

Check out our guide on the Analyst Trifecta for a detailed breakdown of these three skills so you can ace this question if it comes up in the interview. We believe there are three important qualities: analytics, presentation, and soft skills. What does it take to be a great FP&A analyst? Cash flow statement: short-term and long-term cash flow profile, any need to raise money or return capital to shareholders. Whatever your answer to this question, just remember, the main job of the CFO is managing the company’s liquidity in an optimal way, and earning a rate of return in excess of the company’s cost of capital (WACC).

Balance sheet: liquidity, capital assets, credit metrics, liquidity ratios. Income statement: growth, margins, profitability. Highlight something on each of the three statements. Step back and give a high-level overview of the company’s current financial position, or companies in that industry in general. If you were CFO of our company, what would keep you up at night? For many businesses, PP&E is the main capital asset that generates revenue, profitability, and cash flow. In addition to these four, you may also have to consider revaluation. There are essentially four areas to consider when accounting for PP&E on the balance sheet: initial purchase, depreciation, additions (capital expenditures), and dispositions. How do you record PP&E and why is this important? On the cash flow statement, the write-down is added back to Cash from Operations, as it’s a non-cash expense, but must not be double-counted in the changes of non-cash working capital. The income statement is hit with an expense in either COGS or a separate line item for the amount of the write-down, reducing net income. Here is the answer: On the balance sheet, the asset account of inventory is reduced by the amount of the write-down, and so is shareholders’ equity. This can be one of the more challenging FP&A interview questions. How does an inventory write-down affect the three statements? The three financial statements all fit together to show a picture of the company’s financial health. The cash flow statement shows the cash flows from operating, investing, and financing activities over a period of time. The income statement outlines the company’s revenues and expenses over a period of time (quarter/year). The balance sheet shows a company’s assets, liabilities, and shareholders’ equity, and is a snapshot in time. FP&A Interview Questions, with Answers: Walk me through the three financial statements. While you are unlikely to be asked the exact questions listed here, understanding the line of reasoning and types of questions typically asked should help you prepare answers to the commonly-asked questions. Please read through all these questions carefully and notice the themes. In addition, we’ve also created what we think are the best answers to these FP&A interview questions. Game ft-om Brian Reyiiolfls, lead designer'of Ci«lizatioifn.Updated MaWhat are the Most Common FP&A Interview Questions?īased on extensive research and feedback from professionals in Financial Planning and Analysis, we’ve compiled the most likely interview questions to be asked by an FP&A hiring manager. WHO CAME BEFORE YOU.TlIE YEAR IS 1 503 A. CHOOSE YOUR WEAPON.ĪND JOIN THE MOST INTENSE ONLINE WAR EVER.ĭiscover and lay claim to the New World. All other trademarks or tradonames are properties of their respective owtterVĬHOOSE YOUR ALLEGIANCE.

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