What is Net Operating Assets

CFA Level II
#21

I got 1666 too

#22

+1 for 1666 and yeah, pretty sure they gave us avg NOA we just had to come up with the numerator.

#23

I didn’t get the number of 1666, but choose it since it is most closest.

#24

A whole vignette on a topic that is probably 3 pages in the CFAI text … this was a classic 6 or a 0 vignette … did you guys observe SS7 was probably the most tested topic of the exam … A full two vignettes or probably even more …

#25

Can someone explain how you got 1666? I spent ages on thinking about this in the exam. As I recall, total assets was around 45k. Cash was around 5k. So assets minus cash around 40k. Total liabilities were around 30k. Debt was around 8k, so liabilities minus debt was around 22k. Therefore NOA is 18k no? I’m clearly missing something, but what is it?

#26

kevincwang Wrote: ------------------------------------------------------- > I didn’t get the number of 1666, but choose it > since it is most closest. i got 1666. pretty sure of that. by the way your paper is 6161 right?

#27

1666 correct 2008 {(Total Assets - Cash) - (Total Liabilities - Total Debt)} - 2007{(Total Assets - Cash) - (Total Liabilities - Total Debt)}

#28

valuecreator Wrote: ------------------------------------------------------- > 1666 correct > > 2008 {(Total Assets - Cash) - (Total Liabilities - > Total Debt)} - 2007{(Total Assets - Cash) - (Total > Liabilities - Total Debt)} +1. thank god i went to re-read this just before the exam as i kept forgetting it

#29

1666 fooo shhooo They were nice enough not to include the answer you would have gotten if you left the short term debt out. Thank god because thats how i kept doing it over and over and not matching an answer choice. Then i thought, “hey i’ll try taking out short term debt too!” and sure enough…

#30

i got C-C-C-C-C-C in that vignette as answers!!! I mean WTF? So many Cs?

#31

i got 2741 from 6161 i think… i could have had the wrong answer because i didnt calculate NOA properly…

#32

what letter was that 1666

#33

B

#34

I spent about 5-10 minutes on the question on accruals ratio for one of the firms…turned out I kept calculating NOA and the accruals ratio for the firm in the first exhibit, until I realized they were talking about the firm in Exhibit 2 and had given you the average NOA for that… Sucked, but I think I got it (like 10.6%) or something around that.

#35

mp2438 Wrote: ------------------------------------------------------- > I spent about 5-10 minutes on the question on > accruals ratio for one of the firms…turned out I > kept calculating NOA and the accruals ratio for > the firm in the first exhibit, until I realized > they were talking about the firm in Exhibit 2 and > had given you the average NOA for that… > same here, not 5 minutes but i went through the whole process a good 3-4 times.

#36

^^ yea me too, and I remember thinking about the AF post about a guy who complained to his friends at the break that he swears CFAI doesn’t have the right answer. :slight_smile:

#37

i don’t think i remember all the questions in the vignette … if i remember correctly though there was 1. an earning quality one … 2. CF accruals 3. BS accruals 4. CF accruals ratio 5. BS accruals ratio … either way i didn’t include both years for the BS ones … so i hurt myself there FML