Sep 19, 2018

WSO - PE Guide - Full LBO Example 1 vF - Balance Sheet and Depreciation Schedule Questions

Hi, sorry if this should be in the product reviews forum.

Balance Sheet Questions
1) What is Capital in Excess of Par Value in this context and why is it just subtracted from itself when calculating PF Year 0?
2) Why are advisory fees multiple by 1 - Tax Rate when calculating retained earnings? Why not by the Tax Rate itself? Why do you even multiply by tax rate?

Depreciation Schedule Questions
1) When calculating Plant Depreciation for Y1 CapEx, it's calculated as CapEx / Depreciable Life / 2. Future periods are not divided by 2. When calculating Plant Depreciation for Y2 CapEx Y2, the same thing is true: it's divided by 2, but periods beyond the first one are not. Can someone explain why you divide by 2?

Thank you!

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5y

Hi Making Gravy, any of these threads helpful:

Investment Banking Interview Questions- A Comprehensive Guide the Income Statement, the Balance Sheet, and the Statement of Cash Flows. The Income Statement shows ... a company's revenues, costs, and expenses, which together yield net income. The Balance Sheet shows ... overall business. And the Balance Sheet alone just shows a snapshot of the Company at one point in time, ...
Learning How to Forecast Balance Sheet Accounts + Capex- Depreciation- Asset Sales- Write Downs or full-blown schedule Forcasting Balance Sheet Accounts ... practices for modeling out the balance sheet. "esbanker- Private Equity Analyst" wrote: Cash and ... Other Balance Sheet Items "esbanker- Private Equity
Notes for Technical Interview Questions minority interests = Good Will o Adjust parent balance sheet:- If the parent is issuing new debt or equity ... each individual company- Balance Sheet o Determine:- The purchase price of the acquisition- Funding for ... paying cash, then the cash would come out of the parent's balance sheet (effects cash)- If the ...
Interview Question with the Three Financial Statements Depreciation Impact Balance Sheet Position? Without taking into account the income statement and cash flow ... statement impacts that flow through to the balance sheet, depreciation lowers the balance of the property, ... It's a common question- what effect does a depreciation expense have on all three financial ...
Corporate Finance Interview Questions and Answers 3 years of balance sheet data. It's easier to derive income statements from 3 years of BS data than ... could choose between looking at 3 years of income statements or 3 years of balance sheets, which would ... going the other way. Also with balance sheet data you can calculate all sorts of ratios and measures ...
Top 5 Basic Technical Questions That Will Show You the Door and memorize common questions?" 1) If I give you a private company income statement only with no ... after valuation method question) "Given nothing but a comp sheet and income statement numbers ... for a private company and you have a comp sheet what is the approximate Market Cap?" Also if you ...
Finance Interview Questions and Answers | Wall Street Oasis (rev-cogs-exp = Net Income) Balance Sheet (Assets= Liabilities + Shareholder's equity) Statement of Cash ... review and perfect the answers to the below questions. This guide is based on real questions asked at ... is added to retained earnings from the prior period's Balance Sheet to come up with retained ...
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Senior Neanderthal

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5y

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Authored by: Certified Venture Capital Professional - Vice PresidentCertified Venture Capital Pro

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5y

For the depreciation schedule question, in Y1 they are probably assuming the Capex gets spent throughout the year (start year at 0, end year at 100 for example) and therefore the average Capex balance through the year is ~50 and so using straight line you'd only need half of the depreciation you'd expect for a full year. For future years you would not need to divide by two though. Hope that helps!

Authored by: Certified Private Equity Professional - Vice PresidentCertified Private Equity Pro

Senior Neanderthal

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5y

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Authored by: Certified Venture Capital Professional - Vice PresidentCertified Venture Capital Pro

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