Question: Why does it make sense to let the firm s cash
Why does it make sense to let the firm’s cash balance or a short-term liability account serve as the plug figure in pro forma projections? Why not use gross fixed assets as the plug figure?
Answer to relevant QuestionsWhy might pro forma statements and the equation for external funds required (EFR) yield different projections for a firm’s financing needs? Review the abbreviated financial statements for the last two years for the Norne Energy Corp. All values are expressed in billions of dollars. a. What was Norne’s sustainable growth rate at the end of 2011? b. How rapidly ...Berlin Inc. expects sales of $300,000 during each of the next three months. It will make monthly purchases of $180,000 during this time. Wages and salaries are $30,000 per month plus 5% of monthly sales. The firm expects to ...What trade-off confronts the financial manager with regard to inventory turnover, inventory cost, and stockouts? In what way is inventory viewed as an investment? Canadian Products is concerned about managing its operating assets and liabilities efficiently. Inventories have an average age of 110 days, and accounts receivable have an average age of 50 days. Accounts payable are paid ...
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