Download the attached excel file. 3- Income Statement.xIsx 6 In terms of gross-profit, which of the following periods likely requires further investigation or analysis? Fiscal 2016: Margins appear to be lower than expected. Fiscal 2021: Gross profit appears too high in terms of revenue. Fiscal 2014: As we do not have comparable figures for 2013. Fiscal 2018: Gross profit is too low given the historical growth. Income Statement \begin{tabular}{lrrrrrrrrrr} All figures in USD thousands unless stated & & 2014A & 2015A & 2016A & 2017A & 2018A & 2019A & 2020A & 2021A \\ \cline { 7 - 8 } & & & & & & & & \\ Revenue & 2,000 & 2,480 & 3,075 & 3,813 & 4,728 & 5,863 & 7,270 & 9,015 \\ COGS & & 500 & 620 & 1,537 & 953 & 1,182 & 1,465 & 1,817 & 2,253 \\ Gross Profit & & & & & & & & \\ & & & & & & & & \\ Selling, General \& Administrative (SG\&A) & 960 & 1,612 & 708 & 1,831 & 2,270 & 2,815 & 3,490 & 4,328 \\ EBITDA & & & & & & & \end{tabular} Gross Profit Margin EBITDA Margin Download the attached excel file. 3 - Income Statement.xIsx 7 Consider EBITDA as a percentage of Revenue. What is a possible reason for the observed EBITDAmargin in fiscal 2015 ? A decrease in gross margins due to supplier pressures (inflated cost of sales). An increase in interest expense due to the interest rate environment. An increase in depreciation and amortization expense due to increased capital expenditures. An increase in sales commissions to boost sales volumes. Download the attached excel file. 3-Income Statement.xIsx 8 What is the cost of goods sold primarily driven by for a given period? Capital expenditures. Sales volume. The sale price per unit. The units produced. Download the attached excel file. 4- Working Capital.xIsx Why would an increase in the company's days in A/P produce cash for a business? This is a non-cash item on the balance sheet, and therefore not applicable. The company is selling more product at a quicker pace, and therefore experiencing cash infl The company is 'stretching its payables' and deferring a cash outflow. The company is collecting on its credit sales faster. Download the attached excel file. 4- Working Capital.xIsx 10 Why would an increase in a businesses' days in inventory consume cash? The market is becoming increasingly competitive. The company is collecting on its credit sales faster. This is a non-cash item on the balance sheet, and therefore not applicable. The business is expending cash to build up its inventory levels. Download the attached excel file. 4-Working Capital.xlsx 11 What is the Q2 2022 quarterly revenue amount implied by the accounts receivable balance and days in A/R? \$14.2 million. There is not an appropriate amount of information provided. $14,227 $26.8 million. Download the attached excel file. 4-Working Capital.xIsx 12 What is the Q3 2021 quarterly COGS amount implied by the inventory? $12.1 million. $14.2 million. There is not an appropriate amount of information provided. $24.5 million. 3 A real-estate holdings company has the following fixed asset detail: Buildings: $25.0 Million; Useful Life 20-years. Land: $5.0 Million. Assuming straight-line depreciation, what would the companys total annual depreciation expense be? $20.0 million. $1.25 million. $5.0 million. $30.0 million. Having a very successful year, the real-estate holdings company manages to acquire a new property on July 1,2021 . The company has a fiscal year end of July 31 . The details on the building and land for the new property are as follows: Building Cost basis - $40.0 million. Useful life - 30 years. Land Cost basis $10.0 million. What would the accounting depreciation expense be for the fiscal year ended July 31,2021? $30.0 million. $111 thousand. $1.67 million. \$1.33 million. Recall from the last question that the real-estate holdings company acquired a new property on July 1, 2021. The company has a fiscal year-end of July 31 . The details on the building and land for the new property are as follows: Building Cost basis $40.0 million. Useful life - 30 years Land Cost basis $10.0 million. What would the accounting depreciation expense be for the fiscal year ended July 31,2022 ? $111 thousand. $1.33 million. $30.0 million. $40.0 million. In the below corkscrew, what would be the most optimal formula in cell G8? 9 =G5+G6+G7 =SUM(G5:G7) =G5+G6G7 =SUM(F8,G5:G7) Which of the following is critical to understand when putting together an asset schedule to track the company's tax basis? Whether to utilise copy/paste special or fill right. The subject company's relevant tax authority and its rules for depreciation. The type of corkscrew to employ. The useful life of the asset for accounting purposes. 18 Why is it important to track a pool of tax losses in a financial model? The losses are treated the same for accounting purposes and tax purposes. The losses significantly decrease the future income of the business. The losses indicate that the company is not likely to be profitable in the future. The losses can be applied to future taxable income and reduce taxes payable. 9 Which of the following statements regarding model review is true? Using keyboard shortcuts can greatly expedite a model review. Model review is mainly about formatting and not the calculations and logic within the model. Every cell in the workbook must be inspected in detail by going into the cell. It's not important for a financial analyst to review their own work. 20 Which of the following tools can help check larger sections of a model across multiple cells? Using the F2 key to Edit Cell contents. Using Excel to locate Constants. Using Trace Precedents in the Formulas section of the Excel ribbon. Using Excel to check for Row Differences. Revenue Schedule VOLUME PRICING Pricing horeases Unit Price Salesvolume Safety Pro-Tech Inc. produces protective equipment. The company's primary source of revenue is from the sale of N95 masks. The industry has seen considerable growth over the past two years, and this has been reflected in the company's financial performance. However, competition in this market has increased and the product is now considered to be a commodity with relatively low barriers to entry. You have been engaged to help the company forecast its revenue and plan for future growth. Management has asked for your preliminary thoughts on their internally prepared schedule which can be downloaded. 1 Revenue.xlsx 2 What does the observed level of operational efficiency indicate? Review Later The business has been extremely efficient and has made effective use of its operational capacity. The sales volume growth appears conservative, given the company's plant capacity. The company should consider additional capital expenditure to increase the capacity of the plant. The level of operational efficiency can expect to persist into the future