Yeah, that ROS question was worded incorrectly. Seriously though, where the f did that WCinv calculation come from?? Looking at the numbers they had in the explanation (80-105), I have no idea where that came from.
And why are the CFAI PM questions completely different from anything Schweser covers? All those “above average / average / below average” liquidity tolerance to risk etc… where are we supposed to draw the line?
McLeod81 Wrote: ------------------------------------------------------- > Yeah, that ROS question was worded incorrectly. > Seriously though, where the f did that WCinv > calculation come from?? Looking at the numbers > they had in the explanation (80-105), I have no > idea where that came from. I would like to know where that number came from too.
I haven’t taken the exam, but those numbers for WCInv sound like the exact same question as last years practice. Take CA-CL (but exclude the items specified in the book…I think it is cash & marketable securities for CA and short term debt and the current portion of LT debt for CL). If you take the CA-CL from period T and subtract it from CA-CL in period T-1 you’ll get the answer, I believe.
if you took them last year sponge, don’t waste the money. i’ve heard from several people now they are (1,2,and 3) identical to last year’s samples. i wonder if 4 and 5 from last year went into the mocks.
You know what’s a bigger waste of money? Taking the whole f’ing exam over again…
Yeah, definitely don’t let the red at the bottom mess with your head, usually after a few wrong I just start laughing when I see red, its just practice.
yeaah. i’m looking at doing that right in the face actually. i guess if you think you can get some benefit out of retaking them, i guess, it wouldn’t be a complete waste. if it were me though, i 'd probably skip it and take the mocks.
i hate red…officially…seriouslly…really sad right now… just bombed Sample 2 - 67% (including the ethics questions that Nib mentioned - which is clearly wrong but right…) anyway… inspite of reading this thread before i took the test - i couldn’t for the life of me figure out what the problem was in the WCInv number…and why people would’ve gotten in wrong…till i got it wrong myself!! dammit… ********SPOLIER******** Basically… I think what most people screwed up was that the change in CA was 80, and the change in CL was 105…so net WcInv was (80-105) …I calculated the 80 …and completely forgot to calculat change in CL…how stupid is that… I mean…I deserve to be thrown back into L1 just for that dumb mistake… ********END OF SPOILER********** having said that…I would’ve been at 70 …which is still not so great like the others…got screwed in credit analysis and IPS - seriously…where did those IPS questions come from!!! argh!!! ok …will go hand my head in shame now - stuff myself with food - and then review the damn material - for the 1000000 th time… you guys take the third one yet? - except black swan - we know you killed it…
Just gave the sample exam 2 . Really depressed. 66 %. Bombed all sections except FSA. Fixed Income at 33%! Need to hit Fixed Income big time 
Also would be nice if there was a review function. I clicked submit on two questions instants before i realized i has the wrong option selected. Would have been nice to be able to change it. That would have been two correct ones.
I think the reason I screwed up the WCinv calculation was that I was considering WC to be CA - CL. After going back through notes, I see that WCinv calculated for FCF purposes is actually CA(not including cash or cash equiv) - CL(not incl’d interest bearing liabilities). I spent 3 hours last night re-reading the credit analysis and IPS sections by candle light after a storm knocked our power out… starting to feel like some kind of weird, obsessive monk.
WC could get you on capital budgeting too, for the first year the investment in WC is the “net investment in short-term assets required for the project” (all I can find in the CFAI curriculum in the cap budg section) which I assume reduces to inventories, receivables and accounts payable, usually it’s a given number but I can’t seem to find a definitive answer.
Investment in WC for capital budgeting projects is usually positive, therefore you would treat it as a cash outflow in the initial cash outlay portion…you are also generally told that you’ll get the WC back at the completion of the project, which would be a cash inflow in the terminal year. There are problems, where the WC Inv is negative so prepare to do the opposite. Usually they’ll say something like the firm had to purchase $2,000 of inventory for the project, but it is expected to get it back at the end of the project.
Mumukada, nice score. I would have been happy with that one.
^^ thanks Nib…I guess I should just accept it and move on! have you done sample 3? what sections are on it? wondering if i should spend a day reviewing stuff…that i missed on sample 2 - or just do sample 3 (if its different topics) and then review everything together…
Nope. Today I am going to try to build back my confidence by doing the 90 or so questions from 06.
hmmm…good idea…think i’ll do that as well…
It was a good idea so far. 83% on the Book 7 exam for the actual 06 exam. I am only 60 questions through and taking a break before I do the remainder. This just confirms that sample two is the worst thing ever, or I just can’t take tests online. The porter vignette destroyed me. 2/6.
Nice score Nib.
Anyone take CFAI Sample 3 yet?