Finman3 Terms
Finman3 Terms
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FINMAN 3 FINALS
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The prediction of the firm's sales over a given period, based on
SALES FORECAST external and/or internal data; used as the key input to the
short-term financial planning process.
This prediction of the firm's sales over a given period is ordinarily
SALES FORECAST
prepared by the marketing department.
On the basis of the _________________, the financial manager
SALES FORECAST estimates the monthly cash flows that will result from projected
sales and from outlays related to production, inventory, and sales.
The manager also determines the level of fixed assets required
SALES FORECAST and the amount of financing, if any, needed to support the forecast
level of sales and production.
or average age of accounts payable, the average amount of time
AVERAGE PAYMENT PERIOD
needed to pay accounts payable
also known as Horizontal Analysis
TREND ANALYSIS which requires several years of data and comparing them to each
other as a growth rate.
is a financial analysis technique used to evaluate a company's
HORIZONTAL ANALYSIS
performance over multiple periods.
include all of a firm's inflows of cash during a given financial period.
CASH RECEIPTS The most common components of _____________ are cash
sales, collections of accounts receivable, and other cash receipts.
COMMON-SIZE STATEMENT A popular tool for evaluating profitability in relation to sales
are especially useful in comparing performance across years.
Three frequently cited ratios of profitability that can be read
COMMON-SIZE STATEMENT directly from the common-size income statement are (1) the gross
profit margin, (2) the operating profit margin, and (3) the net profit
margin.
the systematic charging of a portion of the costs of fixed
DEPRECIATION
assets against annual revenues over time.
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