AA

Question 1

If you had to choose one financial statement to assess the liquidity and stability of a company which would you choose?

Answer 1

cash flow statement.

As this allows you to see the company’s abilities to meet its short term obligation

Question 2

If you then were able to choose another financial statement which would you choose?

Answer 2

with two, income statement and balance sheet; broader picture, can create a cash flow statement from IS / BS

Question 3

If AA changed all their operating leases to capital leases how would this affect the three financial statements?

Answer 3

Capital leases effectively act as debt to own the underlying asset leased. A simple analogy is taking out a loan to purchase a car or home; payments are made periodically and, at the end of the term, the asset is owned outright with the loan repaid.

Operating leases do not transfer ownership of the underlying asset, and payments are made for usage of the asset. A simple analogy here is leasing a car from a dealer; the lessee makes payments for the right to use the car, but does not gain equity in the car itself and will not own the car at the end of the lease.

Prior to this new accounting standard, GAAP required the assets and liabilities associated with capital.

Question 4

You are purchasing a 20 million dollar jet. How will this affect the financial statements both now and in the recurring future?

Question 5

How would you estimate how many flights fly out of DFW a day?

Question 6

What are 3 Excel function that you most commonly used in your last job and what were they used for?

Question 7

Questions after DCF model: (to build or lease a warehouse center for next 5 years), - What else would you look at when analyzing this deal? - Which decision would you make?

Question 8

What is the difference between capital expenditures and operating expenditures?

Question 9

If we decided to use debt to finance the purchase of a plane, what is the effect on the market value of equity?

Question 10

What are the two types of costs of capital? How do you calculate them? Which is more expensive? Why?

Question 11

How do you find enterprise value?

Question 12

What do you consider when deciding whether to lease or buy an airplane?

Question 13

How does a capital purchase affect each of the 3 financial statements?

Question 14

Why are you interested in AA?

Question 15

In this role what is something that you would want to improve about yourself?

Question 16

Tell me about a time where you had to deal with a difficult person and how you handled that.

Question 17

Tell me about a time where you had to work with someone who had a completely different background than you and how you found common ground?

Question 18

What was the hardest decision you had to make in the workplace?

Question 19

What are two adjectives to describe yourself?