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1. Which of the following is a set of financial statements depicting an operating division of a
firm's expected financial situation in the foreseeable future under the most reasonable set of
assumptions concerning relevant factors?
2. The set of assumptions underlying the firm's financial plan and the resulting projected
financial statements are accordingly often referred to as which of the following?
3. Financial planning involves estimating projected cash flows, which is useful for all the
following EXCEPT:
4. The simplest approach to estimating a future period's sales is to assume that they will be
equal to those of the latest observed period. In statistics, this is often simply referred to as which
of the following?
5. Forecasted sales drives all of the following EXCEPT:
6. Which of the following is defined as assuming that future sales will be equal to the
average historical value across some relevant period?
7. Which of the following is used to remove the effects of seasonality from historic data?
8. Which of the following is the practice of one firm selling to another on credit terms?
9. What is computed by dividing the amount of assets tied directly to sales (
A
*) by the
amount of current sales (
S
0)?
10. Which of the following is the amount of external financing a firm must seek in order to
change the asset base as necessary to support a different level of sales?
11. Which of the following can be computed as: necessary increase in assets minus
spontaneous increase in liabilities minus projected increase in retained earnings?
12. If a firm has excess capacity when calculating AFN (Additional Funds Needed),
A
* will
most likely equal which of the following?
13. Which of the following are considered "chunky" or "lumpy" assets?
14. The additional funds needed by the firm can be calculated by assuming which of the
following?
15. Which statement is most correct regarding how pro forma financial statements can be
used to estimate additional funds needed?
16. Which of the following defines the term
deseasonalize?
17. Which of the following defines MAPE?
18. First order effects are defined as which of the following?
19. Which of the following defines iterative calculation?
20. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using the naїve approach?
21. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using the naїve approach?
22. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using the average approach?
23. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using the average approach?
24. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using the average approach?
25. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using the average approach if it was determined that 2008 is a
"stale" year?
26. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using the average approach if it was determined that years 2008
and 2009 were "stale"?
27. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using the average approach if it is determined that 2011 is a "stale"
year?
