IB test accounting question

Hey all,

Applied for an IB analyst gig and was given this question in the written component of their test but couldn't figure it out. Can anyone solve this? Question was to figure out what all the letters should be.

I think the below is right but couldn't get the rest

A: (6) from interest paid and interest accrual

C: 2 from change in NWC on BS

D: (1) from tax paid and no change in tax accrual

E: (18) from plug to balance CFS

F: (11) from change in cash on BS

I: 6 from 2008 debt and change in debt

2009 P&L

Sales: 120

COGS: (71)

Distribution: (12)

SG&A: (27)

Interest: A

Tax: (1)

Net profit: B

2009 CFS

EBITDA: 16

Change NWC: C

Interest paid: (5)

Tax paid: D

Purchase of fixed assets: (5)

Change in debt: E

Net change in cash: F

2008 BS

Cash: 12

NWC: 26

Fixed assets: 58

Total assets: 96

Debt: 24

Interest accrual: 1

Tax accrual: 2

Equity: 69

Total equities and liabilities: 96

2009 BS

Cash: 1

NWC: 28

Fixed assets: G

Total assets: H

Debt: I

Interest accrual: 2

Tax accrual: 2

Equity: J

Total equities and liabilities: K

Comments (3)

Apr 18, 2021 - 10:57pm

A: (6) - You accrued 1 dollar of interest and you paid out 5 dollars worth

B: 3 because 120 - 71 - 12 - 27 - 6 -1 = 3

C: (2) - Your NWC went up from 26 to 28, representing a cash outflow of 2 dollars

D: (1) - you paid $1 in tax from your income statement, and no change in accrual

E: (14) - from the equation 16 - 2 - 5 - 1 - 5 + E = -11

F: (11) - from the balance sheets

G:  63 - from 58 + 5

H: 92 - from 1 + 28 + 63

I: 10 from 24 - 14 = 10 (the 14 is negative on the CFS which means it was paid off

J: 78 from 92 - 2 - 2 - 10 = 78

K: 92 because A = L+SHE

Let me know what you think boss

Apr 19, 2021 - 12:41am

Rem aut occaecati totam ab rerum aut. Qui unde autem quasi officia molestias.

Start Discussion

Total Avg Compensation

January 2022 Investment Banking

  • Director/MD (5) $604
  • Vice President (20) $379
  • Associates (138) $238
  • 2nd Year Analyst (83) $154
  • 3rd+ Year Analyst (15) $150
  • Intern/Summer Associate (60) $142
  • 1st Year Analyst (284) $138
  • Intern/Summer Analyst (223) $89