FINANCIAL STATEMENT MODELING RETAKE ACTUAL EXAM FROM WALL STREET PREP ALL
QUESTIONS AND CORRECT ANSWERS GRADED A+ WSP FINANCIAL STATEMENT
MODELING RETAKE EXAM LATEST VERSION 2024 (NEW!!)
Which formula is used to check that a Balance Sheet has been built correctly? - (ANSWER)Total Assets =
Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - (ANSWER)COGS / Inventory
How do you calculate Days Sales Outstanding? - (ANSWER)Accounts Receivable / Revenue * 365
We can project prepaid expenses by assuming its percentage of... - (ANSWER)Revenue
How do you calculate Net Working Capital? - (ANSWER)Total non-cash current assets - Total non-debt
current liabilities
Depreciation is to PP&E as Amortization is to... - (ANSWER)Intangible Assets.
We use this driver to project Capex: - (ANSWER)% of revenue
When calculating the ending balance of a line item in a projected year, we reference last year's ending
balance as the beginning balance (T or F) - (ANSWER)TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions = $0.75 million. What
is the ending balance? - (ANSWER)$9.25 million
Assuming Intangible Balance is 10.0 in C11, amortization is -1.5 in C12, and additions is 0.75 in C13, how
would you quickly calculate ending Tangible Balance in C14? - (ANSWER)Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net Income because... -
(ANSWER)They are non-cash expenses
, FINANCIAL STATEMENT MODELING RETAKE ACTUAL EXAM FROM WALL STREET PREP ALL
QUESTIONS AND CORRECT ANSWERS GRADED A+ WSP FINANCIAL STATEMENT
MODELING RETAKE EXAM LATEST VERSION 2024 (NEW!!)
In what section of the cash flow statement does Capex belong? - (ANSWER)Investing
Share repurchases decrease Stockholder's Equity (T or F) - (ANSWER)True
How do we project Dividends? - (ANSWER)Assumed Dividend Payout Ratio * Projected Net Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? - (ANSWER)(CFS) Ending Cash
= (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - (ANSWER)False
What is a revolver? - (ANSWER)A corporation's "credit card" that is used to finance working capital
needs
WSO's Banana Stand has an average revolver balance of $10 million with an interest rate of 5%. It also
has an average long-term debt balance of $50 million with an interest rate of 2.5%. What is its total
interest expense for the year? - (ANSWER)$1.75 million
Circularity is caused when you have multiple cells' formulas referencing each other. (T or F) -
(ANSWER)True
WSO's Banana Stand has a total interest expense of $2 million and has $100 million in cash that earns
1%. What is its net interest expense (income)? - (ANSWER)$1 million
Which of these activities is not dilutive (anti-dilutive)? - (ANSWER)Share Repurchasing
We use basic shares outstanding when calculating EPS (T or F) - (ANSWER)False
QUESTIONS AND CORRECT ANSWERS GRADED A+ WSP FINANCIAL STATEMENT
MODELING RETAKE EXAM LATEST VERSION 2024 (NEW!!)
Which formula is used to check that a Balance Sheet has been built correctly? - (ANSWER)Total Assets =
Total Liabilities + Stockholders' Equity
How do you calculate Inventory Turns? - (ANSWER)COGS / Inventory
How do you calculate Days Sales Outstanding? - (ANSWER)Accounts Receivable / Revenue * 365
We can project prepaid expenses by assuming its percentage of... - (ANSWER)Revenue
How do you calculate Net Working Capital? - (ANSWER)Total non-cash current assets - Total non-debt
current liabilities
Depreciation is to PP&E as Amortization is to... - (ANSWER)Intangible Assets.
We use this driver to project Capex: - (ANSWER)% of revenue
When calculating the ending balance of a line item in a projected year, we reference last year's ending
balance as the beginning balance (T or F) - (ANSWER)TRUE
Beginning Intangible Balance is $10 million; Amortization = $1.5 million; Additions = $0.75 million. What
is the ending balance? - (ANSWER)$9.25 million
Assuming Intangible Balance is 10.0 in C11, amortization is -1.5 in C12, and additions is 0.75 in C13, how
would you quickly calculate ending Tangible Balance in C14? - (ANSWER)Alt + =
In the Cash Flow Statement, we add back Depreciation and Amortization to Net Income because... -
(ANSWER)They are non-cash expenses
, FINANCIAL STATEMENT MODELING RETAKE ACTUAL EXAM FROM WALL STREET PREP ALL
QUESTIONS AND CORRECT ANSWERS GRADED A+ WSP FINANCIAL STATEMENT
MODELING RETAKE EXAM LATEST VERSION 2024 (NEW!!)
In what section of the cash flow statement does Capex belong? - (ANSWER)Investing
Share repurchases decrease Stockholder's Equity (T or F) - (ANSWER)True
How do we project Dividends? - (ANSWER)Assumed Dividend Payout Ratio * Projected Net Income
How do we link the Cash Flow Statement (CFS) to the Balance Sheet (BS)? - (ANSWER)(CFS) Ending Cash
= (BS) Same Year's Cash Balance
Debt issuance decreases long-term debt (T or F) - (ANSWER)False
What is a revolver? - (ANSWER)A corporation's "credit card" that is used to finance working capital
needs
WSO's Banana Stand has an average revolver balance of $10 million with an interest rate of 5%. It also
has an average long-term debt balance of $50 million with an interest rate of 2.5%. What is its total
interest expense for the year? - (ANSWER)$1.75 million
Circularity is caused when you have multiple cells' formulas referencing each other. (T or F) -
(ANSWER)True
WSO's Banana Stand has a total interest expense of $2 million and has $100 million in cash that earns
1%. What is its net interest expense (income)? - (ANSWER)$1 million
Which of these activities is not dilutive (anti-dilutive)? - (ANSWER)Share Repurchasing
We use basic shares outstanding when calculating EPS (T or F) - (ANSWER)False
