Homework answers / question archive / 1) In the cash flow statement, cash and cash equivalents end of period 2017 is NOT equal to: Cash and cash equivalents on the 2017 balance sheet Cash and cash equivalents on the 2018 balance sheet Cash and cash equivalents beginning of period 2018 Cash and cash equivalents beginning of period 2017 + net cash provided by operating, investing and financing activities + foreign currency effect on cash and cash equivalents   2 If a company has capital leases, as a financial analyst, how would you treat it? As additional paid-in capital As debt Exclude it from the financial statement As common shares   3 Where can you find a company's stock-based compensation? On the cash flow statement – financing activities On the cash flow statement – operating activities On the income statement – non-operating expenses On the income statement – operating expenses     4 Which of the following do you NOT include when calculating the closing balance of PP&E? PP&E acquired under capital or financing leases Changes in working capital PP&E acquired through acquisitions Cash capital expenditures   Calculate a company's e-Commerce market share in their country based on the following hypothetic information: First party sales 10 million Third party selling commission  5 million Third party commission charge 20% Total country eCommerce 290 million     9% 12% 5% 4%     6 Assuming the company will have the same inventory days in 2018 and 2019

1) In the cash flow statement, cash and cash equivalents end of period 2017 is NOT equal to: Cash and cash equivalents on the 2017 balance sheet Cash and cash equivalents on the 2018 balance sheet Cash and cash equivalents beginning of period 2018 Cash and cash equivalents beginning of period 2017 + net cash provided by operating, investing and financing activities + foreign currency effect on cash and cash equivalents   2 If a company has capital leases, as a financial analyst, how would you treat it? As additional paid-in capital As debt Exclude it from the financial statement As common shares   3 Where can you find a company's stock-based compensation? On the cash flow statement – financing activities On the cash flow statement – operating activities On the income statement – non-operating expenses On the income statement – operating expenses     4 Which of the following do you NOT include when calculating the closing balance of PP&E? PP&E acquired under capital or financing leases Changes in working capital PP&E acquired through acquisitions Cash capital expenditures   Calculate a company's e-Commerce market share in their country based on the following hypothetic information: First party sales 10 million Third party selling commission  5 million Third party commission charge 20% Total country eCommerce 290 million     9% 12% 5% 4%     6 Assuming the company will have the same inventory days in 2018 and 2019

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1)

In the cash flow statement, cash and cash equivalents end of period 2017 is NOT equal to:

Cash and cash equivalents on the 2017 balance sheet

Cash and cash equivalents on the 2018 balance sheet

Cash and cash equivalents beginning of period 2018

Cash and cash equivalents beginning of period 2017 + net cash provided by operating, investing and financing activities + foreign currency effect on cash and cash equivalents

 

2

If a company has capital leases, as a financial analyst, how would you treat it?

As additional paid-in capital

As debt

Exclude it from the financial statement

As common shares

 

3

Where can you find a company's stock-based compensation?

On the cash flow statement – financing activities

On the cash flow statement – operating activities

On the income statement – non-operating expenses

On the income statement – operating expenses

 

 

4

Which of the following do you NOT include when calculating the closing balance of PP&E?

PP&E acquired under capital or financing leases

Changes in working capital

PP&E acquired through acquisitions

Cash capital expenditures

 

Calculate a company's e-Commerce market share in their country based on the following hypothetic information:

First party sales	10 million
Third party selling commission	5 million
Third party commission charge	20%
Total country eCommerce	290 million

 

9%

12%

5%

4%

 

 

6

Assuming the company will have the same inventory days in 2018 and 2019. What is the forecasted inventory in 2019 based on the information below?

2018 Revenue	6,500
2019 Revenue	7,600
2018 Cost of sales	3,800
2019 Cost of sales	4,100
2018 Inventory	1,500

1,618.4

1,944.4

1,528.6

1,753.8

 

 

7

Why is accounts payable projected using an assumption based on cost of sales? Select the best answer.

Accounts payable is part of working capital

It is a practice mandated by financial institutions

Cost of sales typically has payment terms

It is an accounting rule under IFRS

 

 

 

8

Which of the following formula is used to calculate Free Cash Flow to Firm (FCFF)?

FCFF = EBIT + Depreciation & Amortization + Net Working Capital adjustment - Cash Capex - Stock Based Compensation + Other Non-Cash Expenses

FCFF = EBIT + Depreciation & Amortization + Net Working Capital adjustment + Cash Capex + Stock Based Compensation + Other Non-Cash Expenses

FCFF = Net Operating Profit After Tax + Depreciation & Amortization - Tax Expense - Interest Expense + Cash Capex

FCFF = Net Operating Profit After Tax + Depreciation & Amortization + Net Working Capital adjustment - Cash Capex + Stock Based Compensation + Other Non-Cash Expenses

 

9

What is the mean 2019E EV/Revenue multiple in the Online Direct Sales comps group in 2019?

1.1x

1.2x

0.6x

0.8x

 

 

10

Complete Live Case section in the Scenario worksheet. There are 4 scenarios in this model: Consensus, Bull, Bear, and Other. The numbers in the live case should reflect one of the cases based on cell K14, which is dynamically linked to the scenario selected in the dropdown menu at the top of the worksheet. What formula will you use to fill cell G21 (online stores for 2018E)?

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=CHOOSE($B$1,G76,G130,G184,G238)

=CHOOSE($K$14,G76,G130,G184,G238)

=CHOOSE($K$14,G76:Q238)

=CHOOSE($B$1,G76:Q238)

 

11

Link the live case with the Historical Analysis section in the Financial Model worksheet and complete the Valuation section. In the consensus case, what is the EBITDA excluding stock-based compensation (SBC) in 2024?

162,565

143,079

126,043

112,115