Question

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

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

Cash and cash equivalents on the 2017 balance sheet

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

As additional paid-in capital

As common shares

As debt

Exclude it from the financial statement

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

On the cash flow statement - operating activities

On the cash flow statement - financing activities

On the income statement - operating expenses

On the income statement - non-operating expenses

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

PP&E acquired under capital or financing leases

Cash capital expenditures

Changes in working capital

PP&E acquired through acquisitions

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

4%

9%

5%

12%

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

1,528.6

1,618.4

1,753.8

1,944.4

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

It is a practice mandated by financial institutions

It is an accounting rule under IFRS

Cost of sales typically has payment terms

Accounts payable is part of working capital

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

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 + Net Working Capital adjustment - Cash Capex + Stock Based Compensation + Other Non-Cash Expenses