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Career Resources
What are the three financial statements and how do they link
You have to be joking…
What impact does a $10 increase in D&A has on all 3 statements really fucked me up
Honestly nothing technical, just some curveballs like "what do you most regret and why?" or "out of the firms that you have worked at, which do you respect the most and why?" or even the odd stress test about your opinion on semi-politically polarized questions. Nothing like abortion, but maybe the odd question about certain wars or college acceptance practices. I'm not saying I'll exhibit a total facade in interviews, but I'm definitely on my best behavior and overtly cognizant of how I conduct myself. So sometimes a curveball like one of these you might not have a clear answer in your head, even if you know 100% how you feel. That enough, sometimes might make me stumble for a second or two. At least you can always ask for a second to gather your thoughts haha.
Defend an unpopular opinion you hold
A company buys $400 of inventory on with $400 of debt 5% PIK interest 5% cash interest. Every time a company sells inventory, they have to pay back the same amount of their debt. In the next year the company sells $100 inventory at 50% gross margin. What are the effect on the three financial statements in one year?
Income Statement: Operating Income would decline by $10 and assuming a 40% tax rate, Net Income would go down by $6.
Cash Flow Statement: The Net Income at the top goes down by $6, but the $10 Depreciation is a non-cash expense that gets added back, so overall Cash Flow from Operations goes up by $4. There are no changes elsewhere, so the overall Net Change in Cash goes up by $4.
Balance Sheet: Plants, Property & Equipment goes down by $10 on the Assets side because of the Depreciation, and Cash is up by $4 from the changes on the Cash Flow Statement.
Overall, Assets is down by $6. Since Net Income fell by $6 as well, Shareholders’ Equity on the Liabilities & Shareholders’ Equity side is down by $6 and both sides of the Balance Sheet balance.
What bank was this for??
I don't know if there is a specific bank but this actually seems to be a semi standard question.
Link to more practice questions: https://ibvine.io/practice/
I was once asked:
You are climbing up a staircase with 100 steps.
You must reach the 100th step by climbing only Y or (Y-K) steps at a time.
100 > Y > K > 0.
In how many ways can you climb the staircase?
Any interview with "brain" "teasers" -that are not market size estimations- is difficult and absurd, considering that the behavior exhibited during the interview and the (un)successful solution to any of these are never indicative of:
- *Actual* behavioral fit
- Technical abilities useful *for* the job
- A measure of how well you handle stress in "unexpected" situations
Time devoted to preparing these questions before an interview is time wasted on something that will not be useful for the job environment or the job itself.
Ever heard something like this?:
"You failed to guess which light bulb I lit in our conference room before you came in, we're not signing the SPA."
Me neither.
.
You missed the point entirely.
Also, please entertain us: walk us from start to end on how you'd solve for any Y and K meeting those conditions.
CS IB Junior yr Internship - $7 depreciation through the 3 financial statements.
I think it's in the WSO Guide but I didn't really brush up on it because I hadn't learned DCF's in school yet since I got the interview the summer before Jr. Year started. FYI, I still have no idea how to answer this question.
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