Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Chapter 22, Problem 4R
Suppose the company has to revise its estimates because of a downturn in the economy. Unit sales for August, September, and October will be half (50%) of the original estimates. Revise the estimates in cells 1311 through 1313. After this is done, check your
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Students have asked these similar questions
DAS Co. is preparing its financial forecast for next year and its AFN is negative. This means that
Select one:
O a. the predicted change in total assets must be negative.
O b. sales growth must be negative.
O c. the dividend payout ratio must be greater than the predicted growth rate in sales.
O d. the predicted change in spontaneous liabilities must be greater than the predicted change in
total assets.
Alderson Metals is compiling a cash balance projection by quarter for next year. Which one of the following adjustments to this projection will decrease the cumulative surplus?
A.
Reducing payroll costs from its current projection amount
B.
Decreasing the accounts receivable period by changing the firm's credit policy effective the first of next year
C.
Receiving more favorable credit terms from the firm's suppliers
D.
Increasing the dividend per share on the firm's outstanding common stock
E.
Refinancing the firm's long-term debt at a lower interest rate
Jefferson City Computers has developed a forecasting model to determine the additional funds it needs
in the upcoming year. All else being equal, which of the following factors is likely to increase its additional
funds needed (AFN)?
A sharp increase in its forecasted sales and the company's fixed assets are at full capacity.
A reduction in its dividend payout ratio.
The company reduces its reliance on trade credit that sharply reduces, its accounts payable.
Statements a and b are correct.
Statements a and c are correct.
Chapter 22 Solutions
Excel Applications for Accounting Principles
Ch. 22 - Ranger Industries has provided the following...Ch. 22 - Open the file MASTER from the website for this...Ch. 22 - Review the completed master budget and answer the...Ch. 22 - Suppose the company has to revise its estimates...Ch. 22 - Suppose the company has just the opposite news and...Ch. 22 - Prob. 6R
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- Bulldogs inc. will least likely experience which of the following if the firm shifts its credit terms from n/25 to 3/10, n/25 a. the computed days sales outstanding will decrease b. the percentage of credit sales from the total sales revenue will increase c. cash conversion cycle will tend to increase d. decrease in short-term borrowingsarrow_forwardData on Shick Inc. for last year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365 day year. Do not round yourData on Shick Inc. for last year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year. Do not round your intermediate calculations. Sales $103, 000 Accounts receivable $16,000 Days Sales Outstanding (DSO) 56.699 Benchmarks' Days Sales Outstanding (DSO) 19.000 a. $9,805 b. $11,471 c. $10, 638 d. $4,529arrow_forward1. How much long-term debt will the company have to issue next year? 2. If the operations are not in full capacity, what will be your answer?arrow_forward
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