Which of the following would INCREASE cash available for optional Revolver repayments?

• Decreases in Accounts Payables
• Increases in Mandatory Term Loan B Debt Repayments
• Increases in Accounts Receivables
• Increases in Capital Expenditures
• Increases in Depreciation and Amortization

Which of the following would NOT generally help increase overall PEs annual returns for a LBO transaction?

• Exiting the transaction earlier
• Issuing more debt for a dividend
• Decreasing capital expenditures
• Increasing Days Sales Outstanding for Accounts Receivables
• Decreasing interest payments to debtholders

When modeling a Companys future Balance Sheet for a LBO transaction, which of the following is INCORRECT?

1. Modeling Accounts Receivable based on Sales or the Sales Growth Rate
2. Modeling Other Current Assets based on Sales or the Sales Growth Rate
3. Modeling Accounts Payable based on Sales or the Sales Growth Rate
4. Modeling Accrued Expenses based on Sales or the Sales Growth Rate

• 1 only
• 2 only
• 3 only
• 1 and 2
• 3 and 4