We obtain the following 2018 forecasts of selected financial statement line items for Journey Company. S...

 

 

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We obtain the following 2018 forecasts of selected financial statement line items for Journey Company. S millions 2017 Actual 2018 Est. Net Sales $708,554 $740,439 Marketable securities 67,096 62.096 Long-term debt Treasury stock (deducted from equity) Cash generated by operations 346,558 308,437 51,174 51,174 57,696 Cash used for investing (14,908) Cash used for financing (54,660) Total net change in cash Cash at beginning of period (11.872) 51,141 Cash at end of period $39,269 a. Does forecasted cash devlate from the normal level for this company? Calculate the company's normal cash level as a percentage of sales. Round answer to one decimal place. Using the rounded answer above, compute what should be the normal cash balance for FY2018, Round answer to the nearest million. 5 0 x million d. Fill in the blanks in the following statement of cash flows assuming long-term debt is used to adjust the forecasted cash balance. Use negative signs with answers, when appropriate. Cash generated by operations S Cash used for investing 0 x Cash used for financing 0 x Total change in cash Cash at beginning of period Cash at end of period 0 x e. Fill in the blanks in the following statement of cash flows assuming marketable securities are used to adjust the forecasted cash balance. Use negative signs with answers, when appropriate. Cash generated by operations S 0 x Cash used for investing Cash used for financing Total change in cash Cash at beginning of period Cash at end of period 0 x %24 We obtain the following 2018 forecasts of selected financial statement line items for Journey Company. S millions 2017 Actual 2018 Est. Net Sales $708,554 $740,439 Marketable securities 67,096 62.096 Long-term debt Treasury stock (deducted from equity) Cash generated by operations 346,558 308,437 51,174 51,174 57,696 Cash used for investing (14,908) Cash used for financing (54,660) Total net change in cash Cash at beginning of period (11.872) 51,141 Cash at end of period $39,269 a. Does forecasted cash devlate from the normal level for this company? Calculate the company's normal cash level as a percentage of sales. Round answer to one decimal place. Using the rounded answer above, compute what should be the normal cash balance for FY2018, Round answer to the nearest million. 5 0 x million d. Fill in the blanks in the following statement of cash flows assuming long-term debt is used to adjust the forecasted cash balance. Use negative signs with answers, when appropriate. Cash generated by operations S Cash used for investing 0 x Cash used for financing 0 x Total change in cash Cash at beginning of period Cash at end of period 0 x e. Fill in the blanks in the following statement of cash flows assuming marketable securities are used to adjust the forecasted cash balance. Use negative signs with answers, when appropriate. Cash generated by operations S 0 x Cash used for investing Cash used for financing Total change in cash Cash at beginning of period Cash at end of period 0 x %24

Answer rating: 100% (QA)

Statement of cash flow assuming long term debt is A Normal cash leval as a Percetage of sales Amount ... View the full answer