(Answered) The percentage of sales model takes into account the

Economics

The percentage of sales model takes into account the current assets to sales, and the current liabilities to sales only. The weakness in using the percent of sales model for financial planning is that the projected working capital is based off of the percentages of sales for current assets and current liabilities from a previous financial period. The inflexibility of this model is its true weakness in that current assets and liabilities are not fixed, and can grow or decrease (non linearly) at any given point in time based off of any unknown external influences which would or could change the actual percentage of sales model for the current financial period.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92440536
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

Suppose an industry that has n1 2 firms each with a supply

Suppose an industry that has n1 = 2 firms each with a supply curve S1(p) = 2p-8, and n2 = 4 firms each with a supply curve S2(p) = p-2. Construct the industry supply curve and plot it on a graph.

During a year of operation a firm collects 650000 in

During a year of operation, a firm collects $650000 in revenue and spends $250000 on labor expense, raw materials, rent, and utilities. The firm's owner has provided $350000 of her own money instead of investing the mone ...

In 2009 the hershey company of pennsylvania became the

In 2009, the hershey company of pennsylvania became the latest company to open a candy factory in mexico, joining other american candy companies including brach's confections and ferrara pan candy, which had opened plans ...

A firm has hired you as a consultantnbspthis firm is not

A firm has hired you as a consultant. This firm is not perfectly competitive--it has some control over prices. This firm is currently selling 1000 units, generating $10,000 in revenues and $12000 in total costs. The mar ...

If we compare and contrast the four market structures it is

If we compare and contrast the four market structures, it is evident that one market structure is most practiced and evident in the United States. It is the one that promotes and strives on competition. It is the one tha ...

Monthly water bills for a city have a mean of 10843 and a

Monthly water bills for a city have a mean of $108.43 and a standard deviation of $36.98. Find the probability that a randomly selected bill will have an amount greater than $165, which the city believes might indicate t ...

A lottery game has balls numbered 1 through 19 what is the

A lottery game has balls numbered 1 through 19. What is the probability of selecting an even numbered ball or a 9

What are the implications of outsourcing key public

What are the implications of outsourcing key public responsibilities to global corporations for the Australian state and society?

Once you have the total product curve plotted with the

Once you have the total product curve plotted with the below data, how do you calculate the average product of labor at different units of labor? And the marginal products of labor? 1 unit of labor=2 outputs per week 2 u ...

A firm undergoes a learning curve over its first few years

A firm undergoes a learning curve over its first few years of existence In its first year, its cost function is C(Q)= 128 + 3Q + 2q 2 with MC= 3 + 4Q In its second year, its cost function is C(Q)= 100 + 2Q + q 2 with ...

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

Recent Questions

Ask Business Economics Expert