Income statement and cash flow. Income statement for EBIT and you need to find D&A on the cash flow statement. You can find capex in investing on the CFS, or alternatively, just back it out doing a BASE analysis with the change in PP&E and depreciation numbers.

 

I just reread the question and it says "statements". I initially read it as statement. Cash Flow and Income Statement is the obvious answer. I was perplexed on how to find the answers in one statement. Is this possible in one statement?

 

You could get pretty close with either the income statement or the cash flow statement. If you're just looking for an approximate either one should be okay as long as you can back up your choice to the interviewer.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

Downtown, I'm not disagreeing with your answer. However, how can taking the Depreciation from the Cash Flow Statement be any different than taking it from the Income Statement? The Cash Flow Statement D&A is comprised from the Income Statement D&A...The numbers would be the same assuming accurate reporting.

I think that we are all clinging to a great many piano tops...
 
Best Response
ekimlacks:
Downtown, I'm not disagreeing with your answer. However, how can taking the Depreciation from the Cash Flow Statement be any different than taking it from the Income Statement? The Cash Flow Statement D&A is comprised from the Income Statement D&A...The numbers would be the same assuming accurate reporting.

I don't remember all of the details, but if I remember correctly downtown is right. To get the best D&A numbers pick them off of the CF statement. I know it can be easier to find on the CF statement, but I think the numbers can actually be different. I'm really struggling to remember why though, maybe somehow due to asset disposals?

Someone who is more up on this than I am can probably answer this definitively.

twitter: @CorpFin_Guy
 

Correct answer is both CF & IS. All things being equal, you need CF for capex and IS for taxes.

Best depreciation figures are found on CF. Companies can include depreciation in both COGS and OpEx for the same period. So an income statement could show only a portion of total depreciation (lumped into COGS; broken out in OpEx), which will appear in aggregate on the CF statement.

 

Honestly depends on how loose "approximate" is; I just saw that after I posted. If loose enough to the point of estimating a tax rate, then the CF would be an appropriate answer. Net income * XX%... So your best bet is to read into is this a) a straight-forward technical, or b) an open-ended, show me how you think question. Granted, discussing statement relation is typically not up for discussion.

If you have the CF and IS, there is no approximation of EBITDA nor CapEx. It's exact.

 

I understand where you're all going with this. My confusion was I thought people were saying you'll get two different numbers from the Income Statement and Cash Flow Statement. Which is true to an extent, on the Income Statement you can get 2 and 2, which equal 4, but on the Cash Flow Statement you get 4 straight up.

You don't necessarily NEED the Cash Flow Statement for D&A...it just helps by providing a clean number.

I think that we are all clinging to a great many piano tops...
 

Et quae soluta quas quam eveniet autem ab incidunt. Non iusto eos dolores est exercitationem. Veniam et eaque et et et nihil. Ipsa autem vel voluptas. Quam sed et quisquam consectetur sit dolor voluptates non. Suscipit et laboriosam sunt quia sunt. Modi possimus cupiditate praesentium tenetur. Rerum occaecati inventore natus esse deleniti quos iure necessitatibus.

Eum impedit quis error vel. Suscipit quos at eaque. Est sit deserunt sit illo.

Possimus consequatur aspernatur autem aliquam quia. Consectetur sunt voluptatum velit ut debitis et dicta. Velit dicta sed similique quaerat a.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”