[jeff]

Welcome to the Q4 2017 CPA Exam Study Group for BEC. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your BEC exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[CoachEmUp]

@cpapexpredator If you're out there… I believe you're taking the test Saturday. Best of luck! I'm sure you'll crush it, looking forward to joining you over the finish line. Let us know how it goes!

[cpApex Predator]

@CoachEmUp, Thanks for the encouragement! Just reading focus notes and Ninja Notes as final review. Will let you know how it goes, almost at the finish line I cannot believe it! We will be done in time for Thanksgiving, and hopefully have a couple nice Christmas presents waiting for us on the 19th!

[runegoblet3xx]

On the last couple of modules for B4 in Becker, and I feel even more frustrated than before. None of these formulas are sticking with me, and I feel like when I've got it figured out, Becker throws this odd curveball question, and my sense of it all falls apart.

I think I'm going to buy NINJA. At this point, I think an alternative study material is going to help my confidence that keeps getting crushed by Becker every time.

I didn't even feel this frustrated with FAR. Maybe I'm just suffering from burnout? Anyways, I'm still going to attempt my formula cheat sheet and maybe things will start clicking better then.

Good luck to everybody taking their exams over the next few days!!

[jenpen]

I'm right there with you. I feel like I'm not retaining or learning any of the information, which frustrates me so I just quit studying. I have 3 weeks to get it together. Today is back to basics, I guess. Reading and notes.

AUD - 56 - 68 - 61 - 9/8/16
REG - 75
FAR - 7/15/16
BEC - TBD

Wiley CPAexcel and NINJA 10 Point Combo

[houston2017]

Can someone please explain this question to me?

Project 1 Project 2 Project 3 Project 4
Initial capital $200,000 $298,000 $248,000 $272,000
Annual net cash inflows
Year 1 $65,000 $100,000 $80,000 $95,000
Year 2 70,000 135,000 95,000 125,000
Year 3 80,000 90,000 90,000 90,000
Year 4 40,000 65,000 80,000 60,000
Net present 
 value (3,798) 4,276 14,064 14,662
Profitability 
 index 98% 101% 106% 105%
Internal rate 
 of return 11% 13% 14% 15%

Which project(s) should Capital Invest Inc. undertake during the upcoming year if it has only $300,000 of capital funds available?

(This question is CMA adapted)

Project 1.

Projects 2, 3, and 4.

Projects 3 and 4.

Project 3.

[CoachEmUp]

Just project 3 bc you can only invest in one project w $300k available so you want to invest in the most profitable. It's a bit tricky bc I personally would say invest in project #4 bc it has the highest NPV, but given that it costs more then #3 and only has a bit more NPV then that is why answer D, Project 3 is the answer.

[fblessed777]

@houston2017, I guess the answer is project 3 only. In case of selecting projects with capital rationing, you use the profitability index method. Project 3 has a PDI of 106% which is higher than the other projects. Additionally, the company can only invest 300,000. Hope this clarifies.

[houston2017]

Thanks! It made sense. Is anyone having issues with WILEYCPAEXCEL? I just finished a simulation. And it marked everything as wrong and it showed me the right answer and it's exactly what I had. I read forums and people were saying this was a common issue.

This is the question I did:

Simplico, Inc. has the following capital structure in the amounts and at the costs shown:

Capital Element Amount Costs (before taxes)
Debt $40,000 6.0%
Preferred Stock $10,000 7.8%
Common Stock $50,000 10.0%

Simplico's effective tax rate is 30%.

What is Simplico's weighted cost of capital for each of its capital elements and its weighted average cost of capital? (Carry out to two decimal places, for example 30.00%.)

DEBT: 1.68%
PREFERRED STOCK: .78%
COMMON STOCK: 5.00%
WEIGHTED AVERAGE COST OF CAPITAL: 7.46%

[Teal]

I am absolutely crap at BEC. I am trying so hard to get this stuff though!! This is seriously the hardest test for me so far. Is anyone else the same way, or am I just super weird?!

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[Teal]

@houston2017 that's so odd! I was not having any issues with Wiley…

FAR (66,68) Aug 26
REG (66) July 25
AUD (66) December 1st
BEC - October 3rd

[cpApex Predator]

Just took BEC exam. This is the only test that I walked out of feeling certain that I passed. Hopefully I don't fall victim to the case of feeling confident so I in fact failed. There was a good mix of questions, in my opinion. Probably about 20 percent computation in MCQ. Some posters on this board said that there were only two computation questions, but that wasn't my experience. The computation questions were pretty shallow, but a few really made me think. Other posters on this board said there were a really high percentage of off-the-wall IT questions, but that was not my experience. Certainly a decent amount of COSO. First testlet was way easier than second with only four that I had flagged to go back to on the first testlet and two of those I figured out, and two I ended up guessing on. The second testlet had maybe three or four that I straight up guessed on and maybe missed a few others. The SIMS were a lot easier than the SIMS on other tests. Not as many documents to review. Seemed more like an old school SIM. Definitely got you thinking, but shallow computations and the concepts could be reasoned through pretty well. Thought it was a great balance of topics. One SIM from each of the big overarching themes or sections. The written communications were pretty easy with concepts that are in the study materials. Finally on the fourth exam I plotted out my time perfectly. Exactly two hours left after three testlets and finished the exam with three minutes to spare. Definitely have enough time to think through everything. Really took my time on the MCQ and finished those in 45 minutes. A lot of reading in the SIMS. Have to read through everything a couple times before things start to click. One SIM was frustrating in that it didn't tell you to put in zeros in blanks, so unsure about that. In short, you all can do it! Keep plugging away.

[FutureCPA]

@cpApexPredator

Thanks for sharing your experience with us. I will be taking BEC on Dec 4th and hope I can be prepared as much as I think I am. Right now, I am just planning to ram mcqs until exam day, sadly this is my 4th time taking BEC. I do hate BEC with a passion but must get this done once and for all! Can you let me know which CPA review did you use to study BEC?

[CoachEmUp]

@cpapexpredator good to hear. Hope to have the same feeling in 2 days! Cheers to you, the one month wait is on!

[cpApex Predator]

Thanks, CoachEmUP. @FutureCPA, I used Wiley and Ninja MCQ. I really found it beneficial to have a second test bank through Ninja. The main focus of my studies was MCQ. Went through Wiley test bank four times and through Ninja test bank twice. Probably studied way more than I needed to as a job prospect fell through and didn't have much other to do than study. Best of luck!

[Peggy]

Completely stressed out right now!! After reading reviews of the exam I just don't feel as prepared as I should. Taking the exam 11/22. This is my fifth go at BEC. I feel I would have passed already if not for the written communication. I'm not a writer and go blank when I see the written communication scenario. I can usually get out one sentence then my brain shuts down. How do non writers prepare for the written?

[Author]

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