Question: You are prepating some projectons for Erratic, inc. and are forecasting a roduction in sales pe 15% next yeac, with an inctease of 15% the
You are prepating some projectons for Erratic, inc. and are forecasting a roduction in sales pe 15% next yeac, with an inctease of 15% the following year. You consider that all other drivers, such as accounts receivable days, accounts payable days and inventory days, will remain the saire, and thern will be no change in margina What is likely to thappen to cash fiow over the next 2 years? Cash fiow will likely increase in year 1 and then decline in year 2 Cash flow will likety decline in year 1 and increase in year 2 Provided the business is profitable, cash flow will incresse in both yaan
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
