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67. What would be the appropriate way to forecast sales for a firm that has stable year-to-
year sales, but seasonally fluctuating month-to-month sales?
68. Silly Putty Inc. has had sales of $12 million, $17 million, and $16 million for each of the
last three years. What would be the MAPE if the actual sales were $15 million using the naїve
approach?
69. Silly Putty Inc. has had sales of $12 million, $17 million, and $16 million for each of the
last three years. What would be the MAPE if the actual sales were $15 million using the average
approach?
70. Abracadabra Inc. has total assets of $106,000 and a debt ratio of 40 percent. If last year's
sales were $145,000 and sales are expected to grow 10 percent in the future, what is
Abracadabra's capital intensity ratio?
71. Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has
$10.5 million in total assets and $1 million in current liabilities. The firm currently pays out 75
percent of its net income to shareholders. Assume that all assets and current liabilities are
expected to grow with sales. If Goldilochs does not want to rely on any external sources of funds,
what is the most sales can grow (in dollars)?
72. Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has
$12 million in total assets and $500,000 in current liabilities. The firm currently pays out 25
percent of its net income to shareholders. Assume that all assets and current liabilities are
expected to grow with sales. If Goldilochs does not want to rely on any external sources of funds,
what is the most sales can grow (in dollars)?
73. Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has
$12 million in total assets and $500,000 in current liabilities. The firm currently pays out 25
percent of its net income to shareholders. Assume that all assets and current liabilities are
expected to grow with sales. If Goldilochs does not want to rely on any external sources of funds,
what is the most sales can grow (in percent)?
74. Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has
$10.5 million in total assets and $1 million in current liabilities. The firm currently pays out 75
percent of its net income to shareholders. Assume that all assets and current liabilities are
expected to grow with sales. If Goldilochs does not want to rely on any external sources of funds,
what is the most sales can grow (in percent)?
75. Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has
$10.5 million in total assets. The firm's chief financial officer is projecting a 25 percent increase
in sales. The firm has $1.25 million in accounts payable and $1,500,000 in long-term debt
(bonds). The firm currently pays out 20 percent of its net income to shareholders. Assuming that
all assets and spontaneous liabilities are expected to grow with sales, how much in additional
funds will Goldilochs need from external sources to fund the expected growth?
76. Which of the following statements is incorrect?
77. Goldilochs Inc. reported sales of $8 million and net income of $2 million. The firm has a
total asset turnover of 3.2. The firm's chief financial officer is projecting a $5 million increase in
sales and that spontaneous liabilities will increase by $350,000 automatically. The firm currently
pays out 80 percent of its net income to shareholders. Assuming that all assets and current
liabilities are expected to grow with sales, how much in additional funds will Goldilochs need
from external sources to fund the expected growth?
78. Goldilochs Inc. reported sales of $8 million and net income of $2 million. The firm has a
total asset turnover of 1.2. The firm's chief financial officer is projecting a $6 million increase in
sales and that spontaneous liabilities will increase by $1 million automatically. The firm currently
pays out 50 percent of its net income to shareholders. Assuming that all assets and current
liabilities are expected to grow with sales, how much in additional funds will Goldilochs need
from external sources to fund the expected growth?
79. Which of the following is likely to increase the firm's additional funds needed?
