCF,
which affects the
amount of debt a
company pays down,
which, in turn affects
the interest expense,
hence the circular
reference
5. a 10-q financial filing has all of the following char- issued four times a
acteristics except year.
6. Depreciation Expense found in the SG&A line of computers used by the
income statement for a manufacturing firm the accounting departwould
most likely be attributable to which of the ment following
7. If a company has projected revenues of $10 billion, 45% a gross profit
margin of 65%, and projected SG&A expenses of $2billion, what is the
company's operating (EBIT) margin?
, Wall Street Prep Premium Exam
8. A company has the following information, 1. 2014 36.5 revenues of $5
billion,2013 Accounts receivable
9. A company has the following information: 65.7 days
• 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?
10. Which of the following is true Coca Cola's brand
name is not reflected
as an intangible asset
on its balance sheet
11. A company has the following information: 60.6 million
• 2014 share repurchase plan of $4 billion
• Average share price of $60 for the year 2013
• Expected EPS growth for 2014 of 10%
, Wall Street Prep Premium Exam
of $400 million, 2014 accounts receivable of $600
million, what are the days sales outstanding
14. in order to find out how much cash is available to beginning cash balpay
down short term debt, such as revolving credit ance + pre-debt cash
line, you must take flows - min. cash
balance - required
principal payments of
LT and other debt
15. to calculate interest expense in the future, you apply a weighted
should do which of the following average interest rate
times the average
debt balance over the
course
of the year
16. enterprise (transaction) value represents the: value of all capital
invested in a business
What should the number of shares repurchased by
the company be in your financial model?
12. non-controlling interest is an expense on the
income statement and
equity o the balance
sheet
13. A company has the following information: 15 billion
• 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 2014What is the retained
earnings balance at the end of 2014?
1. What is generally not considered to be a pre-tax Extraordinary non-
recurring (unusual or infrequent) item? gains/losses
2. what is false about depreciation and amortization D&A may be classi-
fied within interest ex-
pense
3. Company X's current assets increased by $40 mil- a decrease of 15
million from 2007-2008 while the companies current lion liabilities
increased by $25 million over the same period. the cash impact of the
change in working capital was
4. the final component of an earnings projection interest expense
afmodel is calculating interest expense. the calcu- fects net income,
lation may create a circular reference because which affects FCF,
which affects the
amount of debt a
company pays down,
which, in turn affects
the interest expense,
hence the circular
reference
5. a 10-q financial filing has all of the following char- issued four times a
acteristics except year.
6. Depreciation Expense found in the SG&A line of computers used by the
income statement for a manufacturing firm the accounting departwould
most likely be attributable to which of the ment following
7. If a company has projected revenues of $10 billion, 45% a gross profit
margin of 65%, and projected SG&A expenses of $2billion, what is the
company's operating (EBIT) margin?
, Wall Street Prep Premium Exam
8. A company has the following information, 1. 2014 36.5 revenues of $5
billion,2013 Accounts receivable
9. A company has the following information: 65.7 days
• 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?
10. Which of the following is true Coca Cola's brand
name is not reflected
as an intangible asset
on its balance sheet
11. A company has the following information: 60.6 million
• 2014 share repurchase plan of $4 billion
• Average share price of $60 for the year 2013
• Expected EPS growth for 2014 of 10%
, Wall Street Prep Premium Exam
of $400 million, 2014 accounts receivable of $600
million, what are the days sales outstanding
14. in order to find out how much cash is available to beginning cash balpay
down short term debt, such as revolving credit ance + pre-debt cash
line, you must take flows - min. cash
balance - required
principal payments of
LT and other debt
15. to calculate interest expense in the future, you apply a weighted
should do which of the following average interest rate
times the average
debt balance over the
course
of the year
16. enterprise (transaction) value represents the: value of all capital
invested in a business
What should the number of shares repurchased by
the company be in your financial model?
12. non-controlling interest is an expense on the
income statement and
equity o the balance
sheet
13. A company has the following information: 15 billion
• 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 2014What is the retained
earnings balance at the end of 2014?
