TRANSACTIONCOMPSMODELINGWALLSTREET
PREPNEWESTEXAM2024-
2025WITHACTUAL QUESTIONSANDSOLVEDA
NSWERS|ALREADY GRADED A+
,What is generally not considered to be a pre-tax non-
recurring (unusual or infrequent) item? - ANSWER-Extraordinary gains/losses
what is false about depreciation and amortization - ANSWER- D&A may bev
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 sa me
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 expen se. the
calculation may createa 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 man ufacturing
firm would most likelybe attributable to which of the following
- ANSWER-computers used by the accountingdepartment
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 A
ccounts receivable of $400 million, 2014 accounts receivable of $600 million, w hat 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 she et
A company has the following information:
• 2014 share repurchase plan of $4 billion
PREPNEWESTEXAM2024-
2025WITHACTUAL QUESTIONSANDSOLVEDA
NSWERS|ALREADY GRADED A+
,What is generally not considered to be a pre-tax non-
recurring (unusual or infrequent) item? - ANSWER-Extraordinary gains/losses
what is false about depreciation and amortization - ANSWER- D&A may bev
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 sa me
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 expen se. the
calculation may createa 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 man ufacturing
firm would most likelybe attributable to which of the following
- ANSWER-computers used by the accountingdepartment
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 A
ccounts receivable of $400 million, 2014 accounts receivable of $600 million, w hat 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 she et
A company has the following information:
• 2014 share repurchase plan of $4 billion
