Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Homework Help/Study Tips Expert

Answer the given five problems on a separate document. Describe how you reached the answer or show your work if a mathematical calculation is required, or both. Submit your assignment by using the assignment link in the course shell.

1. F. Marston, Inc. has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to an increase of the additional funds needed (AFN)?

a. A switch to a just-in-time inventory system and outsourcing production.
b. The company reduces its dividend payout ratio.
c. The company switches its materials purchases to a supplier that sells on terms of 1/5, net 90, from a supplier whose terms are 3/15, net 35.
d. The company discovers that it has excess capacity in its fixed assets.
e. A sharp increase in its forecasted sales.

2. The term "additional funds needed (AFN)" is generally defined as follows:

a. Funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock to support operations.
b. The amount of assets required per dollar of sales.
c. The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.
d. A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.
e. Funds that are obtained automatically from routine business transactions.

3. The capital intensity ratio is generally defined as follows:

a. The percentage of liabilities that increase spontaneously as a percentage of sales.
b. The ratio of sales to current assets.
c. The ratio of current assets to sales.
d. The amount of assets required per dollar of sales, or A0*/S0.
e. Sales divided by total assets, i.e., the total assets turnover ratio.

4. Which of the following is NOT one of the steps taken in the financial planning process?

a. Monitor operations after implementing the plan to spot any deviations and then take corrective actions.
b. Determine the amount of capital that will be needed to support the plan.
c. Develop a set of forecasted financial statements under alternative versions of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios.
d. Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors.
e. Forecast the funds that will be generated internally. If internal funds are insufficient to cover the required new investment, then identify sources from which the required external capital can be raised.

5. Spontaneous funds are generally defined as follows:

a. A forecasting approach in which the forecasted percentage of sales for each item is held constant.
b. Funds that a firm must raise externally through short-term or long-term borrowing and/or by selling new common or preferred stock.
c. Funds that arise out of normal business operations from its suppliers, employees, and the government, and they include immediate increases in accounts payable, accrued wages, and accrued taxes.
d. The amount of cash raised in a given year minus the amount of cash needed to finance the additional capital expenditures and working capital needed to support the firm's growth.

Homework Help/Study Tips, Others

  • Category:- Homework Help/Study Tips
  • Reference No.:- M915505

Have any Question? 


Related Questions in Homework Help/Study Tips

Explain why your selected sources are important to the case

Explain why your selected sources are important to the case you are studying. To help with this assignment you may look at the following information, but you are not limited to the information: HIPAA regulation Mental di ...

Demographics beliefs finances independence and many other

Demographics, beliefs, finances, independence, and many other factors may affect an individual's or a couple's options for living environments. Because of the importance of proper environment choice, you have been given ...

Government-job descriptionresource an online search for

Government-Job Description Resource: An online search for effective job descriptions Select a public agency at the state or local level such as the IRS, DMV, or Police, and identify a significant leadership role. Analyze ...

Portfolio tasks1 use an essay format to answer the assigned

Portfolio Tasks 1. Use an essay format to answer the assigned tasks. The prescribed structure is given below. 2. Write an introductory paragraph that provides a brief overview of the company featured in the video. Briefl ...

Create your own interpretation of a poem underscore and

create your own interpretation of a poem. Underscore and define unfamiliar vocabulary, note formal elements, identify the speaker, situation, etc. Your essay must comment on each line of the poem and it must include an i ...

The professor instructionsthe papers are each worth 60

The professor Instructions: The papers are each worth (60) points and the due dates are included in the class schedule toward the end of this syllabus. The papers all have the same four points for you to answer: 1) Summa ...

A 10-12 page paper on the history and developement of jazz

A 10-12 page paper on the history and developement of Jazz in Los Angeles. Include things such as famous venues, historic performances, and important musicians involved in the city.

Earth science processes photo essay -the earth science

Earth Science Processes Photo Essay - The Earth Science processes discussed in class are not only found in exotic locations, but in our own immediate environment.  Being able to recognize physical processes in the landsc ...

Analyze the health status of a specific minority group

Analyze the health status of a specific minority group. Select a minority group that is represented in the United States (examples include: American Indian/Alaskan Native, Asian American, Black or African American, Hispa ...

Discussion foundational pioneers in informaticsthe

Discussion: Foundational Pioneers in Informatics The smartphone has become an increasingly valuable tool in the field of medicine. Because of the phone's small size and powerful computing capabilities, doctors, nurses, a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen