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Hey, future bankers!

Hope everyone is doing well! Today we’re covering which financial statement to choose if you only get one and the most common piece of feedback that you receive.

🚀 Let’s get into it.

🔢 Technical Question

If you could only use one financial statement to evaluate a company, which one would you choose? Why?

If you could only use one financial statement to evaluate a company, the cash flow statement would be the most informative choice.

Here's why:

• Focuses on Liquidity: Cash is the lifeblood of any business. The cash flow statement shows how well a company generates and uses cash, giving a direct picture of its financial flexibility.

• Complements Other Statements: Profitability (income statement) and financial health (balance sheet) are important, but they don't necessarily reflect immediate cash availability. The cash flow statement bridges the gap.

• Highlights Cash Flow Generation: A company might show a profit on paper but struggle to convert sales to actual cash. The cash flow statement reveals this by separating cash flow from operating activities from accounting profit.

Therefore, the cash flow statement provides a crucial perspective on a company's ability to meet its short-term obligations and fund future growth.

🗣 Behavioral Question

What’s the most common piece of feedback that you receive?

Here are some best practices for responding to the question:

Focus on Growth:

• Acknowledge and Address: It's best to acknowledge that you receive feedback and are always looking to improve.

• Choose Constructive Feedback: Pick a specific area where you've received constructive criticism. This shows self-awareness and a willingness to learn.

Highlight Growth Mindset:

• Example and Action: Briefly describe a situation where you received feedback and the steps you took to improve in that area.

• Quantify Improvement (if possible): If you can quantify your improvement, that's even better. Did your research speed increase? Did the clarity of your reports improve?

Example:

• Communication Skills: "In group projects, I've received feedback on being concise and clear in my communication. I've been working on actively listening to others' perspectives and summarizing key points before presenting my own ideas."

Additional Tips:

• Stay Positive: Frame the feedback as an opportunity for growth, not a weakness.

• Be Specific: Avoid generic answers like "I need to work harder."

• Connect to the Role: Briefly mention how your improvement aligns with the skills required for the internship.

Thanks for tuning in today! Best of luck to everyone working through recruiting right now. If you sign an offer, reply to this email and let us know about it! Like seriously, do it—we’d love to hear about it!