Hey WSO,
I was contacted by a recruiter for a BB last month to work as an equity research associate (college grad level). I was given a modeling assignment but was unable to complete it, as I couldn't get the balance sheet to balance. They said "work on it and get back to us within x-number of months."
Now, 1 month later, I fixed quite a few things that were wrong with the model but still can't get it to balance. Additionally, I got to see what other associates were given as assignments thanks to a friend on the inside, and frankly their tasks were really easy compared to mine (open-ended "make a DCF model" assignment).
I intend to resubmit my model to them soon, but I'm thinking that since it still isn't in balance that it's pointless for me to do so.
Does anyone think otherwise? Should I submit the model anyway? Are difficult/impossible to solve models ever used in recruiting? I'll send the model to anyone willing to help on it.
I'm not a pro at f/s analysis, but I have run though a number of models on my own time and during internships, and it's never been this difficult to fix anything.
Silver bananas for anyone with good insight and anyone who offers to help on the model.
I've never heard of an ER position requiring you to build a model as part of the interview process. I've definitely never heard of a job that gives you "x-months" to complete the assignment. Most PE interviews give you one week if not make you do the model on the spot. PM me your model and I will take a look at it.
I should have clarified:
I sent the model back, even though I was unable to finish it. They responded by letting me know that they couldn't take me at that time, and gave a deadline for when I should contact them again, hopefully with a finished model.
PM me your email address, as I'm unable to send excel files through PM.
What are you using as your "plug" account?
I'm not sure that I should use one (or how to do that). There is an asset-side surplus on the balance sheet, and the company is debt-free.
When I had to get models to balance, I jotted down some basic notes as to how things flow together which helped me at the time, I copied them below in case they might be useful. There should not be a plug account. I bet one or more of these things isn't being followed in your model right now.
Net Income --> Cash Flow / Operating --> Balance Sheet / Assets Depreciation --> Cash flow / Operating --> Balance Sheet / Assets Amortization --> Cash Flow / Operating --> Balance Sheet / Assets Working Capital --> Cash Flow / Operating --> Balance Sheet / Assets Capex --> Cash Flow / Investing --> Balance Sheet / Assets Debt --> Cash Flow / Financing --> Balance Sheet / Assets
Net Income --> Balance Sheet / Equity (Retained Earnings) Depreciation --> Balance Sheet / Assets (PP&E) Amortization --> Balance Sheet / Assets (Intangible Assets) Capex --> Balance Sheet / Assets (PP&E) Working Capital --> Balance Sheet / Assets / Liabilities Debt --> Balance Sheet / Liabilities
If you PM me the model I will help you make it work
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