A firm is operating at 90 percent of capacity. This information is primarily needed to project which one of the following account values when compiling pro forma statements?
Multiple Choice Quizzes with Answer in English (Page: 384)
Which one of the following policies most directly affects the projection of the retained earnings balance to be used on a pro forma statement?
A firm is currently operating at full capacity. Net working capital, costs, and all assets vary directly with sales. The firm does not wish to obtain any additional equity financing. The dividend payout ratio is constant at 40 percent. If the firm has a positive external financing need, that need will be met by:
A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels. Given this, you can safely assume that the firm:
When constructing a pro forma statement, net working capital generally:
Which one of the following is correct in relation to pro forma statements?
Which one of the following statements is correct?
You are getting ready to prepare pro forma statements for your business. Which one of the following are you most apt to estimate first as you begin this process?
Which one of the following statements concerning financial planning for a firm is correct?
Financial planning:
The sustainable growth rate of a firm is best described as the:
The internal growth rate of a firm is best described as the:
Which one of the following ratios identifies the amount of assets a firm needs in order to generate $1 in sales?
Which one of the following correctly defines the retention ratio?
Which one of the following terms is defined as dividends paid expressed as a percentage of net income?
Which one of the following terms is applied to the financial planning method which uses the projected sales level as the basis for determining changes in balance sheet and income statement account values?
Atlas Industries combines the smaller investment proposals from each operational unit into a single project for planning purposes. This process is referred to as which one of the following?
Phil is working on a financial plan for the next three years. This time period is referred to as which one of the following?
Beach Wear has current liabilities of $350,000, a quick ratio of 1.65, inventory turnover of 3.2, and a current ratio of 2.9. What is the cost of goods sold?
The Dockside Inn has net income for the most recent year of $8,450. The tax rate was 38 percent. The firm paid $1,300 in total interest expense and deducted $1,900 in depreciation expense. What was the cash coverage ratio for the year?