Don't Answer unless you are $100\%,$ every single one previously answered is wrong. We obtain the following $2020$ forecasts of selected financial statement line items for Journey Company.

a$.$ Does forecasted cash deviate from the normal level for this company?

Calculate the company's normal cash level as a percentage of sales.

Normal cash as a $\%$ of sales

Using the answer above, compute what should be the normal cash balance for FY$2020.$

Normal cash balance for FY$2020$

b$.$ Is the deviation in part a large enough to require adjustment? Explain.

Yes. The deviation is large enough to require an adjustment.

c$.$ Identify three ways to adjust the forecasted cash balance.

Which option would least likely be used to adjust the cash balance?

Decrease capital expenditures

d$.$ Complete the following statement of cash flows assuming long$-$term debt is used to adjust the forecasted cash balance.

e$.$ Complete the following statement of cash flows assuming marketable securities are used to adjust the forecasted cash balance.