Financial Planning and Forecasting: Multiple Choice: Conceptual
Financial Planning and Forecasting: Multiple Choice: Conceptual
Financial Planning and Forecasting: Multiple Choice: Conceptual
Easy:
Percent of sales method Answer: e Diff: E
1. The percent of sales method is based on which of the following assumptions?
a. A sharp increase in its forecasted sales and the company’s fixed assets
are at full capacity.
b. A reduction in its dividend payout ratio.
c. The company reduces its reliance on trade credit that sharply reduces
its accounts payable.
d. Statements a and b are correct.
e. Statements a and c are correct.
Chapter 17 - Page 1
Additional funds needed Answer: c Diff: E
4. Which of the following is likely to increase the additional funds needed
(AFN) in a given year?
Chapter 17 - Page 2