Business, 28.02.2020 00:34 Christyy9608

Explain how the working capital accounts (receivables, inventory, payables) are forecasted. Q2 Expain how EBIT is forecasted. Yellow highlighting connects balance sheet debt to income statement interest. 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 comes from and explain what it means, i. e., what does the forecast tell you

Answers: 1

Show answers

Answers

Q1. Working capital accounts : inventory is forecasted using previous years data, trends, how much goods will be purchased, produced, sold, planned promotions , production cycles and ratios related to inventory.

Accounts Receivables are forecasted using how much products will be sold on credit, debtors collection patterns to determine balances at the end of the year and ratios relating to accounts receivables.

Accounts payable are forecasted using creditors payment patterns, how much goods will be purchased on credit.

Q2 EBIT is forecasted by forecasting the revenues and Expenses.

Q3 interest expense is forecasted using projected debt multiple by projected interest rate, and also taking into account projected repayments and additions of debt.

Q4 PPE is forecasted adding projected additions and subtracting disposals then get the projected balance at the end of the year.

Q5 long term debt if projected by forecasting any debt needed and any repayments of debt

Q6 Stockholder's equity is forecasted by using the forecasted retained earnings from profits and by forecasting any capital raises or repurchase of company shares. Or can be forecasted by taking the forecasted assets subtracting forecasted liabilities.

Q7 EFN comes from the need to grow and financing that growth. EFN stands for External Financing Needed and is the difference between the growth (Asset section) and the funds in retained earnings( equity and liability section)

EFN is first forecasted and the forecast means the business has space for growth or not.

Explanation:

Answer from: Quest

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

Answer from: Quest

Ithink its b hope it ! : )

Another question on Business

Business, 22.06.2019 01:20

Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $58. a, compute the percentage total return. (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. what was the dividend yield and the capital gains yield? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers: 2

Answer

Business, 22.06.2019 05:30

From a business perspective, an information system provides a solution to a problem or challenge facing a firm and represents a combination of management, organization, and technology elements. the organization's hierarchy, functional specialties, business processes, culture, and political interest groups are components of which element of information systems?

Answers: 1

Answer

Business, 22.06.2019 05:40

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

Answers: 1

Answer

Business, 22.06.2019 07:30

Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.

Answers: 1

Answer

You know the right answer?

Explain how the working capital accounts (receivables, inventory, payables) are forecasted. Q2 Expai...

Questions