Financial statements walkthrough | Dataford Interview Questions

Your question is Financial statements walkthrough. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

Problem

Walk me through the financial statements given specific revenue, COGS, and depreciation.

Asked in the First Round stage. The interviewer expects the candidate to explain the accounting flow-through across the income statement, balance sheet, and cash flow statement, including the treatment of depreciation and cash taxes.

Task

Start with revenue, COGS, and depreciation to calculate gross profit, operating income, and net income.
Explain the balance-sheet impact, including PP&E, retained earnings, and cash.
Reconcile net income to cash flow from operations and identify the investing cash flow from capital expenditures.
State what additional inputs are required to produce a numerical answer.

Your question is Financial statements walkthrough. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

Walk me through the financial statements given specific revenue, COGS, and depreciation.

Task

Start with revenue, COGS, and depreciation to calculate gross profit, operating income, and net income.
Explain the balance-sheet impact, including PP&E, retained earnings, and cash.
Reconcile net income to cash flow from operations and identify the investing cash flow from capital expenditures.
State what additional inputs are required to produce a numerical answer.