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WALL STREET PREP EXCEL QUESTIONS AND ANSWERS
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WALL STREET PREP EXCEL QUESTIONS AND ANSWERS
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WALL STREET PREP PREMIUM EXAMQUESTIONS AND ANSWERS
Whattistgenerallytnottconsideredttotbetatpre-taxtnon-recurringt(unusualtortinfrequent)titem?
t-tExtraordinarytgains/losses
whattistfalsetabouttdepreciationtandtamortizationt-
tD&Atmaytbetclassifiedtwithintinteresttexpense
CompanytX'stcurrenttassetstincreasedtbyt$40tmilliontfromt2007-
2008twhiletthetcompaniestcurrenttliabilitiestincreasedtbyt$25tmilliontovertthetsametperiod.tt
hetcashtimpacttoftthetchangetintworkingtcapitaltwast-tatdecreasetoft15tmillion
thetfinaltcomponenttoftantearningstprojectiontmodeltistcalculatingtinteresttexpense.tthetcalc
ulationtmaytcreatetatcirculartreferencetbecauset-
tinteresttexpensetaffectstnettincome,twhichtaffectstFCF,twhichtaffectstthetamounttoftdebttatc
ompanytpaystdown,twhich,tintturntaffectstthetinteresttexpense,thencetthetcirculartreference
at10-qtfinancialtfilingthastalltoftthetfollowingtcharacteristicstexceptt-tissuedtfourttimestatyear.
DepreciationtExpensetfoundtintthetSG&Atlinetoftthetincometstatementtfortatmanufacturingtfi
rmtwouldtmosttlikelytbetattributablettotwhichtoftthetfollowingt-
tcomputerstusedtbytthetaccountingtdepartment
Iftatcompanythastprojectedtrevenuestoft$10tbillion,tatgrosstprofittmargintoft65%,tandtproject
edtSG&Atexpensestoft$2billion,twhattistthetcompany'stoperatingt(EBIT)tmargin?t-t45%
Atcompanythastthetfollowingtinformation,t1.t2014trevenuestoft$5tbillion,2013tAccountstrece
ivabletoft$400tmillion,t2014taccountstreceivabletoft$600tmillion,twhattaretthetdaystsalestout
standingt-t36.5
Atcompanythastthetfollowingtinformation:
•t2014tRevenuestoft$8tbillion
•t2014tCOGStoft$5tbillion
•t2013tAccountstreceivabletoft$400tmillion
, •t2014tAccountstreceivabletoft$600tmillion
•t2013tInventoriestoft$1tbillion
•t2014tInventoriestoft$800tmillion
•t2013tAccountstpayabletoft$250tmillion
•t2014tAccountstpayabletoft$300tmillion
Whattaretthetinventorytdaystfortthetcompany?t-t65.7tdays
Whichtoftthetfollowingtisttruet-
tCocatCola'stbrandtnametistnottreflectedtastantintangibletassettontitstbalancetsheet
Atcompanythastthetfollowingtinformation:
•t2014tsharetrepurchasetplantoft$4tbillion
•tAveragetsharetpricetoft$60tfortthetyeart2013
•tExpectedtEPStgrowthtfort2014toft10%
Whattshouldtthetnumbertoftsharestrepurchasedtbytthetcompanytbetintyourtfinancialtmodel?
t-t60.6tmillion
non-controllingtinterestt-
tistantexpensetontthetincometstatementtandtequitytotthetbalancetsheet
Atcompanythastthetfollowingtinformation:
•t2013tretainedtearningstbalancetoft$12tbillion
•tNettincometoft$3.5tbilliontint2014
•tCapextoft$200tmilliontint2014
•tPreferredtdividendstoft$100tmilliontint2014
•tCommontdividendstoft$400tmilliontint2014
Whattistthetretainedtearningstbalancetattthetendtoft2014?t-t15tbillion
intorderttotfindtoutthowtmuchtcashtistavailablettotpaytdowntshortttermtdebt,tsuchtastrevolving
tcredittline,tyoutmustttaket-tbeginningtcashtbalancet+tpre-debttcashtflowst-
tmin.tcashtbalancet-trequiredtprincipaltpaymentstoftLTtandtothertdebt
totcalculatetinteresttexpensetintthetfuture,tyoutshouldtdotwhichtoftthetfollowingt-
tapplytatweightedtaveragetinteresttratettimestthetaveragetdebttbalancetovertthetcoursetoftth
etyear
enterpriset(transaction)tvaluetrepresentstthe:t-tvaluetoftalltcapitaltinvestedtintatbusiness
Atdebttholdertwouldtbetprimarilytconcernedtwithtwhichtoftthetfollowingtmultiples?
I.tEnterpriset(Transaction)tValuet/tEBITDA
II.tPrice/Earnings
III.tEnterpriset(Transaction)tValuet/tSalest-t1tandt3tonly
OntJanuaryt1,t2014,tsharestoftCompanytXttradetatt$6.50tpertshare,twitht400tmilliontsharest
outstanding.tThetcompanythastnettdebttoft$300tmillion.tAftertbuildingtantearningstmodeltfort
CompanytX,tyouthavetprojectedtfreetcashtflowtforteachtyeartthrought2020tastfollows:
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