Sophia Principle of Finance Milestone Study Guide Revisions

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1 — Financial Forecasting The process of applying sales goals to production in order to maximize efficiency is __________. capacity planning 2 — Forecasting the Income Statement Robyn wants ... to prepare a pro forma income statement for her business. What must she predict before forecasting her expenses? Sales 3 — Forecasting the Balance Sheet The pro forma balance sheet is prepared to ensure that the company's projected performance is in line with its __________. strategic plan 4 — Building a Cash Budget Select a reason why cash flow forecasting is important to a company's success. It helps a company avoid running out of cash to make payments with. 5 — Analyzing Forecasts What is a question that should be asked about accounts payable when forecasting? How much cash is needed on hand to meet current liabilities? Sophia Principles of Finance Unit 4 Challenge 3 1 — Working Capital What can a business that has too much working capital do to reduce it? Relax its customer credit policy 2 — Working Capital Financing Which of the following is a goal of working capital management? To meet day to day expenses while minimizing the cost of holding cash 3 — Cash Conversion Cycle A company has a 120-day operating cycle with 80 inventory days, 40 receivable days and 15 payable days. What is their cash conversion cycle? [Show More]

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