CFI FMVA Latest Update - Actual Exam

CFI FMVA Latest Update - Actual Exam with 450 Questions and 100% Verified Correct Answers Guaranteed A+ Approved by the Professor

CFI FMVA

- CORRECT ANSWER: A growing company would expect to have higher capital

expenditure than depreciation. This is due to growth, and due to inflation. Capital expenditure is at modern prices. Depreciation is at old prices.

!!! FOR CFS => ASSETS (cash outflows) => Y0 - Y1 LIABILITIES (cash inflows) => Y1 - Y0 'DIVIDENDS PAID' => Cash outflow => negative on CFS ***Investment DOWN btwn 2 periods - Why?} Sold part so cash INFLOW - CORRECT

ANSWER:

!!! If you make an error/add text with iterative calculations, delete them & undo (ctrl z) => iterative calcs for interest circular switch => if create any error leading to #VALUE! => CREATE CELL WITH

SWITCH

=IF($D$21=1,F105,0)

in office, switch off iterations off - CORRECT ANSWER:

'Cleaning' EBITDA - CORRECT ANSWER:

'Cleaning' NI - CORRECT ANSWER:

'Cleaning' Op. Profit - CORRECT ANSWER: 'Cleaning' Op. Profit 1 / 4

=> Adding non-recurring expenses E.g. large gains/losses on sale of subsidiaries; restructuring/reorg/severance costs/impairment-write downs/litigation costs/M&A fees/integration costs/more (unexpected loss of value vs depreciation expected loss of value) => Adding non-core expense => Adding non-controlled expense => Subtract non-recurring income => Subtract non-core income => Subtract non-controlled income = 'Clean' EBIT

[A business is reviewing its equity => a business issues additional shares and repurchases shares]

Calculating impact of transactions on equity => SHARES - CORRECT ANSWER:

Common stock:

APIC:

Treasury stock:

=> historical => adjustment (new shares issued & shares repurchased) => projected (= historical + adjustment) ***Impact on equity split between Common Stock and APIC

[ACCOUNTING] Calculating total liabilities & equity @ period-end - CORRECT ANSWER: Calculate total liabilities and equity at the end of Period X => The impact of each transaction on liabilities and equity must be calculated.NOTE: items impacting IS will flow through into the retained earnings section of equity.Some transactions may not impact liabilities and equity. Some transactions may have two offsetting impacts.----- Using the information below, what is the COGs?

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Cost of goods sold (COGS) looks at the items that were sold, and asks what were the direct costs related to those items.E.g.} For a bottle of water this would be the plastic bottle, the water and the label.----- What is the WC cycle for the below company?A POSITIVE number = funding required, a NEGATIVE number is funding provided.WC cycle = Receivable days + Inventory days - Payable days Receivable days = Receivable/Sales*Number of days of Sales Inventory days = Inventory/COGS*Number of days of COGS Payable days = Payable/COGS*Number of days of COGS ----- The WC cycle calculates the number of days that cash is tied up in operations. It looks at the number of days between the cash outflow and inflow.-----

PPE BASE ANALYSIS FOR FINDING CAPEX & FORECASTING PPE:

BASE (beginning, add, subtract, ending) analysis is used to forecast ending PP&E using opening PP&E, capex and depreciation. In a forecast calculation, when 1 variable is missing, BASE can be used to calculate that missing variable.-----

BASE ANALYSIS FOR INTANGIBLES}

B Intangibles Add Purchases for Intangible assets Subtract Amort E Intangibles

Using the information below, calculate the amortization number (straight line method) that will be shown in the operating cash flow section of the cash flow statement, each year.

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AMORT:

Amortization is calculated as the amount of value lost per annum from an intangible asset, that is expensed to the income statement and app

[WORKING CAPITAL] Current Assets

Examples} - CORRECT ANSWER:

[WORKING CAPITAL] Current Liabilities

Examples} - CORRECT ANSWER:

***no strike price when looking at RSUs

Basic shares outstanding MM # of options Strike price Net new shares from options MM Net new shares from RSU's MM

Diluted shares outstanding MM - CORRECT ANSWER:

% Excel Shortcut - CORRECT ANSWER: Alt H P

8K Report - CORRECT ANSWER: PRESS RELEASE [standard format]

=> document filed with the SEC that describes a change in the firm that many affect the value of its securities

A business owns a bond which it accounts for as "fair value through other comprehensive income (FVOCI)" The market value of the bond has increased. The business has not sold the bond. How

will this increase be reflected in the balance sheet? - CORRECT ANSWER:

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