Question: Below are questions from a Finance class assignment. I've left out the IS/BS provided, because I am looking for general guidance rather than actual answers.
Below are questions from a Finance class assignment. I've left out the IS/BS provided, because I am looking for general guidance rather than actual answers. I believe the class was given insufficient data to answer these questions intelligently.
Q1 Explain how the working capital accounts (receivables, inventory, payables) are forecasted.
Q2 Expain how EBIT is forecasted.
Q3 Explain how interest expense is forecasted.
Q4 Explain how PPE is forecasted.
Q5 Explain how long-term debt is forecasted.
Q6 Explain how stockholder's equity is forecasted.
Q7 Explain where EFN (expected financing need) comes from and explain what it means, i.e., what does the forecast tell you? Yellow highlighting starting at row 68 warns you that forecasted ratios are incomplete beause the financing for EFN has not been determined.
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