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Wall Street Prep Financial Statement Modeling Correct 100%
Question: What is the Income Statement sequence?
Correct Answer: Revenue -> Gross Profit -> EBIT ->
Pretax Profit -> Net Income -> EBITDA -> Adjusted
EBITDA
Question: What is Gross Profit?
Correct Answer: Revenue - COGS
Question: What is EBIT?
Correct Answer: [Revenue - COGS] - Operating
Expenses - D&A
Question: What is Pretax Profit?
Correct Answer: [Revenue - COGS - Operating Expenses
- D&A] + Interest Income - Interest Expense - Other
Expense
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Question: What is Net Income?
Correct Answer: [Revenue - COGS - Operating Expenses
- Interest Income - Interest Expense - Other Expense] -
Taxes
Question: What is EBITDA?
Correct Answer: [Revenue - COGS - Operating Expenses
- D&A] + D&A
Question: What is Adjusted EBITDA?
Correct Answer: [Revenue - COGS - Operating Expenses
- D&A + D&A] + Stock Based Compensation
Question: What is Cash?
Correct Answer: asset
Question: What is Prepaid Expenses?
Correct Answer: asset
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Question: What is Accounts Receivable?
Correct Answer: asset
Question: What is Inventory?
Correct Answer: asset
Question: What is PP&E?
Correct Answer: asset
Question: What is Accounts Payable?
Correct Answer: liability
Question: What is Deferred Revenue?
Correct Answer: liability
Question: What is Short-Term Debt?
Correct Answer: liability
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