corporate finance 2004 2005 interview prep accounting n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Corporate Finance 2004-2005 Interview Prep - Accounting PowerPoint Presentation
Download Presentation
Corporate Finance 2004-2005 Interview Prep - Accounting

Loading in 2 Seconds...

play fullscreen
1 / 13

Corporate Finance 2004-2005 Interview Prep - Accounting - PowerPoint PPT Presentation


  • 149 Views
  • Uploaded on

Corporate Finance 2004-2005 Interview Prep - Accounting. Mark Pacyna / Manoj Ramnani VP’s for Corporate Finance Ross Business School Finance Club. Corporate Finance Intern Recruiting Roadmap. Company Presentations and Events Beginning September 20 OCD Resume Reviews / Career Counseling

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Corporate Finance 2004-2005 Interview Prep - Accounting' - aron


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
corporate finance 2004 2005 interview prep accounting

Corporate Finance2004-2005Interview Prep - Accounting

Mark Pacyna / Manoj Ramnani

VP’s for Corporate Finance

Ross Business School Finance Club

corporate finance intern recruiting roadmap
Corporate Finance Intern Recruiting Roadmap
  • Company Presentations and Events
    • Beginning September 20
  • OCD Resume Reviews / Career Counseling
    • September & October
  • Meet The Interns
    • November
  • Corporate Finance Forum
    • November 5
  • OCD Mock Interviews / Interview Preparation
    • October through early December – Start EARLY!
  • Finance Club Mock Interviews
    • Early January
  • Internship Interviews
    • Beginning mid-January
interviewing basics accounting
Interviewing Basics - Accounting
  • Use this ONLY as a guideline
    • This is provided to set expectations for technical Interviews
  • Will not go into details of accounting and finance
    • Follow Accounting and Finance classes for best results
  • Refer to Wet Feet, Vault guides for detailed technical questions
ratio analysis liquidity ratios
Ratio Analysis – Liquidity Ratios
  • Current Ratio:
    • Ability to meet short term financial obligations: Current Assets

Current Liabilities

  • Quick Ratio:
    • Relatively Liquid Securities: Cash + Marketable Securities + Receivables

Current Liabilities

  • Cash Ratio:
    • Most Conservative Cash Ratio: Cash + Marketable Securities

Current Liabilities

ratio analysis turnover ratios
Ratio Analysis – Turnover Ratios
  • Receivables Turnover: Annual Sales .

Average Receivables

  • Receivables Collection Period: 365 .

Receivables Turnover

  • Payables Turnover: COGS .

Average Payables

  • Payables Collection Period: 365 .

Payables Turnover

  • Inventory Turnover: COGS .

Average Inventory

  • Inventory processing Period: 365 .

Inventory Turnover

ratio analysis risk ratios
Ratio Analysis – Risk Ratios
  • Debt-Equity:
    • Total Long Term Debt

Total Equity

  • Interest Coverage:
    • EBIT (Net Income + Interest + Taxes)

Interest Expense

  • Cash Flow/Long Term Debt:
    • Net Income + Depr. + Change in Deferred Tax Book Value of LT Debt
ratio analysis operating ratios
Ratio Analysis – Operating Ratios
  • Total Asset Turnover:Net Sales

Average Total Assets

  • Net Fixed Asset Turnover:Net Sales

Average Fixed Assets

  • Equity Turnover:Net Sales

Average Equity

  • Average Equity:
    • Includes

+ Common Stock

+ Preferred Stock

+ Retained Earnings

ratio analysis profitability ratios
Ratio Analysis – Profitability Ratios
  • Gross Profit Margin:Gross Profit (Sales – COGS)

Sales

  • Operating Profit Margin:Operating Profit (EBIT)

Sales

  • Net Profit Margin:Net Profit

Sales

  • ROE:Net Income

Average Total Equity

  • Return on Owners Equity:Net Income – Preferred Dividend

Average Common Equity

  • ROE:Net Income

Average Common Equity

  • Net Income X Net Sales X Total Assets

Net Sales Total Assets Common Equity

Profitability X Asset Turnover X Leverage

ratio analysis limitations
Ratio Analysis – Limitations
  • Only useful when compared to other firms or for the company's historical performance
  • Difficult to find comparable industry ratios when analyzing companies that operate in multiple industries
  • Must be viewed relative to one another
  • Best analyzed using a range of acceptable values
income statement
Income Statement

Sales (Net)

- Cost of Goods Sold

= Gross Profit

- R&D Expense

- SG&A Expense

= EBITDA

- Depreciation & Amortization

= EBIT

- Interest Expense

+ Non-Operating Income (Loss)

= EBT

- Income Taxes

- Minority Interest in Earnings

+ Other Income (Loss)

= Net Income Before Ext. Items

- Ext. Items & Disc. Ops.

- Preferred Dividends

= Net Income (available to common)

balance sheet assets
Balance Sheet - Assets

+ Operating Cash and Market. Sec.

+ Receivables

+ Inventories

+Other Current Assets

= Total Current Assets

+ PP&E (Net)

+ Investments

+ Intangibles

+ Other Assets

= Total Assets

balance sheet liabilities
Balance Sheet - Liabilities

+ Current Debt

+ Accounts Payable

+ Income Taxes Payable

+ Other Current Liabilities

= Total Current Liabilities

+ Long-Term Debt

+ Other Liabilities

+ Deferred Taxes

+ Minority Interest

= Total Liabilities

+ Preferred Stock

+ Paid in Common Capital (Net)

+ Retained Earnings

= Total Common Equity

other questions
Other Questions
  • Statement of Cash Flows
  • Statement of Shareholders Equity
  • Operating Leases, Capital Leases
    • Advantages, Disadvantages
  • Depreciation
  • Taxation
  • Elective Classes
    • ACC 564, ACC 712