Is it acceptable to write down my thoughts as I go through an answer?
Ex: "Walk me through the 3 financial statements when a $100,000 factory breaks down in the 3rd year of its 10 year useful life and the $100,000 in HY bonds that underwrote the factory acquisition comes current?"
I was thinking of jotting down the change in net income, cash, PP&E, etc as I explain my answer to make sure I wasn't missing anything or forgetting any numbers.
| +266 | UBS Tech MD hires Son (from no-name college) as an Intern | 48 | 7h |
| +166 | WTF IS THIS COMPETITON | 59 | 13h |
| +161 | Mayday, Mayday: Key UBS Leaders (Former Barclays MDs) Abandoning Ship | 28 | 3d |
| +118 | Is banking in the south more sustainable? | 28 | 9h |
| +94 | The Intern Starter Pack | 16 | 5m |
| +75 | Current State of the League Tables | 28 | 14h |
| +51 | [Official] 2026 IB Analyst Bonus Megathread (with 2025 Consolidated Pay and Perks/Benefits) | 9 | 8h |
| +49 | Perella Weinberg to Cut 10% of Workforce, Including Partners | 31 | 1d |
| +40 | UBS Groups Ranked by Future Outlook | 20 | 1d |
| +32 | PWP Layoffs????? | 18 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Make sure to ask the interviewer first. 99% of them will say it's fine.
DalaiLama or anyone else Can you explain the answer?
Thanks.
assuming straight-line depreciation, each year depreciation is 10k, so by third year, factory is worth 80k. You write down 80k on income statement, assuming 40% tax rate, net income is down 48k.
For the cash flow statement, net income is down 48k but you add back 80k since it is a non-cash expense, so cash is up 32k. But then, you have to pay back 100k in bonds, so cash is down 68k
Now the balance sheet: Assets: cash is down 68k, PPE is down 80k. Total assets are down 148k Liabilities: Down 100k b/c you paid off bonds SE: Down 68k because net income is down 68k, and that flows into retained earnings
Consequatur et cupiditate ipsum ad facere quia. Consectetur porro dolore autem nulla iusto aut. Facere accusantium autem dolor doloribus magnam qui quod. Delectus tenetur et rerum provident voluptatem vero.
Aut sunt cum perferendis asperiores. Odit esse sequi nesciunt fuga voluptas vel error. Velit adipisci aliquid et fugit qui velit. Est qui aliquam inventore deleniti. Dolores voluptatem quis et accusamus et vero.
Deserunt dolorum sint quo voluptates et enim. Molestiae facere odio sunt magni odit maiores.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...