3 Statement Impact Framework + $10 Depreciation - Investment Banking Interview Qs

In this video, we give you a framework to answer these questions and then demo the most common version of this question: 'How does a $10 increase in depreciation flow through the three financial statements?'

Learn how to answer interview questions from a former Investment Banking (UBS LA), Private Equity (Golden Gate Capital + HIG Capital) and Investment Management ($200B Mutual Fund / $2B Hedge Fund) practitioner…and Adjunct Professor in Columbia Business School’s Value Investing Program who has trained thousands of current IB/PE/HF/MF professionals.

Content Details:
00:00 - Intro
00:09 - Overview
01:02 - Answer Framework - Step 1: Income Statement
01:17 - Answer Framework - Step 2: Cash Flow Statement
02:03 - Answer Framework - Step 3: Balance Sheet Connections / Step 4: Fill in the Missing Pieces
03:22 - $10 Depreciation Example - Intro
03:44 - $10 Depreciation Example - Step 1: Income Statement
05:07 - $10 Depreciation Example - Step 2: Cash Flow Statement
06:39- $10 Depreciation Example - Step 3: Balance Sheet Connections
07:15 - $10 Depreciation Example - Step 4: Fill in the Missing Pieces
08:03 - Wrap-Up & Framework Recap

Hope this is helpful and let us know if you have any questions in the comment section below.

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#InvestmentBanking #PrivateEquity #FinanceInterviews #Depreciation #D&A #Accounting

[knehru]

This video was super helpful to me in my forthcoming investment banking interview. Thanks so much!

[zehranaqvi]

Wow this video was so helpful, help me master the question quick and efficiently!

[devinpaulsen]

In these type of fake scenarios, will CFO always = the tax shield?

[lawrenceheung]

Very good . Does the change of cash equals to free cash flow ?

[lauridsnordhorn]

Why is the income expense plus 2 and not negative 2?

[sriram]

So its basically the impact of Each income or expense item on all 3 statements, correct ?

[TheMarinho]

Hi, will you upload more of those 3 statement adjustment impact videos? I failed at those in an online interview test and would like to improve. When will the "Three statement connections Mastery" course be available?