CFI FMVA Latest Update 2024-2025 Actual Exam
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CFI FMVA
- CORRECT ANSWER: A growing company would expect to have higher capital
expenditure than depreciation. This is due to growth, and due to inflation. Capital
expenditure is at modern prices. Depreciation is at old prices.
!!! FOR CFS =>
ASSETS (cash outflows) => Y0 - Y1
LIABILITIES (cash inflows) => Y1 - Y0
'DIVIDENDS PAID' => Cash outflow => negative on CFS
***Investment DOWN btwn 2 periods - Why?} Sold part so cash INFLOW - CORRECT
ANSWER:
!!! If you make an error/add text with iterative calculations, delete them & undo (ctrl z)
=> iterative calcs for interest
circular switch => if create any error leading to #VALUE! => CREATE CELL WITH
SWITCH
=IF($D$21=1,F105,0)
in office, switch off iterations off - CORRECT ANSWER:
,=> Adding non-recurring expenses
E.g. large gains/losses on sale of subsidiaries; restructuring/reorg/severance
costs/impairment-write downs/litigation costs/M&A fees/integration costs/more
(unexpected loss of value vs depreciation expected loss of value)
=> Adding non-core expense
=> Adding non-controlled expense
=> Subtract non-recurring income
=> Subtract non-core income
=> Subtract non-controlled income
= 'Clean' EBIT
[A business is reviewing its equity => a business issues additional shares and
repurchases shares]
Calculating impact of transactions on equity => SHARES - CORRECT ANSWER:
Common stock:
APIC:
Treasury stock:
=> historical
=> adjustment (new shares issued & shares repurchased)
=> projected (= historical + adjustment)
***Impact on equity split between Common Stock and APIC
[ACCOUNTING] Calculating total liabilities & equity @ period-end - CORRECT
ANSWER: Calculate total liabilities and equity at the end of Period X => The impact of
each transaction on liabilities and equity must be calculated.
NOTE: items impacting IS will flow through into the retained earnings section of equity.
Some transactions may not impact liabilities and equity. Some transactions may have
two offsetting impacts.
-----
Using the information below, what is the COGs?
,Cost of goods sold (COGS) looks at the items that were sold, and asks what were the
direct costs related to those items.
E.g.} For a bottle of water this would be the plastic bottle, the water and the label.
-----
What is the WC cycle for the below company?
A POSITIVE number = funding required, a NEGATIVE number is funding provided.
WC cycle = Receivable days + Inventory days - Payable days
Receivable days = Receivable/Sales*Number of days of Sales
Inventory days = Inventory/COGS*Number of days of COGS
Payable days = Payable/COGS*Number of days of COGS
-----
The WC cycle calculates the number of days that cash is tied up in operations. It looks
at the number of days between the cash outflow and inflow.
-----
PPE BASE ANALYSIS FOR FINDING CAPEX & FORECASTING PPE:
BASE (beginning, add, subtract, ending) analysis is used to forecast ending PP&E
using opening PP&E, capex and depreciation. In a forecast calculation, when 1 variable
is missing, BASE can be used to calculate that missing variable.
-----
BASE ANALYSIS FOR INTANGIBLES}
B Intangibles
Add Purchases for Intangible assets
Subtract Amort
E Intangibles
Using the information below, calculate the amortization number (straight line method)
that will be shown in the operating cash flow section of the cash flow statement, each
year.
-----
, AMORT:
Amortization is calculated as the amount of value lost per annum from an intangible
asset, that is expensed to the income statement and app
[WORKING CAPITAL] Current Assets
Examples} - CORRECT ANSWER:
[WORKING CAPITAL] Current Liabilities
Examples} - CORRECT ANSWER:
***no strike price when looking at RSUs
Basic shares outstanding MM
# of options
Strike price
Net new shares from options MM
Net new shares from RSU's MM
Diluted shares outstanding MM - CORRECT ANSWER:
% Excel Shortcut - CORRECT ANSWER: Alt H P
8K Report - CORRECT ANSWER: PRESS RELEASE [standard format]
=> document filed with the SEC that describes a change in the firm that many affect the
value of its securities
A business owns a bond which it accounts for as "fair value through other
comprehensive income (FVOCI)"
The market value of the bond has increased. The business has not sold the bond. How
will this increase be reflected in the balance sheet? - CORRECT ANSWER:
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