2s. Typical steps in the financial A) preparing a sales forecast. B) analyzing cost data, C) estimating tax expense. D) all of the above. planning process inel ude 24. The financial planning process is the responsibility of A) financial analysts. B) operations staff C) marketing staff D) financial analysts, marketing staff, and operations staff interacting as a group Answer: 25. What is the most important ingredient in developing a firm's f A) A forecast of sales revenues B) Determining the amount of dividends to pay shareholders C) Projecting the rate of interest on proposed new debt D) Deciding upon which method of depreciation a firm should utilize Answer nancial plan? 26. The preparation of pro forma financial statements accomplishes which of the following objectives? A) It allows management to pinpoint a firm's optimal stock price. B) It is essential if the firm is to accurately estimate its weighted average cost of capital. C) It assists management in making decisions with respect to raising the capital that is needed for growth. D) It pinpoints periods when the firm will have short-term cash surpluses. Answer: 27. Purchases of plant and equipment can be determined from the A) current cash budget. B) previous period's balance sheet. C) pro forma income statement. D) use of ratio analysis. Answer 28. Which of the following is always a non-cash expense? A) Income taxes B) Salaries C) Depreciation D) None of the above Answer: 29. The primary purpose of a cash budget is to A) determine the level of investment in current and fixed assets. B) determine accounts payable. C) provide a detailed plan of future cash flows. D) determine the estimated income tax for the year