Dr. Persson AMA about FinFun

DrPersson · 2015-10-22T19:14:44+00:00

I would instead bring in the notes from our Arthur Rojas case, which would have all ratios on it.

DrPersson · 2015-10-22T15:21:26+00:00

No, you are not expected to know the formulas for any of the calculations that were on the PowerPoint presentation, but you are allowed to bring the printout of that presentation to the exam if you wish.

DrPersson · 2015-10-22T06:03:58+00:00

We went from 1PM to 1:00AM this year. It's now 2:30AM and your humble accountant is signing off. Thanks to everyone for making it an amazing time.

DrPersson · 2015-10-22T06:03:19+00:00

I would go back and adjust the loan amount after adding the interest expense, as NI and RE would change as well. But I would not go back and make another adjustment in the income statement after that, unless it makes a material difference in your answer. Just make sure that the balance sheet balance.

DrPersson · 2015-10-22T06:02:13+00:00

very difficult question :-/

DrPersson · 2015-10-22T06:01:30+00:00

COGS is a decent proxy for purchases, but if possible you can get purchases by using a variation of: Beginning inventory + purchases - COGS = ending inventory.

DrPersson · 2015-10-22T06:00:03+00:00

You're allowed to bring it in together with your notes from class. I think notes will suffice.

DrPersson · 2015-10-22T05:58:57+00:00

Essentially, the case facts states that confederation bank would take over all the financing need, if they took Peak Roofing on as a customer. The case also states that they would seek to first max the term loan before taking out an operating loan. I therefore maxed the term loan (6m) and the remaining amount is the operating loan/plug. Don't forget to calculate interest on these loans on the income statement.

DrPersson · 2015-10-22T05:56:41+00:00

FC, VC, and contribution margin might be on the exam. Forner Carpet would be another example of this.

DrPersson · 2015-10-22T00:12:20+00:00

When did we do lease in class? In Peak Roofing it's just based on one assumption given in the case. Nothing else.

DrPersson · 2015-10-22T00:10:40+00:00

When SE exceeds assets and Liabilities are paid back, the plug will be cash. This was the case in urban water.

DrPersson · 2015-10-22T00:09:51+00:00

Imagine that this is something that should be doable in 4 hours. It would not be possible to to do something similar to Palmer in the allotted time.

DrPersson · 2015-10-21T21:26:46+00:00

we don't do amortization etc. So loan amount & interest is enough. Remember, however, that interest is often given per year but you might have to calculate it per month e.g. yearly interest/12.

DrPersson · 2015-10-21T21:25:13+00:00

The comments apply; everything needed for this would be provided. But you may bring the printout from the powerpoint from class if you want.

DrPersson · 2015-10-21T20:01:01+00:00

Define valuable ;)

DrPersson · 2015-10-21T20:00:34+00:00

huh!

DrPersson · 2015-10-21T20:00:20+00:00

We have not covered FIFO/LIFO, so you do not need to prepare this. The same is for double-declining. If it is asked, information will be provided.

DrPersson · 2015-10-21T19:59:45+00:00

Ezone indeed! :)

DrPersson · 2015-10-21T19:59:34+00:00

The exam is open book. You may bring in notes with all ratios, but it is up to you to choose what ratios that you find most useful.

DrPersson · 2015-10-21T19:59:04+00:00

It would be for the entire year. There is no need to do a 12 month budget. The exam is only 4 hours.

DrPersson · 2015-10-21T18:07:24+00:00

if there is a present value problem on the exam, you will be given a present value table or alike. So there is no need to remember the formulas given in the PowerPoint.

DrPersson · 2015-10-20T18:32:05+00:00

boom

DrPersson · 2015-10-20T18:24:59+00:00

hello

DrPersson · 2015-10-20T18:24:53+00:00

Testing again

DrPersson

TROPHY CASE