Adventis Financial Modeling 2023

The Income Statement:

• Discloses the resources an organization controls and the claims against those resources

• Shows the inflows and outflows of cash over a period of time

• Shows an organizations financial postion at a point in time

• Presents the results of operations over a period of time

Which of the following does not fall into financing activities?

• Dividends

• Acquisitions

• Share repurchases

• Debt issuances

Which of the following does not fall into operating activities?

• Capital expenditures

• Depreciation

• Change in Working Capital

• Net income

Which of the following is not accurate in regards to accounts receivable?

• It's the amount owed to an organization from the sale of its products or services

• Accounts receivable is typically part of working capital

• If an organization sends an invoice to customers, the invoice amount typically shows up in accounts receivable

• All else being equal if accounts receivable increases, cash also increases

Which of the following balance sheet items are included in working capital?

• Debt

• Accounts receivable

• Equity

• Cash

• Long-term liabilities

How is Ebitida typically calculated?

• Gross profit plus depreciation and amortization

• Cash flow from operations less capital expenditures

• Operating income plus depreciation and amaortization

• Cash flow from operations plus depreciation and amortization

• Net income less taxes

What is a standard approach to calculating free cash flow?

• EBIT plus depreciation and amortization

• Cash flow from operations less capital expenditures

• Cash flow from operations plus depreciation and amortization

• Net income plus depreciation plus change in working capital

Which of the following describes dividend yield?

• Shows how much investors are willing to pay per dollar of earnings

• The return on a share of common stock

• Measures the value of common stock

• The amount of earnings attributable to a share of common stock

Which of the following describes earnings per share?

• Measures the value of common stock

• Shows how much investors are willing to pay per dollar of earnings

• The return on a share of common stock

• Shows the amount of earnings attributable to a share of common stock

How do calculate Days Receivable?

• Accounts Payable / Cost of Sales x 365

• Accounts Payable / Annual Revenue x 365

• Accounts Receivable / Cost of Sales x 365

• Accounts Receivable / Annual Revenue x 365

• Accounts Receivable x Annual Revenue / 365