Question 1

In the percent-of-sales method, an increase in dividends

Accepted Answer

A)  will increase required new funds.
B)  will decrease required new funds.
C)  has no effect on required new funds.
D)  More information is needed.

Question 2

XYZ Co. has forecasted June sales of 400 units and July sales of 700 units. The company maintains ending inventory equal to 125% of next month's sales. June beginning inventory reflects this policy. What is June's required production?

Accepted Answer

A)  750 units
B)  0 units
C)  775 units
D)  425 units

Question 3

The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 20XX to be as follows:

Accepted Answer

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Question 4

The primary purpose of the cash budget is to forecast income.

Accepted Answer

A) True 
 B)False

Question 5

In forecasting a firm's cash needs for some future period

Accepted Answer

A)  the percent-of-sales method is a "broad-brush" approach.
B)  cash budgets are more exact than the percent-of-sales method.
C)  a cash budget approach can deal effectively with both level and seasonal production schedules.
D)  All of the options.

Exam 4: Financial Forecasting

The primary purpose of the cash budget is to forecast income.

Correct Answer
verified

In forecasting a firm's cash needs for some future period

Correct Answer
verified

The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 20XX to be as follows:

Correct Answer
verified
\[\begin{array} { l r r }
& \underline ...
View Answer

XYZ Co. has forecasted June sales of 400 units and July sales of 700 units. The company maintains ending inventory equal to 125% of next month's sales. June beginning inventory reflects this policy. What is June's required production?

Correct Answer
verified

In the percent-of-sales method, an increase in dividends

Correct Answer
verified

Exam 4: Financial Forecasting

The primary purpose of the cash budget is to forecast income.

Correct AnswerverifiedShow Answer

In forecasting a firm's cash needs for some future period

Correct AnswerverifiedShow Answer

The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 20XX to be as follows:

Correct Answerverified\[\begin{array} { l r r } & \underline ...View AnswerShow Answer

XYZ Co. has forecasted June sales of 400 units and July sales of 700 units. The company maintains ending inventory equal to 125% of next month's sales. June beginning inventory reflects this policy. What is June's required production?

Correct AnswerverifiedShow Answer

In the percent-of-sales method, an increase in dividends

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
\[\begin{array} { l r r }
& \underline ...
View Answer

Correct Answer
verified

Correct Answer
verified