Homework answers / question archive / 1) Which of the following is NOT a best practice for financial model inputs? Protect inputs by locking input cells Use colour to separate inputs from outputs Add comments to cells to give more information Data should only be entered once   2

1) Which of the following is NOT a best practice for financial model inputs? Protect inputs by locking input cells Use colour to separate inputs from outputs Add comments to cells to give more information Data should only be entered once   2

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1) Which of the following is NOT a best practice for financial model inputs?

Protect inputs by locking input cells

Use colour to separate inputs from outputs

Add comments to cells to give more information

Data should only be entered once

 

2. Complex financial models are all of the following EXCEPT:

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They are more prone to error due to size and complexity

They typically model most outputs from first principles

They offer users a high degree of precision

They are easy to follow and audit

 

3. Forecast the 2019 Cost of goods sold on the previous year’s number and the assumptions

	2018 Actual	2019 Estimate
Sales Growth	6%	8%
Gross Margin	40%	40%
Revenues	50,000
Cost of Goods Sold	27,000

 

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35,200

32,400

29,160

26,630

 

4. Forecast the accounts receivable for Company XYZ using the following annual information.

• Receivable days assumption = 55 days
• Payable days assumption = 69 days
• Forecasted revenue = $263,500
• Forecasted cost of goods sold = $114,780

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21,698

17,296

39,705

49,812

 

5

5. What formula below can be used to forecast inventory?

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(Inventory days / Cost of sales) x 365

(Inventory days / 365) / Cost of sales

(Inventory days / 365) x Cost of sales

(Inventory / Cost of sales) x 365

 

 

6. Which of the following items can be found in a published cash flow statement under "operating activities"? Select ALL correct answers.

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Capital expenditures

Dividends paid

Depreciation

Issuance of common stock

Changes in operating assets and liabilities

 

 

7. What is the total cash from operating activities based on the information below?

• Net income: 500
• Depreciation: 80
• Increase in receivables: 100
• Increase in inventory: 50
• Increase in payables: 60
• 370
• 540
• 490
• 630

 

8. Calculate the end of the year cash balance based on the information below:

• Beginning of the year cash balance: 2,000
• Net income: 300
• Depreciation: 140
• Positive changes in operating assets and liabilities: 60
• Acquisitions of PP&E: 580
• Dividends paid in the current year: 130
• Increase in long-term debt: 200

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2,470

1,990

1,310

1,710

 

9. Which Excel function or tool will you use to display the cells that are referred to by a formula in the selected cell?

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Trace Dependents

Show Formulas

Trace Precedents

Go To Special – Formula

 

10. What is the forecasted value of property, plan and equipment (PP&E) based on the following information:

• Capital asset turnover ratio: 2.5
• Forecasted revenues: $120
• Forecasted costs of goods sold: $80

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48

52

40

32

11. What is the impact on cash flow from operations in the current year based on the net change in operating assets and liabilities listed below?

 

 

 

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200

-200

-150

0

 

12. What’s the forecasted capital expenditure based on the information below?

• Net PP&E beginning of period: 15,000
• Net PP&E end of period: 17,500
• Depreciation expenses: 2,400

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-100

100

2,500

4,900

 

13. What’s the retained earnings end of period based on the information below?

• Retained earnings beginning of period: 7,500
• Net income: 2,300
• Dividends paid: 1,700

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11,500

6,900

8,100

7,400

14. What’s the depreciation expense based on the information below?

• Depreciation (percent of sales): 4%
• Revenues: 60,000
• Gross profit: 25,000
• PP&E: 40,000

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1,000

2,600

2,400

1,600

 

15. What’s the forecasted EBIT based on the information below?

• Revenues: 56,000
• Cost of goods sold: 32,000
• SG&A: 8,500
• Depreciation: 2,700
• Interest: 1,200
• Taxes: 3,800

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7,800

15,500

12,800

11,600