Wall Street Prep Financial Modeling Exam Questions and Answers 100% Correct |
Question : What is generally not considered to be a pre-tax
non-recurring (unusual or infrequent) item?
Correct answer: Extraordinary gains/losses
Question : what is false about depreciation and amortization
Correct answer: D&A may be classified within interest
expense
Question : Company X's current assets increased by $40
million from 2007-2008 while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was
Correct answer: a decrease of 15 million
Question : the final component of an earnings projection
model is calculating interest expense. the calculation may create a circular reference because
Correct 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
Question : a 10-q financial filing has all of the following
characteristics except
Correct answer: issued four times a year.
Question : Depreciation Expense found in the SG&A line of
the income statement for a manufacturing firm would most likely be attributable to which of the following
Correct answer: computers used by the accounting department
Question : 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?
Correct answer: 45%
Question : A company has the following information, 1. 2014
revenues of $5 billion,2013 Accounts receivable of $400
million, 2014 accounts receivable of $600 million, what are the days sales outstanding
Correct answer: 36.5
Question : 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?
Correct answer: 65.7 days
Question : Which of the following is true
Correct answer: Coca Cola's brand name is not reflected as an
intangible asset on its balance sheet
Question : A company has the following information: • 2014 share repurchase plan of $4 billion • Average share price of $60 for the year 2013 • Expected EPS growth for 2014 of 10% What should the number of shares repurchased by the company be in your financial model?
Correct answer: 60.6 million
Question : non-controlling interest
Correct answer: is an expense on the income statement and
equity o the balance sheet
Question : A company has the following information: • 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 2014