Exam 4: Financial Planning and Forecasting

The valuation of debt and equity securities is based upon the _____________.

Cash budgets are typically prepared on a(n) ________ basis and subdivided into __________.

A good operational plan incorporates a plan for ____________.

When preparing a cash budget, once a firm has estimated its cash receipts the firm must ____________.

The main advantage of deterministic models is that they _____________.

All the following current liabilities normally vary directly with sales EXCEPT ______________.

What is the difference between the direct method and the indirect method of presenting the cash flow from operations?

_________ financial planning models are becoming increasingly popular because they often provide financial decision makers with more useful information than other models.

Generally, which of the following non-cash charges is (are) added to after-tax earnings to calculate the after-tax cash flow? I. Depreciation II. Deferred taxes

Which type of financial model yields a distribution of possibilities rather than a single value?

ECG Monitors is forecasting that sales next year will be $8,640,000, a 20 percent increase over current sales. ECG has total assets of $3,840,000 and all assets will increase proportionately with sales. Of the current liabilities, only accounts payable (now $740,000) will increase with sales. What total financing will be needed by ECG to support the expected sales increase?

Why would a firm experience cash flow difficulties immediately after a good sales period?

The financial plan that is a "blueprint" detailing where the firm wants to be at some future point in time is the ___________.

In considering financial planning, the type of planning that focuses more on the overall direction of the business and the industry is _______.

In those industries in which capacity can be added only in discrete or "lumpy" increments, fixed assets are increased in a ____ manner as sales increase.

Last year Molex's net cash provided by operating activities was $14.1 million, and its net cash used by investing activities was $20.7 million. If net cash provided by financing activities was $9.8 million, what was the net increase (or decrease) in cash and cash equivalents during the year? Molex started the year with $2.1 million in cash.

An example of an investing activity is ___________.

The financial statement that shows the effects of a company's operating, investing, and financing activities on its cash balance is known as the _________.

A firm's operational plan states objectives that define where the firm wants to be at the end of the planning period. These objectives must be ___________.

Cash budgeting can be employed effectively by management to ___________.